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US Tariff Threat Jeopardizes Sri Lanka’s Glittering Export

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Sri Lanka’s world-renowned gem and jewellery industry, a centuries-old sector central to the nation’s economy and cultural identity, is under serious threat from a proposed reciprocal tariff by the United States. Industry leaders have voiced alarm over the potential fallout, warning that the tariff hike could severely disrupt exports, reduce competitiveness, and endanger the livelihoods of over 600,000 people directly and indirectly employed across the value chain.

The United States currently sources around 10% of its gemstones from Sri Lanka, either directly or via key intermediary trade hubs such as Thailand, Hong Kong, Dubai, and Switzerland. This longstanding trade relationship has nurtured mutual economic growth, while helping preserve a rich tradition of craftsmanship and entrepreneurship rooted in Sri Lanka’s gem-producing heritage.

However, industry sources now warn that the proposed US tariffs could reverse decades of progress. By making Sri Lankan gems and jewellery more expensive in the American market, the new duties would reduce export volumes, squeeze margins for small and medium-sized enterprises (SMEs), and trigger job losses across sectors—from mining and cutting to trading, designing, and exporting.

“This could have devastating consequences for families already burdened by economic challenges and recovering from the pandemic,” one source noted. The industry fears that the social and economic ripple effects of a tariff would extend far beyond business losses, threatening the very fabric of communities dependent on the gem trade.

Moreover, the tariff risks fracturing a bilateral relationship built on trust, quality, and mutual economic benefit. Sri Lanka’s gemstone sector has long been prized globally for its quality and diversity, contributing significantly to the US jewellery market. Industry leaders stress that maintaining duty-free or preferential access is crucial—not only for preserving local livelihoods but also to meet American consumer demand for authentic, ethically sourced gems.

Given the seriousness of the threat, Sri Lanka’s gem and jewellery sector is calling on the government to engage in urgent diplomatic dialogue with the US administration and relevant trade bodies. The goal: to seek the removal or reconsideration of the proposed tariff.

“Preserving this vital trade link is not just about economic survival—it’s about upholding fair trade, protecting heritage, and ensuring international cooperation endures in uncertain times,” industry representatives emphasized.

As Sri Lanka navigates a fragile post-pandemic recovery, the outcome of this trade dispute could have lasting repercussions on one of its most iconic and economically vital industries.

Legal Action Taken Against Dengue Breeding Sites in Ratnapura

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The Sabaragamuwa Provincial Health Services Office has initiated legal proceedings against 28 identified dengue breeding sites within the Ratnapura Municipal Council area, according to Dr. Kapila Kannangara, Director of Provincial Health Services.

In addition to these legal measures, red notices have been issued to 135 other locations deemed vulnerable to dengue mosquito breeding. Dr. Kannangara highlighted that as of January 2025, the Ratnapura District has recorded approximately 1,700 dengue cases, with around 515 of them reported specifically from the Ratnapura Municipal Council area.

Among those affected, 199 staff members of the Ratnapura Teaching Hospital have contracted the disease, further emphasizing the seriousness of the outbreak. The health sector is actively conducting inspections across a wide range of premises including schools, religious sites, government and private institutions, roads, and private properties deemed suspicious within the municipality.

The ongoing dengue eradication programme, led by the Sabaragamuwa Provincial Health Services Office under the Provincial Council, is being supported by the Sri Lanka Army to strengthen monitoring and control efforts.

Rs. 131.2 Million Allocated for Tourism Development in Jaffna District

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The Ministry of Foreign Affairs, Foreign Employment and Tourism has allocated Rs. 131.20 million for tourism development initiatives in the Jaffna District for 2025. This funding was the main focus of a recent review meeting held at the Jaffna District Secretariat, chaired by Government Agent M. Piiratheepan.

The meeting assessed progress and planning for key projects intended to revitalise several of Jaffna’s significant tourist attractions. Among the priority sites were Casuarina Beach in Karainagar, various islands in the Kayts Division, and the culturally rich coastal zones of Tellippalai.

Casuarina Beach, one of the most popular coastal destinations in the Northern Province, is slated for major enhancements. It was agreed that on-site inspections in collaboration with relevant departments would guide the utilisation of the allocated funds, with the aim of transforming the beach into a fully-equipped, accessible, and tourist-friendly location.

Island tourism was also a central topic, with particular focus on the renovation of key boat piers. The Puliyanthivu pier in Analaitivu and the Kannaki Amman pier in Kayts will undergo improvements to boost transport connectivity to the islands. Additionally, the Kayts pier area will receive landscaping upgrades including tree planting and seating facilities, designed to improve the overall visitor experience.

In Tellippalai, attention was drawn to Keerimalai Beach, a site of cultural and religious significance to the Tamil community. Following a request by the Government Agent, Rs. 35 million was allocated for the removal of coastal rocks that obstruct traditional Hindu rituals for the deceased. This project will also include infrastructure improvements to ensure better access and visitor amenities.

The Kankesanthurai beach, which hosts a children’s park currently damaged by sea erosion, was also reviewed, with plans for immediate restoration being discussed.

GA Piiratheepan stressed the importance of completing all development work within the planned timeframe and urged all departments to implement sustainable maintenance strategies to ensure long-term success of the projects.

The meeting was also attended by Additional Government Agent (Land) K. Shrimohanan, Planning Director E. Surendranathan, Chief Engineer K. Thirukumar, Divisional Secretaries from Tellippalai, Karainagar, and Kayts, as well as local council secretaries and tourism officials.

President Anura Kumara Dissanayake to Undertake State Visit to Vietnam from May 4–6

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President Anura Kumara Dissanayake will embark on an official state visit to Vietnam from May 4 to 6, at the invitation of Vietnamese President Luong Cuong. The visit marks an important milestone in the longstanding relationship between Sri Lanka and Vietnam, as the two nations commemorate 55 years of diplomatic ties in 2025.

During his visit, President Dissanayake is scheduled to hold bilateral discussions with President Luong Cuong and Prime Minister Pham Minh Chinh. He will also meet with other senior Vietnamese leaders, including the General Secretary of the Communist Party of Vietnam.

A highlight of the visit will be President Dissanayake’s role as the Chief Guest at the United Nations Day of Vesak celebrations in Ho Chi Minh City, where he will deliver the keynote address. This participation underscores Sri Lanka’s spiritual and cultural contributions to the international Buddhist community.

The two countries are expected to sign a series of Memoranda of Understanding and bilateral agreements aimed at deepening cooperation across various sectors. The visit will also include engagements with the Vietnamese business community, reflecting efforts to boost economic collaboration between the two nations.

President Dissanayake will be accompanied by Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath, along with senior government officials, highlighting the significance of the state visit in strengthening political, economic, and cultural ties between Sri Lanka and Vietnam.

National Credit Guarantee Programme Launched to Support Sri Lankan MSMEs

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The National Credit Guarantee Institution Limited (NCGIL) has launched a landmark initiative aimed at enhancing access to finance for Sri Lanka’s Micro, Small, and Medium Enterprises (MSMEs). This national-level programme, operated in partnership with the Government of Sri Lanka (GOSL) and leading financial institutions, marks the first of its kind in the country.

The initiative encourages Participatory Financial Institutions (PFIs) to issue loans to MSMEs based on the viability of business cash flows rather than traditional collateral-based lending. NCGIL provides guarantee cover to these shareholder Financial Institutions (SFIs) to mitigate their credit risk, enabling more flexible and inclusive financing for the MSME sector — widely regarded as the backbone of the country’s economy.

NCGIL began operations in January and has already issued its first set of guarantees to three financial institutions to partially cover loans granted to three MSMEs. Thirteen PFIs, including eight commercial banks, two specialized banks, and three licensed finance companies, are involved in the programme. These include People’s Bank, Bank of Ceylon, Regional Development Bank, Commercial Bank, Hatton National Bank, Sampath Bank, Seylan Bank, National Development Bank, Nations Trust Bank, Sanasa Development Bank, LB Finance, Central Finance, and Citizens Development Business Finance.

The programme is supported by a USD 50 million long-term fund provided by the Asian Development Bank (ADB), which accounts for 90% of NCGIL’s capital. The remaining 10%, amounting to USD 5.375 million, is invested by the 13 financial institutions.

Eligible MSMEs — defined as businesses with annual turnover under Rs. 1 billion — can now apply for term loans ranging from Rs. 500,000 to Rs. 25 million for capital expenditure or permanent working capital needs. Financial institutions participating in the programme can request a credit guarantee from NCGIL to cover up to 67% of the approved principal loan amount.

This initiative is expected to significantly improve credit accessibility for MSMEs and drive entrepreneurship and economic growth across Sri Lanka.

WEATHER FORECAST FOR 03 MAY 2025

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The Intertropical Convergence Zone (where winds from the Northern Hemisphere and Southern Hemisphere converge) further affects the island’s weather.

Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, Southern, Uva, Eastern and North-central provinces after 1.00 p.m.

Fairly heavy falls about 75 mm are likely at some places in Western, Sabaragamuwa, Central, Southern and Uva provinces.

Showers or thundershowers may occur at a few places elsewhere of the island during the afternoon or night.

Showers or thundershowers may occur in Western and Southern provinces and in Puttalam and Mannar districts in the morning too.

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

Misty conditions can be expected at some places in Central and Uva provinces and in Ampara and Polonnaruwa districts during the morning.

Sabaragamuwa University launches internal probe into student’s tragic death amid ragging allegations

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May 02, Colombo (LNW): Sabaragamuwa University has initiated a formal internal inquiry following the sudden and deeply troubling death of a 23-year-old undergraduate, Charith Dilshan, a second-year student enrolled in the Department of Engineering Technology.

The incident, which has sent shockwaves through the academic community, has raised serious concerns over the possible involvement of hazing practices.

The university’s administration has constituted a special three-member investigative committee, led by Senior Professor A.A.Y. Amarasinghe. Professor Kapila Rathnayaka and legal expert Attorney-at-Law Y.S. Chandrasekara have also been appointed to the panel.

Their mandate is to carry out a comprehensive review of the circumstances surrounding the student’s death and to submit their findings at the earliest opportunity.

In a statement issued by Vice-Chancellor Professor Sunil Shantha, the university expressed its deep sorrow over the loss and affirmed its commitment to uncovering the truth behind the incident.

The administration has pledged to support the inquiry with full transparency and seriousness.

The tragic event has stirred further concern after a fellow student lodged a formal complaint with the Samanalawewa Police, claiming that the deceased had endured ragging—an entrenched form of bullying and harassment often reported in Sri Lankan universities.

According to the complaint, Dilshan may have succumbed to psychological pressure stemming from such treatment, leading to his decision to take his own life by hanging.

Initial reports suggest that Dilshan, known amongst peers as a quiet and dedicated student, had shown signs of emotional distress in the days leading up to his death.

The allegation of ragging being a contributing factor has brought renewed scrutiny to campus safety and student welfare, reigniting the national debate on the persistent issue of institutionalised abuse in higher education.

Authorities have yet to release further details regarding the ongoing police investigation, but both criminal and administrative inquiries are expected to proceed in parallel.

The university has called upon students and staff to cooperate fully with investigators and has assured the community that necessary action will be taken based on the committee’s recommendations.

The case has also prompted broader calls for reform, with student groups and civil society organisations urging a crackdown on ragging culture and the introduction of more effective mental health support systems on campus.

Suspended IGP Faces Death Threats: Can the Law Shield Those Under Fire?

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By: Ovindi Vishmika

May 02, Colombo (LNW): The suspended Inspector General of Police (IGP) Deshabandu Tennakoon has formally requested state protection following alleged death threats linked to powerful underworld figures, reigniting national debate on the legal entitlements of individuals facing legal proceedings. The development has prompted a broader discussion on whether individuals under suspension, arrest, or bail are entitled to personal protection under Sri Lankan law when facing credible threats to their lives.

Tennakoon, who has been suspended over serious allegations and is currently out on bail, submitted a written request for protection to Acting IGP Priyantha Weerasuriya on May 1. The appeal cites intelligence reports pointing to threats from organized crime syndicates, including fugitive underworld leader “Kanjipani Imran,” believed to be orchestrating criminal activities from overseas.

Authorities have confirmed that a formal threat assessment is currently being conducted. If a credible risk is established, appropriate security measures are expected to be reinstated.

Legal Framework: Protection Regardless of Legal Status

Despite Tennakoon’s suspension and ongoing investigations, legal experts emphasize that Sri Lankan law does not disqualify individuals from state protection solely based on their legal status. According to the Assistance to and Protection of Victims of Crime and Witnesses Act, No. 4 of 2015, individuals who are threatened due to their involvement in legal processes as witnesses, complainants, or even accused are entitled to protective measures.

Senior Attorney-at-Law Dinesh Abeywickrama stated, “The right to life and protection from harm is fundamental. Whether someone is a suspended official, under bail, or even convicted, if there is a verified threat, the state is obligated to act.”

This provision is supported by Article 11 and Article 12 of the Constitution of Sri Lanka, which guarantee equality before the law and protection from cruel, inhuman, or degrading treatment or punishment.

A closely related case involves Matara Deputy Inspector General of Police (DIG) Nishantha Soysa, who also sought protection after allegedly receiving threats subsequent to testifying in the investigation against Tennakoon.

The Matara Magistrate’s Court ordered security for DIG Soysa, acknowledging the legitimacy of the threats and reinforcing the judiciary’s willingness to safeguard individuals regardless of their current role or status.

Investigations and Legal Oversight

The Criminal Investigation Department (CID) has launched an official probe into the threats made against Tennakoon. With judicial approval, statements will be recorded from two suspects currently held at Boossa High Security Prison.

Meanwhile, a Committee of Inquiry (CoI) led by Supreme Court Justice Preethi Padman Surasena continues to examine the allegations against Tennakoon, supported by high-ranking legal and police officials.

The CoI is scheduled to convene again this week in Parliament and has prioritized Tennakoon’s case due to its complexity and public interest.

Government Response and Political Implications

Minister of Public Security Ananda Wijepala confirmed that Tennakoon’s security was withdrawn following his suspension and while he was reportedly evading arrest. However, he added that any formal appeal for protection would be reviewed in line with existing legal protocols.

“Security arrangements are based on current threat levels, not on past positions,” the minister said. “If there is a real threat, we will ensure the necessary measures are taken, regardless of the individual’s legal standing.”

Balancing Justice and Safety

As the investigation unfolds, the case underscores a critical issue in Sri Lanka’s legal and law enforcement landscape: the challenge of balancing judicial accountability with the state’s duty to protect life.

Legal observers stress that if threats are credible, the state’s duty to protect life must override concerns about the individual’s legal or public standing.

Whether Deshabandu Tennakoon’s request results in renewed protection will depend on the findings of the ongoing threat assessment. But the broader legal and ethical implications of this case are already reverberating through the judicial, political, and law enforcement systems.

As the investigation deepens and the CoI proceeds, authorities now face the dual challenge of pursuing justice while ensuring that no person,accused or otherwise is left unprotected in the face of real danger.

Sri Lanka to Launch Landmark Economic Census after 10-Year Gap

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By: Staff Writer

May 02, Colombo (LNW): Sri Lanka is set to conduct its first Economic Census in over a decade, a long-overdue move that is expected to reshape the country’s economic policy framework. The Cabinet of Ministers has approved the census to be held in two stages—focusing on agricultural activities in 2025, followed by a comprehensive survey of non-agricultural sectors in 2026.

This initiative marks a pivotal step in addressing Sri Lanka’s urgent need for reliable, up-to-date economic data. The last census, conducted in 2013/14, preceded a series of profound national and global disruptions, including the 2019 Easter bombings, the COVID-19 pandemic, and the unprecedented 2022 sovereign debt default. These events have significantly altered the country’s socio-economic fabric, rendering existing data obsolete and inadequate for policy formulation.

The economic fallout from these crises highlighted the dangers of policymaking in the dark. Without current data, policymakers struggled to identify vulnerable populations, accurately assess employment patterns, or target fiscal support where it was needed most. In this context, the new census promises a much-needed empirical foundation for Sri Lanka’s recovery, reform, and long-term development.

The first phase of the census will zero in on agriculture—a sector employing approximately 25% of the national workforce but plagued by inefficiencies, climate-related vulnerabilities, and inconsistent access to inputs like fertiliser. Timely and granular data can enable targeted reforms in food security, water management, rural income protection, and climate adaptation—areas where one-size-fits-all policies have historically failed.

The 2026 phase will cover the services and industrial sectors, which have emerged as engines of post-crisis recovery, particularly tourism, manufacturing, and IT. However, the high prevalence of informal employment—estimated by the International Labour Organisation at 60%—continues to challenge tax revenue collection, labour market regulation, and social protection systems.

Here, the census could provide critical insights into the structure and distribution of informal work—especially in urban and semi-urban areas—helping authorities design policies that incentivise formalisation, protect workers, and expand the country’s narrow tax base. This could also aid labour reforms aimed at increasing productivity while ensuring basic rights.

Another major benefit is the potential to capture data on emerging sectors and under-reported economic activities—like gig work, digital freelancing, and micro-enterprises—that traditional surveys often overlook. These sectors may not be large in current GDP terms, but they are vital to employment and future growth.

The timing of the census is also strategic, as Sri Lanka implements a reform program supported by the International Monetary Fund (IMF). The insights from the census can be aligned with IMF-backed fiscal targets, allowing for more balanced and equitable policy choices. For example, understanding regional income disparities could inform decentralised budgeting or targeted subsidies.

Crucially, this census must be more than just a data-gathering exercise—it must lead to action. Accurate statistics are essential, but if they are not swiftly translated into responsive, evidence-based policies, the effort risks becoming another missed opportunity in the country’s long road to recovery.

Gravel Mining Threatens Sigiriya, 2025’s Most Welcoming City in Sri Lanka

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By: Staff Writer

May 02, Colombo (LNW): UNESCO site faces ecological crisis as illegal excavation continues near ancient fortress Sigiriya, the iconic ancient rock fortress nestled in Sri Lanka’s Cultural Triangle, has earned global acclaim as the world’s most welcoming city for 2025, according to Booking.com.

However, this internationally celebrated heritage site now faces a mounting ecological threat: illegal gravel mining within its protected sanctuary.

This historic marvel, constructed in the 5th century by King Kashyapa, is not only a symbol of Sri Lanka’s architectural and engineering brilliance but also a UNESCO World Heritage Site.

Towering over the surrounding jungle, Sigiriya offers breathtaking views and cultural significance that attracts visitors from around the globe. Yet, the serenity of this national treasure is now being shattered by unchecked mining activity.

The Organisation for the Protection of Sigiriya has raised the alarm over the destructive gravel excavation taking place within the sanctuary.

 According to its president, Lionel Gunasekara, massive deforestation and deep excavation have already scarred the landscape, all occurring dangerously close to the Department of Wildlife Conservation’s own office. “This destruction has been ongoing for far too long,” Gunasekara lamented. “Despite repeated complaints, the authorities have done nothing.”

Satellite imagery has confirmed illegal activity, a senior wildlife official admitted, revealing that a group of racketeers had been operating without departmental approval. However, there remains uncertainty about who granted these individuals access in the first place.

S.S. Malinda, the Officer in Charge of the Sigiriya Wildlife Conservation Office, stated that his department had issued no permits for such mining operations. “I have not yet identified the individuals responsible, but we will investigate and initiate legal action,” he promised.

Gunasekara, a veteran in the tourism industry since the 1970s, emphasized the absurdity of the situation. “People aren’t allowed to dig toilet pits here due to archaeological laws—so how is large-scale gravel mining happening unchecked?” he questioned.

He has vowed to escalate the issue at the next District Development Committee meeting, calling on both the Department of Wildlife Conservation and the Department of Archaeology to disclose who authorized the destruction.

With Sigiriya gaining global recognition for its hospitality and historical significance, conservationists warn that immediate intervention is critical to protect its fragile ecosystem and cultural integrity. Without urgent action, Sri Lanka risks losing not only a treasured heritage site but also the trust of a global community that values its preservation.

Will the voices of Sigiriya’s protectors finally be heard before it’s too late?