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.

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.

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.

When Dialog Axiata PLC unveiled a new 5G expansion partnership with Ericsson, the announcement sounded like another milestone in Sri Lanka’s digital journey. Yet behind the promise of faster internet lies a more complex question: who really benefits from the island’s 5G race?

The agreement, revealed at Mobile World Congress 2026 in Barcelona, will see Ericsson deploy advanced radio networks, artificial-intelligence-driven automation, and cloud-native infrastructure across Dialog’s network.

The telecom giant already claims leadership in Sri Lanka’s 5G market, connecting more than 1.5 million users through the country’s largest next-generation network. With access to the valuable 3.5 GHz spectrum band, Dialog can deliver both wide coverage and ultra-high capacity a technical advantage that rivals currently lack.

But the scale of Sri Lanka’s telecom market suggests a different perspective. With over 30 million mobile connections nationwide and data consumption rising sharply each year, 1.5 million 5G subscribers still represent a relatively small fraction of the total user base.

In other words, the 5G revolution remains largely aspirational for many consumers.

The new network rollout will introduce technologies such as Massive MIMO antennas and real-time AI network management. These systems promise faster speeds and more efficient data traffic handling, enabling advanced services ranging from high-definition video streaming to industrial automation.

However telecom analysts argue that the biggest economic benefits may emerge outside traditional smartphone use. Businessesrather than individual consumers are likely to be the primary beneficiaries.

Industries such as manufacturing, logistics, healthcare, and financial services increasingly rely on ultra-low latency connectivity. With the new Ericsson infrastructure, enterprises could deploy smart factories, remote medical monitoring, and Internet-of-Things networks that require constant high-speed data exchange.

For ordinary mobile users, the immediate gains might be less dramatic. Many consumers still face high smartphone costs and limited access to compatible devices capable of fully utilising 5G speeds.

Another challenge lies in infrastructure economics. Building nationwide 5G networks is expensive, requiring dense radio installations, fibre connectivity, and continuous software upgrades. Telecom operators typically recover these investments through higher data consumption or new digital services.

That reality raises concerns about future pricing structures. If 5G services remain premium offerings, the digital divide between urban and rural users could widen.

Still, the partnership reflects a long-term bet on Sri Lanka’s digital future. According to industry projections, mobile data traffic in the country could triple within the next five years as video streaming, cloud services, and AI-powered applications become more common.

By strengthening its infrastructure early, Dialog appears to be positioning itself at the centre of that transformation.

Whether the strategy ultimately empowers everyday smartphone users or primarily fuels corporate innovation will depend on how quickly 5G devices become affordable and how widely the new network reaches beyond the country’s urban hubs.

As tensions escalate across the Middle East, the Sri Lankan Government is scrambling to protect the country’s energy security by seeking alternative oil suppliers and expanding domestic storage capacity. Officials say the dual strategy is intended to cushion the island nation from potential global supply disruptions triggered by the unfolding Gulf crisis.

Cabinet Spokesman and Minister Nalinda Jayatissa confirmed this week that authorities are examining short-term procurement options from non-traditional suppliers, including Africa and the United States. The move signals a shift from Sri Lanka’s usual fuel sourcing pattern, which primarily relies on suppliers from India, Singapore, Malaysia and South Korea.

The urgency stems from growing instability in the Gulf region an area that accounts for a major share of global crude oil exports. While Sri Lanka does not depend exclusively on Gulf oil, disruptions in the region could send shockwaves through international markets, pushing prices higher and tightening supply chains worldwide.

Speaking at the weekly post-Cabinet media briefing, Jayatissa acknowledged that the evolving geopolitical landscape makes predicting fuel prices particularly difficult. According to him, Sri Lanka’s reliance on term tenders for petroleum purchases provides some degree of stability compared with spot market buying, which is more vulnerable to sudden price spikes.

However, analysts warn that even term contracts cannot fully shield the country from global volatility. If Gulf tensions escalate further, benchmark crude prices could surge, raising import costs and placing additional strain on Sri Lanka’s fragile economic recovery.

The government says it is closely monitoring international energy markets before making any decision on fuel price adjustments. Authorities also claim that minimizing the impact on the cost of living remains a priority, though the extent to which prices can be insulated from global trends remains uncertain.

In parallel with diversifying supply sources, the government has launched a three-year infrastructure initiative aimed at strengthening the country’s petroleum storage network. The plan allocates Rs. 46.7 billion between 2025 and 2028 to build new oil tanks, refurbish aging facilities and upgrade fuel transportation systems.

Officials argue that expanding storage capacity will allow Sri Lanka to maintain larger reserves, giving policymakers more time to respond to external shocks. This strategy is particularly relevant for a country that imports nearly all of its fuel requirements.

Energy sector observers note that Sri Lanka has historically operated with relatively limited fuel reserves compared with many other import-dependent economies. That vulnerability became evident during past economic crises when supply shortages quickly translated into long fuel queues and power cuts.

By combining supplier diversification with expanded storage infrastructure, the government hopes to create a buffer against future disruptions. However critics say the real test will come if the Gulf crisis deepens and global energy markets experience prolonged instability.

For Sri Lanka, the challenge is not simply securing oil shipments but ensuring that geopolitical turbulence thousands of miles away does not once again translate into economic hardship at home.

Defence Deputy Minister Major General (Retd.) Aruna Jayasekara told Parliament that the next few weeks will be a crucial period for Sri Lanka due to the ongoing military situation in the Middle East.

Addressing the House yesterday (6) during the opening speech of the debate on extending the State of Emergency under Section 2 of the Public Security Ordinance, the Deputy Minister said the Government decided to continue the emergency regulations in order to ensure the uninterrupted provision of essential services.

He noted that restrictions on shipping and air travel resulting from the regional military crisis could lead to delays in the supply of certain essential services in the coming weeks.

“The current war situation has led to unavoidable restrictions on shipping and air travel. Restrictions have been imposed, and restrictions have had to be imposed,” Jayasekara said.

He explained that due to these limitations, there may be delays in the delivery of essential services that the country depends on.

“The next few weeks are crucial. Accordingly, we must pay special attention to these essential services. Thereby, we have taken steps to continue our State of Emergency,” he added.

The Deputy Minister said the extension of the State of Emergency is intended to allow the Government to manage potential disruptions and ensure that essential services continue to be provided without interruption.