Justice Minister Harshana Nanayakkara announced that armed security personnel will be deployed inside court premises under special circumstances following the recent shooting at the Hulftsdorp Court Complex.

Responding to a question by SLPP Kalutara District MP Rohitha Abeygunawardena, the Minister acknowledged that existing regulations prohibit armed guards inside courtrooms. However, he stressed that the government is implementing measures to improve security, especially when high-risk individuals are brought before the courts. Discussions with the Judicial Services Commission, Police, and Prisons Department will finalize these security protocols.

Additionally, Nanayakkara revealed plans to amend the Code of Criminal Procedure to allow special category prisoners to testify via video conferencing from within prisons. This amendment has been submitted to the Cabinet for approval.

“This technology will improve access to justice and reduce the need for prisoner transport,” he said, adding that it will also enable testimony from individuals in foreign countries.

The Minister further emphasized that ensuring the safety of prison officers remains a top priority, given the threats posed by organized crime.

Fitch Ratings stated that Sri Lanka’s latest budget reflects the government’s commitment to increasing fiscal revenues as a share of GDP, a move that could help address long-standing weaknesses in the country’s credit profile.

However, the agency warned that significant risks remain, and a slowdown in fiscal consolidation could impact medium-term debt reduction prospects.

The budget, presented on February 17, is the first under President Anura Kumara Dissanayake and outlines the administration’s fiscal and economic reform agenda. Fitch noted that the budget aligns with its expectations from December 2024, when Sri Lanka’s credit rating was upgraded to ‘CCC+’ from ‘RD’ (Restricted Default).

Sri Lanka’s goal of raising revenue to 15.1% of GDP in 2025, up from 11.4% in 2023, surpasses Fitch’s earlier projection that this level would be reached by 2026. Key revenue increases are expected from taxes on external trade (36.5%) and income taxes (13.1%). However, Fitch highlighted that the success of these targets depends on the smooth liberalization of import restrictions, particularly for vehicles.

While the government aims for a primary budget surplus of 2.3% of GDP in 2025, interest payments are projected at 8.9% of GDP—higher than anticipated under Sri Lanka’s $3 billion Extended Fund Facility (EFF) with the IMF.

Fitch does not expect deviations from the EFF projections to lead to a suspension of IMF disbursements. However, it cautioned that slower fiscal consolidation, combined with optimistic growth projections of 5%, could limit debt reduction progress and leave Sri Lanka vulnerable to economic shocks.

The Batticaloa-Colombo train, ‘Meenagaya,’ collided with a herd of elephants at Gal Oya, resulting in the tragic death of five elephants, Sri Lanka Railways confirmed.

The impact caused the train to derail, obstructing services on the line. Authorities are working to restore operations.

As global trade dynamics shift, Sri Lanka remains vigilant about potential economic consequences stemming from the second-term policies of U.S. President Donald Trump. With Washington signaling a move toward stricter trade reciprocity, emerging markets, including Sri Lanka, are assessing both risks and opportunities. 

While some Sri Lankan exporters see potential benefits, concerns linger over possible disruptions in key industries such as apparel and manufacturing. The government and financial institutions are closely monitoring developments to adapt to potential changes in trade patterns and commodity prices.

The Central Bank of Sri Lanka is actively tracking major policy shifts in the U.S., particularly the possibility of increased tariffs, but does not anticipate any severe economic setbacks, a senior official stated.

President Trump has announced plans to impose reciprocal tariffs on countries that charge higher duties on U.S. imports, raising fears of an escalating global trade war and the potential for rising inflation in the U.S. 

In response, the European Commission has warned that it would take immediate and firm action against such tariff increases, labeling them as unjustified and counterproductive, according to international reports.

S. Jegajeevan, Director of the Central Bank’s Economic Research Department, told reporters on Friday (14) that Sri Lanka is closely observing these developments. “There are both positives and negatives to consider. Some of our major exporters, particularly in the apparel sector, are optimistic about potential outcomes,” she noted. However, she emphasized that it is still too early to make a definitive assessment of the impact on Sri Lanka’s economy.

Jegajeevan pointed to two main channels through which these policies could affect Sri Lanka. Firstly, external demand for Sri Lankan exports may fluctuate, though a major downside impact is not expected. Secondly, changes in global commodity prices—especially oil—could play a role. She suggested that an increase in U.S. oil production might help stabilize or reduce global oil prices in the medium term, offering a potential economic benefit to Sri Lanka.

Potential Direct Impacts on Sri Lanka

Another key concern is the effect of U.S. trade policies on inflation. If tariff hikes lead to persistent inflation in the U.S., the Federal Reserve could slow down its policy normalization process, which in turn could have direct economic implications for Sri Lanka.

If President Trump enforces a reciprocal trade policy, Sri Lanka’s export sector—particularly its apparel and rubber industries—could face serious consequences. The U.S. is Sri Lanka’s largest export market, accounting for around 25% of total exports. 

Should tariffs make Sri Lankan products more expensive and less competitive, it could reduce demand, impact manufacturers, and lead to potential job losses, particularly in the garment industry, which makes up nearly 40% of Sri Lanka’s total exports.

On the import side, Sri Lanka sources several essential goods from the U.S., including machinery, medical equipment, and agricultural products. If Sri Lanka retaliates with higher tariffs on American imports, local businesses and consumers could see rising costs, worsening existing inflationary pressures. Given the country’s ongoing foreign exchange crisis, any additional cost burdens on essential imports could hinder economic recovery efforts and weaken industrial competitiveness.

Shifting Economic Alliances

With potential disruptions in U.S.-Sri Lanka trade relations, analysts predict that Sri Lanka may need to strengthen economic ties with China and India to offset losses from the American market. In the long term, a shift in trade alignment could push Sri Lanka closer to China, altering its foreign policy stance and economic dependencies.

As global trade policies evolve, Sri Lanka must remain adaptable to safeguard its economic stability. While uncertainties remain, proactive strategies will be essential to mitigate potential risks and capitalize on new opportunities in the shifting geopolitical landscape.

The United Kingdom (UK) has warned that terrorist attacks in Sri Lanka cannot be ruled out.In an updated travel advice, the UK Foreign and Commonwealth Office said that attacks could be indiscriminate, including in places visited by foreign nationals and tourists such as hotels, bars, restaurants and night clubs, beaches, tourist sites, places of worship, and large public gatherings, including major events, public holidays, religious occasions

British nationals have been urged to avoid crowded public places and to stay aware of their surroundings at all times, keep up to date with local media reports and follow the advice of local authorities.

“The conflict in Israel and the Occupied Palestinian Territories has led to heightened tensions around the world. Terrorist groups such as Al-Qaida and Daesh, have called on their supporters to carry out terrorist attacks in response to the conflict. The conflict could also motivate individuals to carry out attacks,” the travel advice said.

The travel advice says terrorist attacks could target Jewish or Muslim communities, or the interests of Israel and its allies. Attacks could also be indiscriminate and occur without warning.

The UK Foreign and Commonwealth Office noted that on Easter Sunday in April 2019, more than 250 people, including 8 British nationals, were killed in terrorist attacks against 3 churches and 3 hotels in Sri Lanka: in Colombo, Negombo and in Batticaloa.

In October 2024, the United Kingdom updated its travel advisory for Sri Lanka, highlighting a heightened threat of terrorism. This update was prompted by credible intelligence reports indicating potential attacks targeting popular tourist destinations, particularly in the Arugam Bay area. The U.S. Embassy in Colombo issued a security alert on October 23, 2024, advising American citizens to avoid Arugam Bay due to the serious risk of an imminent attack. 

In response to these threats, Sri Lankan authorities arrested three local suspects believed to be planning attacks on Israeli tourists in Arugam Bay. Security measures were intensified, with increased deployments of police and Special Task Force personnel in coastal regions frequented by tourists. The Israeli government also advised its citizens to leave areas deemed at high risk, including Arugam Bay and other southern and western coastal regions. 

These developments have significantly impacted Sri Lanka’s tourism sector, which has been striving to recover from past adversities, including the 2019 Easter Sunday attacks and recent political unrest. In an effort to rejuvenate tourism, Sri Lanka had introduced a visa-free entry program starting October 1, 2024, for visitors from 35 countries, including the UK. However, the renewed security concerns have posed challenges to these recovery efforts. 

Travelers are advised to exercise heightened caution, stay informed through official channels, and adhere to local security guidelines when considering travel to Sri Lanka.

Australia is set to continue its support and collaboration with Sri Lanka in further strengthening Maritime security cooperation an essential part of the bilateral relationship between the two nations,.

Australia formally handed over a cutting-edge Kongsberg EM2042 shallow water multibeam echo sounder to the Sri Lanka Navy on Tuesday (18). The ceremonial transfer took place in the presence of Australian High Commissioner to Sri Lanka, Paul Stephens, and Commander of the Sri Lanka Navy, Vice Admiral Kanchana Banagoda.

Despite its compact size, the EM2042 Multibeam Echo Sounder is highly efficient and robust, offering high-resolution, clean data in challenging marine environments. This advanced hydrographic equipment, funded by the Australian Department of Defence, is set to significantly enhance Sri Lanka’s independent hydrographic capabilities.

High Commissioner Stephens expressed his pride in the collaboration, highlighting the strategic importance of enabling Sri Lanka to collect vital maritime data autonomously. He emphasized that as an island nation seeking to grow its blue economy, Sri Lanka would greatly benefit from the ability to map its ocean floor without relying on external assistance.

The precise hydrographic data provided by the Kongsberg EM2042 will play a crucial role in expanding maritime trade, a key component of Sri Lanka’s economic growth through export diversification. The handover is the result of more than a year of planning and cooperation between the Australian and Sri Lankan governments.

Maritime security cooperation forms an essential part of the bilateral relationship between the two nations, complementing strong ties in areas such as education, tourism, trade, investment, sports, and cultural exchange. Both countries are committed to fostering an open, prosperous, and resilient Indian Ocean region.

“Australia and Sri Lanka are Indian Ocean neighbors, and as island nations, we share a mutual interest in ensuring regional stability and economic prosperity,” said High Commissioner Stephens. He added that as geopolitical competition in the northeastern Indian Ocean intensifies, Australia seeks to be a trusted and reliable partner for Sri Lanka.

In 2024, Australia demonstrated its commitment to supporting Sri Lanka through multiple initiatives. These included gifting a King Air 350 maritime surveillance aircraft to the Sri Lanka Air Force, providing all-terrain vehicles to the Sri Lanka Coast Guard, and offering fuel support to the Sri Lanka Navy. These efforts were part of Australia’s flagship Indo-Pacific Endeavour 2024 program, aimed at strengthening regional defence and security partnerships.

 Looking ahead to 2025, Australia plans to continue its support and collaboration with Sri Lanka. This will include ongoing training and educational opportunities, the return of Indo-Pacific Endeavour, and sustained fuel assistance for the Sri Lanka Navy to bolster efforts in combating transnational crime.

The handover of the Kongsberg EM2042 echoesounder underscores the growing strategic partnership between the two nations. By equipping Sri Lanka with modern hydrographic capabilities, Australia is reinforcing its commitment to regional maritime security, economic stability, and long-term cooperation in the Indian Ocean region.