By: Staff Writer
November 04, Colombo (LNW): Sri Lanka’s State-Owned Enterprises (SOEs) recorded a sharp downturn in overall profitability during the first half of 2025, with total profits falling to Rs. 227.8 billion, down from Rs. 280.7 billion in the same period last year, according to the Finance Ministry’s Mid-Year Fiscal Position Report released on October 31.
The slump was primarily driven by the Ceylon Electricity Board (CEB), which reversed from a historic profit to a net loss following tariff reductions earlier this year. The CEB’s revenue from electricity sales plunged nearly 39% to Rs. 192.6 billion, despite higher demand, while the average revenue per kilowatt-hour fell from Rs. 41.97 to Rs. 24.64. As a result, the utility posted a net loss of Rs. 13.2 billion, compared to a profit of Rs. 119.2 billion in 2024.
Although favourable weather helped lower thermal generation costs by nearly 9%, the reduced tariff structure and delayed cost-reflective pricing eroded margins. The Government has since implemented structural reforms through the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025, establishing four new SOEs for generation, transmission, distribution, and system operation in a bid to restore efficiency and transparency.
The CEB’s reversal overshadowed robust performances by other major SOEs particularly the three State banks, which collectively posted strong growth in profitability. Bank of Ceylon’s pre-tax profit surged to Rs. 61.1 billion, from Rs. 22.4 billion a year earlier, supported by a 78% rise in net interest income.
People’s Bank reported its highest-ever half-year profit before tax at Rs. 28 billion, while the National Savings Bank saw a 55% profit increase to Rs. 31 billion, reflecting lower impairment costs and stronger balance sheets.
Meanwhile, the Ceylon Petroleum Corporation (CPC) reported a 17.9% decline in profits to Rs. 17 billion, driven by reduced global oil prices and a stronger rupee. The CPC also made partial repayments under its “tea-for-oil” barter deal with Iran, lowering dues to the National Iranian Oil Company from $191 million to $131 million.
Other utilities fared better. The National Water Supply and Drainage Board posted a net profit of Rs. 17.7 billion, up 28%, aided by lower electricity costs and expanded coverage, while the Sri Lanka Ports Authority achieved a Rs. 29.2 billion pre-tax profit as container throughput and revenue climbed sharply. Airport and Aviation Services Ltd. recorded a 31% increase in revenue, though foreign exchange losses reduced overall profits.
However, SriLankan Airlines continued to weigh on the public sector balance sheet, reporting a Rs. 10.7 billion loss despite higher passenger volumes. The airline’s accumulated losses exceeded Rs. 628 billion, with negative equity of Rs. 415 billion prompting a new five-year restructuring plan focused on cost-cutting and fleet rationalisation.
The Finance Ministry cautioned that while the SOE sector remains marginally profitable, its fiscal contribution declined to Rs. 11.7 billion, from Rs. 14.9 billion last year. To address mounting financial and governance issues, the Government is advancing a Public Commercial Enterprises Management Bill, which aims to professionalise management, improve accountability, and align SOEs with commercial discipline.
With 2025 shaping into a critical reform year, the performance of Sri Lanka’s State enterprises will test the Government’s commitment to fiscal prudence and structural transformation amid fragile public finances.
Profit Slide Exposes Deep Fault Lines in Sri Lanka’s State Enterprises
Ambalangoda Shooting: Businessman Dies in Hospital Following Attack
November 04, Colombo (LNW): A local businessman who was wounded in a shooting in Ambalangoda earlier today (04) has died while undergoing treatment at Balapitiya Hospital, police confirmed.
The victim was shot near the Ambalangoda Urban Council premises at approximately 10:30 a.m., according to Assistant Superintendent of Police F.U. Wootler, spokesperson for the Police Media Division.
Initial inquiries suggest the attack was carried out by a group travelling in a white vehicle, who fled the scene immediately afterwards. Reports indicate that the deceased was related to a known criminal affiliated with a gang identified as ‘Karandeniya Sudda.’
Police have already deployed four investigative teams to probe the incident and gather further evidence.
CSE’s ASPI Surpasses 23,000 as Market Momentum Strengthens
November 04, Colombo (LNW): The Colombo Stock Exchange (CSE) maintained its upward trajectory as the All Share Price Index (ASPI) climbed past the 23,000 mark, signalling renewed investor confidence and a buoyant market sentiment.
Strong buying interest across major sectors has propelled the market, attracting both retail and institutional investors eager to capitalise on current opportunities.
The exchange currently trades at a price-to-earnings (P/E) ratio of 10.13 and a price-to-book value (P/BV) of 1.51, indicating that attractive valuations remain prevalent.
Year-to-date returns have reached 44.29 per cent, underscoring the impressive performance of the Sri Lankan equity market in 2025.
Market turnover has been substantial, with cumulative trading for the year reaching LKR 1.06 trillion and total market capitalisation expanding from LKR 5.84 trillion to LKR 8.17 trillion, reflecting significant value creation. Average daily turnover continues to remain strong at roughly LKR 5.36 billion, demonstrating sustained investor participation.
Over 1,200 Arrested in Nationwide Anti-Drug Campaign
November 04, Colombo (LNW): A major nationwide operation targeting illegal narcotics, conducted under the banner “Nation United – National Drive,” resulted in the arrest of more than 1,200 people yesterday (03), the Police Media Division reported.
Authorities carried out 1,273 raids across the country, leading to the detention of 1,264 suspects. Investigations into illicitly acquired assets have been launched against one individual, while 32 others remain under further inquiry as part of ongoing detention orders.
The operation also identified eight individuals struggling with drug addiction, who have been referred to rehabilitation programmes.
In addition to arrests, police confiscated substantial quantities of narcotics, including 1 kilogramme and 227 grams of crystal methamphetamine (‘Ice’) and 909 grammes and 82 milligrammes of heroin, alongside other controlled substances.
Government Making Steady Progress in Cutting Budget Deficit
November 04, Colombo (LNW): Professor Priyanga Dunusinghe of the University of Colombo’s Department of Economics has stated that the current administration has achieved a consistent reduction in the national budget deficit through a more disciplined fiscal approach.
Speaking at a press conference in Colombo, Professor Dunusinghe rejected claims that the government had taken on a significant volume of new debt over the past year, describing such assertions as misleading. He explained that, owing to limited access to international credit markets and bilateral financing, most recent borrowing had been sourced domestically.
“Even major multilateral lenders are now offering fewer concessional loans than before,” he said. “While a deficit persists, the government’s reliance on domestic borrowing has not been excessive. In fact, data shows a clear downward trend in the budget deficit.”
He further noted that projections for 2026 point to a continued decline in government borrowing, reinforcing the view that fiscal management under the present administration remains cautious and controlled.
Meanwhile, Minister of Health and Mass Media, Dr Nalinda Jayatissa, remarked that the government had inherited an economy under considerable strain and was therefore compelled to align its spending with the country’s actual financial capacity.
The Minister emphasised that boosting state revenue had been a central objective of the administration, with several government institutions already surpassing their revenue targets. He added that greater attention was now being paid to ensuring that tax income — estimated between Rs. 3,000 and 4,000 billion annually — is directed towards planned and purposeful public expenditure, aimed at maximising benefits for the wider population.
Sri Lanka Customs to Launch Digital E-Tendering System for Auctioned Goods
November 04, Colombo (LNW): Sri Lanka Customs has revealed plans to implement a digital e-tendering platform for the sale of confiscated items, marking a significant step towards modernising its auction process.
The announcement was made during a session of the Parliamentary Committee on Standing Orders, presided over by MP Wijesiri Basnayake. The meeting brought together committee members, the Director General of Customs, Seevali Arukgoda, and several senior officials to discuss ongoing reforms within the department.
According to Customs representatives, the upcoming e-tendering system aims to enhance transparency, efficiency, and accessibility in the disposal of seized goods, while minimising opportunities for irregularities in the auction process.
Former Finance Ministry Secretary Arrested Over Alleged Misuse of Public Funds
November 04, Colombo (LNW): Charitha Ratwatte, who once served as Secretary to the Ministry of Finance and as a senior advisor to a former Prime Minister, has been taken into custody by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in relation to a major financial irregularity.
The arrest concerns an inquiry into the 2015 purchase of 50 temporary storage facilities, reportedly brought into the country through the Sri Lanka State Trading Corporation at a cost exceeding Rs. 90 million.
Investigators allege that the procurement was carried out in breach of standard government procedures and without sufficient justification for the expenditure.
Sharp Decline in Polythene Bag Use Following New Regulations
November 04, Colombo (LNW): The Ministry of Trade has announced a notable reduction in the use of polythene bags across Sri Lanka after the enforcement of new regulations prohibiting retailers from distributing them free of charge.
Prior to the rule taking effect, it was estimated that around 20 million polythene bags were used daily throughout the country.
However, within just two days of the regulation’s introduction on 1 November, a prominent supermarket chain reported a 50 per cent decrease in the number of bags issued to customers.
According to the Ministry, the initiative expects to curb plastic pollution and mitigate the environmental damage caused by single-use polythene. Officials expressed optimism that the change in consumer behaviour seen in the early days of implementation indicates growing public awareness of environmental responsibility.
Vatican’s Foreign Affairs Chief Meets Sri Lankan Prime Minister During Official Visit
November 04, Colombo (LNW): Archbishop Paul Richard Gallagher, the Vatican’s Secretary for Relations with States and International Organisations, has met with Prime Minister Dr Harini Amarasuriya during his official visit to Sri Lanka. The discussion took place at Temple Trees, the Prime Minister’s official residence, according to a statement from her office.
He was accompanied by Rev. Monsignor Roberto Lucchini, Chargé d’Affaires of the Holy See’s Embassy in Colombo, and Rev. Monsignor Tomislav Zubac, Second Secretary of the Vatican Secretariat of State.
Archbishop Gallagher arrived in the country on November 03 and is scheduled to remain until 8 November, as confirmed by the Ministry of Foreign Affairs. His visit comes at the invitation of Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, to mark half a century of diplomatic relations between Sri Lanka and the Holy See.
During his stay, the Archbishop is expected to meet with President Anura Kumara Dissanayake and take part in a special commemorative event in Colombo celebrating the 50th anniversary of diplomatic ties. He is also set to deliver an address at the ceremony, which will highlight the enduring partnership between the Vatican and Sri Lanka.
In addition to official engagements, Archbishop Gallagher’s itinerary includes visits to culturally and spiritually significant sites across the island, including churches impacted by the Easter Sunday attacks of 2019, as part of efforts to express solidarity and strengthen interfaith dialogue.
CID Warns Public of Surge in WhatsApp-Based Financial Scams
November 04, Colombo (LNW): The Criminal Investigation Department (CID) has reported a sharp increase in complaints linked to individuals being deceived into transferring money through fraudulent WhatsApp messages.
Assistant Superintendent of Police W. G. Jayanethsiri revealed that the department has received a significant number of such reports in recent days, urging users to remain vigilant when communicating via WhatsApp and other messaging platforms.
Explaining how the scam unfolds, he noted that fraudsters typically impersonate well-known or respected individuals by using phone numbers linked to their identities. They then send messages crafted to appear genuine — often referencing routine activities such as online meetings or professional discussions.
Victims are invited to join a supposed virtual meeting through a link, followed by a request to share a verification code allegedly needed for participation. However, this code is in fact a One-Time Password (OTP) sent by WhatsApp itself. By obtaining this OTP, scammers gain complete control of the victim’s WhatsApp account, giving them access to personal information, messages, and contacts.
Once in control, the impostors send messages to the victim’s friends, colleagues, or family members, claiming to face an emergency and requesting money transfers. Many recipients, trusting the apparent sender, send funds before realising they have been deceived.
ASP Jayanethsiri cautioned that many victims only discover their accounts have been compromised after several days, by which time multiple people may already have fallen prey to the scheme. He urged the public to avoid sharing verification codes or personal information through messaging apps and to verify any unusual requests directly via a phone call or in-person confirmation.