February 01, Colombo (LNW): Sri Lanka’s National Council for Road Safety is aiming to introduce a revised set of speed limits ahead of the end of March, as preparations near completion.
According to the Council’s Chairman, Manjula Kularatne, the review process has reached its final phase, with authorities now fine-tuning the last technical and administrative details. He said the changes are being designed to better reflect actual road conditions rather than relying on outdated, one-size-fits-all limits.
The updated framework will identify specific road stretches where lower speeds are necessary to improve safety, as well as areas where limits can be safely adjusted upwards to ease traffic flow. Officials say the revisions are intended to strike a balance between reducing accidents and ensuring smoother travel for motorists once implemented.
Revised Speed Limits Expected to Roll Out Before End of March
President Extends Essential Status of Power and Fuel Services
February 01, Colombo (LNW): President Anura Kumara Dissanayake has moved to keep key sectors under special protection by issuing an extraordinary gazette that continues the classification of several critical services as essential, including electricity generation and fuel supply.
The order, made under powers granted by the Essential Public Services Act of 1979, is intended to ensure uninterrupted operations in areas vital to daily life and economic stability.
Officials say the measure is aimed at preventing disruptions, safeguarding public welfare and maintaining smooth functioning across the country at a time of ongoing pressures on infrastructure and resources.
By reaffirming the essential status of these services, the government retains the authority to take swift action to guarantee continuity and address any threats that could affect supply or public access.
Bus Fare Hike Likely Before Mid-Year as Congestion Drives Up Costs
February 01, Colombo (LNW): Commuters should brace for higher bus fares in the months ahead, even after the recent, modest dip in fuel prices, according to the Lanka Private Bus Owners’ Association.
Its President, Gemunu Wijeratne, said operators are facing mounting financial pressure and warned that a revision of fares would be unavoidable before July, particularly for services operating in Colombo and the surrounding urban belt. He pointed to worsening traffic congestion as the chief culprit eroding efficiency and driving up operating costs.
Under the existing fare formula, buses in and around the capital were once able to cover roughly three kilometres on a litre of diesel. That figure has now fallen sharply, with many vehicles struggling to manage even two kilometres per litre amid near-constant traffic delays. As a result, Wijeratne said the current pricing structure no longer reflects real-world conditions.
He indicated that short-distance fares, which account for the bulk of daily passenger journeys, would likely need to rise by about Rs. 5 to Rs. 6 at the minimum level. With an estimated 13,000 to 14,000 private buses running islandwide, these services form the backbone of public transport, yet operators say they are being pushed to breaking point in heavily congested areas.
Wijeratne was also critical of the government’s handling of the transport sector, arguing that little tangible improvement has been delivered since the present administration took office. He alleged mismanagement and corruption within parts of the system and called for meaningful reform rather than temporary fixes.
While stressing that the association does not control private bus operations, he said it had a responsibility to highlight the realities faced by operators. If conditions do not improve, he warned, fare increases would be the only viable option to keep buses running.
India Earmarks Rs. 4 Billion for Sri Lanka as Budget Pivots Towards Manufacturing Push
February 01, Colombo (LNW): India has set aside financial assistance amounting to 4 billion Indian rupees for Sri Lanka in its 2026 national budget, signalling continued regional support even as New Delhi sharpens its focus on domestic economic priorities.
Presenting the annual budget, Finance Minister Nirmala Sitharaman outlined an agenda aimed at strengthening India’s economic foundations amid uncertain global conditions.
Central to the plan is a renewed drive to expand the manufacturing base, supported by reforms designed to modernise industry, deepen financial markets and attract long-term investment.
The government also intends to channel increased funding into advanced and emerging technologies, with artificial intelligence and digital innovation highlighted as key growth drivers for the coming years. Sitharaman said these measures were essential to sustaining momentum in Asia’s third-largest economy while navigating external pressures.
Boosting manufacturing remains a critical challenge for the Modi administration. Despite years of policy initiatives, the sector still contributes less than a fifth of national output, falling short of the government’s long-standing ambition to raise the share to 25 per cent and create sufficient employment for India’s rapidly expanding workforce.
Economic projections included in the budget point to growth of around 7.4 per cent in the current financial year, with inflation expected to remain subdued at close to 2 per cent. The fiscal deficit is forecast at approximately 4.4 per cent of gross domestic product, reflecting a balance between development spending and fiscal restraint.
Sri Lanka Keeps Emergency Powers in Force as Recovery Efforts Continue
February 01, Colombo (LNW): Sri Lanka will remain under emergency rule following a fresh extension approved by the President, reinforcing extraordinary powers first imposed after last year’s severe weather crisis.
The continuation of the State of Public Emergency takes effect from January 28, 2026 and has been formalised through an extraordinary gazette released this week. The notification bears the authorisation of the Secretary to the President, Dr Nandika Sanath Kumanayake, and gives legal effect to the President’s latest decision.
President Anura Kumara Dissanayake acted under the Public Security Ordinance to keep special provisions operational across the entire island. The move allows the Government to maintain enhanced controls aimed at preserving public order, supporting essential services and preventing disruptions to daily life at a time when several regions are still stabilising.
Emergency powers were first activated on November 29, 2025, shortly after Cyclone Ditwah swept across the country, leaving widespread damage to infrastructure, housing and supply chains. Officials say the extended measures are intended to ensure continuity in areas such as food distribution, transport and public utilities, while also enabling authorities to respond swiftly to any renewed risks.
Alongside the extension, the President has also introduced revisions to existing emergency regulations. These updated rules, issued under the same legal framework, will be formally known as the Emergency (Miscellaneous Provisions and Powers) Regulations, No. 1 of 2026, and are expected to guide enforcement during the current period of emergency governance.
Lord Marland Visits Sri Lanka Amid Economic Transition
The arrival of Lord Marland of Odstock in Colombo this February is more than a routine diplomatic courtesy it is a carefully timed intervention by the Commonwealth’s business establishment at a moment of political and ideological transition in Sri Lanka.
Lord Marland, Chairman of the Commonwealth Enterprise and Investment Council (CWEIC), represents the commercial arm of the 56-nation Commonwealth, mandated directly by Heads of Government to promote trade, investment, and capital flows across member states. A former British Minister for Energy and Climate Change and a long-standing Conservative Party figure, Marland has built a reputation as a dealmaker linking governments with global investors, particularly in frontier and post-crisis economies.
His visit comes at a sensitive juncture. Sri Lanka is now governed by a Marxist-rooted JVP-led National People’s Power (NPP) administration, whose rise was fuelled by public anger over corruption, austerity, and elite-driven economic governance. While the new Government has pledged transparency and social justice, it also faces the inescapable reality of a fragile post-bankruptcy economy still dependent on foreign capital, debt restructuring, and export-led recovery.
Against this backdrop, Lord Marland’s scheduled meeting with President Anura Kumara Dissanayake is politically symbolic. It signals that despite ideological differences, the NPP Government is engaging with established global economic networks rather than retreating into isolation. For the Commonwealth, the objective appears equally pragmatic: ensuring Sri Lanka remains open to private investment and aligned with global trade norms during a period of policy recalibration.
CWEIC’s recent decision to establish a hub in Sri Lanka further underscores this intent. The hub positions Colombo as a regional gateway for Commonwealth-linked investment, particularly in infrastructure, energy transition, logistics, and services. For local private-sector partners, it offers access to international capital and political risk mitigation through Commonwealth backing.
However, critics within progressive circles argue that CWEIC represents the very model of elite-driven capitalism that the NPP rose to challenge. They question whether engagement with Commonwealth business institutions could dilute promises of economic sovereignty and worker-centred reform.
Supporters counter that Lord Marland’s visit reflects a recognition that ideological purity cannot substitute for capital, technology, and market access. They argue that engagement does not equal submission, and that Sri Lanka’s challenge lies in renegotiating its place within global systems on fairer terms.
Ultimately, Lord Marland’s presence in Colombo is a test case—for both sides. For the Commonwealth, it is about maintaining relevance in a country experimenting with left-led governance. For the NPP Government, it is about proving it can balance ideological commitments with the hard arithmetic of economic recovery.
Unanswered Story behind AASL’s Leadership Change amidst Restructuring
The removal of the Chairman of Airport and Aviation Services (Sri Lanka) (Private) Limited has been officially framed as a routine administrative restructuring. Yet, the absence of any visible restructuring blueprint has transformed what should have been a procedural decision into a public controversy.
Minister Anura Karunathilaka has been categorical in dismissing claims that Harsha Abeywickrama was removed over a disagreement concerning a special airport terminal access permit for a religious leader. The Ministry has confirmed that the former Chairman complied with ministerial instructions, issued the authorization letter with conditions, and that no dispute followed.
However, the government’s response appears focused on refuting one narrative while leaving the core issue unexplained: what exactly is being restructured at AASL?
Restructuring, by definition, implies planned reform whether financial, managerial, or operational. In state-owned or state-linked enterprises, such processes are usually accompanied by cabinet papers, policy statements, or at minimum, internal circulars defining goals and expected outcomes. In the case of AASL, no such framework has been made public.
Minister Karunathilaka stated that by January 21, it had become apparent that a change in administration was required. Yet there has been no disclosure of performance audits, governance failures, or structural weaknesses necessitating this change. Without such context, the term “administrative restructuring” risks becoming a catch-all justification rather than a meaningful policy action.
The aviation sector is particularly sensitive to leadership instability. International aviation bodies, airlines, and investors place a premium on continuity, regulatory clarity, and institutional credibility. Abrupt leadership changes, unaccompanied by clear reform agendas, can send mixed signals about governance stability.
Furthermore, the Ministry’s insistence that social media reports are false underscores a broader issue: the lack of proactive communication. When official explanations lag behind public speculation, governments lose control of the narrative. Transparency is not merely about denial—it requires disclosure.
The central concern is not whether the Minister had the authority to remove the Chairman, but whether the removal aligns with a coherent reform strategy. If AASL is undergoing restructuring, stakeholders deserve to know its scope: Does it involve cost rationalization? Management overhaul? Policy realignment with national aviation goals?
Until these questions are answered, the restructuring claim remains unsubstantiated. In the absence of a published plan, the leadership change appears isolated rather than systemic.
Ultimately, the controversy surrounding Abeywickrama’s removal reflects a deeper governance challenge how public institutions justify power decisions in an era where accountability demands more than assurances. Without clarity, restructuring risks being perceived not as reform, but as uncertainty.
Sri Lanka Tourism Revival: Breaking Records but Facing Deeper Structural Issues
In 2025, Sri Lanka’s tourism industry reached a historic milestone welcoming over 2.36 million international visitors, the highest on record, up more than 15% from 2024 figures, underscoring a strong rebound after years of economic and environmental shocks including the Easter Sunday attacks, the COVID-19 pandemic and Cyclone Ditwah.
Despite robust arrival numbers, revenue performance reveals a complex recovery picture. Central bank data show that tourism earnings in December 2025 declined by 14.8% year-on-year to USD 308.6 million, even as arrivals climbed to 258,928 the highest single month since 2018. This highlights a critical concern: more tourists are not necessarily generating proportionally higher income. Sector stakeholders argue that low per-visitor spending and changes to expenditure estimates dampen earnings growth and reduce the economic impact of the visitor surge.
The Sri Lankan government has responded with an aggressive policy agenda aimed at strengthening the industry’s competitiveness. At a high-level meeting chaired by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath, officials reviewed a suite of reforms to modernize travel facilitation, infrastructure and safety. A key outcome is the planned rollout of a digital entry pass system, designed to streamline access to attractions and reduce queues at key sites. Alongside this, authorities are expediting tourist visa processing to shorten wait times for foreign visitors addressing one of the long-standing complaints of travel agents and tour operators.
Efforts extend beyond paperwork. Domestic air services are being restructured to offer reliable internal connectivity for visitors, while airport transit solutions, including new bus routes from Bandaranaike International Airport to major tourist hubs, are slated to launch. These improvements aim to enhance first impressions for tourists and link key attractions more efficiently.
Other strategic discussions focused on leveraging underutilized assets, such as circuit bungalows held by the Mahaweli Authority and Irrigation Department, to expand accommodation capacity in rural and nature-based tourism zones. Government planners also addressed tourist police responsiveness to visitor complaints and improving safety at whale-watching centres — reflecting a push to shore up service quality across diverse travel segments.
However, analysts caution that policy implementation must match ambition if Sri Lanka is to sustain momentum. Arrival targets for 2026 remain ambitious: the government is aiming for 3 million visitors, a steep rise from the previous year, and has set a USD 5 billion revenue goal — both targets deemed challenging by independent observers due to underinvestment in marketing and tourism infrastructure.
Moreover, critics argue deeper structural challenges including the reliance on low-spending tourists and the need for sustainable tourism frameworks remain inadequately addressed. Sustainable development advocates emphasize community-based tourism standards, environmental protections and targeted campaigns to attract higher-yield travellers. Without these reforms, Sri Lanka risks a cycle where quantity eclipses quality, with limited gains for local economies.
The coming year is pivotal. Sri Lanka’s tourism sector is back on a growth trajectory, but the durability of that recovery will hinge on how effectively government actions translate into real improvements in visitor experience, revenue generation, infrastructure resilience and long-term sustainability.
Emergency Powers Mask Deep Fault Lines in CEB Reform
The NPP Government’s decision to declare the electricity sector an essential service marks a dramatic escalation in its handling of the Ceylon Electricity Board (CEB) restructuring, revealing deep fractures between reform ambitions and ground realities.
Officially, the unbundling of the CEB into four specialised State-owned companies is intended to modernise Sri Lanka’s power sector, improve efficiency, and align with IMF-backed reform commitments. Unofficially, the process has stalled, leaving thousands of employees in professional and financial limbo while the Government tightens legal controls to prevent industrial action.
The restructuring hinges on dissolving the existing CEB and transferring its assets, staff, and operations to newly created entities responsible for system operation, transmission, generation, and distribution. Parallel to this is a Voluntary Retirement Scheme designed to reduce staffing levels—an explicit requirement of international lenders.
However, the execution has been plagued by delays. Repeatedly postponed “appointed dates,” uncertainty over gazette notifications, and unresolved policy instruments have created a vacuum where neither the old structure nor the new one fully exists. Employees who committed to the VRS did so on the basis of official timelines that have since collapsed.
The human cost is becoming increasingly visible. Workers report selling vehicles and property at undervalued prices in anticipation of compensation that has yet to materialise. Overseas job offers have been withdrawn due to uncertainty over release dates, while immigration documents, medical reports, and police clearances are expiring unused. Families have been split across borders, surgeries postponed, and professional examinations deferred.
Trade unions argue that this is no longer a matter of administrative delay but a systemic failure with humanitarian consequences. They accuse both the Ministry of Power and Energy and CEB management of withholding clear information while proceeding selectively with elements of the reform.
Meanwhile, unresolved technical and legal issues continue to mount. The Electricity and Tariff Policy—essential for pricing, cost recovery, and investor confidence—remains incomplete after attracting strong opposition during public consultations. Renewable energy developers warn that the proposed framework could destabilise existing investments, particularly rooftop solar projects.
Equally concerning is the absence of operational agreements between the successor companies. Without signed power purchase and sales contracts, the unbundled entities may be legally established but functionally paralysed.
Against this backdrop, the declaration of electricity as an essential service is seen by many unions as a pre-emptive strike against dissent rather than a solution to the crisis. While the Government insists the measure is necessary to protect the public, critics argue it exposes a governance approach that prioritises control over consensus.
As the NPP Government presses ahead, the CEB restructuring risks becoming a case study in reform without readiness where emergency laws replace dialogue, and uncertainty becomes the most powerful force shaping Sri Lanka’s energy future.
Constitutional Council to Decide on Auditor General Appointment on February 3
The Constitutional Council will study the proposal submitted by the President regarding the appointment to the post of Auditor General and reach a final decision on February 3, Minister Bimal Rathnayake said.
He noted that the President has submitted the name of a nominee to the Constitutional Council for the post of Auditor General for the fifth time.
Although the Constitutional Council was scheduled to meet today to take a final decision on the appointment, Minister Rathnayake said the meeting has been postponed and the Council will instead convene next Tuesday to make its determination.
“The President has submitted a new name, and members require some time to study it. Therefore, we will take a decision on this matter on February 3, which is also the day Parliament reconvenes,” the Minister said, speaking to the media in Kandy today.