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Second Phase of First School Term for 2026 Begins Today

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The second phase of the first school term for the 2026 academic year in government and government-approved private schools is scheduled to commence today (21).

The first phase of the first term was held from January 5 to 9, after which schools were closed from January 10 to 20 to facilitate the conduct of postponed G.C.E. Advanced Level (A/L) examination subjects following the devastation caused by Cyclone Ditwah.

According to the Ministry of Education, the second phase of the first term will continue until February 13, 2026.

Schools will close again from February 14 to March 2 in view of the 2025 G.C.E. Ordinary Level (O/L) Examination.

Meanwhile, due to the Ramadan festival, Muslim schools will remain closed for an extended period from February 14 until March 22, the Ministry of Education added.

The prevailing dry weather conditions expected to change from 23 January

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The prevailing dry weather conditions are expected to change from 23 January.

Mainly dry weather will prevail in the most parts of the island.

There is a possibility of ground frost at some places in Nuwara-Eliya district in the early hours of the morning.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, North-western, North-central and Uva provinces and in Galle, Matara and Ampara districts during the early hours of the morning.

Big Promises, Slow Starts in Cyclone Disaster Recovery

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By: Staff Writer

January 20, Colombo (LNW): Sri Lanka’s post-cyclone recovery effort has moved into a new phase with the launch of Rebuilding Sri Lanka, a centrally coordinated national programme aimed at addressing the widespread destruction caused by Cyclone Ditwah. Announced last week at the Bandaranaike Memorial International Conference Hall, the initiative places the full weight of the State behind what is being framed as one of the country’s largest disaster recovery exercises in recent years.

The programme, unveiled under the leadership of President Anura Kumara Dissanayake, is structured around a complex financing model that blends redirected public spending, reallocated development funds, and anticipated international donor assistance. At the centre of the funding plan is a proposed Rs. 500 billion supplementary estimate for 2026, signalling the scale of fiscal commitment the Government intends to make toward reconstruction.

Oversight of the initiative has been entrusted to a 25-member Presidential Task Force chaired by Prime Minister Dr. Harini Amarasuriya. According to official briefings, the Task Force will operate through eight specialised sub-committees, each responsible for priority sectors such as infrastructure restoration, housing reconstruction, and the revival of livelihoods disrupted by the cyclone.

Parallel to this political oversight structure, the technical groundwork for recovery is being laid through a Post Disaster Needs Assessment (PDNA). The first steering committee meeting for the PDNA was convened on 14 January by Defence Deputy Minister Major General (Retd.) Aruna Jayasekara, who also heads one of the Task Force sub-committees. The meeting brought together senior Government institutions and development partners to design the assessment’s methodology, governance framework, and coordination mechanisms.

The PDNA is expected to produce a detailed report quantifying damage, economic losses, and recovery requirements across a wide range of sectors, including housing, health, agriculture, transport, utilities, employment, and disaster risk reduction, while also incorporating governance, gender, and social inclusion concerns. Officials agreed on a tight timeline to complete the assessment, reflecting pressure to translate planning into action.

However, discussions also revealed systemic challenges. Participants acknowledged persistent weaknesses in inter-ministerial coordination, limited institutional awareness of PDNA processes, and delays in accessing reliable ground-level data factors that have historically slowed recovery efforts. Despite these hurdles, the Defence Deputy Minister reaffirmed the Government’s commitment to working closely with development partners, stressing that a unified and disciplined approach would be critical to ensuring a resilient national recovery.

Cabinet Endorses Updated Fisheries Policy to Drive Sustainable Growth

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By: Staff Writer

January 20, Colombo (LNW): The Cabinet of Ministers has granted formal approval for the implementation of Sri Lanka’s updated National Fisheries and Aquaculture Policy (NFAP), marking a significant milestone in the sustainable management and modernization of the country’s fisheries sector. The long-anticipated approval comes after extensive revisions to align the policy with the government’s broader economic vision, Vistas of Prosperity and Splendour.

Although the National Fisheries and Aquaculture Policy has undergone several updates over the years to reflect changing sectoral needs, it had not previously received Cabinet endorsement. Under the current administration, the policy was comprehensively redrafted to ensure consistency with national development priorities, investment goals, and environmental sustainability commitments.

Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa, speaking at the weekly post-Cabinet media briefing on Tuesday, stated that recommendations from the Department of National Planning were incorporated into the revised policy framework. He noted that Cabinet approval was granted not only for implementation but also for integrating the policy with other relevant national strategies to ensure a coordinated approach to sector development.

The updated policy places strong emphasis on sustainable development, promoting eco-friendly fishing and aquaculture practices while safeguarding aquatic ecosystems. It seeks to balance ecological conservation with economic growth by encouraging responsible resource use, minimizing environmental degradation, and strengthening regulatory oversight.

Economic advancement is another central pillar of the policy. Measures are outlined to increase fish production sustainably, modernize post-harvest handling, and improve product quality to meet international standards such as those required by the European Union. These improvements are expected to enhance Sri Lanka’s competitiveness in global seafood markets while attracting local and foreign investment.

Social upliftment of fishing communities is also a key focus. The policy aims to ensure equitable distribution of benefits across the sector, reduce poverty among fishers, improve living conditions, and expand social protection mechanisms. Job creation, skills development, and improved safety standards aligned with International Labour Organization guidelines form part of the broader modernization agenda.

The policy framework builds upon existing legal and regulatory instruments, including the Fisheries and Aquatic Resources Act and various sectoral regulations and gazette notifications governing landing, handling, and processing of fish. It also complements Sri Lanka’s National Plans of Action, including initiatives to combat Illegal, Unreported, and Unregulated fishing.

With Cabinet approval now secured, the National Fisheries and Aquaculture Policy is expected to provide a stable, transparent, and investor-friendly framework for long-term growth. Authorities believe its implementation will strengthen food security, protect marine resources, and enhance the livelihoods of thousands dependent on the fisheries and aquaculture sector.

Liquidator Seeks Investors for Stalled Krrish Colombo Mega Project

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By: Staff Writer

January 20, Colombo (LNW): The liquidator of The One Transworks Square Ltd. has formally invited investment proposals for the long-stalled Krrish Building project in Colombo, a large-scale mixed-use development currently under liquidation. Marketed as a landmark investment opportunity, the project combines luxury hospitality, branded residences, office space, and premium retail within a single integrated complex.

The proposed development consists of three high-rise towers with a total construction footprint of approximately 5.23 million square feet. Original construction costs were estimated at $665 million, with an additional $47 million allocated for development and design, bringing the total project value to around $712 million.

Tower A, together with the podium, accounts for nearly 3.2 million square feet across 84 floors and was designed to accommodate a Ritz-branded hotel and luxury residences. Tower B spans 843,368 square feet over 74 floors and was earmarked for a JW-branded hotel and residential units. Tower C, the tallest of the three, covers 1.19 million square feet across 94 floors and was planned to house JW-branded residences along with office space.

Despite its ambitious scope, construction progress remains limited. Work completed to date is valued at approximately $85 million, excluding land costs. The land itself was originally acquired for $17 million, equivalent to about Rs. 5.1 billion.

The liquidator has opened two possible pathways for investors: either injecting capital to restructure and revive the company or purchasing the existing improvements along with the leasehold rights held by the entity under liquidation. Interested parties are required to submit comprehensive financial proposals, including a detailed concept paper, a bank comfort letter, investor credentials, and proof of prior experience in handling large-scale developments.

The deadline for submission of offers has been set for 28 February, signaling an effort to bring renewed momentum to one of Colombo’s most prominent yet unfinished developments.

The Krrish project was launched during the administration of former President Mahinda Rajapaksa and was promoted as a transformative addition to Colombo’s skyline. However, progress stalled amid financial difficulties and legal complications, eventually leading to liquidation.

Despite its troubled history, the project’s prime location, large scale, and internationally branded hospitality components continue to attract attention from potential investors. Industry observers note that, if successfully restructured, the development could still play a significant role in Colombo’s urban and tourism landscape.

Vehicle Import Boom Fades as 2026 Brings Fiscal Reality

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By: Staff Writer

January 20, Colombo (LNW): Sri Lanka’s vehicle import sector is entering a markedly different phase in 2026 after the extraordinary surge witnessed in 2025. The reopening of imports in February 2025, following years of restrictions, triggered an unprecedented rush driven by pent-up demand, easy credit, and speculative buying.

While this delivered a short-term boost to government tax revenues, it also caused a sharp spike in foreign exchange outflows. Policymakers now expect 2026 to mark a return to more sustainable, normalized import levels, economic experts warned.

In 2025 alone, Sri Lanka imported over 64,500 cars and SUVs, according to industry research, contributing to an estimated vehicle import bill exceeding US$1.5 billion. This inflow significantly strengthened government finances through customs duties, excise taxes, VAT, and para-tariffs, helping the Treasury meet post-crisis revenue targets. However, the same surge placed renewed pressure on scarce foreign exchange reserves, raising concerns about external sector stability.

For 2026, authorities and market participants anticipate a notable decline in vehicle imports, with total values expected to settle around US$1.2 billion. Several factors are driving this moderation. The backlog of deferred purchases has largely been absorbed, dealer inventories remain elevated, and tighter financing conditions including reduced loan-to-value (LTV) ratios are dampening fresh demand. In addition, a possible reduction of the import surcharge from 30 percent to 20 percent after February 2026 could reshape purchasing decisions without reigniting a boom.

Tax policy changes under Budget 2026 will further influence the market. From April, the Social Security Contribution Levy (SSCL) will be collected at the point of import, raising upfront costs for both importers and buyers

Meanwhile, a simplified four-tier customs duty structure (0, 10, 20, and 30 percent) replaces a previously complex system, offering clarity but potentially shifting certain vehicle categories into higher tax brackets. The gradual removal of para-tariffs such as CESS may provide limited relief, though authorities are expected to recalibrate other taxes to protect revenue.

Electric vehicles continue to play a growing role in shaping import dynamics. EVs accounted for 10 percent of passenger vehicle imports in 2025, a regional outperformance that reflects both tax incentives and shifting consumer preferences. While EVs reduce fuel import costs over time, they still contribute to short-term foreign exchange outflows through high import values, leading motor readers said. .

Overall, 2026 is expected to deliver lower vehicle-related tax revenue than the 2025 peak, but with improved stability. The transition from a boom-driven year to a normalized market may ease pressure on foreign reserves while allowing the government to plan fiscal policy on more predictable foundations.

Private Sector Minimum Wage Raised to Rs. 30,000 from January

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January 20, Colombo (LNW): The statutory minimum wage for private sector employees has been revised upwards by Rs. 3,000 with effect from January 01, bringing the new monthly floor to Rs. 30,000.

In a statement, Commissioner General of Labour H. M. D. K. Nadeeka Wataliyadda said the adjustment was implemented under the National Minimum Wage of Employees (Amendment) Act No. 11 of 2025, and is now legally binding on all relevant employers.

She emphasised that the law applies not only to direct employers but also to principal employers in cases where workers are engaged through contractors or intermediaries. The Commissioner General further clarified that, in terms of the Act, existing allowances — apart from approved budgetary relief payments in place as at March 31, 2025 — cannot be used to replace or absorb the revised minimum wage.

Employers are also required to reflect the increased wage when calculating all statutory and employment-related payments, including contributions to the Employees’ Provident Fund and Employees’ Trust Fund, overtime, gratuity, maternity benefits and leave entitlements.

The Labour Department has urged workers to report any non-compliance. Complaints can be lodged through the department’s online Complaint Management System or submitted in writing to the nearest Labour Office if employers fail to meet their legal obligations.

Australia Signals Support for Sri Lanka’s Food Security and Regional Trade Ambitions

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January 20, Colombo (LNW): Australia has reiterated its willingness to assist Sri Lanka in strengthening food security while also endorsing the country’s bid to join the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade grouping.

The assurance was given during talks between Australian High Commissioner Matthew Duckworth and Minister of Trade, Commerce, Food Security and Cooperative Development, Wasantha Samarasinghe.

The discussions focused on areas of cooperation that are of strategic importance to Sri Lanka, particularly in safeguarding food supplies and building resilient agricultural and distribution systems.

High Commissioner Duckworth подчеркed Australia’s interest in working closely with Sri Lankan authorities to bolster food security, describing it as a critical national priority.

He also confirmed Australia’s backing for Sri Lanka’s efforts to accede to RCEP, a move seen as key to expanding trade links and integrating more deeply into regional supply chains.

RCEP brings together 15 economies across the Asia-Pacific, including Australia, China, Japan, South Korea and New Zealand, and accounts for roughly a third of global economic output and population.

The meeting also touched on the recent impact of Cyclone Ditwah, with both sides exchanging views on the disaster situation and the importance of cooperation in recovery and resilience-building efforts.

Police Launch New Public Tip-Off Lines Ahead of 2026 Anti-Drug Drive

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January 20, Colombo (LNW): Sri Lanka Police have rolled out a new set of telephone contact points to encourage the public to share information in support of a nationwide anti-narcotics campaign planned for 2026.

Police headquarters said the initiative is designed to allow members of the public to pass on intelligence directly to officers heading regional and divisional units, strengthening ground-level enforcement against illegal drugs.

The scheme focuses on substances that continue to pose a serious threat across the country, including heroin, crystal methamphetamine, cocaine and cannabis.

By creating direct lines of communication with divisional police leadership, authorities hope to improve the speed and accuracy of information flow, particularly from communities most affected by narcotics-related crime.

Police officials stressed that public cooperation will be critical to the success of next year’s operations and assured informants that details provided will be handled with due confidentiality.

The new contact numbers are being made available through police divisions nationwide as part of a broader strategy to curb drug trafficking and related criminal activity.

Supreme Court to Hear Appeals by Jailed Former Ministers in March

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January 20, Colombo (LNW): Former cabinet minister Mahindananda Aluthgamage and ex-Lanka Sathosa chairman Nalin Fernando have moved the Supreme Court challenging the prison sentences imposed on them in a high-profile corruption case. The apex court has scheduled the appeals for hearing on 9 March.

The matter came before a bench comprising Chief Justice Preethi Padman Surasena and Justice Achala Wengappuli earlier today (20), where preliminary submissions were considered. Following this, the judges directed that the appeals be taken up on the specified date.

Both men were convicted of causing a substantial financial loss to the state during the 2015 presidential election period. The case centred on the procurement of large quantities of carrom boards and draughts sets through Lanka Sathosa, a transaction found to have cost the government more than Rs. 50 million.

Aluthgamage was handed a sentence of 20 years of rigorous imprisonment, while Fernando received a 25-year term. The appeals seek to overturn or reduce these sentences, and the forthcoming hearing is expected to draw significant public attention given the scale of the case and the senior positions once held by the appellants.