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Sri Lankans observed a two-minute silence from 9:25 a.m. to 9:27 a.m. today (25) in remembrance of those who lost their lives in the devastating 2004 tsunami.

The disaster, which struck on 26 December 2004, killed over 35,000 people in Sri Lanka, left around 5,000 missing, and destroyed thousands of homes, livelihoods, and vital infrastructure.

Today marks 21 years since the tragedy, which was triggered by a powerful earthquake off northern Sumatra, Indonesia, sending massive waves across Sri Lanka and several other countries.

In honour of the victims, 26 December has been observed as National Safety Day since 2005. This year’s National Safety Day commemorations are being held today (26) from 8:30 a.m. to 11:00 a.m. at the Peraliya Tsunami Memorial in Galle, with multi-religious observances organised across districts, according to the Disaster Management Centre.

Meanwhile, to remember the victims of the Peraliya tsunami train disaster, the Department of Railways has arranged a commemorative train from Maradana to Matara at 6:30 a.m. today.

As Sri Lanka reels from the devastating impacts of recent cyclones and floods, the government has announced a bold initiative aimed at revitalizing the agricultural sector and safeguarding rural livelihoods. At a Cabinet meeting on Monday, ministers approved the launch of the “Sustainable Agriculture Program,” a concessional loan scheme set to begin next year, designed to strengthen agriculture’s contribution to national economic growth while promoting sustainability.

The program will operate through Participatory Finance Institutions, leveraging a revolving fund established under the ongoing Smallholder Agribusiness Partnerships Program. This fund, supported by both government resources and the International Fund for Agricultural Development (IFAD), will ensure that all recoveries from loans are reinvested exclusively into agricultural financing. Cabinet Spokesman and Minister Dr. Nalinda Jayatissa emphasized that this mechanism aims to guarantee long-term continuity of concessional support for farmers.

In 2026, the government plans to allocate Rs. 800 million from the Sustainable Agricultural Fund to implement the scheme. Loans will be offered under two categories: individual and bulk loans. Individual loans, up to Rs. 5 million, will be accessible via agricultural and Samurdhi banks with a five-year repayment period and a 2% effective interest rate, including grace periods for working capital and joint ventures. Bulk loans, capped at Rs. 500,000 per beneficiary, will also carry a 2% interest rate with a three-year repayment period.

The program is structured to cover the entire agricultural value chain, including cultivation, processing, value addition, input supply, crop procurement, facilitation, production, and exports. This comprehensive coverage reflects the government’s strategy to boost productivity, enhance incomes, and drive value addition while supporting rural resilience in post-disaster recovery.

Analysts note that the use of a revolving fund model could enhance the program’s sustainability, allowing future borrowers to benefit from recovered credit. By integrating concessional loans with targeted support for disaster-affected areas, the government signals a commitment to balancing economic growth with rural welfare and environmental sustainability.

However, the initiative’s success will hinge on effective fund management, rigorous monitoring, and outreach to smallholder farmers who have been disproportionately affected by recent climate shocks. As the agricultural sector adapts to increasingly unpredictable weather, such programs could become vital tools in safeguarding food security and rural economic stability.

Sri Lanka has secured $206 million in emergency financing from the International Monetary Fund (IMF) through its Rapid Financing Instrument (RFI), as the country reels from the devastating impact of Cyclone Ditwah. The government has formally assured the IMF that it will preserve fiscal discipline and maintain an open trade and payments regime, even as economic shocks threaten to undermine a fragile recovery.

The cyclone has caused widespread destruction across the country. According to the World Bank, initial damages are estimated at $4.1 billion, while the International Labour Organisation (ILO) places the broader economic impact at $16 billion. The IMF has forecast that Sri Lanka’s balance of payments deficit will widen by around $700 million, highlighting the urgent need for liquidity support.

In a Letter of Intent (LOI) dated 10 December, co-signed by President and Finance Minister Anura Kumara Dissanayake and Central Bank Governor Dr. Nandalal Weerasinghe, the government detailed its immediate response, the scale of fiscal needs, and its commitments under the IMF’s Extended Fund Facility (EFF). The LOI emphasized fiscal prudence, stressing that recovery and reconstruction will be funded primarily through spending reprioritization, reallocation of budget allocations, and contingency funds. The government noted that a supplementary budget in 2026 would only be considered if absolutely necessary.

The LOI further pledged full compliance with the Public Finance Management Act and international transparency standards, ensuring emergency spending is accountable and legally sanctioned. On monetary policy, the Central Bank reaffirmed its commitment to avoid financing the deficit through money creation, in line with IMF-supported reforms, and requested an expedited update to the Safeguards Assessment.

The government also assured the IMF that it will maintain an open external payments system. It committed not to introduce new restrictions on international transactions, trade, or currency practices, in line with Article VIII of the IMF’s Articles of Agreement, a measure crucial to restoring investor confidence and stabilizing foreign reserves.

While the RFI provides immediate liquidity, analysts warn that Sri Lanka’s fiscal resilience will be severely tested. The combination of disaster recovery needs and existing economic vulnerabilities could strain the government’s ability to maintain reform momentum, safeguard price stability, and protect the banking sector.

The Fifth Review under the EFF is expected early next year. Despite the challenges, the government reaffirmed its commitment to structural reforms, debt sustainability, financial sector stability, governance improvements, and growth-oriented initiatives, signaling to international partners that long-term economic stabilization remains a priority even amidst crisis.

More than 13,000 containers lying idle at the Port of Colombo is not merely a logistics issue—it is an unfolding economic risk at a moment when Sri Lanka can least afford inefficiency. As the country struggles to sustain fragile post-crisis growth, port congestion is quietly undermining trade competitiveness, revenue flows, and investor confidence.

A high-level meeting convened this week—with the Ports Minister, Customs leadership, Sri Lanka Ports Authority (SLPA) officials, and trade stakeholders—once again exposed a familiar pattern: extensive discussion, minimal decision-making. While operational suggestions were floated, no time-bound resolution emerged, reinforcing industry frustration that the port crisis has become institutionalised.

Colombo Port handles over 90% of Sri Lanka’s containerised trade and functions as a regional transshipment hub. Prolonged congestion increases demurrage charges, storage costs, and vessel delays, directly inflating import prices and eroding export margins. For an economy battling high inflation, weak consumer demand, and tight foreign exchange conditions, these inefficiencies translate into higher costs passed on to businesses and households.

One proposal at the meeting to convert a newly constructed parking yard into an additional Customs examination bay, particularly for foodstuff containers highlights a deeper structural issue: misaligned infrastructure utilisation. While physical capacity exists, regulatory and procedural bottlenecks prevent its effective deployment.

Customs officials suggested that containers awaiting clearance from Other Government Agencies (OGAs) be temporarily parked at the new yard. However, this merely relocates congestion rather than resolving it, unless OGA approvals themselves are streamlined. Multiple agencies operating in silos continue to delay cargo clearance, a problem repeatedly flagged but rarely corrected.

Another critical concern is the demand by the CHA Traders Association to permit outside-panel examinations at consignees’ warehouses. Such measures, already practised in competing regional ports, could drastically reduce yard congestion. Yet resistance persists, often due to outdated compliance frameworks and risk-averse administrative culture.

Perhaps most telling is the unresolved issue of 323 containers stalled due to objections raised at parliamentary and committee levels. The lack of clarity on this matter reflects a governance failure where political processes directly disrupt commercial logistics an alarming signal for international traders.

Sri Lanka’s ports must function as economic enablers, not choke points. Every day of delay weakens Colombo’s standing against regional competitors like India, Singapore, and emerging South Asian hubs aggressively modernising their clearance systems.

What the crisis demands is executive authority, digital integration, and inter-agency accountability not another cycle of meetings. Without immediate, decisive reform, port congestion risks becoming a silent drag on Sri Lanka’s recovery, undermining the very trade flows needed to stabilise the economy.

Sri Lanka’s economy faces one of its severest tests in recent memory following the destructive path of Cyclone Ditwah, prompting the government to secure $206 million in emergency financing from the International Monetary Fund (IMF).

The disaster has inflicted widespread economic losses, with the World Bank estimating initial damages at $4.1 billion and the International Labour Organisation placing the total impact at $16 billion. The IMF projects the country’s balance of payments deficit could widen by $700 million, underscoring the magnitude of the challenge.

In a Letter of Intent (LOI) submitted to the IMF, President and Finance Minister Anura Kumara Dissanayake and Central Bank Governor Dr. Nandalal Weerasinghe outlined the government’s immediate fiscal strategy.

The authorities emphasized that emergency reconstruction will be funded primarily through budget reallocations and contingency reserves, and that any supplementary budget in 2026 will strictly comply with transparency and public finance regulations.

The LOI reaffirmed Sri Lanka’s ongoing commitments under the IMF’s Extended Fund Facility (EFF), particularly the Central Bank’s pledge not to finance fiscal deficits through money creation.

The government also guaranteed an open external payments system, pledging to avoid new restrictions on international trade or currency flows a key condition for maintaining investor confidence and external stability.

Analysts caution that while the IMF’s Rapid Financing Instrument provides urgent liquidity, Sri Lanka’s fiscal and economic resilience will be tested in the months ahead.

The government must balance the immediate demands of disaster recovery with long-term commitments to structural reforms, debt sustainability, and financial sector stability. Any misstep could exacerbate inflationary pressures, further weaken reserves, and undermine growth.

The Fifth Review under the EFF is scheduled to begin early next year, a critical juncture for assessing whether Sri Lanka is on track to meet reform targets.

The government has reaffirmed its commitment to structural reforms, improved governance, and growth-oriented policies, signaling an intention to continue pursuing fiscal discipline despite the economic shock.

This emergency financing and reform engagement highlight both the international community’s confidence in Sri Lanka’s policy framework and the precarious balance the country must maintain.

As recovery efforts unfold, the effectiveness of budget reprioritization, adherence to fiscal rules, and timely implementation of reforms will determine whether Sri Lanka can navigate the dual crises of natural disaster and economic vulnerability.

The economic fallout from Cyclone Ditwah is proving far deeper and more structurally damaging than initial disaster narratives suggested, with the International Labour Organisation (ILO) warning that nearly 16% of Sri Lanka’s GDP about $16 billion has been exposed to potential damage, largely concentrated in a handful of districts.

This concentration, the ILO cautions, risks uneven recovery and prolonged regional economic stagnation if policy responses remain fragmented and poorly coordinated.

In its Preliminary Employment Assessment, the ILO used night-time light data combined with flood and landslide mapping to estimate economic exposure. The analysis shows that 16.3% of observed economic activity, measured through illuminated zones, fell within disaster-affected areas highlighting the vulnerability of growth hubs rather than peripheral regions alone.

By contrast, the World Bank’s rapid damage assessment placed initial losses at $4.1 billion, or around 4% of GDP, a figure that excludes income losses, business disruptions, and long-term reconstruction costs.

While the Bank acknowledged that total recovery needs would be substantially higher, the sharp gap between the two estimates underscores methodological differences and, more critically, the absence of a unified national damage assessment framework.

Adding to the concern is the labour market impact, which the ILO describes as severe and immediate. Around 374,000 workers were employed in flood- and landslide-affected zones, with potential income losses estimated at $48 million per month if employment disruptions persist.

Agriculture and fisheries were among the hardest hit, with 23% of paddy land affected and tea output losses projected at up to 35%. Smallholder tea farmers who account for 70% of sector output have borne the brunt of the damage.

While the UNDP has repeatedly warned that climate-induced disasters will increasingly reverse development gains in countries with weak institutional coordination, Sri Lanka’s response to Ditwah appears to validate those concerns.

Relief delivery, livelihood restoration, and infrastructure rehabilitation have suffered from overlapping mandates, delayed data sharing, and weak local-central coordination, particularly in estate and rural economies.

From an IMF perspective, disaster shocks of this scale pose significant fiscal and macroeconomic risks, especially for a country already under a tight adjustment programme.

The Fund has consistently stressed that climate resilience, social protection targeting, and disaster-risk financing must be integrated into fiscal planning yet Ditwah exposed gaps in preparedness, insurance coverage, and rapid labour market support.

The ILO has called for emergency cash assistance, employment-intensive recovery programmes, and targeted MSME support, but it also stressed that such measures will only succeed if governance systems are strengthened. Without institutional reform and coordination, Sri Lanka risks turning a climate shock into a prolonged economic setback

The Sri Lanka Working Journalists’ Association strongly condemns the government’s attempt to suppress freedom of expression and press freedom through police action, including the unlawful summoning of journalist Tharindu Jayawardena to the Gampola Police Station in connection with his journalistic work, and the request made by the Sri Lanka Police to the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to cancel the broadcasting licence of the Hiru Media Network.

The police have instructed journalist Tharindu Jayawardena to appear at the Gampola Police Station at 11:00 a.m. on 26 December 2025 to provide a statement in relation to a complaint arising from his investigative reporting that exposed multiple instances of fraud and corruption connected to the Ambuluwawa Biodiversity Complex and its affiliated institutions. In a separate incident, the Hiru Media Network broadcast a news report on a cannabis raid, which revealed an alleged assault on a police officer involved in the operation, as well as reported links between the ownership of the cannabis plantation and parties connected to the National People’s Power (NPP) government. Claiming that the report constituted misinformation, the police have requested the TRCSL to revoke the broadcasting licence of the Hiru Media Network.

In both instances, it is evident that the police have intervened in the independent and lawful journalistic activities of both the journalist and the media institution with the intention of carrying out unlawful repression. If inaccurate reporting has occurred, there exist recognized professional standards, regulatory procedures, and legal mechanisms to address such matters. Instead, the government appears to be using the police to target journalists and media organizations that refuse to submit to political pressure.

These actions form part of a broader pattern of repression during the past 15 months of the NPP government, marked by increasing restrictions on media freedom and the constitutional right to freedom of speech and expression. The Sri Lanka Working Journalists’ Association expresses deep concern that the government, which came to power appearing to safeguard press freedom, is in fact a wolf in sheep’s clothing, demonstrating clear authoritarian tendencies.

We urge the government to refrain from these shameless attempts to enforce media repression through the expansion of a police-state approach, and instead to create an environment that genuinely protects press freedom, editorial independence, and journalistic ethics in Sri Lanka. Furthermore, we call upon all individuals and organizations who value freedom of expression to stand together against the growing pressure imposed on media freedom in Sri Lanka through repressive laws and state interference.

India’s response to Cyclone Ditwah has underscored how New Delhi’s Neighbourhood First policy now operates not merely as diplomatic rhetoric but as an institutionalised crisis-response framework, extending from the Prime Minister’s Office to ministerial, military, and diplomatic levels.

The delivery of a special letter from Prime Minister Narendra Modi to President Anura Kumara Dissanayake, carried personally by External Affairs Minister Dr. S. Jaishankar, was a clear political signal that Sri Lanka’s recovery is viewed in India as both a humanitarian priority and a strategic responsibility.

As Sri Lanka now shifts its attention to the next phase, India has assured that India will extend all possible support as a trusted partner and a reliable friend. Prime Minister Modi stated in his letter  

As in the past, we will stand shoulder to shoulder with you in rebuilding lives and ensuring resilience in Sri Lanka. In this context,he added.

The letter explicitly framed India’s intervention within its First Responder commitment, a doctrine that has steadily evolved since the Indian Ocean tsunami and gained operational maturity through recent regional disasters.

 Continuing the goodwill gesture , India has committed a comprehensive reconstruction assistance package worth $ 450 million to support Sri Lanka’s recovery from the devastation caused by Cyclone Ditwah, reaffirming its role as the country’s first responder and closest regional partner, during External Affairs Minister Dr. S. Jaishankar’ recent Sri Lanka visist this week

Under ‘Operation Sagar Bandhu’, India deployed naval vessels, aircraft, and helicopters to transport relief supplies and emergency materials, while specialised teams supported search and rescue, medical response, and restoration of critical communications and connectivity. The speed and scale of this mobilisation reflected a preparedness that few regional actors can match.

Dr. Jaishankar’s visit elevated the assistance from emergency relief to structured rehabilitation planning. By arriving as the Prime Minister’s Special Envoy, the External Affairs Minister carried not only humanitarian goodwill but also a mandate to discuss the implementation of a comprehensive assistance package, signalling continuity beyond immediate disaster response.

This shift from relief to resilience marks a critical distinction between ad hoc aid and strategic partnership.

India’s engagement also highlights an important governance dimension. Sri Lanka’s cyclone response has exposed institutional coordination gaps and fiscal constraints. India’s assistance, therefore, operates as a stabilising external input helping bridge immediate capacity shortfalls while allowing Colombo to focus domestic resources on long-term recovery.

 Unlike multilateral assistance, which often arrives with procedural delays, India’s bilateral support demonstrated operational flexibility and political decisiveness.

At the diplomatic level, the visit reaffirmed trust at a sensitive juncture in Sri Lanka’s economic recovery. The Prime Minister’s assurance that India will “stand shoulder to shoulder” in rebuilding efforts carries weight precisely because it echoes India’s past crisis interventions whether during fuel shortages, financial stress, or natural disasters.

Ultimately, India’s response to Cyclone Ditwah reinforces a broader regional reality: in times of crisis, geography and proximity matter. By aligning humanitarian action with diplomatic engagement, New Delhi has reinforced its role not only as Sri Lanka’s closest neighbour, but as its most dependable partner in moments of national stress.

A medical doctor drowned while bathing in the sea off Mirissa yesterday afternoon (25), police sources confirmed.

The deceased has been identified as the Chief Medical Officer of the Weligama Walana District Hospital.

According to reports, the doctor was rescued from the water by local residents after he encountered difficulty while swimming and was rushed to the Matara Teaching Hospital, where he was later pronounced dead.

The victim, aged 49, had reportedly assumed duties at the Walana District Hospital only about a month ago.

The government has rolled out a dedicated Child-Friendly Transport System to improve how children are transported to and from Provincial Probation and Child Protection Departments, Minister of Women and Children’s Affairs Saroja Savitri Paulraj announced on Wednesday.Speaking at an official ceremony held at the ministry premises in Battaramulla, the minister said the initiative was introduced in response to persistent concerns about children being transported in prison vehicles. She noted that such practices often exposed children to distressing situations, including travel in buses clearly marked for prison use, sharing space with adult offenders, and, in some cases, being transported alongside alleged perpetrators. These experiences, she said, amounted to secondary victimisation within the justice system.

Minister Paulraj pointed out that the Supreme Court had also underscored the need for a specialised transport mechanism in its ruling on Fundamental Rights case S.C. (F/R) 335/2010.

As an initial step, five newly acquired Toyota vans have been distributed to Provincial Councils in the Southern, Sabaragamuwa, Western, North Western and Northern Provinces. She further explained that under the government’s policy framework, “A Prosperous Country – A Beautiful Life”, and the thematic vision “A Safe Childhood, A Creative Future Generation”, Rs. 250 million was allocated in the current budget for child transport facilities. In line with this allocation, nine vehicles—one for each province—were officially handed over yesterday.

To ensure the smooth operation of the new system, the government has created 54 new provincial-level positions, despite the ongoing suspension of public sector recruitment. Each province will be assigned six officers, including drivers, caretakers and security personnel. Recruitment has already begun, and specialised training programmes will be provided immediately after appointments, the minister said.

The transport system will be closely monitored and further strengthened where necessary. Minister Paulraj added that the government intends to intensify interventions in women’s and children’s welfare in the coming year, with the aim of improving social indicators alongside economic progress.

She also noted that the issue of safely transporting children under court orders—whether victims, suspects or offenders—has been debated for years. Such children are often placed temporarily in safe houses or detention centres, and transport arrangements had previously relied on the Prisons Department, raising serious ethical and child protection concerns. Addressing these issues, she said, was a key reason behind establishing the new child-friendly transport mechanism.