News

United States Special Envoy for South and Central Asia and Ambassador to India, Sergio Gor, has spoken with President Anura Kumara Dissanayake regarding the ongoing rescue and relief measures following the devastation caused by Cyclone Ditwah.During the discussion, Gor reaffirmed that the United States is closely observing the evolving situation and extended heartfelt condolences to the families who have lost loved ones in the disaster.

President Dissanayake, in response, expressed his appreciation for the United States’ steady support during Sri Lanka’s time of crisis. Cyclone Ditwah has claimed hundreds of lives and displaced hundreds of thousands, creating one of the most severe humanitarian challenges in recent years.

The United States has already announced a contribution of US$ 2 million to bolster Sri Lanka’s immediate emergency response and relief efforts.

Sri Lanka’s import bill surged to US$ 2,156.8 million in October, with vehicles alone absorbing US$ 261 million, creating renewed concerns over the economy’s growing external vulnerabilities. The sharp spike comes just months after the Central Bank attempted to slow the foreign exchange drain by restricting bank and finance company lending for vehicle purchases—a move now proving insufficient against pent-up demand and looser post-restriction import conditions.

While the economy continues to expand mirroring 2024’s 5% GDP growth the revival in consumption has created an import-heavy recovery. Fuel imports rose to US$ 357.8 million in October, with refined petroleum accounting for the bulk of the expenditure. Over the first ten months of 2025, Sri Lanka spent US$ 3.3 billion on fuel and US$ 1.46 billion on vehicles, reflecting the scale of the country’s dependence on international markets.

With total merchandise imports reaching US$ 17.55 billion (a 13.8% rise), the country’s trade deficit widened sharply, hitting US$ 1,007.4 million in October alone—the highest monthly deficit recorded this year. Exports, meanwhile, stagnated at US$ 1.15 billion, failing to keep pace with the import surge. The ten-month trade deficit now stands at US$ 6.2 billion, up from US$ 4.7 billion last year, placing renewed pressure on the fragile recovery in external balances.

The impact is already visible in Sri Lanka’s current account, which slipped into a US$ 199.5 million deficit in October the second consecutive month in the red—raising red flags about sustainability. Although the current account still shows a US$ 1.65 billion surplus for the first ten months, the momentum is clearly weakening.

Beyond the headline numbers, the resurgence in vehicle imports is creating serious structural risks. According to the Ceylon Motor Traders Association (CMTA), the post-February 2025 relaxation of restrictions has triggered a wave of indirect imports, many entering without proper safety inspections, verified histories, or manufacturer warranties. CMTA warns that these vehicles—often under-invoiced or routed through grey channels—pose long-term risks to both consumers and the economy.

Hidden defects, tampered odometers, and lack of after-sales support mean buyers may save at the point of purchase but face steep costs down the line. More critically, such imports undermine government revenue through loss of customs duties, distort market competition, and create recurring pressure on foreign exchange as spare parts must be sourced externally without manufacturer backing.

Authorized agents, CMTA stresses, offer vehicles built for Sri Lankan conditions, backed by warranties, proper recalls, trained technicians, and ethical foreign currency transactions. In contrast, grey imports bypass key regulatory checks, leaving buyers exposed and depriving the state of millions in revenue.

As vehicle imports accelerateand as consumers increasingly turn to unregulated channels—the economic consequences are mounting: widening deficits, rising FX pressure, reduced revenue collection, and heightened consumer risk. Without stronger regulatory enforcement and tighter oversight of import channels, Sri Lanka risks repeating past cycles of unsustainable import-led expansion, further weakening its fragile recovery.

The Sri Lanka Dawoodi Bohra community has extended significant financial support to national flood relief efforts by donating Rs. 10 million to aid those affected by the recent severe weather conditions.

The donation was formally handed over this morning (02) at the Presidential Secretariat, where the Chairman of the Sri Lanka Dawoodi Bohra Community, Ibrahim Jaffer Zaini, presented the cheque to the Secretary to the President, Dr. Nandika Sanath Kumanayake. The contribution was made on behalf of the global Bohra spiritual leader, His Holiness Syedna Mufaddal Saifuddin.

Community representatives noted that they intend to continue assisting the government’s humanitarian operations, including rescue missions and relief distribution. They also expressed appreciation for the measures already taken by authorities to support families and regions impacted by the widespread flooding.

Security forces across Sri Lanka continue to carry out extensive search operations to locate individuals reported missing amid the ongoing disaster situation.

In Badulla, a team from India’s National Disaster Response Force (NDRF) recovered the body of one missing person following a difficult rescue and retrieval mission. According to officials, the remains were found buried under more than five feet of debris, highlighting the severe impact of the recent landslides and flooding in the area.

Search and recovery efforts remain ongoing as authorities work to account for all those affected by the islandwide calamity.

The Pathfinder Foundation (PF) will hold a webinar on the 2 December 2025 at the Colombo Club, Taj Samudra. The event primarily focuses on the theme, “Managing Public Finance: The South Asian Experience” and aims to bring together officials, scholars, representatives from leading think tanks, and related field experts. 

Pathfinder Chairman Bernard Goonetilleke will deliver the opening remarks. The key resource persons for the event include; former International Monetary Fund Asia and Pacific Department Director Anoop Singh, a PF Distinguished Fellow and former Central Bank of Sri Lanka Governor Dr. Indrajit Coomaraswamy, and a Distinguished Fellow and former Ministry of Finance and Planning Secretary Dr. R.H.S. Samaratunge. 

This discussion is organised as a tribute to Anoop Singh, who was the IMF’s Resident Representative in Colombo during the landmark economic reform program in 1977. During his tenure, he worked very closely with the Sri Lankan authorities to design wide-ranging reforms of the country’s trade and payments system. This marked a radical shift from a strongly dirigiste, inward-looking economy to a more market-oriented system. He was also supportive of Sri Lanka during his subsequent tenure as Director of the IMF’s Asia and Pacific Department. He was known for his strong problem-solving approach to advancing the agenda. 

This webinar aims to foster a constructive and insightful discussion on the importance of effective public financial management. As global economic dynamics evolve amid changing trade patterns, the importance of sound fiscal governance has never been greater. The discussion in this webinar will highlight practical pathways for countries, especially in South Asia, to strengthen fiscal resilience, improve debt management, and align public finance with long-term developmental objectives. Furthermore, the event will focus on a detailed examination of the causal factors, effects and other implications of recent crisis-like situations that rapidly evolved into full-scale socio-political upheavals, as seen in Sri Lanka (2022), Bangladesh (2024), and Nepal (2025) – and how economic mismanagement worsened and accelerated these crises.

The webinar will be conducted in a hybrid format, enabling both online and in-person attendance (by invitation only). Interested participants are encouraged to join the webinar by filling out the registration form available at the link below.

https://docs.google.com/forms/d/e/1FAIpQLScwqqXucGDAQj8vUemd0ydNQDFo9V_C5kk-XH0PyZ4DDaD6Yg/viewform?usp=dialog

The Pathfinder Foundation continues to promote dialogue among relevant field experts, aiming to lead Sri Lanka towards a sustainable and prosperous future.

(DailyFT)

Russian President Vladimir Putin has sent a message of condolence to President Anura Kumara Dissanayake as Sri Lanka continues to confront the severe devastation caused by Cyclone Ditwah, which triggered deadly floods and landslides across multiple districts.

In his statement, President Putin expressed profound sorrow over the high number of casualties and the extensive damage left in the cyclone’s wake.

“Your Excellency, please accept my sincere condolences over the numerous human casualties and the extensive destruction caused by the floods and landslides that have struck your country. I ask you to convey words of sympathy and support to the families and loved ones of those who perished, as well as wishes for a speedy recovery to all those injured,” the message read.

President Putin also assured that Russia stands ready to extend assistance as Sri Lanka continues its relief and recovery operations following one of the most destructive weather events in recent years.

The Foreign Office (FO) received permission from India to use its airspace for humanitarian aid flights to Sri Lanka to provide flood relief, diplomatic sources confirmed to Dawn on Monday.

The Sri Lankan government called for international aid and used military helicopters to reach people stranded by flooding and landslides triggered by Cyclone Ditwah. At least 355 people have been killed, Sri Lankan officials said on Monday, with another 366 still missing.

An official in the foreign ministry told Dawn that earlier this evening, the Indian high commission sent written confirmation allowing humanitarian overflights through Indian airspace. The flights have been cleared to start tomorrow.

The toll in deadly flooding and landslides across parts of Asia climbed past 1,100 on Monday as Sri Lanka and Indonesia deployed military personnel to help survivors.

Separate weather systems brought torrential, extended rainfall to the entire island of Sri Lanka and large parts of Indonesia’s Sumatra, southern Thailand and northern Malaysia last week.

Much of the region is currently in its monsoon season but climate change is producing more extreme rain events and turbocharging storms.

The relentless rains left residents clinging to rooftops awaiting rescue by boat or helicopter, and cut entire villages off from assistance.

India and Pakistan have closed their airspaces to each other’s aircraft since tensions between them escalated in April in the wake of an attack in India-occupied Kashmir’s Pahalgam that killed 26 people and the subsequent four-day conflict. In October, Islamabad extended the airspace ban until November 24.

(Source - Dawn)

The Sri Lanka Army has launched an extensive search operation to find a family reported missing after a landslide hit the Chandirigama area in Kandapola. The incident, triggered by intense rainfall, has left a mother, her two children, and their grandmother unaccounted for, according to local reports.

Troops from the 3rd Battalion of the Sinha Regiment in Nuwara Eliya commenced the search yesterday (01). Authorities said the family's home collapsed during the heavy rains on November 27, and neighbours believe all four were inside at the time of the incident.

Police confirmed that search efforts remain ongoing as rescue teams continue to scour the area.

Laugfs Gas PLC has announced that there will be no adjustment to domestic gas cylinder prices for December 2025. The confirmation was issued by Dr. Niroshan J. Peiris, Cluster Director and CEO of the company.According to the announcement, gas prices in the Colombo District will remain as follows: a 12.5kg cylinder at Rs. 4,100 and a 5kg cylinder at Rs. 1,645.

The company stated that these rates will stay unchanged for the entire month, offering clarity to consumers amid ongoing price fluctuations in the energy market.

The Disaster Management Centre (DMC) has announced that fatalities linked to the islandwide extreme weather conditions have increased to 410. The ongoing disaster, which has affected every district in Sri Lanka, continues to cause significant damage and displacement.

According to the DMC, continuous rainfall, flooding, and landslides have intensified the crisis, prompting widespread emergency response efforts. Authorities are working with rescue teams and regional administrations to support affected communities as the situation remains critical.

The Vadduvakal Bridge in Mullaitivu has suffered severe structural damage after rising floodwaters caused the bridge to break apart in two separate locations, the Road Development Authority (RDA) confirmed today.

Officials said the collapse has cut off a key route used by residents and essential services, creating major transport difficulties in the region. Engineering teams have been dispatched to inspect the damage and determine the stability of the remaining structure.The RDA has advised motorists and pedestrians to keep away from the affected area due to safety risks. Restoration work will begin once water levels recede and conditions are safe for repairs.