News

India’s Minister of External Affairs, Dr. S. Jaishankar, met with President Anura Kumara Dissanayake today in a meeting aimed at further strengthening relations between Sri Lanka and India.The President’s Media Division confirmed that bilateral talks are presently in progress, with discussions focusing on areas of mutual interest and cooperation between the two countries.

The meeting is viewed as a significant engagement in the continued diplomatic dialogue between Colombo and New Delhi.

The cyclone did not just flood fields it washed away the fragile foundations of Sri Lanka’s vegetable cultivation sector. While policymakers speak of resilience and recovery, thousands of farmers are staring at ruined plots, mounting debt, and no clear roadmap for survival.

Out of the 175,000 hectares of agricultural land damaged nationwide, up to 8,000 hectares of vegetable crops have been destroyed. This may appear modest compared to paddy losses, but vegetables are the fastest route from farm to plate. When these crops fail, shortages hit markets within weeks, not months.

The worst-hit districts read like a map of the country’s food supply chain. Nuwara Eliya and Badulla, critical suppliers of carrots, leeks, cabbage, and beans, have suffered extensive damage. Low-country vegetable belts in Anuradhapura, Kurunegala, Batticaloa, and Trincomalee have also been submerged, disrupting both production and transport.

What makes this crisis sharper is the debt trap surrounding rural farming. UNDP estimates show that more than one-third of rural households are already indebted. Many vegetable farmers financed seeds, fertilizer, and labour through informal loans, banking on quick harvest cycles to repay lenders. With crops destroyed and tools damaged, repayment is no longer possible. For many, the next step is distress sales of land or exit from farming altogether.

Satellite imagery confirms that this was not a localized disaster. Flood inundation of up to 16 percent in several northern and eastern districts highlights a growing climate threat that current agricultural planning has failed to address. Drainage systems remain neglected, crop insurance penetration is weak, and disaster response is largely reactive.

The government’s challenge is no longer about assessments it is about execution. Seed distribution delayed by bureaucracy is meaningless. Compensation that arrives after the planting window is wasted money. What farmers need now is immediate input support, fast-tracked insurance payouts, and state-backed credit that replaces predatory lending.

Without decisive intervention, vegetable cultivation will shrink in the coming seasons, driving prices higher and increasing dependence on imports. The cyclone was unavoidable. The collapse of farmer confidence is not.

Gold prices in Sri Lanka climbed sharply today (23), mirroring a strong upswing in the global gold market, traders said.

Internationally, gold prices rose to USD 4,485 per ounce, prompting a corresponding increase in local prices. Compared to yesterday (22), gold rates in Sri Lanka have gone up by Rs. 7,000.

At the Colombo Pettah gold market, a 22-carat gold sovereign was selling this morning at Rs. 325,600. Meanwhile, the price of a pound of 24-carat gold increased to Rs. 352,000, up from Rs. 344,000 recorded the previous day, market sources confirmed.

Traders attribute the local price hike to sustained global demand and rising international bullion prices.

Sri Lanka’s US$50 million World Bank–funded digital transformation initiative arrives at a pivotal moment when the country’s appetite for reform is high, but institutional trust remains fragile. Framed as a catalyst for innovation and inclusive growth, the project also exposes long-standing weaknesses in public sector execution and political communication.

At its core, the initiative seeks to digitise government-citizen interactions through unified platforms, shared data systems, and cloud-based infrastructure.

In theory, such reforms could dramatically reduce inefficiencies that have long burdened businesses and households. Faster approvals, transparent records, and seamless service delivery can translate into real economic dividends, including productivity gains and improved investor sentiment.

The project’s emphasis on start-up acceleration and female entrepreneurship further aligns with Sri Lanka’s need to diversify growth drivers beyond debt-financed public spending. Strengthening mid-sized IT firms to access global markets could incrementally lift export earnings and reduce reliance on traditional sectors.

How ever digitisation is not a silver bullet. Without deep administrative reform, technology risks becoming a cosmetic overlay on dysfunctional systems. Past experiences show that digital platforms can coexist with manual processes, creating parallel bureaucracies rather than eliminating inefficiency.

Moreover, GovTech Sri Lanka’s capacity to coordinate across ministries each with entrenched interests remains untested at this scale.

The political dimension adds complexity. The NPP government’s communication strategy has struggled to clearly articulate timelines, safeguards, and accountability structures for digital reforms.

This vacuum fuels public scepticism, particularly around data security and surveillance concerns. Transparency deficits could erode citizen buy-in, undermining adoption rates and limiting returns on investment.

From a fiscal perspective, the opportunity cost is significant. Every dollar spent on digital infrastructure must generate tangible service improvements and economic outcomes. Failure would not only waste scarce resources but also deepen donor fatigue at a time when Sri Lanka remains dependent on multilateral support.

Here, the World Bank’s oversight is indispensable. Continuous performance evaluation, public disclosure of progress, and corrective interventions must be non-negotiable. Digital transformation is as much about governance culture as software and servers.

Sri Lanka stands at a crossroads: digitisation can either reinforce state credibility or expose its weaknesses. The difference will be made not by ambition, but by execution.

A 38-year-old man has reportedly lost his life following an assault in the Dunkannawa area, which falls under the Marawila Police Division, police said.

The incident occurred yesterday (22), and the victim has been identified as a resident of Dunkannawa. Preliminary investigations indicate that the attack stemmed from a personal dispute with a neighbour, which escalated into violence. During the altercation, the suspect is alleged to have assaulted the victim using a sharp weapon.A 43-year-old individual has been arrested in connection with the incident, police confirmed. The Marawila Police are continuing investigations to determine the full circumstances surrounding the killing.

Sri Lanka’s post-Ditwah recovery plan is being framed by the Government as proof that the country has finally broken free from its cycle of fiscal recklessness. With Rs. 500 billion earmarked for reconstruction and relief, and emergency IMF financing in the pipeline, the administration insists that disaster spending will not derail economic stability in 2026. The deeper question, however, is whether this moment will be used merely to repair damage or to fix long-standing structural weaknesses.

President Anura Kumara Dissanayake’s defence of the supplementary estimate rests on a historic fiscal correction. Chronic Treasury overdrafts that once exceeded Rs. 800 billion have been eliminated, replaced by a surplus that provides unprecedented flexibility. Revenue performance has exceeded expectations, borrowing limits have not been breached, and the primary balance has swung decisively into surplus.

This fiscal discipline gives Sri Lanka room to act but room alone does not guarantee results. Disaster-driven spending has a mixed track record globally. While it can stimulate short-term growth, poorly targeted expenditure often fuels imports, inflation, and leakages, leaving little lasting economic value. Sri Lanka’s challenge is to ensure that Ditwah recovery funds do more than restore the status quo.

The Government’s emphasis on shifting from donation-based recovery to investment-led reconstruction signals an awareness of this risk. Plans to refinance affected businesses, inject working capital, and compensate farmers are designed to restart economic activity quickly. Yet without careful targeting, such measures could entrench inefficiencies rather than boost productivity.

The external financing strategy will be equally decisive. The IMF’s Rapid Financing Facility provides short-term relief, but it is not a substitute for long-term reforms. Additional support from multilateral lenders will likely come with expectations of transparency, monitoring, and results—especially as Sri Lanka seeks to avoid a repeat of past aid-fuelled distortions.

 

The timing is critical. Recovery spending will coincide with rising import demand, construction activity, and consumption pressures in 2026. Even with strong tourism and export earnings, the margin for error remains thin. A misstep could quickly translate into currency pressure or renewed inflation, undermining public confidence in the recovery narrative.

Ultimately, Ditwah has forced Sri Lanka into a stress test of its post-crisis economic model. If recovery funds are used to modernise infrastructure, strengthen climate resilience, and crowd in private investment, the disaster could become a turning point. If not, the country risks slipping back into a familiar cycle of spending surges followed by painful corrections.

Donald Trump has sparked a fresh row with Denmark after appointing a special envoy to Greenland, the vast Arctic island he has said he would like to annex.

In response to a question from the BBC about the new role of Jeff Landry, the Republican governor of Louisiana, Trump said the US needed Greenland for “national protection” and that “we have to have it”.

Landry, he said, would “lead the charge” as special envoy to Greenland, a semi-autonomous part of the Kingdom of Denmark.

The move has angered Copenhagen, which said it would call the US ambassador for “an explanation”. Greenland’s prime minister said the island must “decide our own future” and its “territorial integrity must be respected”.

Gov Landry said in a post on X that it was an honour to serve in a “volunteer position to make Greenland a part of the US”.

Since returning to the White House in January, Trump has revived his long-standing interest in Greenland, citing its strategic location and mineral wealth.

He has refused to rule out using force to secure control of the island, a stance that has shocked Denmark, a Nato ally that has traditionally enjoyed close relations with Washington.

“We’ll have to work that out,” Trump added. “We need Greenland for national security, not minerals.”

Trump specifically mentioned Chinese and Russian ships as potential threats in the nearby seas.

Greenland, home to about 57,000 people, has had extensive self-government since 1979, though defence and foreign policy remain in Danish hands. While most Greenlanders favour eventual independence from Denmark, opinion polls show overwhelming opposition to becoming part of the US.

Denmark’s Foreign Minister, Lars Lokke Rasmussen, described the appointment of Landry as “deeply upsetting” and warned Washington to respect Danish sovereignty.

He told Danish broadcaster TV2: “As long as we have a kingdom consisting of Denmark, the Faroe Islands and Greenland, we cannot accept actions that undermine our territorial integrity.”

Greenland’s Prime Minister, Jens-Frederik Nielsen, said the territory was willing to cooperate with the US and other countries, but only on the basis of mutual respect.

He said: “The appointment of a special envoy does not change anything for us. We decide our own future. Greenland belongs to Greenlanders, and territorial integrity must be respected.”

EU Commission President Ursula von der Leyen said in a post on X that the EU stands in “full solidarity with Denmark and the people of Greenland”.

Writing on social media earlier, the US president said Landry understood how “essential Greenland is to our national security” and would advance US interests.

The significance of this appointment is both the US presumption that Greenland is separate to Denmark and the new appointee’s assertion that he will help the island become part of the US.

Envoys are informal appointments and unlike official diplomats, do not have to be approved by the host country.

What this appointment shows is that Trump’s ambition to control Greenland remains undimmed.

As with his military and rhetorical aggression towards Venezuela, it indicates Trump is determined to gain greater control over what his recent National Security Strategy called “the Western hemisphere”, a sphere of influence that he hopes will cover the whole of the Americas.

Trump tried to buy Greenland during his first presidential term. Both Denmark and the Greenlandic government rejected the 2019 proposal, saying: “Greenland is not for sale.”

Landry has previously voiced his opinion on Greenland, writing on his personal X account in January: “President Donald J. Trump is absolutely right! We need to ensure that Greenland joins the United States. GREAT for them, GREAT for us! Let’s get it done!”

Landry is a military veteran and former police officer who was a US Congressman and Louisiana’s attorney general before being elected governor in 2023. He said his new role would not affect his duties as governor.

The dispute over his appointment comes as strategic competition in the Arctic grows, with melting ice opening new shipping routes and increasing access to valuable mineral resources.

Greenland is located in the Arctic between North America and Europe, which also makes it central to US and Nato security planning.

The US has maintained a base in Greenland since World War Two, after invading to establish military and radio stations across the territory after the Nazis occupied Denmark during the conflict.

Vice-President JD Vance visited the base in March as he asked Greenland’s people to “cut a deal with the US”.

The US reopened a consulate in Nuuk, the capital of Greenland, in 2020 - during Trump’s first term - after closing it in 1953. A number of European countries, as well as Canada, have honorary general consulates in Greenland.

( Source: Adaderana.lk)

Veteran Sri Lankan actor Sathischandra Edirisinghe passed away last night at the age of 84, family sources confirmed.He died while receiving treatment at a private hospital in Colombo. Details regarding funeral arrangements will be announced later.

Edirisinghe was widely respected for his long-standing contribution to Sri Lankan cinema, theatre, and television, earning admiration for his versatility and dedication to the arts over several decades. His passing marks the end of an era in Sri Lanka’s performing arts community.

Tributes have begun to pour in from colleagues, fans, and cultural figures, remembering him as a consummate professional and a guiding influence to younger generations of actors.

Sri Lanka’s debate over MSME financing has entered a new phase, with the Industry and Entrepreneurship Development Ministry rolling out emergency relief measures even as fundamental disagreements over lending rates remain unresolved.

On one side, MSME associations continue to argue that licensed banks have failed to transmit policy rate reductions fairly, keeping borrowing costs elevated despite easing monetary conditions. On the other, the Industry Ministry and financial authorities stress that immediate relief, stability of the banking system, and risk management must take precedence as the economy navigates post-crisis recovery and climate-related shocks.

The Ceylon Federation of MSMEs has consistently highlighted what it describes as a structural distortion in the interest-rate transmission mechanism following the 2022 crisis. While acknowledging that aggressive monetary tightening was unavoidable at the time, the Federation maintains that subsequent policy easing has not translated proportionately into lower lending rates for small and medium enterprises. According to its submission, the gap between policy rates and market lending rates continues to burden MSMEs, constraining recovery, investment and employment.

The Federation has further questioned the justification for sustained lending spreads, pointing to improved profitability in several licensed commercial banks during the same period. It has urged regulators to exercise supervisory powers more actively and has called for redress mechanisms, including the reversal of what it considers excess interest charged to MSME borrowers.

Against this backdrop, the Industry and Entrepreneurship Development Ministry has taken a more pragmatic stance, prioritising immediate cash-flow relief for businesses affected by Cyclone Ditwah. At a special meeting chaired by Minister Sunil Handunneththi, banks agreed to extend loan repayment periods by three to six months without imposing additional interest or penalties, in line with a Central Bank circular.

From the Ministry’s perspective, these measures demonstrate responsiveness to MSME distress while preserving financial sector stability. Officials argue that banks continue to face legacy risks from the crisis period and must balance credit support with prudent lending practices. Rather than focusing solely on past rate differentials, the Ministry has emphasised coordinated solutions, including concessional lending schemes recommended by the Central Bank.

The agreement to establish a shared database of distressed businesses reflects this approach. By improving information flow between banks and the Ministry, authorities aim to target relief more effectively and avoid delays or duplication. Weekly reviews have been planned to monitor implementation and adjust policies where necessary.

While MSME representatives welcome short-term relief, they caution that repayment extensions alone do not address the underlying issue of credit affordability. The ongoing tension highlights a broader policy challenge: reconciling MSME demands for cheaper credit with the Government’s emphasis on financial stability and orderly recovery.

As relief measures take effect, the effectiveness of these interventions—and whether they can coexist with deeper reforms to lending practices will be closely watched by both entrepreneurs and policymakers.

The launch of Shield Restraint Systems’ advanced manufacturing facility in Wathupitiwala presents both an opportunity and a test for Sri Lanka’s industrial strategy. While the USD 8.5 million investment signals renewed investor confidence, it also exposes structural weaknesses that could limit the country’s ability to scale similar projects.

Unlike traditional export industries, Shield’s operation focuses on safety-critical components used across global transportation, construction, and leisure industries. This places Sri Lanka on a higher rung of the manufacturing value chain, demanding precision engineering, rigorous quality control, and regulatory compliance aligned with US and European safety standards.

From an economic standpoint, the projected USD 50 million in annual export revenue is significant, particularly given Sri Lanka’s ongoing foreign exchange constraints. The potential creation of 500 direct jobs also suggests downstream benefits, including skills transfer, supplier development, and exposure to global best practices. If replicated, such investments could diversify exports away from price-sensitive sectors.

But risks remain. The facility is opening at only 10% capacity, reflecting a cautious rollout amid uncertain global demand and domestic policy conditions. Industry analysts note that scaling to full capacity will depend heavily on regulatory stability, consistent labour policies, and efficient customs and logistics operations.

Administrative inefficiencies continue to be a recurring concern among foreign investors. Despite repeated commitments to streamline approvals, Sri Lanka’s investment facilitation processes remain fragmented across agencies. Shield’s management has openly called for a genuinely empowered one-stop service—an issue that has stalled or discouraged similar investments in the past.

There is also geopolitical risk. While shifting global supply chains away from over-concentration in East Asia creates openings for countries like Sri Lanka, competition from Vietnam, India, and Indonesia remains intense. These markets offer faster approvals, larger domestic supplier bases, and clearer industrial roadmaps.

Furthermore, the long-term sustainability of such projects depends on policy consistency beyond electoral cycles. Sudden tax changes, labour law uncertainty, or delays in infrastructure upgrades could undermine investor confidence and restrict expansion plans.

Nevertheless, Shield’s expressed intention to explore an additional USD 17 million in investments suggests cautious optimism. If Sri Lanka can address procedural inefficiencies while maintaining macroeconomic stability, this project could serve as a blueprint for attracting niche, high-value manufacturers seeking alternatives in South Asia.

The real economic impact, therefore, will not be measured by the opening ceremony but by whether Sri Lanka can convert this single investment into a broader industrial transformation

The government has requested European Union to dispatch a pack of sniffer dogs to assist in the discovery of remains of those buried alive in landslides triggered by cyclone Ditwah, an official said yesterday.

The government authorities still carry out search operations in view of people who went missing after the disasters .Cyclone Ditwah made landfall on November 28 , unleashing unprecedented volumes of rainfall- at times as high as 500 mm. More than 600 people died and scores of others, mainly from the districts in the central hills, went missing due to landslides and floods.

An official of the Disaster Management Centre (DMC) told Daily Mirror that search operations are in progress to find the remains of those who are presumed dead after the landslides.

He said a request was made to the European Union authorities asking for canines .There are specially- trained canines which use their strong sense of smell to find human remains after disasters.

The official said it is challenging to find the bodies trapped deep.

Asked about the exact number of people reported as missing, he said that the respective district secretaries are required to submit them .