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Vehicle prices in Sri Lanka could see a temporary increase as a result of higher surcharges on imports and fluctuations in exchange rates, according to indications from the Central Bank of Sri Lanka (CBSL), raising concerns among importers over the impact on both businesses and consumers.

Representatives of the Vehicle Importers’ Association of Sri Lanka have urged authorities to provide relief for vehicles that have already been imported or for shipments where Letters of Credit (LCs) had been opened before the latest policy changes took effect.

Vice President of the Association, Arosha Rodrigo, said the reduction in the loan-to-value (LTV) ratio would weaken consumers’ purchasing power and affordability, which could directly limit vehicle imports in the market. He noted that tighter financing conditions may make it more difficult for buyers to purchase vehicles, creating added pressure on the industry.

Meanwhile, Association President Prasad Manage criticized the sudden revision of leasing regulations, pointing out that leasing facilities previously available up to 50 percent had now been reduced to 40 percent. He said the change would make it harder for importers to sell vehicles that had already been brought into the country under earlier market expectations.

Manage further stressed that policy revisions of this nature should have included concessions for vehicles already imported or for transactions where import procedures had already begun, warning that abrupt regulatory shifts could place additional strain on the vehicle import sector.

Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, was accorded a traditional Māori “Pōwhiri” welcome at New Zealand’s Ministry of Foreign Affairs and Trade, marking a significant moment at the start of his official visit to the country.

Sharing the development on X, Minister Herath said he was honoured to receive the ceremonial welcome, noting that he is the first Sri Lankan Foreign Minister to be extended the traditional Māori reception during an official visit to New Zealand.

The Minister is currently on an official tour of New Zealand and Australia from 26 May to 3 June 2026 at the invitation of the two governments, in a diplomatic mission aimed at strengthening ties and expanding cooperation with both nations.

During the visit, Vijitha Herath is scheduled to hold bilateral discussions with New Zealand’s Minister of Foreign Affairs Winston Peters and Australia’s Minister for Foreign Affairs Penny Wong. The talks are expected to focus on areas of mutual interest and opportunities for enhanced collaboration.

In addition to high-level political meetings, the Foreign Minister will also engage with senior government officials, business leaders, academics, think tank representatives and members of the Sri Lankan community living in both countries.

One of the key highlights of the New Zealand leg of the visit will be the ceremonial opening of the Sri Lanka High Commission in Wellington, a move expected to further deepen diplomatic engagement between the two countries.

The Ministry of Foreign Affairs, Foreign Employment and Tourism stated that the visit is expected to reinforce Sri Lanka’s longstanding relations with New Zealand and Australia while paving the way for closer cooperation across several sectors.

The Department of Meteorology has warned of increasing rainfall as the Southwest Monsoon gradually establishes across the island, with wet weather conditions expected to intensify over the southwestern parts of Sri Lanka.

Showers or thundershowers are forecast at times in the Western, Sabaragamuwa and North-Western provinces, as well as in the districts of Galle, Matara, Kandy and Nuwara-Eliya. Heavy rainfall of around 100 mm is likely at some locations in these areas, raising the possibility of water accumulation and localized disruptions.

The Met. Department also said a few showers or thundershowers may develop in parts of Uva Province and in the districts of Ampara and Batticaloa after 1.00 p.m.

In addition to rainfall, fairly strong winds of 30 to 40 kmph can be expected at times over the western slopes of the central hills, as well as in the Northern, North-Central, North-Western and Southern provinces, including the Trincomalee district.

With changing monsoon conditions bringing both rain and gusty winds, the public has been advised to take necessary precautions to minimize damage from temporary localized strong winds and lightning during thundershowers.

Oil prices hit two-week lows on Monday on optimism that the U.S. and Iran were moving closer towards a peace deal even though they remained at odds over key issues, including blockades on the Strait of Hormuz that continued to restrict oil supply ⁠from the Middle East.

Brent crude futures fell $4.71, or 4.55%, to $98.83 a barrel by 2234 GMT, while U.S. West Texas Intermediate was at $92.03 a barrel, down $4.57, or 4.73%.

Both contracts touched their lowest since May 7 earlier in the session.

On Saturday, U.S. President Donald Trump said that Washington and Iran had ‘‘largely negotiated’’ a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz, which before the ⁠conflict carried one-fifth of global oil and liquefied natural gas shipments.

However, the two sides remain at odds on several difficult issues, with Trump saying on Sunday he had told his representatives not to rush into any deal ⁠with Iran.

MST Marquee analyst Saul Kavonic said: ‘‘Notwithstanding all the caveats and risks that remain to the peace deal and Strait of Hormuz, there is now ⁠some light at the end of the tunnel, which will bring some near-term oil price relief.’’

However, analysts expect that it will ⁠take months for oil flows through the strait to return to normal and for damaged oil and gas facilities to be repaired.

Source: Reuters

Opposition Leader Sajith Premadasa has warned that Sri Lanka is facing a serious economic risk, alleging that the government is misleading the public with “false statistics” instead of revealing the true state of the economy.   

He made these remarks during a meeting with social media activists held at the headquarters of the Samagi Jana Balawegaya (SJB).

Premadasa claimed that the government, led by President Anura Kumara Dissanayake, continues to conceal the country’s economic vulnerabilities while increasing the prices of essential commodities such as fuel and milk powder.

He stated that rising fuel and milk powder prices are clear indicators of the prevailing economic crisis and stressed that the public must be made aware of the situation.

According to internationally accepted economic standards, foreign reserves should be sufficient to cover at least three months of imports, Premadasa stated.

He pointed out that although the President claims the country has USD 7 billion in reserves, Sri Lanka spends approximately USD 2 billion per month, meaning at least USD 6 billion is required to cover three months of imports.

Premadasa further emphasized that the depreciation of the rupee and rising fuel prices are reducing the country’s ability to maintain that level of reserves.

Premadasa also claimed that although the reserves include Chinese Yuan worth 1.2 billion, those funds are not readily usable, leaving only around USD 5.8 billion effectively available.

Referring to fuel prices, he stated that the price of Octane 95 petrol had reached Rs. 470 per liter in 2022, while it is currently being sold at around Rs. 410 per liter. He warned that any further increase in global oil prices could push the country toward bankruptcy.

The Opposition Leader further said that although foreign remittances have increased in recent months, the ongoing conflict in the Middle East could destabilize regional economies and result in job losses for migrant workers, thereby reducing remittance inflows.

He also warned that once Sri Lanka’s agreement with the International Monetary Fund (IMF) concludes in March 2027, the country will lose the stabilizing support provided by international financial institutions.

Premadasa cautioned that a decline in remittances, combined with rising oil prices and further depreciation of the rupee, could trigger a severe economic crisis.

He further noted that Sri Lanka’s foreign debt repayments are expected to increase from USD 1.5 billion to USD 3.5 billion annually from 2028 onward, emphasizing the urgent need to strengthen foreign reserves.

According to Premadasa, the IMF has recommended that Sri Lanka maintain reserves of around USD 13.4 to 14 billion, but the country currently holds only around 50% of that target. 

He added that Sri Lanka would need to increase reserves by approximately USD 600 million per month to reach the target, while current monthly reserve growth stands at only around USD 60 million.

A severed human head has washed ashore on the beach located behind a popular tourist hotel in Moragalla, Aluthgama.

According to police, the discovery was made following a telephone call received this morning (23), after which officers from the Aluthgama Police carried out investigations at the scene.

The remains have been identified as belonging to a male individual; however, his identity has not yet been established, said police.

Aluthgama Police are conducting further investigations into the incident.

(Adaderana.lk)

Rescuers are racing against time to free seven people who have been trapped for nearly a week in a flooded cave in Laos.

The seven were part of a group of villagers from the central province of Xaysomboun who had gone into the cave on Wednesday in search of gold and wildlife, but could not get out as rain and landslides blocked the cave’s entrance.

Footage shared by the rescue groups show the cave divers crawling into the cave through narrow, muddy passageways that are almost completely flooded.

Several experts involved in the dramatic rescue of a team of teenage footballers trapped deep inside a Thai cave back in 2018 are among those helping with the current rescue effort.

A survivor who had managed to escape alerted the authorities about those still trapped, according to reports.

The cave in question is frequented by villagers looking for gold deposits, Bounkham Luanglath, who leads the Laos’ Rescue Volunteer for People, told the Associated Press.

The cave system, which extends deep underground, is also extremely narrow, with some chambers measuring only about 50cm (20in) wide, rescuers say.

Rescuers are working to pump water out of the cave.

They managed to clear out some rocks at the front of the cave on Monday and were able to survey the deeper sections of it, but water levels have continued to rise, preventing them from going further, rescuers say.

They have not detected any signs of life so far, but Kengkard Bongkawong of the Thai rescue group Metta Tham Rescue believe they are reaching close to the point where they believe the people are trapped, saying he estimated they were ‘‘less than 20m (65ft) away’’.

‘‘All day, all night, water was still being pumped out,’’ Kengkard wrote on Facebook last night.

Kengkard was part of the team that helped bring 12 young Thai boys and their football coach to safety after they were trapped for two weeks inside a flooded cave underneath a mountain in Thailand’s Chiang Rai province in 2018.

The extraordinary rescue involved more than 10,000 experts from around the world and drew intense global attention.

Several films and documentaries have been made based on it, including the feature film Thirteen Lives and the documentary The Rescue.

Source: BBC 

A minor flood situation could develop in low-lying areas of the Kalu Ganga basin within the next 24 hours, according to the Department of Irrigation, following considerable rainfall recorded in the catchment areas.

The Department said current rainfall conditions and river water levels observed at hydrological stations along the Kalu Ganga indicate a risk of minor flooding in several vulnerable areas of the Kalu Ganga valley.

The Divisional Secretariat Divisions identified as potentially affected include Ingiriya, Horana, Dodangoda, Millaniya, Kalutara, Bulathsinhala, Madurawala, and Palindanuwara.

Residents living in low-lying areas, as well as motorists travelling through these locations, have been urged to remain alert and exercise caution as water levels continue to be monitored.

Meanwhile, disaster management authorities have been requested to take the necessary precautionary measures in response to the possible flood situation.