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Sri Lanka may be celebrating record-breaking tourist arrivals, but behind the glossy numbers lies a stark truth: the state-run tourism promotion machinery is failing to convert footfalls into meaningful economic value. Despite October 2025 marking the highest visitor count ever recorded for that month, earnings remain anaemically low an indictment of amateur planning, inexperienced leadership, and institutions obsessed with arrival statistics rather than attracting high-spending travellers.

According to the Central Bank of Sri Lanka, tourism earnings in October rose by a negligible 0.3% year-on-year, reaching just US$186.1 million. The figure is shockingly low compared to US$287.4 million earned in October 2018, when fewer tourists generated far more revenue. This widening mismatch exposes the core weakness of Sri Lanka’s tourism strategy: empty promotional slogans instead of targeted, value-driven marketing.

The country welcomed 165,193 visitors in October, a 22% increase over last year and even higher than the 153,123 arrivals recorded in 2018. Yet the revenue picture remains bleak. The authorities’ fixation on arrival numbers has overshadowed a more crucial metric spending power. With average daily tourist spending stuck at an unimpressive US$171, Sri Lanka continues to attract low-budget travellers rather than the high-value segments it desperately needs.

The earnings trend across the year paints an equally troubling picture. July revenue fell 3% to US$318.5 million, August dropped 8.2% to US$258.9 million, and September managed only a timid 1% increase to US$182.9 million. Even January the best month of 2025 generated only US$400.6 million, the highest since 2020 but still far below global tourism benchmarks.

For the first ten months of 2025, the sector brought in US$2.65 billion, a modest 4.9% improvement from last year. Yet this figure is still 33% below the earnings of 2018, when Sri Lanka collected US$3.53 billion over the same period and ultimately recorded its highest-ever annual tourism earnings of US$4.38 billion.

Despite this glaring underperformance, the state tourism institutions continue to operate without strategic direction. Industry insiders point to leadership dominated by politically appointed individuals lacking professional expertise. Their plans often underwhelming, outdated, or hastily assembled—fail to target high-spending markets such as Europe, East Asia, or the Middle East. Instead, authorities boast of raw arrival numbers while ignoring the more important task of increasing per-tourist revenue.

With only two months left in the year, Sri Lanka faces an almost impossible climb to meet its US$5 billion revenue target. To get there, the country would need to generate over US$2.34 billion in November and December more than four times its current monthly earnings. Tourism experts dismiss this as “unrealistic” given the poor demand momentum and lack of strategic promotional efforts.

Until Sri Lanka replaces its incompetent tourism leadership and adopts a serious, high-yield strategy, the nation will remain trapped in a self-inflicted paradox: millions of tourists arriving, but the economy barely feeling their presence.

Male-Dominated HIV Infections Rise Sharply in Sri Lanka as 2025 Records Highest Quarterly Cases Since 2009

Sri Lanka is experiencing a worrying surge in HIV infections, with new data confirming that men continue to account for an overwhelming majority of cases reported this year. The National STD/AIDS Control Programme says the trend has intensified in 2025, raising fresh concerns about public awareness and prevention.

A total of 200 new HIV cases were detected during the second quarter of the year (April–June), following 230 cases in the first quarter—the highest number recorded in a single quarter since 2009.

The gender distribution remains heavily skewed. The male-to-female ratio of reported HIV cases in 2025 stands at 7.6 to 1, underscoring that men are disproportionately affected. Among the latest detections, 21 individuals were aged 15–24—20 males and one female—while the majority were over 25.

Health officials also reported 23 HIV/AIDS-related deaths so far this year. In 2024, the country recorded 47 deaths, alongside more than one million HIV tests conducted nationwide.

Since 2009, Sri Lanka has documented 6,759 cumulative HIV cases, including 5,366 males and 1,573 females, highlighting the persistent gender imbalance in infection patterns.

In response to the rising cases, the National STD/AIDS Control Programme has proposed incorporating comprehensive HIV and STI prevention education into school curricula. The initiative would focus on condom use, Pre-Exposure Prophylaxis (PrEP), and Post-Exposure Prophylaxis (PEP). However, the proposal remains under review, and health authorities acknowledge it is facing criticism and resistance.

The Ministry of Foreign Affairs (MFA) has responded to comments made in Parliament by SJB MP Dr. Harsha de Silva regarding the outdated and malfunctioning nature of several government and diplomatic mission websites. The Ministry clarified that the issues highlighted stem from obsolete technological frameworks used across these platforms.

Speaking in Parliament yesterday (17), Dr. de Silva criticized the government’s digital presence, particularly sections related to economic diplomacy and overseas investment promotion. He pointed out that several key webpages still display information from as far back as 2018–2019, and that the “Office of Overseas Sri Lankans” link on some diplomatic mission websites redirects users to error pages.

In a statement published by Ada Derana, MFA Spokesman Thushara Rodrigo acknowledged the concerns, noting that the websites of the Foreign Affairs, Foreign Employment, and Tourism ministries—as well as many Sri Lankan missions abroad—operate on outdated technology.

He warned that certain sites could become completely inaccessible if updates are carried out without a comprehensive overhaul. To address these technical challenges, he said the government has initiated the creation of a unified website platform for all Sri Lankan diplomatic missions and the Ministry of Foreign Affairs.

A contract for the development of this centralized platform was awarded on 17 October 2025, with the project currently underway under the guidance of the Ministry of Digital Economy, ICTA, and SLCERT.

Rodrigo added that an interagency meeting was held on 31 October to connect all diplomatic missions, assess individual issues, and coordinate the upgrade process. The project is expected to be completed by mid-January 2026.

He noted that this wide-ranging digital modernization effort is being implemented under the direction of the Minister of Foreign Affairs, Foreign Employment, and Tourism, marking the first initiative of this scale under the government’s broader digitalization programme.

The Spokesman assured that the public will begin to experience the benefits of these improvements in the near future.

A delegation from the Government Medical Officers’ Association (GMOA), which commenced trade union action this morning (17) over several demands, has arrived at the Presidential Secretariat for discussions.

The meeting is being held under the patronage of President Anura Kumara Dissanayake.
Several senior GMOA members are reportedly participating in the discussion, which is currently underway at the Presidential Secretariat.

The Government Medical Officers’ Association (GMOA) announced that its ongoing trade union action will continue today (18), citing the lack of a satisfactory response to the concerns raised by the union.

The GMOA launched its trade union action yesterday (17) around 8 a.m., based on several demands related to unresolved issues within the health service and challenges faced by doctors—matters they say were not adequately addressed in the 2026 Budget presented by President Anura Kumara Dissanayake.

As part of the trade union action, doctors at hospitals nationwide restricted several services, including issuing prescriptions for medicines to be purchased from external pharmacies and directing patients to obtain laboratory tests from private facilities.

A group of GMOA representatives later arrived at the Presidential Secretariat for a discussion held under the patronage of President Anura Kumara Dissanayake. Following the meeting, the GMOA stated that its emergency Executive Committee and Central Committee would convene to decide on the union’s next steps.

GMOA Secretary Dr. Prabath Sugathadasa said the President had taken note of the proposals submitted by the association and assured that they would be reviewed further, with the possibility of offering reasonable solutions.

#Dr. Sugathadasa added that the two emergency committees will deliberate on the situation and determine the future course of action.

Former Chairman of the Geological Survey & Mines Bureau (GSMB), Anura Walpola, has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

He was taken into custody over allegations that he appointed an employee without following the proper recruitment procedures.

Former Minister Mervyn Silva today (17) pleaded not guilty before the Colombo High Court to the indictments filed against him by the Bribery Commission. The charges allege that he unlawfully accumulated assets during his tenure as a government minister.

Sri Lanka’s battered dollar bond market once defined by default, outflows, and collapsing investor confidence is beginning to show signs of renewed strength. The Ceylon Dollar Bond Fund (CDBF) has reported an impressive 12.3% return in U.S. dollars as of mid-September 2025, indicating a tentative revival in appetite for the country’s restructured debt.

Managed by Ceylon Asset Management (CAM) and supported by Deutsche Bank as Trustee and Custodian, the fund’s strong year-to-date performance highlights growing investor confidence following Sri Lanka’s December 2024 debt restructuring. A senior official at the Sri Lanka Insurance Corporation (SLIC)—a key stakeholder—confirmed that the uptick reflects improving sentiment across global markets toward Sri Lankan sovereign assets.

CDBF is an open-ended unit trust regulated by the Securities and Exchange Commission (SEC). It invests solely in Sri Lankan International Sovereign Bonds (ISBs) and selected dollar-denominated, bank-guaranteed securities listed overseas. For investors, the fund provides a shield against rupee depreciation and enables capital repatriation in foreign currency—attributes aggressively marketed on social media to attract diaspora and regional investors.

According to CAM Managing Director Dulindra Fernando, the surge in returns stems from rising ISB prices, improving macroeconomic indicators, and policy stability. “Sri Lanka’s improving macro fundamentals have underpinned the fund’s performance,” he said, citing the rebuilding of foreign reserves to US$ 6.2 billion, falling inflation, and a steadier rupee.

Tourism earnings, worker remittances, and early signs of foreign investment inflows have further strengthened confidence. The Central Bank’s policy direction has also supported the recovery, with Governor Dr. Nandalal Weerasinghe recently forecasting that Sri Lanka could secure a sovereign rating upgrade from CCC+ to B by 2027, potentially unlocking wider access to capital markets.

Over the past ten months, CDBF’s net asset value (NAV) has risen steadily, in line with the strengthening of restructured ISBs. Market analysts note that average yields on Sri Lankan sovereign bonds have dropped from 15% in January to around 10% by October, signalling reduced default risk and improved investor sentiment. Deutsche Bank added that the recovery in sovereign valuations reflects better fiscal discipline and progress in economic reforms.

SLIC acknowledged that the fund’s performance signals the potential of disciplined investment in restructured debt, but called for strict regulatory oversight to protect investors. Research from Verité further notes that Sri Lanka’s new GDP-linked Macro Linked Bonds (MLBs) could offer returns of up to 10.3% if GDP growth exceeds 3% between 2025 and 2027. Standard Chartered analysts estimate a 67.5% likelihood of meeting that threshold—supporting the upside case for funds like CDBF.

Still, regulators warn that risks remain. The Central Bank stressed that although such funds help attract foreign inflows, they are not without exposure to global interest-rate changes, market volatility, and geopolitical shocks. CBSL also reiterated that Personal and Business Foreign Currency Accounts cannot invest directly in CDBF, and banks have been instructed to enforce the rule.

For many, however, the Ceylon Dollar Bond Fund has become a symbol of Sri Lanka’s slow but deliberate return to credibility in international capital markets a recovery built not on exuberance, but cautious rebuilding, bond by bond.

At least seven individuals had received stab injuries during a confrontation with a psychiatric patient during an alms giving at a house in Medadumbara area off Kandy yesterday.The psychiatric patient was one of the occupants of the house. Police said two women and five men had received stab injuries and admitted to the Kandy National Hospital.

The suspect was taken into custody by the Ududumbara police.

(Source - DailyMirror)

The second day of the Committee Stage debate—also known as the Third Reading—of the 2026 Appropriation Bill, the 80th National Budget, commenced today (17) under the chairmanship of the Speaker.

The Third Reading debate began on November 15 and will continue for 17 days. According to the Parliament’s Department of Communication, the final vote on the Third Reading is scheduled for December 5 at 6.00 p.m.

Meanwhile, the Second Reading of the 2026 Appropriation Bill was passed in Parliament on November 14, 2025, with a majority of 118 votes.
A total of 160 Members of Parliament—including three from the opposition—voted in favour, while 42 voted against and eight abstained.

The Second Reading of the 2026 Budget was initially presented to Parliament on November 07 by President Anura Kumara Dissanayake, in his capacity as Minister of Finance.

A member of the Kandaketiya Pradeshiya Sabha representing the Samagi Jana Balawegaya (SJB) has been arrested by the Badulla Galauda Police in Pallewatte for possessing 86 grams of cannabis.

According to police, the suspect—who also works as a security assistant at the Hapathgamuwa electric fence—is a resident of Pallewatte, Hapathgamuwa in Hali Ela.

The arrest was made during a sudden raid conducted using a decoy, following a tip-off that the councillor was involved in selling cannabis. Officers found 86 grams of cannabis that had been prepared for distribution.

Further investigations are underway, and the suspect is expected to be produced before the Badulla Magistrate’s Court today (17).

Sri Lanka’s non-banking financial industry is bracing for one of the most sweeping regulatory overhauls in more than a decade as the Central Bank pushes forward with major amendments to the Finance Business Act (FBA) No. 42 of 2011.

The proposed reforms now open for public comments until 30 November 2025—aim to correct long-standing weaknesses in oversight, prevent institutional failures, and restore public trust in a sector damaged by repeated collapses.

The current FBA, introduced in 2011 as the main legal framework governing finance companies and deposit-taking institutions, has struggled to keep pace with an expanding and increasingly complex financial market. High-profile failures such as

The Finance Company and Bimputh Finance exposed deep cracks in governance, risk management, and supervisory enforcement. These failures eroded depositor confidence and highlighted the urgent need for stronger regulation.

The Central Bank says the proposed amendments are designed to modernise the law, strengthen supervisory powers, and align the sector with global standards.

Among the most significant changes are expanded investigative powers that will allow rapid action against unauthorised deposit-taking and illegal financial operations. Regulators will also be armed with new early-intervention tools to restructure, merge, or wind up failing institutions before they become systemically dangerous.

Governance is another central focus. The amendments propose stricter “fit and proper” requirements for directors and major shareholders, ensuring that only qualified and reputable individuals can oversee licensed institutions. Higher capital adequacy requirements, enhanced financial disclosures, and tighter advertising rules are also part of the package measures aimed at curbing misleading deposit campaigns and strengthening market discipline.

While the reforms are widely acknowledged as overdue, they have triggered significant concern among industry stakeholders, particularly smaller finance companies. CEOs warn that steeper compliance costs, higher capital thresholds, and tighter controls could force consolidation or drive weaker firms out of business.

Such an outcome, they argue, risks limiting access to credit for small and medium-scale enterprises (SMEs), which remain vital to economic recovery.

The Finance Houses Association of Sri Lanka has requested more time to review the proposals, emphasising the need for careful scrutiny to avoid destabilising the sector. Independent financial analysts echo this caution, pointing to the risk of over-regulation.

According to analyst Anuruddha Jayawardena, regulators face a delicate balancing act: “Strict oversight is essential to rebuild trust, but excessive rigidity could choke off legitimate credit flows, especially in under-banked rural areas.”

Despite concerns, many experts agree that if implemented sensibly—with phased timelines and clear transitional guidelines the amendments could strengthen investor confidence, attract foreign capital, and significantly reduce systemic risk in the non-banking financial sector.

The Central Bank’s decision to invite public feedback is widely seen as an important step toward a more transparent and participatory reform process. As Sri Lanka works to stabilise its economy, the fate of the new Finance Act will play a decisive role in shaping the resilience and credibility of the financial system for years to come.