News

Sri Lanka’s continued ban on new oil-palm cultivation and the import of crude palm oil (CPO) has escalated into a significant economic setback, straining foreign exchange reserves, undermining export sectors, and jeopardising thousands of livelihoods, industry stakeholders warn.

Initially introduced on environmental grounds, the policy has now created far-reaching economic distortions. Since the CPO import ban took effect in April 2021, Sri Lanka has spent more than US$175 million on imported edible oils to meet domestic demandan unsustainable burden for an economy still grappling with balance-of-payments pressures.

 Despite once having a productive oil-palm sector that supplied part of the annual requirement of nearly 264,000 metric tonnes, the country now relies almost entirely on imports.

The fallout has been particularly damaging for Board of Investment (BOI) export manufacturers. Companies that previously produced hydrogenated palm-oil products such as vanaspathi ghee, shortening, CBS fats and chocolate fats have incurred losses exceeding US$40 million after losing access to their primary raw material in 2022.

 Their export operations collapsed even though they enjoy preferential access to Indian markets under the Indo–Sri Lanka Free Trade Agreement (ISFTA).

Adding to the irony, India-Sri Lanka’s biggest trading partner has recently reopened the very HS codes that Sri Lanka closed, allowing imports of palm-oil-based products while simultaneously raising tariffs on edible oils.

This shift has created fresh demand in India for Sri Lankan processed exports, but domestic manufacturers remain unable to capitalise due to the rigid CPO import ban.

In a detailed appeal to President Anura Kumara Dissanayake, industry leaders have urged the government to rethink its position and introduce a controlled licensing mechanism allowing BOI-registered firms to import CPO (HS Code 1511.10).

They argue that restoring access to raw materials would revive export production, stabilise domestic edible-oil supply chains, and bring in an estimated US$75 million annually in export earnings.

Their concerns extend beyond immediate manufacturing losses. Plantation companies are pressing for the removal of the nationwide ban on new oil-palm cultivation, imposed in 2022, which abruptly halted a long-term industry intended to reduce dependence on imported oils.

 They propose an annual replanting programme covering 10,000 acres, predicting that Sri Lanka could achieve self-sufficiency and potentially produce a surplus for export within six years.

Industry arguments mirror regional trends. India, which imports nearly eight million tonnes of palm oil each year, has launched a major plan to cultivate oil palm over five million hectares, signalling the strategic value of the crop for food security when properly regulated.

As Sri Lanka prepares to transition from the Special Commodity Levy to a more transparent ad valorem tax on imported oils in 2026, the pressing question remains: will policy change arrive in time?

For manufacturers, plantation workers, and rural communities dependent on the sector, the answer could determine whether the industry survives or collapses entirely.

The Department of Meteorology reports that the Deep Depression positioned near latitude 12.3°N and longitude 80.6°E—approximately 300 km north-northeast of Kankasanthurai—is gradually moving northward, away from Sri Lanka, and is expected to weaken over time.

As the system shifts, intermittent showers are forecast in the Northern, Western, Sabaragamuwa and Southern provinces, as well as in the Kandy and Nuwara Eliya districts.

The Met Department further notes that isolated showers or thunderstorms could develop in parts of the Uva Province and in the Batticaloa and Ampara districts after 2 p.m.

Authorities urge the public to exercise caution, particularly regarding sudden strong winds and lightning associated with evening thundershowers.

The Commissioner-General of Essential Services, empowered under Gazette No. 2464/31 of 28 November 2025, has launched immediate actions to restore public utilities and support communities impacted by the recent disaster.

Provincial Chief Secretaries have been instructed to assess infrastructure damage urgently, address issues related to food and essential services, and take corrective measures. They have also been given authority to share equipment and staff between Local Government Institutions across provinces to speed up recovery efforts.

District Secretaries have been directed to prepare rapid-response plans to ensure the timely delivery of relief services. Approval was granted to unload a 3,955-metric-ton LP Gas vessel at the Port of Hambantota after delays in Colombo, helping stabilize gas supplies.

Additionally, the District Secretary of Puttalam has been authorized to open the Lanka Sathosa warehouse in Chilaw and distribute stored food items to affected residents.

The Commissioner-General noted that state officials are working tirelessly to provide food, water, and essential services to all affected communities. He expressed gratitude to the public for their cooperation and understanding during this challenging time.

The death toll of Cyclone Ditwah is 193 and counting. Hundreds more have gone missing. Tens of thousands have been rendered homeless. People have lost their lives. Thousands mourn the loss of friends and families. And an entire population grieves and wonders when and how livelihoods will be restored, the displaced provided alternative housing. They wonder how long food, medical, power and communications infrastructure will remain disrupted. This is not the first tragedy that has struck Sri Lanka. Sri Lanka has known floods, droughts, landslides although none of it in the scales unleashed by Cyclone Ditwah. Sri Lanka was hit hard by the tsunami of 2004. This time it is a freshwater tsunami engulfing the entire country. What is unique about this disaster is that not a single district has been spared. Sri Lanka has lived through a devastating war that lasted 30 years. Through it all, as a nation, Sri Lanka survived and this is mostly thanks to a remarkable determination to come together to help one another. Volunteerism is truly extraordinary. Generosity and solidarity have seen us through many terrible times.

Wijerama Community Kitchen

This is clearly evident even today. Ordinary citizens, as individuals or in groups, have stepped forward to do their utmost and ensure that no one goes hungry, no one suffers without water and indeed no one is left without shelter. They work together and in conjunction with relevant state institutions and officials. They are tireless. They epitomise the resilience of the island nation.

Nevertheless, the tragedy is of such monumental proportions that it is clear that their efforts alone will not bring back normalcy. We simply cannot do it alone. Sri Lanka is a small island nation and one that has been struggling to get its economy back on track after an unprecedented collapse a few years ago. However, despite Sri Lanka's own trials and tribulations, Sri Lanka and Sri Lankans have always done their best to help friendly nations whenever they were in distress. Today, we are in desperate need of empathy, kindness and support. The victims have suffered unimaginably. We cannot abandon them. We strongly believe that the international community will not forsake us in this, the hour of our greatest tragedy in recent times. There are, or will be shortages of food, medicine, shelter and essential supplies. Sanitation and fresh water supplies will need to be restored. Communication lines will need to be urgently repaired and upgraded.

Looking a little further into the future, it is inescapable that more permanent repairs related to this disaster including restoration of infrastructure, relocating people and rebuilding lives offers a challenge that is formidable and will obviously come at a high cost, one that Sri Lanka will struggle to bear as we are just climbing out of another economic crisis. I call upon our donors and international partners to extend their patience and compassion in the weeks and months to come. The government will need the support and fiscal headroom to look after its people and rebuild their infrastructure even as we continue to honor our obligations. You can help and we sincerely hope you will. As for my fellow Sri Lankans, especially elected representatives of all parties, past and present, be there with your people. We are blessed to have a president of impeccable integrity who is leading the recovery and has the humility to accept your help with gratitude. Do whatever you can for your friends near and far. Support the Divisional Secretaries and others are doing their utmost to provide relief. In short, do what you can to help galvanize and coordinate aid to those who need it the most. Sri Lanka has been through a lot, but we have always prevailed when history wrote us off. No war, no tsunami, no default, no flood or no terror attack or coup has ever or will ever change that.

By Krishantha Prasad Cooray

As Sri Lanka continues to grapple with the aftermath of Cyclone Ditwah, UNP President Vajira Abeywardena has issued a public warning that the country’s economy could suffer one of its largest disaster-related losses in decades, urging the government to release transparent assessments and launch immediate relief interventions.

While official figures remain unavailable, informed sources within the Disaster Management, and provincial administrations estimate the economic cost to fall between LKR 120–300 billion, depending on the accuracy of district-level assessments now under way. These internal estimates, shared in confidence with UNP officials, were referred to indirectly by Abeywardena, who said the impact could “push the economy back by years if mishandled.”

Early briefings indicate severe damage to agriculture particularly vegetables, paddy, and smallholder cash crops with over 35,000 hectares affected across Sabaragamuwa, Central, and Southern provinces. This alone could translate to LKR 20-40 billion in direct output losses and higher food inflation in the coming months.

The fisheries sector has also been hit, with hundreds of boats damaged or lost, disrupted landing sites, and destroyed cold-chain facilities. Industry representatives estimate losses exceeding LKR 10-15 billion.

Tourism, already fragile, faces fresh setbacks as over 70 hotels, guesthouses and homestays across river valleys and hill regions report structural damage, cancellations and supply disruptions.

Housing, Infrastructure and the Wider Economic Bill

Rough field reports suggest 14,000-18,000 houses damaged or destroyed, in addition to thousands more requiring partial repair. Public infrastructure - especially rural bridges, culverts, feeder roads and irrigation canals - has sustained substantial damage, with internal engineering notes pointing to a LKR 40–60 billion reconstruction requirement.

The cumulative hit to livelihoods, reconstruction spending, supply chain disruptions and service-sector losses could push the total economic shock toward the upper range of LKR 300 billion, analysts say.

Abeywardena’s Critique of the Government Response

Abeywardena criticised what he described as the slow and opaque response of state institutions in releasing accurate loss assessments. He argued that without transparent figures, both Parliament and the public cannot evaluate the scale of required relief, nor how much financial support must be redirected from the Budget.

He also warned that delays in emergency relief will deepen rural vulnerability, especially in areas

The UNP has recommended:

• A rapid national damage audit, using satellite and district data.
• Immediate cash grants and housing repair assistance for affected families.
• A temporary debt moratorium for small farmers and micro-businesses.
• Fast-tracked restoration of feeder roads, bridges and irrigation networks.
• Publication of district-level damage estimates within days, not weeks.

Abeywardena cautioned that the disaster “demands urgency, transparency and accountability,” stressing that failure to act swiftly could turn a natural catastrophe into an economic crisis.

Prabath Chandrakeerthi has been appointed as the Commissioner General of Essential Services, the President’s Media Division announced.

The appointment has been made under the powers vested in President Anura Kumara Dissanayake through the Emergency (Various Provisions and Powers) Regulations No. 11(1) issued under Emergency Regulations No. 1 of 2025.

As Commissioner General, Chandrakeerthi will be responsible for implementing and coordinating all activities related to the provision and maintenance of essential services across the country.

He currently serves as the Secretary to the Ministry of Plantation and Rural Infrastructure.

Cyclone Ditwah has rapidly transformed into the most severe political and administrative crisis facing President Anura Kumara Dissanayake’s JVP-led NPP Government, as public anger rises sharply over mounting deaths and what many describe as glaring failures in disaster preparedness.With 153 confirmed dead and 191 missing, the storm’s aftermath has touched almost every district, leaving the Government scrambling to defend itself against accusations of ignoring expert warnings and allowing systemic lapses that worsened the tragedy.

The most politically damaging revelation concerns early alerts. The Department of Meteorology had reportedly flagged Ditwah’s escalation as early as 12 November, urging immediate activation of a coordinated disaster-response mechanism.

 Instead of mobilising state machinery, authorities assumed the cyclone would follow the trajectory of previous storms an assumption now castigated as fatal. Critics have compared this lapse to the 2019 Easter Sunday intelligence failure, where warnings were available but insufficiently acted upon.

When rains intensified by 27 November, the situation further deteriorated. The Government’s sudden decision to declare a nationwide public-sector holiday on 28 November, without clearly defining essential services, created administrative paralysis at the worst possible moment.

Thousands of distressed residents rushed to divisional secretariats and grama niladhari offices seeking emergency assistance, only to discover shuttered offices or absent officials.

Some Divisional Secretaries even refused emergency procurements fearful of corruption allegations while being technically “on leave”resulting in delayed evacuations in several heavily affected localities.

Initial internal estimates compiled by the Treasury and provincial administrations suggest an economic blow in the range of LKR 120–300 billion, depending on the accuracy of district-level assessments now underway.

 These figures were alluded to indirectly by senior UNP figure Vajira Abeywardena, who warned that mismanaging the crisis could “set the economy back by years.”

The agricultural sector is among the hardest hit. More than 35,000 hectares of vegetables, paddy, and smallholder cash crops across Sabaragamuwa, Central, and Southern provinces have been severely damaged translating into LKR 20–40 billion in direct losses. Economists caution that this could trigger renewed pressure on food inflation in the coming months. The fisheries sector reports losses exceeding LKR 10–15 billion, with damaged boats, disrupted landing sites, and destroyed cold-chain infrastructure crippling coastal livelihoods.

Tourism already fragile is now absorbing further shocks, with over 70 hotels, guesthouses, and homestays in river-valley and hill-country corridors reporting structural damage, cancellations, and supply chain disruptions.

Housing and public infrastructure have sustained heavy destruction. Rough field assessments indicate 14,000-18,000 homes fully or partially damaged. Rural bridges, culverts, feeder roads, and irrigation canals have taken a severe hit, with engineering units estimating a LKR 40–60 billion reconstruction requirement.

Analysts project the cumulative economic toll-including agricultural losses, reconstruction costs, supply disruptions, and service-sector shocks-could reach LKR 300 billion at the upper range.

In the vacuum created by slow official action, ordinary citizens stepped up. Community kitchens emerged overnight, doctors provided free online consultations, and volunteers used private vehicles to rescue stranded families. Yet the conspicuous absence of the JVP’s traditionally active Red Star volunteer force drew public criticism and discomfort within the NPP leadership.

Communication missteps worsened tensions. Tamil-language disaster alerts were issued far too late, leaving affected communities feeling neglected by a government that had pledged equality and modernised state communication.

Only by midday on 29 November, under intense pressure, did the President declare a state of emergency and restore essential services via Gazette.

Beyond the politics, the material damage is staggering: devastated paddy fields, ruined agricultural land, damaged telecom towers, severed road networks, collapsed bridges, affected hotels, and even industrial losses including a major apparel facility in Thulhiriya.

With Sri Lanka already carrying Rs. 30.93 trillion in public debt, the reconstruction burden could force the Government to seek urgent external assistance.

Opposition parties have moved quickly. The UNP highlights its own past disaster-management record, while SJB leader Sajith Premadasa has appealed to the IMF to relax certain programme conditions in light of the “national calamity.”

As waters recede, the Government faces its most difficult task: rebuilding public trust. Cyclone Ditwah has exposed serious weaknesses in institutional coordination and crisis governance. To recover politically and economically the NPP Government will require transparency, rapid action, and a willingness to acknowledge mistakes, qualities the public now demands more strongly than ever.

Three women who became stranded on the Malwathu Oya Railway Bridge in Anuradhapura have been successfully rescued in an aerial mission conducted by the Sri Lanka Air Force.

The operation was carried out using a Bell 412 helicopter from the SLAF’s No. 4 Squadron, which airlifted the women from the bridge and transferred them to the Anuradhapura Air Force Base for their safety. Authorities confirmed that the rescue was completed without complications.

The Nepali government on Sunday announced financial aid of 200,000 U.S. dollars for Sri Lanka to support relief and recovery efforts for people badly affected by recent floods.

Heavy rainfall and flooding triggered by Cyclone Ditwah in the past few days have resulted in the deaths of at least 334 people, with 370 still missing, as the island nation grapples with one of its worst weather-related disasters in years, according to the Disaster Management Center (DMC) of Sri Lanka.

While announcing the assistance package, Nepal’s Ministry of Foreign Affairs also expressed its “profound sorrow and deepest sympathies” to the government and people of Sri Lanka over the devastating floods that caused extensive loss of life and widespread damage across the South Asian island nation.

“In the spirit of close bilateral relations, Nepal stands firmly with Sri Lanka in this difficult time,” the statement reads. “The Government of Nepal offers its heartfelt condolences to the bereaved families and wishes for a swift and complete recovery of the injured.”

( Source: adaderana.lk)

Police have confirmed that a landslide in the Monroviyawatte area of Thulhiriya, Warakapola, has left at least 21 people missing.

Authorities have initiated a search and rescue operation to find the individuals who disappeared following the incident. Emergency teams are currently working in the area to assist affected residents and gather further details about the situation.

The Sri Lanka Air Force (SLAF) has issued a heartfelt statement recognising the bravery of the pilot who lost his life while conducting rescue and relief work for flood-affected communities near Lunuwila in Wennappuwa.

The tragedy occurred yesterday (30) when a Bell-212 helicopter engaged in distributing food and emergency items attempted to make an emergency landing close to the Lunuwila Bridge. According to the SLAF, the presence of people gathered on the bridge caused instability in the area, contributing to the mishap as the crew tried to land safely.

The co-pilot and three other SLAF personnel on board survived the crash and are being treated at the Marawila Hospital.

Despite intensive medical efforts, the pilot—Wing Commander Nirmal Siyambalapitiya—succumbed to his injuries. The SLAF noted that he was a seasoned aviator with more than 3,000 flying hours and an exemplary record of service.

Following directives from Air Force Commander Air Marshal Bandu Edirisinghe, a board of inquiry has been appointed, and an official investigation into the incident is now underway.

Floods and landslides, people trapped on rooftops, vehicles submerged, residents without electricity or unable to cry out for help, cyclonic winds and endless rain thwarting rescue and relief operations. This is Sri Lanka today, facing a devastating natural calamity, one of the worst in decades. True to character, the entire country, especially ordinary folk, have responded admirably.

Each and every one of us have demonstrated yet again our enormous resources of resilience. And our almost genetically engraved trait to reach out to and support those in dire need of help. We have always stood shoulder to shoulder without hesitation, putting aside all differences, political or otherwise. We are doing this even as I write.

While diplomatic missions based in Colombo have expressed their solidarity and support for Sri Lanka’s government during this challenging time, there’s still a lot that our friends abroad can do. Led by the President, government officials, volunteers and countless ordinary citizens are working tirelessly. They are often risking their lives to rescue the stranded, comfort the grieving and deliver urgent essentials to those who have lost everything. This unity is the strength of our nation.

This compassion is the soul of our people. And yet, it must be acknowledged that when the scale of this disaster is so enormous even the strongest nations sometimes need the hand of a friend. Sri Lanka needs the support of all her friends.

It is in this spirit, with humility but also with dignity, that I appeal to our friends overseas, neighbouring countries, humanitarian agencies, corporates and well-wishers around the world to stand with Sri Lanka at this difficult time. Your support, whether through relief supplies, medical aid, logistical assistance, or financial contributions, will directly help families who are suffering and accelerate the country’s recovery. Sri Lanka has had its share of calamities, natural and otherwise.

And yet, the island nation has always come through with its signature smile that says so much about our courage, grace and equanimity. We treat strangers like family. We rush to help the unfortunate and distressed with no thought of reward or cost. Today, we hope the world will extend that same hand to us. Every act of compassion, however small, restores hope. Every act of solidarity strengthens resolve. Every gesture of friendship helps rebuild devastated lives. To those who have already reached out with support and concern, thank you! To those who wish to help this is the moment your compassion will truly matter.

Krishantha Prasad Cooray