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By September 2025, reserves were reported at roughly US$ 6.24 billion, up slightly from US$ 6.11 billion in August. 

However, these levels equate to only about 3.4 months of import cover at the start of the year, leaving Sri Lanka with minimal buffer against external shocks. 

At the same time, the latest trade data highlight escalating pressure from imports. In September 2025, imports climbed to roughly US$ 2.048 billion, a sharp increase from August, while exports reached only about US$ 1.139 billion, resulting in a trade deficit of more than US$ 900 million. 

For the seven-months to July 2024, import expenditure rose by 9.1 % year-on-year, while export earnings increased only by 5.6 % illustrating the widening gap that siphons precious dollars out of the system. 

The policy challenge is stark. Sri Lanka must steadily rebuild its foreign-reserve stock while foreign-currency outflows keep mounting, driven by higher raw-material bills, intermediate parts, fuel imports, and renewed private-sector credit that increases import financing.

 According to the Central Bank of Sri Lanka (CBSL), import expenditure in December 2024 reached its highest monthly level of the year and continued to widen the merchandise trade deficit. 

Compounding this, reserve print-ups in late 2024 were partly supported by currency-swap facilities and unsterilised foreign-exchange purchases. Analyses suggest the reserve figures may be overstated by about US$ 1.4 billion due to inclusion of a RMB 10 billion China swap that does not fully satisfy international reserve-asset criteria. 

For policymakers, the task is two-fold: boost foreign-currency earning capacity through tourism, remittances and services exports and strictly manage foreign-currency outflows by limiting non-essential imports and financing. Meanwhile, the CBSL must continue prudent reserve-management practices and ensure transparency in reserve reporting. 

If successful, Sri Lanka may inch toward its target of US$ 7 billion in reserves by end-2025, as flagged by Governor Nandalal Weerasinghe, thereby improving import cover and external resilience. 

But failure to arrest the import-led out-flows and structural earnings short‐fall could re-expose the economy to reserve shocks, currency volatility and external debt servicing risk.

In sum, while the story of recovery is real, the resilience of Sri Lanka’s external-sector architecture remains precarious. Stronger foreign-income flows, tighter import management, and transparent reserve accounting will be essential if the island nation is to turn the buffer it has into a genuine safeguard.

The Court of Appeal today (10) dismissed without hearing a writ petition filed by the Vinivida Foundation, seeking to suspend the ongoing operation by wildlife authorities to drive away wild elephants that have entered villages into forest reserves in Hambantota.

The order was issued by a bench comprising the President of the Court of Appeal, Justice Rohantha Abeysuriya and Justice Priyantha Fernando, following a preliminary consideration of the petition.

During submissions, the counsel appearing for the petitioner argued that the operation, aimed at driving elephants roaming in the surrounding villages into the Hambantota Elephant Reserve by wildlife authorities has caused severe distress to the elephants.

The counsel further informed court that over 2,000 personnel of the Sri Lanka Air Force, Police and Civil Security Division have reportedly engaged in the operation.

The counsel pointed out that several elephants had sustained injuries as a result of explosives used to disperse them and that pregnant elephants were particularly affected by the excessive noise caused by such explosions.

Therefore, the counsel requested court to issue an interim injunction to halt the operation, which is being carried out in violation of environmental laws and regulations.

Responding to the petition, the State Counsel appearing for the Attorney General, submitting the evidence, argued that the petitioner had no legal basis to file this petition.

Additionally, the State Counsel pointed out that the parties who would be aggrieved by this action have not been named as respondents in the petition.

The State Counsel also noted that the petitioner has failed to present sufficient evidence to court to prove the allegations made in the petition.

On these grounds, the State Counsel requested court to dismiss the petition at the earliest, as it lacks a sustainable legal basis.

After considering the submissions from both sides, the Court of Appeal bench pointed out that the court has already issued an order to the government to prepare a national program for elephant conservation.

The President of the Court of Appeal said that the concerns raised in the petition would also be taken into consideration in that program.

Accordingly, the bench ordered that the relevant petition will be dismissed after considering the arguments presented by both parties.

(Source : adaderana.lk)

Police say there has been a noticeable rise in motorcycle and three-wheeler robberies in Colombo city and across the Western Province.

Police noted that over the past few days, a large number of complaints have been received regarding the theft of motorcycles and three-wheelers parked along public roads.

Within the past two days, 10 motorcycles and three three-wheelers have been stolen in the Western Province, police said.

The Police Media Spokesman, Assistant Superintendent of Police (ASP) F. U. Wootler stated that special investigation teams have been deployed to conduct investigations into these incidents.

(Source : adaderana.lk)

Farmers across Sri Lanka's agricultural regions, including Welimada, Uva Paranagama, and Nuwara Eliya, suspended their cultivation activities today (10) in protest against the government’s disregard for the farming community in the 2026 Budget.

The protest that was organized by several farmers’ organizations under the banner of Voice of the Farmers of the Country saw large groups rallying in Keppetipola town this morning.

They accused the government of failing to offer viable solutions to their ongoing grievances and of ignoring the pressing needs of the agricultural sector in the latest national budget.

According to farmers, despite the ongoing potato and onion harvesting season, they continue to struggle due to the lack of a fair market price for their produce.

Many also condemned the government’s decision to permit imports of potatoes and onions during the local harvest period, a move they claim has left local cultivators “destitute” and unable to compete.

Protest leaders said that the budget’s failure to address core agricultural challenges such as price stabilization, import control, and rural infrastructure has exacerbated the crisis faced by farming communities.

With trade union action now in effect, farmer groups warned that agricultural output could be severely affected if authorities continue to overlook their demands.

They called on the government to prioritize the agriculture sector and ensure sustainable policies that safeguard local producers and the nation’s food security.

The Department of Meteorology has announced that showers or thundershowers are expected in most parts of the island after 1.00 p.m. today (11).

According to the Department, fairly heavy rainfall exceeding 75 mm is likely in certain areas of the Uva, Southern, Sabaragamuwa, and Central Provinces, as well as in the Ampara and Batticaloa Districts.

Meanwhile, morning showers may occur in parts of the Northern Province and the Trincomalee District, the statement added.

The Met. Department further noted that misty conditions can be expected in some areas of the Western, Southern, Sabaragamuwa, Central, and Uva Provinces, and in the Ampara District during the early hours of the morning.

The public has been urged to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning associated with thundershowers.

Police reported that a bus accident occurred earlier today (10) in Thalawa, Anuradhapura, resulting in the death of one person and injuries to approximately 40 others.

The Commissioner General of Motor Transport, Kamal Amarasinghe, has announced a landmark initiative aimed at enhancing vehicle safety and environmental standards across Sri Lanka.

Under the proposed program, all vehicles operating on Sri Lankan roads will be required to obtain a Road Fitness Certificate, an internationally recognized standard already in use in many developed countries.

At present, only commercial vehicles are mandated to carry a Fitness Certificate.

However, the new policy will extend this requirement to all vehicles, including private cars and motorcycles, ensuring that every vehicle on the road meets both safety and emission standards.

As part of the initiative, the existing Emission Certificate and Fitness Certificate will be merged into a single, streamlined document — the Road Fitness Certificate — which will be issued from a centralized location to simplify the process for motorists.

Amarasinghe noted that the program is “extensive and complex,” requiring detailed study and phased implementation.

Initial groundwork is expected to begin in 2026, with the current smoke certificate system remaining valid until December 31, 2027.

The nationwide rollout of the new Road Fitness Certificate system is scheduled for completion by 2028.

A 19-year-old student sitting for this year’s Advanced Level Biology examination has died suddenly at her home in Dambulla.

The victim has been identified as Tharushi Chamodi, a resident of Dambulla.

According to police, the girl had been studying in her room on Saturday night (09). When she did not wake up the following morning, her parents went to check on her and found her unconscious.

She was immediately rushed to the Dambulla Base Hospital, where doctors pronounced her dead on arrival.

A team from the Dambulla Police conducted on-site inspections but reported no signs of foul play.

Police stated that the cause of death has not yet been determined, and further investigations are ongoing.

The Ampara High Court today (10) sentenced six individuals to death in connection with a murder that took place on April 14, 2015.

The six individuals were found guilty of assaulting and murdering two individuals in Kehelulla, Padiyathalawa.

The group had assaulted and ran over two individuals with a lorry for protesting against the six individuals who had been consuming alcohol inside a vehicle.

As a result, the High Court today imposed the death penalty on the six individuals involved in the incident.

(Source : adaderana.lk)

The Department of Meteorology has issued an ‘Amber’ advisory warning of severe lightning across several provinces and districts.

The advisory, released at 1:00 p.m. today (10), will remain in effect until 11:30 p.m.

According to the Met Department, thundershowers accompanied by severe lightning are expected in several areas of the Uva Province, as well as in the Ampara, Batticaloa, and Hambantota districts.

It also cautioned that temporary strong winds may occur during thundershowers.

The public has been urged to take necessary safety measures to minimize potential damage from lightning and adverse weather conditions.

Three workers were found dead at a land-based fish farm in Goseong, South Gyeongsang Province, in South Korea, prompting a police investigation.

According to the Gyeongnam Provincial Police Agency on the 10th, the three workers—a Korean man in his 50s, the site manager, and two Sri Lankan employees in their 20s and 30s—were discovered deceased inside a large reservoir (4 meters wide, 3 meters long, and 2 meters high) at the Goseong farm around 8:30 p.m. on the 9th.

The reservoir was nearly filled with water at the time.

Police began their investigation after receiving a report at 7:38 p.m. the same day from the family of the man in his 50s, who stated, “My father is not responding.” One of the foreign workers was wearing attire resembling work clothes, while the other two were in casual clothing.

Authorities plan to conduct autopsies on the deceased and investigate the company to determine the exact circumstances, including potential safety accidents and possible negligence.

Source: The Chosun Daily

In a disturbing new trend, cybercriminals are using artificial intelligence (AI) to create sophisticated deepfake videos featuring Sri Lankan business leaders, government officials, and celebrities to promote fraudulent investment schemes on Facebook and other social media platforms. 

These scams, often advertised through slick Sinhala-language interview videos dubbed into fluent English, promise extraordinarily high returns as much as US$ 10,000 to 12,000 for a $100,000 deposit to lure unsuspecting depositors.

The Central Bank of Sri Lanka (CBSL) recently issued a public warning urging citizens to remain vigilant against these deceptive promotions.

 In a strongly worded statement, the CBSL clarified that “videos circulating online featuring the prominent persons promoting investment opportunities are entirely fake and generated using AI technology. 

The Bank stressed that it does not endorse or promote any private investment or cryptocurrency-related products.

The fraudulent campaigns often use convincing visuals and voice cloning technology to mimic the speech and mannerisms of well-known Sri Lankan figures. 

Some videos show billionaire businessmen and other high-profile personalities appearing to praise or guarantee the success of specific financial platforms. 

According to local cybersecurity analysts, these deepfakes are produced overseas using advanced AI tools and distributed through local social media networks to build credibility among Sri Lankan audiences.

An officer at Sri Lanka CERT, the national cybersecurity agency, said that the institution has received multiple complaints of individuals being deceived by AI-generated videos. 

“The level of realism is unprecedented. These fraudsters are exploiting public trust in familiar faces. People must understand that if an offer sounds too good to be true, it probably is,” the official added. 

Victims who respond to these advertisements are typically directed to professionally designed websites or Telegram and WhatsApp groups, where they are persuaded to make deposits in dollars or cryptocurrency.

 Some victims are shown fake dashboards displaying impressive “profits” to encourage larger transfers. However, once substantial sums are invested, the fraudsters disappear without a trace.

CBSL’s Financial Consumer Relations Department has urged the public to verify any investment opportunity through official banking channels and report suspicious promotions immediately. 

“We encourage people to contact the Central Bank hotline 1935 or Sri Lanka CERT if they come across fake social media advertisements misusing the identities of financial officials,” the CBSL advisory noted.

Cybersecurity experts warn that the next wave of scams could become even more convincing as AI technology evolves. The public is urged not to share or engage with such advertisements, and to rely only on verified financial institutions regulated by the Central Bank.

“CBSL categorically denies any involvement in such promotions and emphasizes that it does not engage in or endorse any investment schemes, whatsoever. These videos are clear attempts byfraudulent parties to mislead the public using deep-fake technology and AI-generated content.