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The University of Peradeniya (UoP) has formalised a strategic partnership with China State Construction Engineering Corporation (CSCEC) through the signing of a Memorandum of Understanding (MoU). This collaboration aims to enhance infrastructure development and foster academic-industry synergies in Sri Lanka.

The MoU was signed by Zhang Wenji, Vice President of the South Asia Division; Ai Shiqiang, Deputy General Manager of the General Management Department; Cao Zhengkun; and Nipun Nupearachchi, Manager of the Human Resources Division from CSCEC (Sri Lanka).

The partnership is expected to facilitate knowledge exchange, promote research initiatives, and contribute to the development of the construction and engineering sectors in Sri Lanka. By leveraging CSCEC’s global expertise and UoP’s academic resources, the collaboration seeks to address the evolving needs of the infrastructure industry and support the nation’s development goals.

This MoU reflects a growing trend of international collaboration in Sri Lanka’s higher education sector, aiming to bridge the gap between academia and industry. Such partnerships are anticipated to provide students with practical exposure and enhance the quality of education, thereby contributing to the country’s socio-economic development.

(Source - Eduwire)

A new benchmark in luxury urban living was introduced on 21 June at Cinnamon Life, with the grand launch of Pentara Residencies — the flagship development by the Home Lands Group. This project represents the largest single investment in a high-rise residential complex undertaken by a Sri Lankan developer.

Strategically located at Thummulla Handiya, one of Colombo’s most coveted and central junctions connecting Colombo 3, 4, 5, and the elite Colombo 7, Pentara Residencies has been positioned as “The Address in Colombo.”

This iconic twin-tower development promises to redefine modern luxury living in the heart of the city.

However, Former UDA Chairman Mr. Kumudulal has filed a police complaint against a recent media report which accused him of illegally approving a major high-rise housing project by Home Lands (Pvt) Ltd in Thummulla, Colombo 05. He claims the report is false and defamatory.

 

However, the media report is based on documented legal submissions to the Court of Appeal and on the UDA’s own internal regulations. It highlights serious alleged violations in the approval process:

Key Alleged Irregularities

• Zoning Rules Violated – The land, officially designated as a special residential zone, was improperly treated as mixed-development to allow the project.
• Height Limit Breach – Approval was given for a 120-metre tower, despite regulations setting a strict maximum of 50 metres.
• Fabricated Façade Width – The building’s façade width was falsified as 40 metres to meet compliance, though the real width is under 30 metres.

Police sources say that while the ex-Chairman has filed a complaint against the media, seventeen complaints from local residents have been filed against him at the Kurunduwatte Police Station — indicating strong public opposition.

The report also alleges that despite being officially removed from office, Mr. Kumudulal is still trying to act as UDA Chairman and has even called for a Board of Management meeting at Water’s Edge next Saturday, believed to be an attempt to retain influence.

The statement praises the role of journalists in defending law, environmental standards, and public rights. It says attempts to threaten or silence the media only prove the existence of wrongdoing.

The civil organisation “MATHRUBHUMI” is now calling on the new Urban Development Minister, Hon. Bimal Ratnayake, to:

 

• Immediately investigate the alleged illegal approval
• Protect media freedom
• Ensure responsible accountability under the law

They further state their commitment to continue exposing corruption despite intimidation, and confirm that they will soon file an official bribery/corruption case against the former Chairman.

Ten bidders have submitted proposals, marking one of the most closely watched tenders in recent years due to the controversies that surrounded earlier awards to supply coal for the 900MW Lakvijaya power plant.

The Lanka Coal Company (LCC) opened Term Tender No. LCC/25/TT/1   recently to procure 1.5 million metric tonnes (±10 percent) of coal for the power plant located at Norochcholai, covering the period December 2025 to May 2026. 

Attention has focused particularly on the participation of Potencia LLC FZ, which entered Sri Lanka’s coal supply chain under unusual circumstances. 

In 2022, the long-term contract had originally been awarded to Black Sand Commodities FZ LLC, a Dubai-registered company later identified as having links to Russia’s coal giant SUEK AG. 

That deal drew intense criticism after the Auditor General and a parliamentary committee found that procurement rules had been breached. 

Allegations included changes to bid documents after submissions, inadequate verification of the winning company’s registration, and questions over whether other bidders were treated equally.

Amid mounting scrutiny, the government suspended the Black Sand contract. However, rather than cancelling it outright, the agreement was novated a legal process by which contractual rights and obligations are transferred to Potencia LLC FZ. 

As a result, Potencia stepped in to handle the remaining consignments, including eight pending shipments from the original schedule and an additional five deliveries that became necessary due to delays in calling a fresh tender.

Potencia also proposed alternate delivery methods, suggesting the use of larger Capesize vessels supported by floating cranes at Puttalam jetty, in place of the standard 60,000-tonne parcels specified in LCC’s tender conditions. 

While this idea has not been formally adopted, it demonstrated the company’s interest in maintaining a long-term role in Sri Lanka’s coal supply.

With the new tender now open, industry analysts point out that Potencia’s entry through novation has placed it in a different category than the other bidders, who have all competed directly under the present process.

Some energy sector observers’ stress that this background should not prejudice the evaluation but underscores the importance of applying clear and uniform procurement standards. 

“What matters most is that every bid is assessed on equal terms,” one former procurement advisor noted, adding that transparency this time is critical for restoring public trust.

Coal still remains a significant contributor to Sri Lanka's energy security, with Lakvijaya supplying nearly 40 percent of national electricity needs.

Through this, the tender being released now is being viewed as something greater than a technical exercise: it is a challenge to see whether the country can put its past conflicts behind it and deliver a competitive, credible, and transparent procurement process.

Lasantha Wickramasekara — widely known as ‘Midigama Lasa’ — the Chairman of the Weligama Pradeshiya Sabha, has tragically passed away after sustaining critical injuries in a shooting incident.

The attack took place this morning (22), right inside the Pradeshiya Sabha office, while the Chairman was seated in his official chair. Two unidentified gunmen, who arrived on a motorcycle, opened fire at close range.

Officials of the Pradeshiya Sabha immediately rushed him to the Matara General Hospital, but despite their efforts, he could not be saved.

It has now been revealed that the shooters had entered the premises under the pretense of delivering a document for signature — before launching the fatal attack.

Sri Lanka’s inflation for September 2025 has officially been released based on the National Consumer Price Index (NCPI).

According to the latest data, inflation – which stood at 1.5% in August 2025 – has risen to 2.1% in September 2025.

The Department of Census and Statistics, in its statement issued today, further notes that food inflation, which was reported at 2.9% in August 2025, has climbed to 3.8% in September.

Meanwhile, non-food inflation has also seen an increase — moving up from 0.4% in August 2025 to 0.7% in September 2025.

Photograph

The unlawful raw sugar imports have allegedly caused state losses amounting to 578 billion rupiah

The general manager of Wilmar International’s Indonesian subsidiary has been charged by the Indonesian public prosecutor over carrying out unlawful acts related to the importation of raw sugar in 2016.

Wilmar International

The unlawful imports had allegedly caused state losses amounting to 578 billion rupiah (S$45 million), said the company in a bourse filing on Monday (Oct 20).

The Duta Sugar International general manager is among representatives of eight other refined sugar producers in Indonesia who have been charged in the same case. The nine companies account for most of the country’s refineries that process imported raw sugar into refined sugar.

The producers maintain that they were acting under the direction of former trade minister Thomas Lembong, who instructed them to partner state-owned trading company Perusahaan Perdagangan Indonesia to import raw sugar and distribute refined white sugar to address a domestic sugar shortage in 2016.

Thomas Lembong

Lembong was subsequently arrested in October 2024 and charged by the Indonesia Attorney-General for violating the relevant trade regulation.

The attorney-general claimed that in approving import permits, Lembong had “helped to enrich” the nine sugar producers, causing an alleged total state loss of 578 billion rupiah. Duta Sugar International accounts for 7.8 per cent, or 45 billion rupiah, of the total alleged losses.

It also noted that profits made by the nine sugar producers should have gone to the state-owned company.

Lembong was found guilty on Jul 18, 2025, and was sentenced to four years and six months’ imprisonment and fined 750 million rupiah. He was also given a subsidiary penalty of six months’ imprisonment if the fine was not paid.

Representatives of the nine sugar producers have been detained and charged. The companies were required to place a combined security deposit of 565.34 billion rupiah with the attorney-general.

Duta Sugar International’s share of this deposit was 41.23 billion rupiah, said Wilmar.

Duta Sugar International

But the legal processes related to the sugar import case against Lembong were halted, following a presidential decree granting him abolition.

Consequently, the representatives of the nine sugar producers have argued that their case should be dismissed. The case is now pending the court’s decision. Wilmar said it will provide further updates once a ruling is made.

Wilmar also said that the financial impact of the 41.23 billion rupiah deposit paid by Duta Sugar International, if forfeited, would not be material to the company’s financial performance.

Shares of Wilmar : F34 0% ended last Friday 0.7 per cent or S$0.02 higher at S$2.95, before the announcement.

(Source - Businesstimes)

A severe outbreak of coconut leaf caterpillars is currently wreaking havoc across several areas in Puttalam, causing extensive damage to coconut plantations.

The infestation is believed to have already spread across nearly 100 acres, posing a serious threat to coconut cultivation in the region.

In response, the Coconut Research Institute and the Coconut Cultivation Board have launched urgent and intensive measures to contain the outbreak.

Experts report that the larvae cling to the underside of the leaves from an early stage, extracting sap and eventually scorching the entire frond — leaving the trees visibly burnt and withered.

Authorities warn that unless swift action is taken, the situation could escalate further — and are actively deploying mitigation strategies to save the affected plantations.

The breakdown? Equity capital USD 133 mn, reinvested earnings USD 132 mm, intra-company borrowings USD 231 mn, and long-term foreign commercial loans USD 331 mn. 

A few large projects such as the USD 229 m investment by Colombo West International Terminal Ltd. (CWIT), USD 111 mn by CEAT OHT Lanka Ltd., USD 72 m by Michelin Lanka Ltd. and USD 85 m by Bluehaven Services Ltd. account for 66 % of the total, with “another 150 BOI-approved enterprises” covering the remainder.

At face value these numbers suggest a vibrant resurgence of investor confidence. But a closer look raises several red flags:

The BOI’s definition appears to lump foreign commercial loans and intra-company borrowings alongside “equity capital” and “reinvested earnings” as part of FDI. Conventional definitions of FDI typically emphasise equity investment, control and long-term relationship, rather than loans.

Of the USD 827 m claimed, only USD 133 m is equity capital; the remaining USD 694 m is debt-type financing (intra-company borrowings + commercial loans) or retained earnings. One must ask: do such “loans” qualify as genuine FDI inflows, or are they just cross-border finance flows?

The claim that 163 BOI projects yielded USD 326 m in local investment in the same period adds opacity: how do these relate to the foreign inflows? Are these distinct, overlapping, or double-counted?

Given the BOI is now projecting full-year inflows of “over USD 1 billion” for 2025, based on the first nine-months figure, the growth expectation seems optimistic especially in the context of existing investor complaints.

Turning to the United States Department of State’s “Investment Climate Statement” on Sri Lanka, the picture is far less rosy. The U.S. report states that FDI remains constrained, with most individual deals in the USD 3 m-5 m range the exact opposite of “mega-projects” dominating the BOI’s narrative. 

According to the U.S. State Department analysts: “Regulatory unpredictability, bureaucratic hurdles, and selective transparency continue to limit broader participation.” The report also notes that the BOI “remains hamstrung by fragmented authority and overlapping ministries, creating lengthy approval processes that frustrate potential investors.” 

When we place the BOI’s aggressively optimistic figures alongside the U.S. report’s cautionary tone, serious inconsistencies emerge. Can one credibly accept that the investment climate is so perfunctory when the BOI claims such a dramatic upswing while international assessments continue to find deep structural impediments? The mismatch suggests either:

A definitional stretch by BOI (counting financial flows as FDI that would not be classed so elsewhere),

Possible double-counting or aggregation of flows not strictly new foreign investments, or

An overly sanguine presentation detached from the on-ground investor experience.

In short: while the BOI’s headline figure grabs attention, the supporting breakdown and external commentary raise enough doubts to warrant a deeper audit of what exactly is being counted, and whether investors truly view Sri Lanka as the dynamic FDI destination claimed.

The United National Party has decided to immediately appoint a new senior position. Accordingly, former Minister Harin Fernando has been appointed as the Deputy Secretary General of Political Mobilization.

The UNP announced that the responsibility of this position assigned to Mr. Harin Fernando is to unite all political parties in the country and bring them together under a common programme.

In addition, reports say that Mr. Harin Fernando will also be in charge of overseeing the 1,000 meetings organized by the United National Party.

The GovPay digital payment platform launched in February 2025 by the Information and Communication Technology Agency (ICTA) has already onboarded 170 government institutions and processed payments exceeding Rs 400 million within its first eight months of operation. 

At a press conference yesterday, Board member Harsha Purasinghe revealed that the rollout for spot traffic-fine payments via the platform in the Southern Province is underway, with over 400 mobile devices distributed to police stations to facilitate collection. He added that rollout to the Northern Province is next, and full national coverage is expected by year-end.

In the Western Province alone the system has processed nearly Rs 30 million from approximately 20,000 traffic violations. Phase two of GovPay will introduce a demerit-points mechanism for motorists, in coordination with the Department of Motor Traffic and the Department of Posts.

The broader digital payments ecosystem in Sri Lanka is showing remarkable momentum. According to the Central Bank of Sri Lanka (CBSL), Sri Lanka’s daily digital-transaction volume stands at about 1.65 million and the bank aims to push that to 2.15 million daily. 

Meanwhile, digital transactions surged by 45 % in 2023 underscoring growing consumer trust. 

GovPay is also part of a larger push to build a “digital revenue economy” where government services, payments and collections are streamlined and cash usage reduced. 

Over the next 4-5 years, the platform is expected to generate roughly Rs 1 trillion (≈USD 3.3 billion) in revenue via reduced leakage and improved collection efficiencies. 

While detailed statistics comparing the first nine months of 2025 to the same period in 2024 are not yet publicly disaggregated per sector, the digital payments infrastructure is clearly advancing. Key enablers such as the Common Electronic Fund Transfer Switch (CEFTS) support 24/7 real-time transfers among banks, enabling the digital-payments expansion. 

Economic observers say the benefits could be substantial: greater transparency in public-fund flows; faster revenue collection for infrastructure and public services; and stimulus to fintech and e-wallet markets which in turn drive financial inclusion. The government’s target to lift the digital economy’s contribution to GDP from current single-digit levels to 10-15 % over the next decade is anchored on platforms like GovPay. 

In sum, Sri Lanka’s GovPay initiative marks a crucial step in the nation’s pivot to a cash-light economy. With institutional commitment, supportive infrastructure and growing user adoption, the platform could meaningfully impact both governance and growth provided rollout remains on schedule and interoperability challenges are addressed.

Sri Lanka’s exporters are once again battling rising costs, missed deadlines, and vanishing client trust as chronic congestion and red tape at the Port of Colombo disrupt trade flows through the nation’s most critical maritime hub. Once hailed as South Asia’s transshipment leader, the port now risks ceding ground to faster, better-managed regional rivals.

For exporters in garments, rubber, and electronics, the delays have been devastating. Vessels are reportedly arriving up to two weeks behind schedule, forcing companies to bear heavy penalty clauses, demurrage fees, and freight surcharges. Some shipping lines have already begun rerouting vessels to Indian ports such as Vizhinjam, Mundra, and Cochin, where quicker turnaround times and streamlined customs procedures offer more reliability.

The heart of Colombo’s crisis lies in terminal congestion and inefficient inter-terminal transfers. Exporters complain that containers must still be moved manually between terminals by prime movers an outdated process ill-suited for a port handling nearly 8 million TEUs annually, including 6.2 million in transshipments. While official figures show a modest 4% increase in throughput during the first half of 2025, insiders warn that those numbers conceal severe operational bottlenecks and mounting costs.

Adding to the strain, bureaucratic hurdles continue to plague the system. Importers of perishables and agricultural products often face clearance delays because authorities refuse to recognize international laboratory certifications, insisting on local retesting by overburdened agencies such as the Sri Lanka Standards Institute. The result: rotting food cargo, soaring demurrage, and frustrated traders.

Industry experts argue that accepting globally accepted certifications and adopting digital pre-clearance systems could drastically cut delays. Productivity gaps between state-run terminals and privately operated facilities such as SAGT and CICT also remain stark. Although the newly built West Container Terminal has the capacity to ease congestion, it remains underutilized due to poor operational integration.

Exporters and analysts warn that expanding capacity alone will not resolve the crisis. Without systemic reforms including harmonized berth allocation, digital customs, transparent scheduling, and infrastructure coordination the port risks transforming from a strategic asset into a costly chokepoint.

“Colombo stands at a crossroads,” said one industry leader. “Either we modernize now, or we watch our trade slip away to faster ports across the region.”