v2025 (2)

v2025

News

Unity Plaza Unveils Landmark LED Display amid On’ally Holdings’ Legal Spotlight

Colombo marked a significant milestone on 3 December as Unity Plaza unveiled Sri Lanka’s largest outdoor LED digital screen, drawing an audience of over 250 guests, including the Board of Directors and senior management of On’ally Holdings PLC, representatives from international business partners, and members of the media.

The launch marks the culmination of Unity Plaza’s extensive redevelopment, which commenced with its relaunch in November 2023. The triple-faced LED display, prominently visible from Galle Road, Wellawatta, and Station Road, transforms the building into a visually striking landmark, reinforcing Unity Plaza’s stature as the nation’s premier IT hub while redefining Colombo’s commercial skyline.

While the event celebrated technological progress, it comes amid ongoing legal scrutiny of On’ally Holdings’ dealings with the Urban Development Authority (UDA) and Lanka Reality Investment PLC, the majority shareholder.

Industry analysts note that the company’s ability to complete such a high-profile project despite these challenges underscores both its resilience and strategic focus on long-term digital innovation.

On’ally Holdings Managing Director M.H. Jamaldeen described the LED installation as “more than a commercial display; it is a digital landmark connecting brands, citizens, and the city in real time,” reflecting the company’s vision to modernize Colombo’s urban identity.

The installation combines global and local expertise. Manufactured by China’s Charming and Co., a recognized leader in large-scale outdoor digital media solutions, and installed by On’ally Holdings’ internal engineering team, the project highlights Sri Lankan capability in executing complex, large-scale technical initiatives.

Experts suggest that Unity Plaza’s enhanced digital presence is poised to reshape Sri Lanka’s Digital Out-of-Home (DOOH) advertising market, offering high-visibility opportunities for technology and commercial brands while asserting the building’s role in Colombo’s urban modernization.

 Beyond aesthetics, the LED screen signals the company’s determination to lead in technology-driven commercial spaces, even as legal matters with UDA continue to unfold.

As Unity Plaza moves into this new chapter, it exemplifies how strategic redevelopment and innovation can coexist with corporate governance challenges, positioning the building as a focal point of Sri Lanka’s evolving digital economy.

 
 
 
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Amber Alert Issued as Heavy Rain Exceeding 100 mm Expected

The Department of Meteorology has issued an Amber advisory, warning that certain areas of the country could receive more than 100 millimeters of rainfall within the next 24 hours. The alert comes as northeast monsoon conditions continue to establish themselves across the island.

According to the department, intermittent showers or thunderstorms are likely in the Northern, North-Central, Eastern, Central, and Uva provinces throughout the day. The highest rainfall- exceeding 100 mm-is expected in parts of the Northern, Eastern, and North-Central provinces.

Authorities advise the public to remain vigilant and take necessary measures to reduce potential impacts from heavy rain, gusty winds, and lightning that may accompany the thundershowers.

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Storm Likely to Affect Sri Lanka

A developing storm system in the Bay of Bengal is expected to move toward Sri Lanka, bringing rainfall of around 75 mm, particularly to the Northern, Eastern, and North-Central provinces, the Department of Meteorology said.

While the predicted rainfall is not considered severe, officials note that even moderate showers could worsen conditions in areas already affected by recent flooding. The Irrigation Department, the Mahaweli Development Authority, and the National Building Research Organisation (NBRO) have been alerted to conduct impact assessments in vulnerable regions.

The BBC’s weather outlook also indicates that cloud formations over the Bay of Bengal may intensify into a storm and track toward Sri Lanka, resulting in heavier showers.

Commenting on preparedness measures, Deputy Minister of Land and Irrigation Aravinda Senarath said both the Irrigation Department and Mahaweli Authority are closely monitoring reservoir levels, especially with the northeast monsoon expected to activate in the coming days.

He noted that many major reservoirs are currently at spill level after the heavy rains brought by Cyclone Ditwah.

“If we experience more rainfall in the range of 150–200 mm, the situation could become risky. Teams are on standby to release excess water and manage the system safely,” he said.

The deputy minister added that small and medium-scale irrigation tanks suffered the most damage during the recent flooding.

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Red-Level Landslide Evacuation Orders Issued in Four Districts

The Disaster Management Center (DMC) has instructed authorities to evacuate families living in areas identified as highly vulnerable to landslides in the districts of Kandy, Kegalle, Kurunegala, and Matale. The directive comes after the National Building Research Organization (NBRO) issued Level 3 (Red) landslide warnings as heavy rainfall continues across several regions.

According to the DMC, the NBRO has mapped out numerous locations within the four districts where the likelihood of landslides has significantly increased, prompting urgent relocation measures. District Secretaries have been advised to move residents in these danger zones to designated safe centers from December 9 to 19.

Evacuation efforts will be carried out jointly by District Secretaries, NBRO officials, Divisional Secretaries, Grama Niladharis, the Sri Lanka Police, and other supporting agencies, the DMC said.

Areas Under Level 3 (Red) Landslide Warning

  • Kandy District: Hatharaliyadda, Yatinuwara, Udadumbara, Pathahewaheta, Medadumbara, Pasbage Korale, Deltota, Poojapitiya, Ganga Ihala Korale, Panwila, Gangawata Korale, Udapalatha, Harispattuwa, Kundasale, Minipe, Doluwa, Thumpane, Akurana, Udunuwara, Pathadumbara, and nearby areas.
  • Kegalle District: Kegalle, Galigamuwa, Mawanella, Bulathkohupitiya, Aranayaka, Yatiyanthota, Rambukkana, Warakapola, and surrounding regions.
  • Kurunegala District: Mawathagama, Mallawapitiya, Rideegama, and adjacent areas.
  • Matale District: Naula, Wilgamuwa, Pallepola, Ambanganga Korale, Laggala Pallegama, Ukuwela, Rattota, Matale, Yatawatta, and nearby locations.

Meanwhile, the Department of Meteorology reports that the gradual onset of the northeast monsoon will bring intermittent showers or thunderstorms today (09) across the Northern, North-Central, Eastern, Central, and Uva provinces. Deputy Director of Weather Forecasting & Disaster Management Meril Mendis added that these rainy conditions are likely to persist until December 19, 2025.

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Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation

The Bandaranaike Memorial National Foundation has donated Rs. 250 million to the Government to support the rebuild of the country following the emergency situation caused by the Ditva cyclone.

Accordingly, Chairperson of the Bandaranaike Memorial National Foundation, former President Chandrika Bandaranaike, together with the Board of Directors, handed over the cheque to Prime Minister Dr. Harini Amarasuriya on 08 th of December at the Prime Minister’s Office.

Subsequently, a cordial discussion was held between the Foundation’s Chairperson, former President Chandrika Bandaranaike, and Prime Minister Dr. Harini Amarasuriya.

The occasion was attended by the secretary to the Prime Minister Pradeep Saputhanthri, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi, and representatives of the Board of Directors of the Bandaranaike Memorial National Foundation.

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Prime Minister’s Media Division

2025.12.09

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National-Level Committee Appointed To Coordinate Foreign Aid Distribution

The President has appointed a national-level committee to ensure the proper coordination of foreign aid distribution to affected communities.

Deputy Minister of Defence, Retired Major General Aruna Jayasekara made the announcement during a special media briefing held at the Disaster Management Centre.

The committee has been established under his chairmanship to oversee and streamline relief efforts.

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RFI Request Only: Sri Lanka Needs Disaster Relief, Not New Bailout

Sri Lanka’s request for approximately US$ 200 million under the IMF’s Rapid Financing Instrument (RFI) should be understood strictly as urgent disaster relief — not the start of another long‑term bailout programme.

On December 5, 2025, the IMF confirmed that Sri Lanka had applied for SDR 150.5 million (roughly US$ 200 million, about 26 % of its quota) under the RFI, in response to severe economic and humanitarian fallout from Cyclone Ditwah.

The funds, if approved by the IMF Executive Board, would flow as a one‑off, rapid disbursement to address urgent balance-of-payments needs helping rebuild infrastructure, shore up foreign exchange, and stabilize the immediate economic shock.

This emergency facility (RFI) clearly differs from the ongoing Extended Fund Facility (EFF) arrangement that Sri Lanka signed in March 2023. Under that program, the country committed to medium-term structural reforms: fiscal consolidation, debt sustainability, restoring external buffers, controlling inflation, improving governance and social protection.

The EFF spans multiple years (48 months) and involves multiple reviews, milestones, and conditionalities closely monitored by the IMF.

Indeed, Sri Lanka has already drawn several tranches under the EFF. The third review concluded in early 2025 cleared a draw of SDR 254 million (about US$ 334 million), with the fourth review approving another SDR 254 million (about US$ 350 million).

These disbursements reflect a gradual but serious effort by Sri Lanka to stabilize the economy through structural adjustments.

In contrast, the RFI is designed for transitory, urgent shocks  like a natural disaster or external shock — where the need is immediate, but does not require the full‑blown conditionality and long-term oversight that an EFF programme would entail.

The support comes without periodic reviews or long‑term reform obligations; once disbursed, the loan must be repaid within 3¼ to 5 years.

Given the scale and nature of the damage inflicted by Cyclone Ditwah affecting infrastructure, livelihoods, and triggering urgent balance-of-payments pressures a request under the RFI is appropriate. It allows Sri Lanka to mobilize foreign exchange quickly for relief and reconstruction, without derailing or complicating the structural program already in place under the EFF.

Indeed, the IMF itself appears to treat the RFI request as an addition to, not a substitute for, existing EFF access. Reports say the Board will prioritize the RFI review, and only then resume the fifth EFF review when conditions permit.

In the delicate aftermath of a disaster, clarity matters. Presenting this RFI request as a distinct, one-time emergency intervention not a new multi‑year programme will preserve the integrity of Sri Lanka’s structural reform path. That clarity is also vital for public confidence and for reassuring international creditors that reform commitments under the EFF remain intact.

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UN Pledges US$4.5 Million for Sri Lanka’s Disaster Recovery

Sri Lanka will receive full support from the United Nations (UN) for recovery and reconstruction following the recent extreme weather disaster, the UN Resident Representative in Sri Lanka Marc-André Franche said on Monday.

He made the pledge during a meeting with Foreign Minister Vijitha Herath at the ministry.

Marc-André Franche said the UN has decided to provide an initial US$ 4.5 million under its Emergency Response Fund to support immediate relief for affected communities. The amount was symbolically handed over to Minister Herath during the meeting.

According to the UN, the financial and technical assistance will focus on food security, housing, drinking water, education, health, agriculture and fisheries.

Marc-André Franche further noted that a five-member team from the UN Office for the Coordination of Humanitarian Affairs (OCHA) has already arrived in Sri Lanka to conduct a detailed assessment of needs. The UN expects to work closely with Sri Lanka’s Disaster Management Centre for all related coordination.

Minister Herath pointed out that the disaster has severely affected the country’s population, economy, agricultural sector and essential infrastructure, and emphasized the importance of international cooperation for national recovery efforts.

The Resident Representative said the UN will continue working with its offices in New York and Geneva to facilitate support from international partners contributing to Sri Lanka’s rebuilding programme.

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Sri Lanka Export Shortfall + Reserve Crisis: $1 Billion Missed Target

Sri Lanka is poised to fall short of its 2025 export revenue target by nearly US$ 1 billion, highlighting vulnerabilities in both the economy and its external financial buffers. The Export Development Board (EDB) projects total exports for the year to reach between US$ 17-17.5 billion, below the planned US$ 18.2 billion.

The shortfall stems primarily from severe domestic disasters, including floods and storms, which have disrupted agriculture and production, alongside global market pressures.

aljazeeraSource - aljazeera

Over the first ten months of 2025, merchandise and services exports collectively amounted to US$ 14.4 billion. While this reflects a 6% growth over the previous decade considered a notable improvement it remains insufficient to meet targets and address structural weaknesses in the export sector.

The underperformance has implications far beyond the headline numbers, as Sri Lanka relies heavily on export earnings to sustain foreign-exchange inflows, stabilize the currency, and maintain macroeconomic stability.

The export shortfall coincides with the country’s ongoing effort to rebuild reserves under the International Monetary Fund (IMF) Extended Fund Facility. Authorities have indicated a gross official reserve projection of around US$ 7 billion by the end of 2025.

 However, experts clarify that this figure is a projection rather than a mandatory requirement. What truly matters is the accumulation of Net International Reserves (NIR) fully liquid, internationally recognized foreign assets excluding conditional swap lines.

For instance, approximately US$ 1.4 billion in swap agreements included in headline reserve figures are not immediately available for international obligations, meaning actual usable reserves are lower than publicized.

The shortfall in export revenue directly constrains the country’s ability to maintain these reserves. Reduced inflows limit Sri Lanka’s capacity to finance imports, service external debt, and support a stable exchange rate.

 Analysts warn that without corrective measures, the combined effect of weaker exports and uncertain reserve liquidity could exacerbate currency volatility and inflationary pressures, deepening macroeconomic fragility.

In response, the EDB is pursuing structural reforms through the upcoming National Export Development Plan (NEDP) for 2026–2030.

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The strategy includes diversifying export products beyond traditional commodities like apparel, tea, and rubber, developing high-potential sectors such as ICT/BPM, logistics, electronics, and mineral-based exports, and targeting new regional markets in Africa, Asia, and the Middle East. Strengthened economic diplomacy and modernization of trade processes, including online integration via the National Single Window, are expected to bolster resilience.

But , analysts caution that achieving these ambitious goals requires careful alignment of policy, investment, and disaster preparedness.

The recent export shortfall underscores the fragility of Sri Lanka’s current external position and the urgent need to ensure that growth targets are realistic and supported by resilient, disaster-proof economic infrastructure.

The missed US$ 1 billion export target may be a temporary setback, but its ripple effects on reserve adequacy, currency stability, and investor confidence make it a critical warning for policymakers and the business community alike.

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Death Toll from Adverse Weather Rises to 635; Nearly 1.8 Million Affected

The Disaster Management Center (DMC) reports that the death toll from the severe weather experienced across Sri Lanka in recent days has risen to 635.

The Kandy District has recorded the highest number of fatalities, with 234 deaths confirmed.

Meanwhile, 192 people are still reported missing as search, rescue, and relief efforts continue in several districts.

According to updated DMC data, 1,776,103 individuals belonging to 512,123 families in 25 districts have been impacted by the effects of Cyclone “Ditwah.”

The DMC further stated that 69,861 people from 22,218 families are currently staying in 690 safe shelters set up nationwide.

 
 
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Cyclone Recovery Tests Sri Lanka’s Strategy between India and China

As Sri Lanka struggles to recover from the devastation of Cyclone Ditwah and weeks of flooding, a deeper question is emerging beneath the emergency headlines: How should Sri Lanka balance urgent rescue needs with the long-term risks of foreign-funded reconstruction?

The answer is becoming inseparable from the geopolitical rivalry between India and China, the region’s two largest economic powers, both now active in Sri Lanka’s disaster response but in very different ways.

India moved with striking speed. Under Operation Sagar Bandhu, New Delhi deployed a multidimensional humanitarian package within hours, sending 53 tonnes of relief supplies, three Indian Air Force aircraft, naval vessels, specialised National Disaster Response Force (India) NDRF search-and-rescue units, and medical teams.

Helicopters airlifted stranded residents, engineers restored broken access routes, and evacuation flights repatriated more than 2,000 Indian nationals while also contributing to broader relief operations. India’s footprint is unmistakably operational: boots, machinery, helicopters, and emergency workers on the ground.

China’s engagement so far has been different in scale and style. Beijing’s immediate support included US$100,000 from the Red Cross Society of China to the Sri Lanka Red Cross, while embassy-linked community groups mobilised another LKR 10 million in donations.

Official Chinese statements indicate that further supplies and government-level assistance are “in progress” or being arranged. While not matching the rapid deployment seen from India, China’s approach fits its established pattern: financial aid first, reconstruction financing and project-based support later.

These contrasting relief models hint at a more complex reality Sri Lanka’s vulnerability is not just humanitarian, but geopolitical.

India’s swift operations reinforce its declared role as the Indian Ocean’s “first responder”, a strategic message that Colombo cannot ignore.

The tangible, highly visible nature of its assistance builds goodwill at the community level and strengthens defence and emergency cooperation. For a country still in economic recovery, Indian High Availability Disaster Recovery HADR capabilities provide immediate, lifesaving relief without adding to debt.

China’s influence, however, lies in long-term infrastructure and financing, from energy projects to major transport and port-related ventures. Beijing’s reconstruction assistance when it comes could offer scale and speed unmatched by most donors.

But these advantages come with well-known policy sensitivities: debt sustainability, project transparency, and environmental resilience. Post-disaster spending can easily become a gateway for high-cost or strategically weighted projects if oversight is weak.

This leaves Sri Lanka with a difficult but decisive task: extract benefits from both partners without deepening structural vulnerabilities.

In the immediate term, the country must continue leveraging India’s operational strength rescue teams, engineering units, medical care, and connectivity restoration because these are capabilities China does not deploy at the same pace or magnitude.

But for the reconstruction phase, Colombo must draw strict red lines: infrastructure must meet resilience standards, financing terms must be transparent, and project selection must prioritise flood protection, early warning capacity, agriculture stability, and social infrastructure.

If Sri Lanka does not set the terms, others will. The coming months will determine whether foreign financing becomes a tool for rebuilding a safer, greener nation or a new layer of long-term dependency shaped by the strategic calculus of external powers.

For a country caught between two giants, the only sustainable path is disciplined neutrality: accept the help, but guard the future.

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IndiGo refunds tickets worth INR 6.1 billion, on-time flight ops improve

IndiGo is on track to operate over 1,650 flights, up from 1,500 yesterday, the airline said in a status update this evening. It said 137 out of 138 destinations are in operation with on-time performance of 75 per cent, up from 30 per cent yesterday.

The airline iterated it will give full waiver on cancellations and reschedule requests for bookings till December 15. The process of refunds and sorting luggage is going on fast, it said.

“We are working round the clock to resume normal service. Please bear with us,” IndiGo said in its latest status update today.

The Ministry of Civil Aviation (MoCA) has taken rapid and decisive steps to address the disruption caused by IndiGo’s operational crisis and to ensure that passengers do not face continued inconvenience, officials said.

Air travel operations across the country are stabilising at a fast pace as all other domestic airlines are operating smoothly and at full capacity, while IndiGo’s performance has shown steady improvement today, with flight schedules moving back towards normal levels, they said.

Airfare Regulation To Prevent Overcharging

In light of recent cancellations leading to a shift in demand and temporary surge in airfares, the ministry intervened and introduced a cap on airfares with immediate effect. This measure ensures fairness and affordability for travellers, officials said.

Since the implementation of this order, fare levels across affected routes have moderated to acceptable limits. All airlines have been instructed to comply strictly with the revised fare structure, they said.

Passenger Refunds And Rescheduling Support

To ensure financial protection for passengers, the ministry issued strict directives to IndiGo requiring that all refunds for cancelled or severely delayed flights be completed by 8 pm today. IndiGo has so far processed refunds totalling INR 6.1 billion. 

No additional fees are permitted for rescheduling travel impacted by cancellations. Dedicated support cells have been created to proactively assist passengers so that refund and rebooking issues are resolved without delay or inconvenience.

Baggage Reconciliation And Delivery

The ministry has instructed IndiGo to trace and deliver all baggage separated from passengers due to disruptions within 48 hours. Continuous communication is mandated throughout the process. With this push, IndiGo has successfully delivered 3,000 pieces of baggage to passengers across India as of yesterday.

Airport Operations And On-Ground Facilitation

Airport directors from Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Ahmedabad, and Goa have confirmed normal conditions across terminals today. Passenger movement remains smooth with no crowding at check-in, security, or boarding points, officials said.

On-ground support has been strengthened through enhanced monitoring and timely deployment of assistance by airport operators and CISF.

Real-Time Monitoring And Control Measures

The MoCA’s 24x7 control room continues to function as an integrated coordination hub, overseeing flight operations, airport conditions, and passenger support requirements. Passenger calls are being promptly attended to, with necessary assistance as required. Our teams remain deployed on the ground to supervise operational planning, crew rostering, and passenger handling standards, ensuring full compliance.

Reassurance To Passengers

The Ministry of Civil Aviation said it wishes to reassure the travelling public that passenger safety, convenience, and dignity remain the highest priority of the government. The aviation network is moving swiftly toward full normalcy, and all corrective measures will remain in place until operations stabilize entirely, it said.

The ministry will continue vigilant monitoring to ensure full protection of passenger rights and interests, and further updates will be shared as required.

( Source : adaderana.lk)

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