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Sri Lanka’s tea industry has once again proven its resilience, with the Colombo Tea Traders’ Association (CTTA) confirming that Cyclone Ditwah caused only limited disruptions, leaving manufacturing untouched and allowing harvesting, transportation, and Colombo Tea Auction activities to steadily return to normal.

In a statement issued yesterday, the CTTA acknowledged that some tea-growing regions in Uva and Central Province experienced minor impacts. However, the Association emphasized that there were no losses in manufacturing capacity, thanks to a highly coordinated industry network prepared to confront natural challenges. “The cyclone presents yet another challenge, but it is by no means insurmountable,” the statement said.

While some roads connecting plantations to Colombo were temporarily affected, the majority have now reopened. Harvesting operations are gradually resuming, aided by temporary access roads constructed to ensure the smooth transport of green leaves and tea produce. Most plantations in the southern regions and along major transport networks were spared, ensuring that the flow of goods continues largely uninterrupted.

Tea auction activities at Colombo continue with minor adjustments. The auction originally scheduled for the first week of December has been rescheduled to the last week of the month, ensuring uninterrupted financial flows to producers, including smallholders. Floods caused by the Kelani River affected a few exporters’ offices and warehouses, with some tea bagging machinery damaged. The industry is actively restoring equipment to maintain timely delivery for overseas clients.

Sri Lanka’s tea production from January to October reached 220.97 million kilograms, an increase of over 3.3 million kilos compared to the same period last year and surpassing the 2023 output. This demonstrates the industry’s ongoing capacity to maintain growth despite environmental and economic challenges.

The CTTA underscored the industry’s history of resilience, citing past crises such as the COVID-19 pandemic, when the tea auction was successfully digitalized, and periods of severe economic strain, during which production, sales, and exports continued uninterrupted.

Comprising key stakeholders, including the Planters’ Association of Ceylon, Sri Lanka Tea Factory Owners’ Association, Colombo Brokers Association, Tea Exporters’ Association, and Tea Smallholding Development Authorities, the CTTA serves as the apex private sector body of the tea industry. Its collaborative approach ensures that challenges—from natural disasters to logistical disruptions are addressed effectively.

The CTTA concluded by reaffirming its commitment to supplying ‘Ceylon Tea’ globally, highlighting the unity and dedication of all stakeholders in overcoming obstacles and maintaining the industry’s international reputation.

The Meteorological Department has issued a weather alert warning of a high probability of thunderstorms with severe lightning in several areas of the Kalutara, Ratnapura, Galle, and Matara districts.

The advisory notes that these thunderstorms may be accompanied by temporary strong winds, heightening the risk of weather-related incidents.

Authorities have urged the public to take appropriate safety measures to reduce the dangers posed by lightning, especially during periods of heavy rainfall and thunder.

Residents in the affected regions are advised to stay indoors during lightning activity, avoid using wired electrical devices, and keep away from open fields and tall structures for their safety.

Sri Lanka continues to face significant revenue losses due to widespread tax exemptions, raising concerns about fiscal stability and the broader economic recovery. According to the latest Tax Expenditure Statement published by the Ministry of Finance in November 2025, exemptions and concessions reached Rs. 285.7 billion in the first half of 2025 alone equivalent to 57% of the total tax expenditure recorded since April 2023.

The report highlights that total exemptions since April 2023 have soared to Rs. 787.1 billion, encompassing Corporate Income Tax, Personal Income Tax, Value Added Tax (VAT), Excise Duty, Customs Import Duty, the Social Security Contribution Levy, and the Luxury Tax on Motor Vehicles. While measures to broaden the tax base and increase revenue collection have been introduced under the economic recovery program, these large-scale concessions continue to limit their impact.

The 2023/24 financial period primarily reflects income tax exemptions: Rs. 12.2 billion in Personal Income Tax and Rs. 119.3 billion in Corporate Income Tax, totaling Rs. 131.5 billion. VAT, excise, customs, and other consumption-based exemptions are reported in 2024, totaling Rs. 369.9 billion. Notably, VAT exemptions alone amounted to Rs. 333.3 billion in 2024, with Rs. 207.4 billion recorded in the first half of 2025, primarily covering essential goods, utilities, medicines, food supply chains, and priority sectors outside the Board of Investment framework.

Other significant exemptions include Rs. 61.7 billion in the Social Security Contribution Levy, largely aimed at shielding consumers from higher prices for electricity, water, fuel, and pharmaceuticals. Customs duty and excise duty exemptions, while smaller, support agricultural inputs, construction projects, and locally assembled vehicles. Luxury motor vehicle tax reliefs granted under Gazettes in 2023–2024 added to the fiscal burden, though recovery actions are underway against non-compliant beneficiaries.

These patterns have direct implications for Sri Lanka’s commitments under the International Monetary Fund program, which relies on improved revenue collection through VAT, income taxes, and enhanced administration of the Social Security levy. Analysts warn that continued high exemption volumes reduce the effectiveness of base-broadening reforms and could constrain public spending on essential services.

The Finance Ministry acknowledges these challenges and aims to integrate tax expenditure analysis into the annual budget cycle. Future efforts will include clear benchmarks, regular evaluation of high-cost exemptions, and sector-specific assessments to align tax reliefs with fiscal consolidation goals. However, the persistence of legacy exemptions from older investment regimes and transitional projects, such as Port City developments, suggests that achieving meaningful revenue gains will require careful policy recalibration.

The All-Island Egg Producers’ Association has dismissed claims that egg prices will increase during the festive season, calling them completely false.

Chairman Sarath Ratnayake stated that certain groups are spreading these misleading statements in an attempt to justify the importation of eggs.

He added that eggs can still be supplied for less than Rs. 45, reaffirming the Association’s position.

Sri Lanka’s worsening climate disasters have exposed a critical weakness in the country’s early-warning system: the absence of a functioning Doppler radar, a tool regarded globally as essential for accurate real-time weather forecasting.

A Japan International Cooperation Agency (JICA)–funded radar, promised years ago, is now expected only by 2027, raising questions about government accountability after a series of devastating cyclones and floods.

A Doppler radar detects precipitation levels and wind movements, enabling meteorologists to track storm formation, direction and intensity with high precision.

For an island increasingly battered by extreme weather, the absence of such technology has had deadly consequences. Communities hit by recent cyclonic systems say warnings came too late or were too vague to prepare.

Officials privately admit that the Met Department’s limited forecasting capacity without a Doppler system severely restricts the accuracy of localised alerts.

Sri Lanka was supposed to receive two Doppler radars through a JICA grant agreed in 2017. That number was later cut to one. Even that single unit faced repeated delays due to the pandemic, the economic collapse, procurement bottlenecks and administrative mismanagement.

Construction at the Puttalam meteorological station began only after contracts with Japan Radio and Hazama Ando Corporation were signed in June 2024. Suppliers were finalised four months later, restarting a project that had been dormant for years.

This is not the first time the Met Department mishandled Doppler technology. An earlier attemptundertaken with the World Meteorological Organisation (WMO) collapsed in what auditors described as a costly “disaster.”

The National Audit Office revealed that Rs 400 million allocated in 2006–2007 for a Doppler system was effectively wasted. The radar, purchased on Sri Lanka’s instructions from the US-based Enterprise Electronics Corporation, was installed on a 20-metre tower atop the Gonagala peak in Deniyaya.

After installation, the supplier informed the WMO that the required electronic connectivity was impossible to provide.

Eighteen years later, no one knows where that radar is or why technical feasibility was never verified before purchase.

Amid the current crisis, the Met Department’s Director General was barred from speaking to media following public anger over missed warnings during the latest cyclone. The information freeze has further fuelled suspicion about systemic failures and internal accountability gaps.

Scientists warn that without Doppler radar coverage, Sri Lanka will continue to rely on outdated systems incapable of capturing rapid storm intensification now common due to climate change.

As people struggle to rebuild homes destroyed by floods, the question remains unanswered: how many more disasters will strike before Sri Lanka finally installs the technology it has been promised for nearly two decades?

Sri Lanka’s decision to divert US$150 million in World Bank IDA funds into a massive vehicle procurement programme has exposed a truth long whispered inside the health sector: frontline public health services have been running on a fragile, hollowed-out system, where workers are expected to deliver community care without the most basic tools to reach the communities they serve.

The move made under the banner of the Primary Health Care System Improvement Project (2024–2028) has ignited questions about whether the government is using development financing to plug years of chronic neglect rather than to deliver the reforms the World Bank originally intended.

At its core, the IDA project was designed to tackle non-communicable diseases, strengthen elderly care and improve climate-resilient health services.

But the Cabinet’s approval of more than 4,000 vehicles, from scooters and motorbikes to clinical-waste Lorries, double cabs, freezer trucks and even an ambulance boat, signals a far more uncomfortable reality:

Sri Lanka’s community health network is so under-resourced that basic mobility—not medical expertise, not diagnostic capacity, not technology has become the number one barrier to delivering care.

Field staff describe a system where midwives walk miles to reach pregnant mothers, public health inspectors borrow motorcycles, and nurses rely on irregular public transport to respond to outbreaks or deliver home-based care.

These are not isolated incidents they are symptoms of a system that has been chronically weakened while political administrations repeatedly underfunded operational essentials.

Government officials insist the procurement is fully justified, arguing that without transport, the World Bank’s objectives cannot be met. In their view, the fleet represents long-overdue investment: the physical foundation upon which community-based care must stand.

Their argument, however, raises a far more serious question why did the health system collapse to a point where imported vehicles funded by foreign loans are the only way to keep frontline services functioning?

Critics point out that using IDA credit—a concessional financing tool meant to strengthen public health outcomes for what resembles a large-scale import programme risks undermining the project’s integrity.

 They warn that the sudden shift from health-system reform to vehicle acquisition may not fully align with the World Bank’s approval criteria, and could trigger compliance scrutiny if objectives appear diluted or redirected.

There are also concerns about procurement transparency, given Sri Lanka’s history of inflated tenders, politically favoured suppliers, and weak oversight in large purchases.

 The size of the fleet far exceeding standard replacement cycles has raised eyebrows among health-sector analysts who fear that expensive equipment may end up under-utilised or poorly maintained once the project ends.

Still, the controversy reveals a brutal truth: Sri Lanka’s health system is no longer failing at the marginsit is failing at the fundamentals.

Vehicles may temporarily help frontline workers reach patients, but they cannot by themselves fix the deeper deficiencies in diagnostics, staffing, community health planning and long-term prevention strategies.

Unless this procurement is paired with real reform, serious monitoring, and a transparent results framework, Sri Lanka risks turning a rare opportunity for structural health improvement into yet another band-aid solution bought on borrowed money.

Sri Lanka’s effort to broaden its tax base has run into fresh obstacles as Inland Revenue Department (IRD) officials attempt to meet sharply increased revenue targets amid severe disruptions from the recent cyclone and flooding. Inland Revenue Department (IRD)

A senior-level discussion chaired by Deputy Minister Nishantha Jayaweera has now accelerated pressure on the IRD to simplify taxation processes and deliver a workable plan to achieve this year’s revenue targets.

The meeting included IRD Commissioner General Rukdevi Fernando and senior Finance Ministry officials, who examined the urgency of widening the tax net in light of reduced indirect-tax inflowsparticularly the steep drop in revenue from vehicle import duties.

Vehicle imports, traditionally a cornerstone of government revenue, have declined dramatically due to tightening foreign-exchange controls and policy uncertainty, leaving a widening gap in the tax portfolio.

According to the Ministry statement, the Deputy Minister directed the IRD to minimise taxpayer inconvenience, streamline the return-filing process, and strengthen awareness campaigns. Officials also discussed increasing voluntary compliance, which remains low due to bureaucratic complexity, distrust in the system, and limited digital uptake among small businesses.

However, the external environment is working against these ambitions. Cyclone-related flooding has severely affected businesses across multiple districts, damaging tax records, disrupting supply chains, and delaying the reopening of enterprises that contribute significantly to VAT and income-tax flows. In some regions, IRD field officers have flagged that taxpayers are unable to meet filing deadlines due to destroyed equipment and damaged premises.

The government’s revised revenue target for 2025—raised from Rs. 4,590 billion to Rs. 4,725 billion was set in expectation of stronger performance in income tax and goods-and-services levies.

The upward revision includes a 3.7% increase in the income-tax target to Rs. 1,210 billion and a 6.5% increase in levies on goods and services to Rs. 2,953 billion. Yet field data suggests that disaster-affected regions may not contribute at full capacity for months.

The IRD has long struggled to expand the tax base, with fewer than 10% of the workforce paying income tax and significant under-reporting among small and medium-sized enterprises. Officials say the cyclone has further pushed informal-sector workers into financial distress, reducing the likelihood of new registrations this year.

Analysts caution that expanding the tax net during a disaster recovery phase requires careful sequencing. Heavy-handed enforcement risks driving informal businesses deeper underground. Instead, tax officers recommend phased filing, targeted incentives, and digital-onboarding support to gradually integrate new taxpayers without harming economic recovery.

Despite these challenges, the IRD is expected to present its updated revenue-mobilisation plan within weeks. But insiders warn that meeting the newly revised targets already ambitious under normal conditions will depend heavily on reinstating trade flows, particularly vehicle imports, and ensuring disaster-hit businesses return to operation swiftly.

Germany has announced emergency assistance worth approximately €500,000 to aid Sri Lanka in the aftermath of Cyclone Ditwah. The support is being provided under the European Union Civil Protection Mechanism (EU UCPM) as part of the EU’s coordinated emergency response.

The initial needs were identified through the EU Civil Protection and Humanitarian Aid Operations (ECHO). Funded by the German Federal Foreign Office and delivered via the Federal Agency for Technical Relief (THW), the aid package includes emergency shelter materials, water, sanitation and hygiene (WASH) supplies, personal protective equipment (PPE), and technical equipment to assist ongoing relief operations across the country.

A THW delegation is currently in Sri Lanka, working closely with national authorities to ensure the aid complements broader relief efforts.

Germany reiterated its solidarity with Sri Lanka, expressing its commitment to supporting the nation’s rebuilding and recovery, and extended condolences for the tragic loss of life and damage caused by the cyclone.

Sri Lanka’s external debt position continues to tighten, raising questions about the country’s ability to navigate its recovery phase while meeting rising repayment obligations.

 The Public Debt Management Office’s latest Quarterly Debt Bulletin shows that as of end-September 2025, Sri Lanka’s external debt stock reached USD 37.24 billion, marking a USD 100 million increase from the previous quarter.

Despite being locked out of global capital markets since the 2022 default, the government continues relying on multilateral financing from institutions such as the World Bank and Asian Development Bank both of which now account for more than 83% of multilateral exposures.

According to the bulletin, multilateral lenders represent 37% of the external portfolio, commercial creditors 34%, and bilateral partners 29%.

Sri Lanka managed to settle USD 1.36 billion in external obligations during the first half of 2025, completing 55% of the year’s total requirement. This leaves USD 1.09 billion in payments due before year-end.

Central Bank Governor Dr. Nandalal Weerasinghe has repeatedly cautioned that annual commitments will average USD 2.75 billion through 2027, before rising significantly from 2028 when pre-crisis obligations and new financing lines converge.

 According to him, repayments after 2028 are projected to range between USD 3.2–3.5 billion, with some years expected to touch USD 4 billion.

This looming repayment spike underscores the urgency of Sri Lanka’s restructuring efforts. Substantial progress has been recorded since the 2022 default.

 In June 2024, the government secured treatment agreements with the Official Creditor Committee and separately with the Export-Import Bank of China, followed by amendment arrangements to operationalise both deals. The restructuring of loans from China Development Bank was also completed in December 2024.

On the commercial front, an agreement in principle with International Sovereign Bondholders (ISBs) was reached in September 2024, with the bond exchange executed in December. Participation reached an impressive 98%, enabling nearly the entire defaulted commercial portfolio to be converted into new instruments.

Bilateral negotiations have also advanced steadily through 2025, with agreements finalised with Japan, India, France, Hungary, and the United Kingdom, bringing total restructuring completion to about 94%. More recently, SriLankan Airlines reached an agreement in principle with bondholders holding USD 175 million.

With these arrangements in place, the government has resumed regular servicing to creditors. But the underlying issue remains unchanged: while restructuring has bought Sri Lanka breathing space through 2027, the impending jump in repayment obligations from 2028 onward raises concerns about the country’s long-term debt sustainability.

 Without stronger export growth, fiscal reforms, and renewed market access, experts warn that Sri Lanka risks drifting back toward repayment stress within the next decade.

The Deputy Registrars of the Malwathu and Asgiriya Chapters have praised the government, led by the President, for its efforts to rebuild communities and restore normalcy in the aftermath of the recent disaster, the President’s Media Division (PMD) announced.

Their remarks were conveyed by Rajakiya Panditha Darshanapath Ven. Mahawela Rathanapala Thero, Deputy Registrar of the Malwathu Maha Viharaya Chapter of the Siyamopali Maha Nikaya; Ven. Dr. Muruddeniye Dhammarathana Thero, Deputy Registrar of the Asgiriya Chapter of the Siyamopali Maha Nikaya and Chief Incumbent of the historic Badulu Muthiyangana Raja Maha Viharaya; and Nilanga Dela, the Diyawadana Nilame of the Sri Dalada Maligawa.

The remarks were made during a meeting with President Anura Kumara Dissanayake at the Presidential Secretariat this morning (11), the PMD said.

Discussions centred on ongoing relief and resettlement measures for communities affected in the Kandy district.

Meanwhile, the Diyawadana Nilame outlined the role the Temple of the Sacred Tooth Relic could play in supporting resettlement initiatives.

As part of this support, the historic Sri Dalada Maligawa has made a financial donation to the ‘Rebuilding Sri Lanka’ Fund, the statement added.

Secretary to the President, Dr. Nandika Sanath Kumanayake, also attended the meeting.

The UNDP has raised the alarm over Sri Lanka’s worsening post-cyclone recovery, warning that the country is confronting a dual crisis of massive disaster damage and severe debt vulnerability.

The agency has urged development partners to extend concessional financing and non-debt instruments, arguing that Sri Lanka lacks the fiscal space to rebuild responsibly after Cyclone Ditwah, which inundated 20% of the country and triggered 1,200 landslides.

UNDP Resident Representative Azusa Kubota said the disaster hit at a moment when Sri Lanka’s economy was only beginning to stabilise. “After one of its worst economic crises, Sri Lanka cannot absorb more debt to fund recovery,” she said, stressing that donor support is essential to prevent the country from “falling off the debt cliff.”

UNDP’s geospatial mapping shows a massive scale of exposure: 2.3 million people, including 522,000 children and 263,000 older persons, were affected by floods and landslides.

Divisional Secretariats in Puttalam, Kilinochchi, Mullaitivu, Nuwara Eliya, Badulla, and Kegalle reflect the most severe combined impacts, where fragile governance systems and pre-existing poverty amplify recovery challenges.

The disaster’s infrastructure toll is enormous. Nearly 720,000 buildings from hospitals to schools were exposed to water. Colombo, Gampaha, and Polonnaruwa districts recorded some of the highest totals, with Ja-Ela alone reporting more than 44,000 exposed structures.

The transport network has been heavily disrupted, with 16,000 km of roads, 480 bridges, and 278 km of railway affected, cutting communities off from critical services.

Debris removal has emerged as one of the biggest barriers to recovery. More than 240,000 tons of non-construction waste and 60,000 cubic metres of construction debris have been recorded, with Colombo facing the largest volumes. Costs continue to rise as verification progresses.

Agricultural exposure is equally damaging. Over 530,000 hectares of paddy land were flooded—endangering national food security. In several districts, 20–30% of households lack even a week’s worth of dry food, signalling the depth of the humanitarian strain.

UNDP’s early recovery plan calls for urgent action: restoring essential services, supporting MSMEs, rebuilding community infrastructure, and replacing vital documentation lost in the disaster. The agency also emphasised strengthening local authorities who must manage relief registries and community outreach.

UNDP Crisis Bureau official Devanand Ramiah stated that the cyclone demonstrated how multiple risks can converge rapidly, making global support indispensable.

With Sri Lanka still negotiating debt sustainability in the aftermath of its economic collapse, UNDP’s appeal underscores a grim reality: without external concessional support, rebuilding will push the nation deeper into the debt trap it is struggling to escape.