News
Farmers halt cultivation, protest 2026 Budget neglect of agriculture
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.
Couple filming nude content for UK website arrested in Rajagiriya
A married couple who had uploaded nude videos of themselves to a subscription-based adult website in UK have been arrested by officers of the Nugegoda Divisional Children and Women’s Bureau.
Police investigations have revealed that the husband is a computer engineering graduate from a private university, while the wife holds a diploma in psychology, also from a private institution.
The arrest was made on Friday (08) at a house in Rajagiriya, following information.
According to police, the couple had been residing on the top floor of a three-storey building. Other family members occupied the lower floors.
During the raid, officers found that the videos had been recorded on the third floor, with the furniture and interior settings matching the backgrounds seen in the footage. A mobile phone used to record the videos and a laptop used for editing and uploading were seized from the premises.
Investigations have uncovered that the couple had uploaded 334 videos to the site. They had reportedly entered into an agreement with the foreign company in November last year, under which they were to provide eight videos per month. The couple had told police they earned between Rs. 150,000 to Rs. 200,000 monthly, with higher payments depending on the number of views.
They further informed that they resorted to producing the videos after both lost their jobs and faced financial difficulties. The website had not been accessible within Sri Lanka until August this year, and the couple believed their identities would remain undiscovered.
Police investigation revealed that the couple does not have children. They are to be produced before the Colombo Aluthgama Magistrate’s Court today.
(Source - Dailymirror)
Thalawa Bus Mishap: 1 Fatality, Nearly 40 Injured
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.
Digital Dreams, Weak Foundations: Budget 2026 Misses the Real Code
The 2026 Budget unveiled by Anura Kumara Dissanayake and his new National People’s Power (NPP) Government marks an ambitious push towards a digital economy.
At face value, allocating Rs. 35.6 billion to digital-infrastructure projects and advertising Sri Lanka as a forthcoming regional hub for data centres looks like the right strategic move.
But closer inspection reveals fundamental flaws: the environment for foreign and local digital investment is under-prepared, high-level digital literacy remains alarmingly weak, and the political credibility of the new government is still untested.
In his speech, Dissanayake flagged a “high potential to emerge as a regional hub for setting up data centres” and outlined initial steps: a Rs. 500 million allocation to that end, incentives such as tax suspensions for five years for new towers, and fast-track approvals for digital-infrastructure construction.
He announced a Rs. 1.5 billion grant to kick-start a startup fund under the Ministry of Digital Economy, the creation of “Virtual Special Economic Zones” (V-SEZs) to generate export-oriented digital jobs, and plans to issue the first digital National Identity Card early next year.
But the rhetoric belies important gaps. First, the groundwork for attracting foreign investmentespecially in high-end fields such as data centres and artificial intelligence is far from convincing.
The government appeals to “foreign and local investors through financial incentives, green energy use incentives, low-cost electricity and concessional provision of land,” yet no detailed roadmap accompanies the announcement. In effect, there is high spending on the digital economy without a mature strategy or ecosystem in place to make it work.
Second, Sri Lanka’s actual digital readiness remains weak. While the digital literacy rate stands at 64.3 percent of persons aged 5–69 (first half of 2024), the computer-literacy ratethe ability to use a PC on one’s own is only 36.4 percent. Furthermore, internet-user penetration as of early 2025 is only 53.6 percent of the population.
That means almost half the population remains offline or marginalised from the planned digital leap. If senior officials and decision-makers also lack strong digital skills and communication competence, the chances of implementing complex digital investments successfully are greatly reduced.
Third, the NPP government faces credibility questions. Several members of this new slate reportedly had links to past subversive activities.
While the government repeatedly emphasises a clean investment environmentfree from hand-to-hand dealings, bribery and favouritismit remains unclear how the transition will be enforced. In highly regulated sectors like telecoms, data centres and AI, investor confidence requires not just policy promises, but firm, transparent institutions and leadership capability. Without that, large sums allocated risk becoming mere headline numbers rather than transformational investment.
What needs to happen in the short run?
1. Publish a detailed digital-investment roadmap: The government must immediately release and adopt clear policy documents covering data-centre investment criteria, power-supply guarantees, land-allocation mechanisms, tax incentive frameworks and foreign-investment safeguards.
2. Accelerate digital literacy and capacity-building for public leadership: Launch a mandatory digital-executive-training programme for ministers, secretaries and senior officials to raise computer-literacy and communication skills.
3. Fast-track regulatory frameworks and data protection: The government must ensure the rule-of-law assurances to investors are credible and visible.
4. Focus on inclusion and rural connectivity: With over 40 percent offline and large literacy gaps in rural sectors, infrastructure spending should prioritise underserved regions.
5. Introduce accountability metrics and timelines: Each major project—data-centre hub, V-SEZs, national digital ID, broadband roll-out should come with measurable milestones and public progress updates.
In sum, the 2026 budget may have signalled a welcome shift in ambition. But spending big on the digital economy without the matching environment, literacy, governance and strategy risks creating a digital hype bubble rather than sustainable transformation.
If the NPP government wants to convert its digital-economy mantra into reality, it must move swiftly to strengthen its foundations, not just its line-items.
Tragedy in Dambulla: A/L Biology Student Dies Unexpectedly
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.
“AI in Action: Sri Lanka Gears Up to Lead Asia’s Digital Future”
Artificial Intelligence (AI) is no longer confined to science fiction—it is reshaping industries, driving innovation, and redefining growth. The SLASSCOM AI Asia Summit 2025, themed “AI in Action”, to be held on 12 November at the Cinnamon Grand, Colombo, will spotlight how AI is creating measurable transformation across sectors and how Sri Lanka can position itself as a hub for responsible, scalable AI innovation.
From vision to measurable impact
SLASSCOM Board Director Arjuna Sirinanda said the Summit’s theme reflects a clear shift from experimentation to execution. “This is not just about concepts it’s about measurable impact,” he emphasized. The event will showcase real-world AI applications in finance, manufacturing, and services, highlighting how Sri Lankan firms are already embedding AI into their business processes. “What makes this summit unique is its focus on collaboration—bringing together innovators, policymakers, and industry leaders to turn Sri Lanka’s AI potential into tangible economic value,” he added.
Echoing similar sentiments, SLASSCOM Tech Forum Lead Dhaminda Siriwardena noted that the Summit provides an ideal platform for companies to see how AI is moving from theory to action. “This marks a shift from exploration to execution. Our focus on ethics, governance, and human-centered innovation ensures AI is used responsibly while driving sustainable business growth,” he said.
Positioning Sri Lanka as a trusted AI hub
SLASSCOM Chairperson Shehani Seneviratne said Sri Lanka is strategically poised to emerge as a regional leader in AI innovation. “The South Asian region has the creativity, skills, and infrastructure to lead in responsible, scalable AI. With strong technical foundations and a growing startup ecosystem, we can develop globally competitive AI solutions that are both ethical and impactful,” she noted.
Seneviratne stressed the importance of collaboration between academia, industry, and government to accelerate AI-driven innovation. Citing Sri Lanka’s Digital Economy Strategy and the national goal of reaching US$5 billion in tech exports by 2030, she said continued investment in skills, data infrastructure, and research is vital to turn global knowledge into local innovation.
Preparing businesses for AI integration
Commenting on how local enterprises can ready themselves for AI transformation, Seneviratne said, “Building digital maturity is essential. Companies must invest in robust data systems and equip teams to use AI strategically.” She added that the Summit will help businesses learn from global best practices, form new partnerships, and ensure that AI adoption is both practical and sustainable. “By combining internal readiness with external collaboration, organisations can align AI initiatives with long-term goals,” she stated.
The AI Asia Summit 2025 will feature a stellar lineup of speakers, including Dr. Radheeka Jayasundera Abeyweera (John Keells Group), Dr. Rukshan Batuwita (Google), Dr. Subha Fernando (University of Moratuwa), Oshada Senanayake (Brandix), and Hasith Yaggahavita (99X Technology), among others.
With Sri Lanka’s rising digital momentum and emerging AI talent, the AI Asia Summit 2025 offers a timely platform to align with global trends, strengthen collaboration, and accelerate the nation’s journey toward becoming a regional leader in responsible AI innovation.
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Amber Advisory Issued for Severe Lightning Across Several Areas
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.
Sri Lanka’s Hidden Trade Costs Threaten Export Future
Sri Lanka’s trade policy is under scrutiny as mounting evidence shows that so-called “para-tariffs”additional levies that operate outside official customs dutiesare quietly undermining the island’s competitiveness and constraining its recovery. A 2020 empirical study found that para-tariffs in Sri Lanka often push total protection above the levels disclosed under World Trade Organization (WTO) commitments, and that phasing them out could significantly boost production, exports and GDP growth.
Such levies, including import Cess, Port & Airport Levy (PAL), and Special Commodity Levies (SCL), have been highlighted by the policy-think tank Advocata Institute in its 2026 Budget proposals: decades of protectionist measuresfrom the “produce or perish” era through to the post-2005 high-tariff regime have left Sri Lanka’s manufacturing sector stuck in low-value production, eroding export competitiveness and raising consumer prices.
The Institute points out that trade openness fell from over 100 % of GDP in 2000 to just 63 % by 2019, while exports slipped from 33 % to 23 % of GDP. (Advocata Institute) Official data show Sri Lanka’s simple average applied MFN tariff in 2023 stood at just 8.4 % and a trade-weighted average of 7.1 % which superficially suggest moderate barriers.
Yet the para-tariffs add further, hidden burdens, complicating administration and favouring non-competitive domestic producers. The government’s 2024 National Tariff Policy documents call for para-tariffs to be charged only at customs and disclosed transparently—but actual progress has been sluggish.
In November 2025 the Treasury Secretary acknowledged ambitions to start phasing out para-tariffs in the first quarter of the year, emphasising that the exercise was to harmonise duties with global practices rather than raise revenue.
Compounding this internal issue, the bilateral trade front with the United States is increasingly fraught. Sri Lanka’s exports to the U.S.—notably apparel (which accounts for roughly 40 % of its US-bound manufactured exports) and rubber products—now face effective U.S. tariff rates far higher than previously, reportedly up to 29.9 % on average and as high as 36.8 % for apparel.
Although Sri Lanka was reported to have secured a reduction in the U.S. tariff rate from around 30 % to 20 % in August 2025, key details remain undisclosed and the government has been criticised for failing to publish the full terms of the agreement.
Meanwhile competitor countries such as Bangladesh and Pakistan are moving more swiftly to meet U.S. conditions and secure more favourable access.
The implications for Sri Lanka are serious. Modelled estimates suggest that under a 20 % U.S. tariff scenario, Sri Lanka’s apparel exports to the U.S. could fall by about 12 % (roughly USD 220 million) and rubber exports by 42 %, with overall export losses reaching as much as USD 634 million.
On aggregate, the country’s economic recovery could be dented one scenario projects a real GDP drop of 0.082 % under full employment, or up to 0.222 % if unemployment rises.
Failure to transparently disclose the agreements with the U.S. and to dismantle the protective para-tariff framework at home means Sri Lanka risks two simultaneous traps: one, declining export access due to higher U.S. tariffs and lost competitiveness; and two, persistent inefficiencies and higher costs at home owing to opaque border taxes. The combined effect threatens investor confidence, export diversification and employment in key vulnerable sectors.
In short, the dual challenge of hidden para-tariffs and faltering U.S. trade negotiations places Sri Lanka at a crossroads. Only a credible roadmap to transparent tariff reform, coupled with proactive engagement with the U.S. and other trade partners, can anchor the country’s export-driven growth narrative and protect its economic recovery.
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AI Deepfake Scams Target Sri Lankans with Fake Celebrity Endorsements
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.
Dollar-Demand Shipping Lines Squeeze Sri Lanka’s Exporters and Economy
In recent months, Sri Lankan importers and exporters are reporting mounting disruptions at the Sri Lanka Ports Authority (SLPA) and troubling terms set by foreign shipping companies operating through the Port of Colombo. Two interconnected issues stand out: frequent vessel omissions at the port’s major shipping lanes, and an increasingly widespread demand by global shipping lines that local firms pay freight and related services in USD rather than Sri Lankan rupees (LKR).
On the first front, industry lobby group Free Trade Zone Manufacturers’ Association (FTZMA) has formally alerted the Ministry of Ports and Civil Aviation that exporters are facing rawmaterial shortages, production delays and missed delivery deadlines, because several major liner operators are omitting Colombo from scheduled rotations.
Key sectors such as garments, rubber and electronics heavily reliant on “just-in-time” logistics are reportedly being hit hardest. FTZMA warns that Sri Lanka’s status as a regional shipping hub is undermined and urged immediate governmental intervention to improve yard efficiency, inter-terminal transfers and transport connectivity.
Overlaying this logistical squeeze is the more disturbing currency dimension: several shipping lines and their local agents are insisting that Sri Lankan importers/exporters settle domestic port-handling or freight invoices in US dollars, even when the services are rendered entirely within Sri Lanka.
Multiple reports allege that these demands contravene the country’s foreign exchange regulations, which require domestic transactions in LKR unless otherwise authorised by the Central Bank.
“Major shipping lines … are demanding payments in US dollars from Sri Lankan exporters … when the service including port handling, customs documentation, inland transportation — was entirely performed within Sri Lanka.”
The dual squeeze is exacting a heavy cost. For exporters earning foreign exchange, being forced to re-spend dollars domestically erodes their margins and drains hard-earned convertible currency reserves. For importers, a similar mechanism increases cost burdens, worsens rupee pressures and threatens overall economic competitiveness.
One expert described the practice as a form of “currency cannibalism”, where every dollar earned abroad is immediately drained back into domestic transactions before it can bolster the country’s foreign reserves.
The macroeconomic implications are serious: such forced dollarisation creates artificial demand for USD, exerting depreciation pressure on the LKR, reducing liquidity in the banking system, and discouraging new foreign investment as logistic and currency risks mount.
The combination of export delivery risks (from vessel omissions) and latent foreign-currency demands (from freight services) sends negative signals to global buyers and logistics partners alike.
Local industry associations are now calling for a formal investigation.
Key demands include: identification of shipping lines or agents enforcing dollar payments in Sri Lanka;review of whether those transactions were legally authorised under the Central Bank’s foreign exchange regime; quantification of the total foreign currency outflow linked to such transactions;
They also call for action by the SLPA and banks to enforce rupee payments for domestic services unless exempt; and urgent improvements in port-logistics infrastructure to reduce the frequency of vessel omissions.
Ultimately, Sri Lanka risks more than just higher individual costs for importers or exporters: the country could lose market share, see its logistical reliability decline, and further weaken the rupee just as it seeks foreign investment and export growth. Unless addressed swiftly, the twin pressures of port omissions and forced dollar freight payments may spell a self-inflicted head-wind to the nation’s economic recovery.
Sri Lanka Reignites Stalled Foreign Projects to Fuel Recovery
This year has seen a cautious but meaningful rebound in foreign-funded projects in Sri Lanka, as the government re-engages with bilateral partners and moves to restart previously stalled investments. Following the country’s deep economic and debt crisis, the new leadership has placed revitalisation of foreign-assisted development as a key plank in its recovery strategy.
Japan and China Resume Investments
One important signal came from the administration of Anura Kumara Dissanayake which announced that some 11 Japanese-funded projects and 76 Chinese-backed initiatives that had been suspended are now earmarked for resumption. Japan, for example, confirmed that its government is ready to restart 11 major stalled projects worth an estimated US$1.1 billion over the next five years including airport expansion, water supply and infrastructure schemes.
The performance of foreign-funded projects in the first half of the year has been mixed. On the positive side, the government has signalled a renewed investment-friendly atmosphere, emphasising transparency, fiscal governance and debt restructuring as pre-conditions for new disbursements. However, the overall execution of capital spending remains weak: by end-July the government had spent only about 22 percent of its budgeted expenditure for the year, in part because the late resumption of foreign-funded infrastructure projects slowed implementation.
Strategic Focus Areas
In response, the government has set out a two-fold plan: first, to restart the suspended projects by clearing bottlenecks such as financial guarantees, procurement delays and partner-government coordination; and second, to rebuild confidence among foreign donors by demonstrating macro-economic stability and improved institutional safeguards. President Dissanayake has emphasised that “every rupee spent is treated as a public trust” in a bid to reassure partners about governance and project oversight.
For example, work is already underway on key projects like the 50 MW wind-power plant in Mannar, which is being cited as one of the first large foreign-assisted investments to move ahead under the current regime. The government also plans to prioritise those projects which support export-led growth, infrastructure connectivity and renewable energy aligning with its broader strategy of shifting the economy from crisis recovery to sustainable expansion.
Persistent Challenges
Despite these efforts, challenges remain. Delays in donor funding, high import costs for materials, and administrative capacity constraints have been flagged by industry observers as limiting factors. Moreover, the finance ministry faces the task of coordinating multiple lenders (Japan, China, and multilateral agencies) while ensuring that projects do not overburden already strained public finances.
In summary, Sri Lanka’s foreign-funded projects are entering a revival phase: from being largely stalled to gradually restarting — backed by clear political commitment and a refocused strategy. The government’s plan now hinges on swift implementation of the restart agenda and conversion of the resumed projects into visible infrastructure gains. If successful, these projects could play a meaningful role in bridging the country’s investment gap and supporting an economic turnaround.
Sri Lanka’s 2026 Budget Austerity by Numbers, Risk by Design
Sri Lanka’s 2026 budget, tabled on November 7, presents itself as a stitch-work of fiscal discipline and political caution: headline targets a 2.3% primary surplus and government revenue nudged toward roughly 15–15.3% of GDP are presented as the pathway back to stability after the 2022 meltdown.
Yet beneath the policy slogans lies a package that shifts burdens onto a fragile private sector, tightens enforcement, and relies heavily on optimistic growth and debt-restructuring assumptions.
The arithmetic is stark. The government projects total expenditure of roughly Rs. 4,434 billion and caps new borrowing near Rs. 3,800 billion numbers that constrain fiscal space while forcing revenue measures to do much of the heavy lifting.
If revenue targets fail to materialize, the deficit and debt trajectory will reassert themselves quickly, exposing the limits of the plan.
Tax policy changes in the bill are surgical rather than sweeping but surgical cuts can still be painful.
The VAT registration threshold is being lowered from Rs. 60 million to Rs. 36 million, widening the tax net and bringing many small and medium enterprises under formal VAT compliance.
Officials argue this will boost collections and close leakages through e-invoicing and point-of-sale reporting a digital clampdown on informal turnover. But small businesses, already squeezed by higher input costs and weak demand, face compliance costs and cash-flow shocks that could suppress employment and investment.
The government also outlines accelerated digital tax enforcement: mandatory e-invoicing via POS systems and real-time reporting. That is necessary to curb evasion, but successful implementation will require training, affordable hardware, and credible taxpayer support all easy to promise, hard to deliver at scale.
External scrutiny is intense. The budget is explicitly calibrated to meet IMF program parameters and unlock donor confidence; officials say debt restructuring milestones are nearing completion and that growth will recover.
But rating agencies and independent analysts warn that fiscal consolidation may slow if growth disappoints or if social spending needs rise a reminder that the plan’s success depends less on headline targets and more on execution under adverse shocks.
In short: the 2026 budget is a narrowing corridor between conditional stability and renewed vulnerability. It bets on better tax collection, digital enforcement and investor confidence practical steps, but ones that transfer risk to small businesses and require flawless administration. Without stronger near-term growth or contingency buffers, the budget could tighten austerity into stagnation and that is the true story missing from the numbers on the front page.
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