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The National People's Power (NPP) administration has initiated a decisive push to rescue one of Colombo’s most visible development failures: the Pettah Floating Market. Once promoted as a flagship urban beautification project under the Mahinda Rajapaksa government, the complex has long been dismissed as a white elephant expensive to maintain, chronically underutilized, and unable to attract the footfall needed to sustain its vendors.

Now, the Urban Development Authority (UDA) is moving forward with a plan to lease the six-acre property to a Japanese investor in a deal reportedly worth USD 160 million, raising both hope and scrutiny.

Developed in 2014 at a cost of Rs. 344 million with an additional Rs. 50 million spent in 2021—the market’s wooden walkways, 92 shops, and lakeside restaurants offered aesthetic appeal but struggled to generate steady business.

The pandemic only worsened its financial decline, and the shift from curated handicrafts toward unregulated street vending undermined the project’s original concept. For more than two years, maintenance has been minimal, and the facility’s physical condition reflects it.

Against this backdrop, the NPP government’s proposal has two major aims: revitalise a failing public asset and attract foreign investment without burdening the state budget.

The Japanese investor has already remitted an initial USD 16 million, signalling commitment to refurbish the retail spaces and reintroduce the long-abandoned night-market model. The lease will be on an “as-is” basis, transferring responsibility for repairs, operations, and quality upgrades entirely to the investor.

For the government, this approach offers several advantages. The deal converts an underperforming property into a potential revenue stream, reduces UDA maintenance obligations, and aligns with broader urban regeneration goals in central Colombo.

 Private-sector management may also introduce higher operational discipline, marketing capability, and the international design sensibility needed to attract tourists. If executed well, the project could integrate with ongoing Beira Lake redevelopment and the Fort–Pettah commercial corridor.

However, concerns remain. Key details of the agreement—including the length of the lease, environmental obligations, and the compensation mechanism for existing tenants have not been disclosed publicly. Traders fear displacement or insufficient compensation.

Critics also question whether another foreign-funded refurbishment risks repeating past mistakes: over-designed, under-researched projects that overlook local economic realities. There is also unease over the UDA’s Rs. 14.9 million spending on a 20-second promotional advertisement at a time when the market itself has deteriorated.

Ultimately, the project’s success will depend on transparency, accountability, and the NPP government’s ability to enforce standards that previous administrations failed to maintain.

If the redevelopment delivers sustained activity, tourist appeal, and commercial viability, the Pettah Floating Market could shift from a symbol of waste to a model of urban recovery. Otherwise, it risks becoming yet another costly experiment on Colombo’s waterfront.

The Urban Development Authority (UDA) is advancing a USD 160 million proposal to lease the Pettah Floating Market to a Japanese investor in a bid to revive the long-neglected complex. The investor, who has already paid an initial USD 16 million, plans to refurbish the 92 shops and reintroduce the night-market concept abandoned years ago.

Developed in 2014 for Rs. 344 million, the market rapidly deteriorated due to low visitor turnout, unregulated vending, and poor maintenance. Existing shop-owners are currently negotiating compensation terms as part of the transition.

The NPP administration argues that private investment is necessary to revitalise the site without additional cost to the state. However, questions remain about transparency, the treatment of tenants, and whether past planning errors may be repeated. The UDA recently drew criticism for spending Rs. 14.9 million on a 20-second promotional advertisement despite the market’s declining condition.

Cyclone “Ditwah” is steadily shifting away from Sri Lanka and tracking toward the Bay of Bengal coast, with its path now directed at Tamil Nadu, according to the India Meteorological Department (IMD). The storm is forecast to make landfall over north Tamil Nadu, Puducherry, and parts of south Andhra Pradesh early on November 30.

The IMD warns that these regions are likely to experience heavy to extremely heavy rainfall on November 29 and 30. A red alert has been issued for districts such as Cuddalore, Mayiladuthurai, Villupuram, Chengalpattu, and Puducherry, where rainfall totals may exceed 21 cm.

In addition, strong winds reaching speeds of up to 90 km/h are expected to sweep across many areas of Tamil Nadu today, prompting authorities to urge residents to stay alert and follow safety advisories.

Sri Lanka’s economic recovery is entering a more complex and revealing phase, as the latest data shows an unprecedented surge in private-sector credit, steady but uneven foreign-exchange inflows, and a renewed spike in vehicle-import-related outflows that could challenge the country’s fragile external stability in 2026.

According to Central Bank data, private-sector credit expanded by Rs 1.365 trillion in the first nine months of 2025 alone a surge not recorded since before the financial crisis. Economists say the rapid credit expansion is being driven by revived consumer confidence, pent-up business investment, and broader policy stability following two years of tough reforms.

But the Central Bank is equally alert to the risks. Officials privately acknowledged that such a steep credit spike, if not supported by steady foreign-exchange inflows and disciplined fiscal policy, could spill into renewed inflationary pressure or create vulnerabilities in bank balance sheets.

Foreign-exchange inflows this year have helped soften those concerns. Tourism receipts, remittances, and export conversions brought in more than US$5 billion by the end of the third quarter, while the CBSL remained a net buyer of foreign currency in the domestic market.

Gross official reserves stayed above US$6 billion throughout the year, with the Central Bank projecting inflows from the IMF and ADB in December that would push reserves beyond US$7 billion the highest level recorded since the 2022 collapse.

Financial-sector insiders say the IMF’s fifth tranche of US$340 and the ADB’s US$370 million budget-support disbursement will be critical not only for reserve adequacy but also for boosting investor sentiment at a time when global financial markets remain volatile.

However, the foreign-exchange outflow trend is shifting and vehicle imports are once again emerging as a pressure point.

 With the easing of import restrictions, Sri Lanka has already spent nearly US$1 billion on motor vehicles in 2025. Although the Central Bank noted a drop in the opening of new letters of credit in November, industry sources warn that the appetite for vehicles remains far higher than pre-crisis projections.

If vehicle imports continue at the current pace into early 2026, the trade deficit could widen further, eroding the cushion provided by remittances and tourism, especially during seasonal trough months.

Despite these risks, the Central Bank remains confident of closing 2025 with a current account surplus of around 1% of GDP a rarity for Sri Lanka. Officials believe the recovery in imports is, fundamentally, a sign of economic healing rather than excess consumption.

As growth is expected to hit 4.5% in 2025, the challenge for 2026 will be balancing rising demand with disciplined external-sector management. Economists warn that maintaining stability will require a careful blend of monetary tightening, reserve building, and strict monitoring of import-driven outflows particularly vehicles, electronics and fuel.

India Deploys INS Vikrant Helicopters to Aid Sri Lanka’s Cyclone “Ditwah” Relief Efforts; Sajith Premadasa Expresses Gratitude

India has stepped in to assist Sri Lanka as Cyclonic Storm “Ditwah” continues to generate destructive weather across the island, triggering widespread flooding, strong winds, and emergency rescue operations.

The Government of India has agreed to deploy helicopters from the aircraft carrier INS Vikrant, which is currently docked in Colombo, to support Sri Lankan authorities in ongoing rescue, relief, and evacuation missions. The helicopters are expected to enhance aerial surveillance, transport emergency supplies, and assist in reaching areas that have become inaccessible due to the severe weather.

The gesture of support comes at a critical time, with multiple regions across the island experiencing disruptions and rising safety concerns.

Opposition Leader Sajith Premadasa publicly thanked India for its timely assistance. In a message posted on X, he extended his appreciation to the Indian government and the crew of INS Vikrant, noting that regional cooperation plays a vital role during humanitarian crises.

Sri Lanka’s Ceylon Tea industry is at a critical juncture. Although global demand for premium, ethically sourced tea is rising, Sri Lanka continues to lose influence as faster-moving competitors invest aggressively in branding, sustainability, and new product categories.Industry experts warn that the country risks missing a historic market opportunity unless political leadership and state institutions begin delivering urgent reforms.

Speaking at the Asian International Tea Summit in Colombo, Hayleys Group Managing Director and former Planters’ Association Chairperson Roshan Rajadurai said the only way for Sri Lanka to differentiate itself is to embrace regenerative agriculture, a growing global standard.

He highlighted that Sri Lanka’s tea industry is currently “over-certified” with requirements imposed by buyers that do not translate into higher prices. However, he argued this burden could be turned into an advantage through strategic differentiation.

Rajadurai stressed that global consumers increasingly demand sustainability compliance, traceability, and low-impact production.

“We need to elevate the product as a Regenagri product and approach the market,” he said, referring to the international programme that certifies regenerative agricultural practices. He added that early successes over the past two years especially in agroforestry-based rare teas and specialty teas prove the model is commercially viable.

Official data echoes the urgency. Tea export earnings for October fell 0.21% year-on-year to USD 126.55 million, although cumulative earnings from January to October rose 8.72% to USD 1.289 billion, largely due to strong performance in tea packets, which accounted for 15.18% of export revenue.

Analysts warn these gains remain fragile given global competition and Sri Lanka’s weak marketing visibility.

The political dimension is equally concerning. The NPP government has yet to lay out a comprehensive strategy to modernise production, reposition Ceylon Tea, or exploit sustainability-focused market niches.

Senior industry stakeholders privately express doubts about the minister in charge, citing a lack of English communication ability, limited global exposure, and weak public relations critical deficiencies for a sector that depends on international promotion and trade negotiations. Their concerns are compounded by lethargic ministry bureaucracy and slow decision-making.

Experts argue that without strong political leadership capable of engaging global buyers and investors, Sri Lanka cannot leverage the very certifications and standards that Rajadurai says could distinguish Ceylon Tea as a premium regenerative product.

Sri Lanka has a narrow window to reposition Ceylon Tea not just as a drink, but as a Regenagri-certified, health-focused, sustainable luxury product.

 But unless the government empowers professionals, accelerates reforms, and fixes institutional weaknesses, the world’s most respected tea brand risks further decline in a market it once owned.

The Meteorology Department has issued a Red Alert for both land and surrounding sea areas as Cyclonic Storm “Ditwah” intensifies.

According to the department, the storm is currently positioned near latitude 8.3°N and longitude 81.0°E, approximately 40 km southwest of Trincomalee, and is expected to move north-northwest.

Heavy rainfall and strong winds triggered by the system are forecast to continue across the island. Intermittent showers and thundershowers will affect most regions.

Rainfall exceeding 200 mm is likely in parts of the Northern, North-Central, Central, North-Western, Sabaragamuwa, and Western provinces. Areas in Trincomalee, Badulla, Galle, and Matara districts may receive more than 150 mm, while other regions could see rainfall above 75 mm.

Winds of 60–70 km/h, with gusts reaching 80–90 km/h, are also expected over many parts of the island.

The public is urged to take necessary precautions to minimize the impact of heavy rains and strong winds.

Naval and fishing communities have been advised not to venture into sea areas around the island until further notice.

Authorities also request residents to stay alert for updated advisories and to contact local disaster management officials in case of emergencies.

A landslide has occurred in the Rambadagama area of Kotmale, impacting the central part of the village located between the Nuwara Eliya–Pudalu Oya roads. Residents say the landslide began on the night of November 27 and continued into the early hours of the following morning.

Initial reports suggest that several people have lost their lives, while others have been injured. With roads blocked and the terrain unstable, locals are struggling to reach those in need and transport the injured to medical facilities.

The situation has been made worse by a complete power outage and the loss of all telephone networks in the area, severely limiting communication and delaying assistance. Nearly 50 individuals are believed to be trapped, and family members are urgently calling for government intervention to begin rescue operations.

According to the Police Media Spokesperson’s Office, the landslide has been reported, but detailed information remains unavailable due to the communication breakdown. Disaster response teams have reportedly not yet reached the affected location.

Police say several areas in Colombo have been affected by the severe weather conditions sweeping across the island, with flooding and fallen trees blocking multiple roads.

The disruptions have caused heavy traffic, and motorists are advised to use alternate routes until clearance operations are completed.

The affected locations include:

• Premasiri Khemadasa Mawatha and Keppetipola Mawatha, near Lionel Theatre

• National Hospital Gate 4

• Elvitigala Mawatha

• Queen’s Road Junction

• Kotahena Armor Barber Junction, near the temple

The Irrigation Department has announced a high-risk flood warning for low-lying areas surrounding the Maha Oya Basin over the next 24 hours. The alert comes after significant rainfall was recorded across the upper catchment during the past day.

Officials warn that the volume of water flowing downstream could trigger severe flooding, potentially exceeding levels experienced in recent years. Communities living in at-risk locations have been urged to evacuate to safer ground without delay as authorities continue to monitor rising water levels.

A stretch of the Colombo–Kandy main road between the 88 km and 89 km posts in Meepitiya, Kegalle, has been closed due to landslide risks.

The Disaster Management Centre (DMC) has urged motorists to take alternate routes and exercise caution.

The public has also been advised to avoid travelling on this section of the road unless absolutely necessary.

Railway authorities have announced the temporary suspension of train services on the Main Line this morning after several track sections, particularly in Daraluwa and Gampaha, were impacted by flooding. Officials say the decision was necessary to ensure passenger safety.

The disruption comes amid continuous heavy rainfall across many parts of the country, which has led to significant waterlogging and increased the risk of operational hazards along the line. Authorities are monitoring the situation and will restore services once the tracks are deemed safe.

Samagi Jana Balawegaya (SJB) MP Ismail Muththu Mohamed has announced that he is stepping down from his position in Parliament.
He revealed his decision while making a statement in the House today (28).