Author: Gayan Chandrasekara
Sri Lanka Placed on Elevated Concern as Climate Shocks & Energy-Driven Cost Pressures Converge Ahead of Maha Season: FAO Report
Sri Lanka has been categorized under “Elevated Concern” (Tier 2) in a joint Asia-Pacific risk assessment published by UN agencies and global climate monitors. The classification comes as the island nation faces a dangerous convergence of intensifying climate anomalies and lingering global price shocks across fuel, fertilizer, and food systems (3FS). With the critical Second […]
Sri Lanka to Install 300,000 Smart Meters Under Time-of-Use Billing Project
Sri Lanka’s Cabinet has approved a two-year project to install 300,000 smart electricity meters equipped with a Time-of-Use (TOU) billing system as part of efforts to modernise the country’s electricity grid and support renewable energy development. The project will utilise US$12.5 million from a US$15 million loan facility provided through the Asian Development Bank’s concessional […]
Sri Lanka Revises Renewable Energy Feed-in Tariffs
Sri Lanka’s Public Utilities Commission has approved new feed-in tariffs for renewable energy power projects, effective August 25, 2026, and valid until February 24, 2027. The revised tariffs cover mini-hydro, wind, biomass, municipal waste, waste heat recovery, ground-mounted solar and floating solar projects. New rooftop solar tariffs range from Rs. 15.81 to Rs. 23.11 per […]
Cabinet Approves Publication and Parliamentary Submission of New ‘Protection of the State from Terrorism’ Bill
Sri Lanka’s Cabinet of Ministers has formally approved a proposal to publish the draft bill for the ‘Protection of the State from Terrorism Act’ in the Government Gazette and subsequently submit it to Parliament for legislative enactment. The decision, reached at the Cabinet meeting on August 17, 2026, remains subject to formal approval at the […]
Cabinet Approves Amendment to Foreign Exchange Act to Criminalize Unauthorized Outward Fund Transfers
In a significant regulatory shift aimed at strengthening financial law enforcement, Sri Lanka’s Cabinet of Ministers has granted approval in principle to amend the Foreign Exchange Act, No. 12 of 2017. The proposed amendment will classify the unauthorized transfer of funds out of Sri Lanka as a criminal offense, addressing a crucial gap in the […]
Governor’s remarks do not signal future policy rate path or level: CBSL
The Central Bank of Sri Lanka (CBSL) clarified that recent media reports had misinterpreted remarks made by the Governor during a media interview. CBSL said its monetary policy is “forward looking and data driven” and that decisions to increase, decrease or maintain policy rates are made at each Monetary Policy Review based on the latest […]
Sri Lanka remains vulnerable to energy price shock but is more resilient than in the past – Moody’s Ratings
Bangladesh (B2 negative), Pakistan (Caa1 stable) and Sri Lanka (Caa1 stable) are among the most vulnerable economies in Asia to high oil prices stemming from the Middle East conflict, Moody’s Ratings said in their latest analysis. However, the countries have built capacity to absorb shocks in recent years, so are less exposed than in 2022, […]
Cabinet Approves US$ 100 Mn World Bank Facility for Northern and Eastern Development
The Cabinet of Ministers has approved a proposal submitted by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to enter into financial agreements with the World Bank Group’s International Development Association to obtain a US$ 100 million loan facility. This allocation forms part of a broader US$ 1,000 million […]
Cabinet Approves Tender to Build Three Fuel Storage Tanks at Muthurajawela Terminal
The Cabinet of Ministers has approved a proposal by the Minister of Energy to award the contract for constructing three new fuel storage tanks at the Muthurajawela Terminal to a joint venture comprising M/s Indo-East Engineering & Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited. Selected as the lowest bidder through an international competitive […]
Cabinet Approves Rs. 1 Bn Funding Package for Lanka Metro Transit
The Cabinet of Ministers has approved a total funding allocation of Rs. 1,067.5 million for Lanka Metro Transit (Private) Limited, comprising Rs. 800 million in equity capital for infrastructure development and an additional Rs. 267.5 million for operational requirements in 2027. Submitted by the Minister of Transport, Highways, and Urban Development, the proposal supports the […]
Cabinet Approves $200 Mn ADB Loan for Trade, Investment, and Industrial Development
The Cabinet of Ministers has approved a proposal submitted by President Anura Kumara Dissanayake, in his capacity as the Minister of Finance, Planning and Economic Development, to obtain a US$ 200 million policy-based loan from the Asian Development Bank (ADB). The funding, sourced from ADB’s regular general capital resources, will support Sub-Programme 1 of Sri […]
Government Expedites House Arrest Legislation to Address Prison Overcrowding
At its meeting on August 3, 2026, the Cabinet approved a proposal submitted by the Minister of Justice and National Integration to instruct the Legal Draftsman to promptly finalize a draft bill introducing house arrest as an alternative to remand and imprisonment. The initiative follows a comprehensive review of earlier drafts—initially sanctioned under a June […]