Category: Daily Financial Times

The Sri Lanka Tourism Promotion Bureau (SLTPB), together with 16 leading Sri Lankan travel trade companies, successfully showcased the island’s rich and diverse tourism offerings at the Istanbul Tourism Fair 2025, held on 25-26 September at the Eurasia Show and Art Centre in Istanbul. The Embassy of Sri Lanka in Ankara facilitated the arrangements pertaining to the participation of Sri Lanka in this key international tourism fair.

Ambassador-designate of Sri Lanka to the Republic of Trkiye Niluka Kadurugamuwa attended the fair and inaugurated the Sri Lanka stand on 25 September. The Ambassador-designate’s participation and the diplomatic support to the promotional activities of the Sri Lanka Tourism Promotion Bureau and the industry representatives reflected the Government’s firm commitment to advancing tourism diplomacy and strengthening bilateral tourism cooperation with Trkiye.

This prestigious international platform with the participation of about 15,000 tourism professionals from Trkiye and around the world, created valuable opportunities for Sri Lankan tourism and hospitality stakeholders to network with Turkish and global travel trade professionals, highlighting Sri Lanka’s unique attractions and reputation as a world-class travel destination. The promotional activities at the fair aimed at boosting tourist arrivals, building new partnerships, and positioning Sri Lanka as a preferred destination for Turkish travellers.

Speaking at the inauguration of the Sri Lanka stand, Ambassador-designate Kadurugamuwa underscored Sri Lanka’s readiness to welcome Turkish tourists warmly, noting the country’s wide range of experiences, from cultural heritage and wellness tourism to adventure, wildlife, and pristine beaches. He further assured of the commitment of the Embassy of Sri Lanka in Ankara to contribute to the overall target of tourist arrivals set by the Government, by increasing tourist arrivals from Trkiye. The Ambassador-designate also interacted with Turkish tour operators, industry representatives and travel journalists at the fair.

The Sri Lanka stand, coordinated by the SLTPB, drew significant interest from visitors, tour operators, and media representatives throughout the fair. Sri Lanka’s participation in the Istanbul Tourism Fair 2025 is expected to enhance destination awareness in the Turkish market while opening new avenues for bilateral tourism, trade, and investment.

A-Networks Ltd., in partnership with Plexus Global Ltd., hosted Aruba Tech Fusion 2.0 at Cinnamon Life, City of Dreams, Colombo, on 27 August, 2025.

The event, held under the theme of ‘Innovation, insights and impactful networking’, brought together over 100 industry leaders, partners and technology professionals for an evening focused on innovation, knowledge sharing and professional networking.

The evening began with a keynote address by A-Networks Vice President – Sales Ajmeer Haniffa, who presented the company’s strategic vision and outlined initiatives shaping the future of technology. He highlighted A-networks’ position as a leading solutions provider, with expertise in advanced networking, cybersecurity and IT infrastructure.

A-Networks Vice President – Sales Ajmeer Haniffa said, ‘Aruba Tech Fusion 2.0 demonstrated the value of collaboration in advancing technology and industry development. Together with Plexus and Aruba product specialists, we remain committed to providing solutions that help organisations prepare for the future.’

The highlight of the event was a session on Aruba products, a portfolio of secure and intelligent networking solutions that deliver reliable digital experiences for organisations worldwide. The session, conducted by an A-Networks’ cybersecurity specialist, demonstrated how these solutions enable enterprises to manage the demands of a rapidly changing digital environment.

Aruba’s solutions continue to redefine enterprise networking, enabling businesses to build secure, scalable, and high-performance infrastructures.

Aruba Central, the cloud-native platform, delivers AI-powered network management, automation, and security for seamless operations across wired, wireless, and SD-WAN environments. It empowers businesses with real-time analytics and proactive troubleshooting, reducing downtime and optimising network performance.

For advanced security and compliance, Aruba’s Network Access Control (NAC) solutions, including ClearPass provide industry-leading identity-based access control. These solutions enhance visibility, enforce security policies, and enable zero-trust network architectures to protect enterprises from cyber-threats.

Moreover, HPE Aruba networking’s CX 10000 series is revolutionising data centre security and performance. Built on Pensando Distributed Services Architecture, the CX 10000 integrates firewall, telemetry, and deep packet inspection directly into the switch, delivering unprecedented security and network efficiency. This innovation helps enterprises simplify security enforcement while reducing operational complexity and costs.

As a trusted partner of A-networks, Aruba products are integrated into client solutions to support business continuity, strengthen security and establish networks prepared for future requirements.

The evening also included an interactive quiz, with three winners receiving valuable prizes. The program concluded with a networking dinner reception that provided a forum for dialogue and collaboration. Each participant was presented with a token of appreciation, reflecting A-Networks’ commitment to cultivating lasting partnerships.

At the landmark 50th Annual General Meeting of the Travel Agents Association of Sri Lanka (TAASL), held on 9 September aboard the Genting Dream Cruise, history was made when Delair Travels of Delmege Group Chief Operating Officer Sonali Ranasinghe, was appointed as the first female President of TAASL.

This milestone is a moment of immense pride for the Delmege Group, which is celebrating 175 years of business excellence in 2025. It reflects the Group’s ongoing commitment to investing in talent, empowerment, and professional development, while further strengthening its leadership across diverse industries.

With over 30 years of experience in the travel industry, Sonali brings a wealth of expertise, insight, and leadership to her new role. Her tacit knowledge and proven track record positions her to not only guide TAASL effectively but also to chart a bold course for growth and innovation in the sector.

Sonali Ranasinghe said: ‘It is both an honour and a responsibility to step into this role as TAASL’s first female President. TAASL has always been the unifying voice of the travel industry, bridging communication with the Government, airlines, and other stakeholders. During my tenure, I will focus on expanding training and knowledge-sharing opportunities for industry employees, strengthening collaboration with airlines, and working closely with embassies and consulates to streamline processes. Together, I believe we can elevate the travel industry to new heights.’

She emphasised that training, professional development, and stronger stakeholder collaboration would be key priorities to ensure better service standards and industry advancement. She will be supported by a dynamic executive team committed to delivering a productive year for the industry.

Delmege Group Managing Director Dinusha Bhaskaran said: ‘We are incredibly proud of Sonali’s groundbreaking appointment as the first female President of TAASL. This achievement is a testament to her resilience, dedication, and expertise, and it also reflects the Delmege Group’s ethos of empowering leaders to make a meaningful impact across industries. We are confident that under her leadership, TAASL will continue to grow stronger and play an even greater role in shaping the future of Sri Lanka’s travel sector.’

‘Sonali’s historic appointment marks a defining milestone for the travel industry in Sri Lanka, one that not only celebrates progress, inclusivity, and visionary leadership, but also transcends traditional gender barriers to inspire a new era of leadership.’

Gotabaya Rajapaksa, former President of Sri Lanka, son of D.A. Rajapaksa, was born in June 1949, Palatuwa in Matara district as the fifth of nine siblings. He was brought up in Weeraketiya in Hambantota district. Hailing from a well-known political family, his father a prominent politician, Member of Parliament and the Cabinet Minister of Agriculture and Land in Wijayananda Dahanayake government and Mahinda Rajapaksa his elder brother. He was educated at Ananda College, Colombo and joined the Sri Lankan Army.

Gotabaya’s army career

Gotabaya joined the Sri Lanka Army as a cadet officer on 26 April 1971, in the middle of the 1971 JVP insurrection. Following basic officer training at Army Training Centre, Dityatalawa, he was commissioned as a signals officer and transferred to several infantry regiments. He was commissioned as a second lieutenant in May 1972, in Sri Lanka Signals Corps. He was sent to a young officers course at the Military College of Signals, Rawalpindi. On his return, he was assigned as signals officer to Task Force Anti Illicit Immigration, based at Palaly, under the command of Colonel Tissa Weeratunga. In April 1974, he was promoted to Lieutenant and in October transferred to Sri Lanka Singha Regiment as an infantry officer.

In April 1975, he attended an infantry officers course at School of Infantry and Tactics, Rawalandi, Pakistan. Returning in June, he was assigned as battalion intelligence officer at Echelon Barracks in Colombo and promoted to Captain in April 1977. Following the change of government in the 1977 general election, he was transferred to the Army Training Centre, Diyatalawa as an officer instructor.

In 1980, he joined the newly formed Rajarata Rifles as its adjutant under the commanding officer Lieutenant Colonel V.K. Nanayakkara. Rajapaksa played a major role in establishing the regimental headquarters of newly formed regiment at Saliyapura. He attended the Counter-Insurgency and Jungle Warfare School, Assam and in 1982 attended the Defense Services Staff College in Wellington, India, gaining the PSc qualification and a Master of Science in Defence and Strategic Studies from University of Madras.

Vadamarachi operation

He was involved in the early stages of the Sri Lankan Civil War, in the Gajaba Regiment. In May 1987, Sri Lankan forces launched the Operation Liberation, the biggest military operation since independence. Brigadier Denzil Kobbekaduwa and Major Gotabaya Rajapaksa with 5,000 troops left their bases in Jaffna, fighting rebel Tamil Tigers who kept soldiers confined to the barracks for over a year. The operation was a success, within a week, the Vadamarachchi was brought under Government’s control, scores of rebels killed or captured and their munition factories destroyed.

In 1988, he attended the advanced infantry officers course at US Army Infantry School, Fort Benning, USA. After a number of transfers he was appointed Deputy Commandant of Sir John Kotelawala Defence Academy. He retired from the army on 1 November 1991.

Civilian Gotabaya

Following return to civilian life, Rajapaksa read for a postgraduate diploma in information technology from University of Colombo and joined Informatics, an IT firm based in Colombo. He migrated to United States in 1998 and worked at Loyola Law School, Los Angeles, as a Systems Integrator and Unix Solaris Administrator.

He returned to Sri Lanka in 2005, to his assist brother’s presidential campaign. With Mahinda becoming the President, Gotabaya was appointed Defence Secretary. He was the target of an assassination attempt in December 2006 by a Tamil Tiger suicide bomber, which failed. During his tenure, Sri Lankan Armed Forces successfully concluded the long Civil War defeating Tamil Tigers and killing leader Velupillai Prabhakaran in 2009. Following the defeat of his brother in the 2015 Presidential election he stepped down.

Colombo Development Plan

In June 2012, as the Secretary of Defence and Urban Development, Gotabaya Rajapaksa launched the Metro Colombo Urban Development Project funded with $ 223 million from World Bank. The project aimed to solve several of the city’s longstanding infrastructure constraints, developing Colombo to transform into a world class one. The proposals highlighted the following.

Flood and drainage issues

The Metro Colombo Urban Development Project, a five-year long undertaking comprised three main components. First, it was to address flood and drainage issues in Colombo metro region. The city’s drainage infrastructure, its micro drainage channels, primary and secondary canals and lakes will be rehabilitated. Beira Lake was particularly important, as the lake had been neglected for many decades.

Drainage and public infrastructure

The second component aimed at supporting local authorities in the Colombo metro region to rehabilitate and manage drainage and public infrastructure in their areas. Selected roads were improved. Pedestrian facilities and public conveniences were upgraded and quality of public walkways improved.

Under Gotabaya’s supervision, dedication and the hard work of everybody involved, the projects were designed swiftly and approved by the Government and the World Bank in record time. It’s to be noted that on most days Gotabaya was present at construction locations in early mornings, forcing the staff and workers to report on time.

Public open spaces

Residents of Colombo needed access to public areas near their homes, where they can relax, exercise and interact with one another freely. Accordingly several projects were launched to improve the quality of existing urban spaces.

Development of Independence Square is a good example. Established to commemorate Sri Lanka’s independence from British rule in 1948, the Square was neglected in recent years. With the removal of walls and fences that obstructed parts of it and the development of walkways and bicycle paths around it, Independence Square was transformed into a high quality public space.

In addition, long neglected Old Dutch Hospital was renovated and reopened, while retaining the spirit of the original architecture. The hospital was rehabilitated and transformed into a public open space, housing, high-end shopping and restaurant facilities.

The old Colombo Racecourse, which was scheduled for demolition, was rehabilitated. Its pavilions were conserved and converted to suit new activities, while the area with road frontage converted into an upmarket shopping complex.

Support for overall implementation

The third component of the project provides support for the project’s overall implementation. An area often neglected in projects, resulting in outcomes short of initial expectations.

Redevelopment of marshes and abandoned paddy fields

What attracted the attention of Gotabaya was the massive marshes and abandoned paddy fields around Colombo. These included Diyatha Uyana on the banks of the Diyawanna Oya near the Parliament, Beira Lake Linear Park and the Bellanwila Park and many others.

In these developments Gotabaya, as Secretary of Defence and Urban Development, took care not to involve public contractors, but used the Army and the Navy which were under him. In addition to the machinery already held by the forces, the required machinery and equipment for the excavation and construction were purchased with World Bank funds already received.

Beira Lake

Beira Lake gates were not functioning, its tributaries and output channels were blocked and the unauthorised settlements and buildings on its borders had severely polluted the water. Instead of being an attraction, Beira Lake had become an eyesore. It was rehabilitated to restored to former splendour and enhancing its utility. The developed Beira Lake Linear Park is important in the city’s flood management system, whilst being the site of many recreational and economic activities, is a centrepiece in revitalised city of Colombo.

Basic construction

Basic construction included excavation of shallow marshes and abandoned paddy fields into lakes and using excavated materials to build bunds around the lake, using as walking paths, also constructing a network of reservoirs and improvement of canals to control floods in Colombo.

Diyatha Uyana on the banks of the Diyawanna Oya

Constructed on the banks of Diyawanna Oya, Diyatha Uyana was created with excavated materials from marshes, between Diyawanna Oya and Polduwa Road. It is a picturesque place in Sri Jayewardenepura, Kotte. With a water fountain at its entrance, Diyatha Market is the highlight of the park. The market consists of over 100 stalls, protected by white canopies. The fountains allow kids to explore and play with water, making it a fun, experience for families.

Diyatha Uyana Park was officially opened on 15 September 2014. The opening ceremony was graced by key figures, including Basil Rajapaksa, the Minister of Economic Development and Gotabaya Rajapaksa, Secretary of Defence and Urban Development.

Essentially the park, housing numerous food stalls, shops and places to relax, dedicated to sales and marketing of local flora and tropical flowers, comprising of 84 sales outlets and canteens providing employment opportunities to locals. The market offers plants (both indoor and outdoor), fertilisers, flower pots and gardening tools, the largest plant market in Colombo. It also offers batik clothing, handmade crafts, home decorating items and traditional Sri Lankan sweets.

Diyatha Uyana project was carried out under the close guidance and supervision of Gotabaya Rajapaksa. The combined efforts and expertise of Sri Lanka Land Reclamation and Development Corporation, Sri Lanka Army, Navy and Civil Security Department personnel were utilised in the construction of the project.

The Diyatha Uyana playground offers kids a play area featuring swings, slides, see-saws and climbing structures designed with safety in mind. The safety rubber surface ensures that toddlers can play freely without any worries.

With grassy areas surrounding the playground, kids can run around, ride bicycles, or enjoy activities like skateboarding. Parents can relax by the lake while keeping an eye on little ones, making it a great place for a family outing.

For cycling enthusiasts, Diyatha Uyana offers a dedicated cycling track around the lake and through the park, spanning around 3 km. Bicycles could be rented at the entrance for Rs. 100 per hour, the cycling track is open daily from 6 a.m. to 8 p.m.

Also a visitors’ attraction to Diyatha Uyana, the floating restaurant accommodates around 40-50 people at a time, serving delicious food; the restaurant is popular with visitors.

Bellanwila walking path

The most popular development project of Gotabaya Rajapaksa is the Bellanwila walking path, constructed by excavating marshes and abandoned paddy fields using Sri Lanka Army and Navy personnel with no private contractors. In addition to their machinery, World Bank funds received were used to purchase machinery requirement.

The park is in a large land located between Boralesgamuwa-Dehiwala road and Boralesgamuwa-Kohuwala roads.

The admission to Bellanwila Park is free, as one enters, to the right is the vehicle park and a building, hosting the food court with a dedicated seating area overlooking the lake, some in the open under the trees. The seating is on concrete chairs and tables capable of seating over 100 persons, with no possibility of stealing.

To the left is the beautiful large lake with walking path and cycle track. The pleasant walking space around the lake is more than just an exercising spot. The excavated materials from the marshes and abandoned paddy fields were used to construct the large elevated walking paths and cycle tracts.

As you stroll through its winding paths Bellanwila Park, with its serene lake, towering trees and diverse wildlife, is a perfect spot to escape the city noise, recharge your spirit and immerse yourself in the rich biodiversity. Bellanwila Park offers a refreshing breath of fresh air, lush greenery and a chance to experience the vibrant flora and fauna of Sri Lanka.

Bellanwila Park offers a sandy walking path and an asphalted cycle track, each 12 feet wide, covering a distance slightly over 2,800 meters, with concrete kerbs separating the tracks and the outside. At the centre are electric posts with lights on either side, located every 20 meters apart with sign boards indicating distance every 100 meters. The lights come on at 6:30 p.m., allowing round the clock usage.

Walkers around the path notice sign boards warning ‘Be careful of crocodiles’. One would see an occasional crocodile sleeping on banks 20-30 meters away, also the head of a crocodile jutting out of water. There is nothing to fear, as all lake areas are fenced over a meter high.

The park is most popular in the evenings, for walking one or more rounds. Late in the evening, even after 9 p.m. there are latecomers, who could come only after completing their office work. Bellanwila Park, home to over 150 species of plants and variety of trees, including majestic kumbuk trees who love nearby water and the fragrant cinnamon, is a haven for botany enthusiasts. In addition, children use the cycling track with their three-wheel and two-wheel cycles.

The park also offers a children’s play area with swings, slides and climbing structures promising hours of fun. Parents can relax on nearby seats while keeping an eye on their playing little ones. The safe environment allows kids to explore and play freely, making it a perfect outing for families.

Bellanwila Park also offers a number of small shops offering a wide variety of delicious local cuisine, also a variety of fruit drinks. For those who wish, dinner is available in a wide variety or takeaway.

Although the admission to the park is free, cars are charged Rs. 50 per hour. On weekends and holidays parking would be full, having to wait 10 to 15 minutes for parking. But roadside parking is always available and is free.

Other developments

In addition, around Boralesgamuwa, other developments have been carried out, a km towards Piliyandala is the Kilimandala Children’s Park, with a nearby large pond popular with children. Opposite the park is another lake smaller than Bellanwila, also with a walking path around, but no cycling.

On either side of Old Kesbewa Road before Udahamulla on High Level Road, hosts a number of smaller lakes developed by dredging the marshes, along with walking paths and seating with lighting.

Cutting off Milk Board Hill

Ten years ago, Milk Board was located on a hill in Narahenpita, with a high water tank. Gotabaya removed the earth around the water tank, leaving only a road to get there. A large amount of earth excavated were deposited over the marshes nearby and either side of Kirimandala Mawatha. On the filled land, today, Ninewells Hospital, parking area for Kings Hospital, Narahenpita Economic Centre has been constructed, with large filled lands still remaining vacant awaiting usage. A part is occupied as parking for machinery of Low Lying Areas Reclamation Board. In addition, Heen Ela Mawatha, by the side of the stone built deep canal conveying rain and flood waters preventing floods. Meanwhile, on Heen Ela Mawatha with a number of byroads leading from it, a large number of houses have been constructed.

President Gotabaya

Gotabaya Rajapaksa, contested the 2019 Presidential election and became the first President of Sri Lanka with a military background, also the first President who had not held an elected office in prior.

2019 economic crisis due to Easter bombing

On 21 April 2019, Easter Sunday, eight bomb blasts occurred in and around Colombo. Three churches and three luxury hotels in Colombo, were targeted in a series of coordinated Islamic terrorist suicide bombings. Also four hotels and three churches in the greater Colombo area and in Batticaloa, killing 269 people, including five Americans. The Government took steps to search and catch culprits and supporters, mostly Muslims.

The Government action was condemned by Arab countries who stopped the purchase of tea and rubber and ended oil exports to Sri Lanka.

This resulted in a drop of tourist arrivals from 7,600 to 1,700 for the two-month period after the attacks, leading to the country’s worst economic crisis, unprecedented levels of inflation, depletion of foreign exchange reserves, resulting shortages of medical supplies, increasing prices of commodities.

Without funds to import fertiliser, Gotabaya took action for a nationwide policy shift to organic or biological farming. The country received an Indian line of credit amounting to $ 4 billion. This infusion served to cover the costs of importing essential goods and fuel. As a result, the foreign currency reserves of debt-ridden Sri Lanka experienced a notable improvement, reaching $ 2.69 billion.

Corona pandemic

With the spread of COVID-19 world-wide, in early March 2020, the first case of local COVID-19 was recorded. By mid-March around 1,500 COVID-19 cases and 10 deaths were reported. Gotabaya faced the crisis with a militarised path headed by the Sri Lankan army. A three-day holiday till 19 March was declared to minimise public interactions, troops were deployed at airports, and they also increased the number of checkpoints.

Thousands of people were forcibly sent to coronavirus ‘quarantine centres’, those who refused, were hounded by the authorities. By March-end Sri Lanka reported its containment of the pandemic has been a success and eased its coronavirus lock-down with curfew relaxed in Colombo and Gampaha districts. But with the virus, countries stopped importing goods, resulting in unemployment.

Unhappy masses leading riots

With the economic crisis from the Easter bombing and corona pandemic, the country faced the worst economic crisis since independence, leading to unprecedented levels of inflation, depletion of foreign exchange reserves, shortages of medical supplies, and increased prices of commodities. The unhappy communities revolted, led to massive riots, demanding stepping down of Gotabaya.

Gotabaya Rajapaksa leaving the country

On 9 July 2022, Gotabaya fled his official residence in Colombo, before the protestors broke through police barricades and entered the Presidential House. He left the President’s House through a tunnel connecting the Colombo Port. He joined a navy boat and fled to Trincomalee Navy camp. It was reported in the early hours of 13 July, Rajapaksa has reached Maldives through a military aircraft.

Later in the evening, the Speaker of Parliament confirmed that Gotabaya Rajapaksa has resigned his office on 13 July 2022.

The country was in a serious crisis and none of the political parties were willing to take over the Government. Finally Ranil Wickremesinghe from UNP, the only elected member agreed to take over the country. He managed to recover the country and it is another story.

During her 107-day presidential election campaign, Kamala Harris (having inherited the Democratic Party candidacy after the precipitous departure of Joe Biden) tried to project herself as the true change agent. That image was blown to smithereens on the talk-show ‘The View’, just a month before the election. Asked what she would have done differently from President Biden in the last four years, she answered: ‘There’s not a thing that comes to mind.’

Her ‘Not a thing’ answer horrified Democrats, thrilled Republicans (who used it to create many a campaign ad), and marked a turning point in the election. In her recently released memoir, ‘107 Days’, Harris compares her answer to pulling the pin of a hand grenade. To the voters, her answer brought to mind the seminal failures of the Biden presidency, from his inability to deal with the affordability crisis to his enabling Israel’s genocide in Gaza. Many of those voters, believing in Donald Trump’s promises to curb inflation and bring peace to Gaza, abandoned both Kamala Harris and the Democratic Party in November 2024.

In Sri Lanka, Anura Kumara Disanayake contested the September 2024 election as the 100% change candidate, and spent most of his first year as the continuance president.

Disanayake came into office just as the country was crawling out of the economic abyss Hurricane Gotabaya had flung it into. In September 2024, the biggest fear about a Disanayake presidency was that it will bring about a Gotabaya 201, another cyclone of bad decisions wrecking the fragile recovery achieved by Ranil Wickremesinghe. In September 2025, a key criticism President Disanayake’s first year is not inane adventurism but unnecessary timorousness.

President Disanayake, in his first UN speech, focused on the need to combat global poverty. No such focus was discernible in national policymaking in the past year. Lanka’s poverty explosion wasn’t his (or Ranil Wickremesinghe’s) creation but a Rajapaksa construct. According to the ADB, ‘Sri Lanka’s economic crisis led to a sharp increase in poverty and socio-economic vulnerability. Poverty levels rose to 25.0% in 2022 from 13.1% in 2021’ (https://www.adb.org/sites/default/files/linked-documents/57035-001-sprss.pdf). Poverty increased still further in 2023 to 27.5% but decreased to 24.9% in 2024.

As the World Bank emphasises in its latest report, ‘Sri Lanka Public Finance Review 2025 – Towards a Balanced Fiscal Adjustment’, a disproportionate share of the burden of the crisis and the recovery was borne not by rich or even middleclass Lankans but by poor Lankans: ‘The fiscal adjustment has also disproportionately impacted the poor, who continue to grapple with job and income losses. Food prices remain more than double their pre-crisis levels and real wages are yet to recover. In response.many households have scaled back spending on human capital, particularly on nutrition, healthcare, and education’ (https://documents1.worldbank.org/curated/en/099090825205582722/pdf/P501002-32a393bd-fa6b-497c-b777-69fa8e12079a.pdf).

A quarter of the populace subsisting below the poverty line; over half of the population (55.7%) being multi-dimensionally vulnerable. These are perilous problems in need of urgent solutions. Add to that 16% of households being food insecure (especially female-headed households); and more than half of households using such debilitating coping mechanisms as skipping meals, eating less preferred food or limiting portion sizes. Between 2021 and 2024, malnutrition among underweight children under 5 years increased from 12.2% to 17%; stunting among children under 5 years increased from 7.4% to 10.5% ((https://www.ohchr.org/sites/default/files/documents/hrbodies/hrcouncil/sessions-regular/session60/advance-version/a-hrc-60-21-auv.pdf).

The problem is not so much the IMF as Lankan policymakers’ lack of interest in the problem. For instance, the IMF has set a minimum target of 0.7% of the GDP for social safety net spending. This target was not met either in 2023 or 2024. We spent less on poverty alleviation not because the IMF ordered us to but because we didn’t care enough and prioritise enough. The austerity trap was of our own making.

In his first year, President Disanayake managed to maintain growth by taking the difficult political decision of sticking to the economic trajectory charted by Ranil Wickremesinghe (while strenuously denying that authorship). But no such political will was discernible in dealing with poverty (and inequality). It is a strange disconnect for the leader of a party which flies the hammer and sickle banner outside its glitzy headquarters.

Sacred cows, from military costs to Israel

In his UN speech, President Disanayake lamented the trillions spent on weapons of war while poverty rages across the globe, a murderous pandemic. Rightly so; but his words would have carried more weight if his own Government had taken even a baby step to prune Lanka’s gargantuan defence budget in the last one year.

According to the latest available data, Sri Lanka is among the 50 most militarised countries in the world, ranking 48 in the Global Militarisation Index (GMI). And Sri Lanka failed to reach anywhere near the top 50 countries in Social Progress Index, ranking a very low 74. The war has been over for a decade and a half. Spending more on defence than on poverty alleviation and other measures to ensure social stability and cohesion makes no sense, economically, politically, or even from a national defence point to view. President Disanayake can set this right, but has opted not to, not in his 2025 Budget nor in his 2026 Budget estimates.

He has been equally reluctant to tax the rich, occupying a space way to the right of both the IMF and the World Bank.

The IMF has repeatedly underscored the need to broaden the tax base in order to reduce reliance on poverty-increasing indirect taxes. Since the latest Structural Adjustment Programme began, the IMF has also been urging Colombo to introduce a wealth tax and an inheritance tax.

The World Bank, in its new report, warns that the extreme imbalance in direct: indirect tax ratio (and the resultant dependence on indirect taxes which cuts into purchasing power and living conditions of poorer Lankans) can hamper the Government’s effort to reach a growth target of 6%. It advocates a minimum effective rate of 15% Corporate Income Tax (CIT) on all companies, both domestic and international (with a 30% statutory nominal rate). It also urges the Government to improve compliance at the top end of income distribution and estimates that focusing on net higher earning individuals could increase Personal Income Tax (PIT) revenue by a massive 169% and PAYE revenue by 75%.

The Wickremesinghe administration’s decision to increase direct taxes was falsely decried by the then Opposition, including the JVP, as anti-people. As the latest World Bank report demonstrates, this increase impacted primarily on the richest 10% of Lankans (unlike the January 2024 VAT hike and exemption removal which increased poverty by 2.2%). Households in the richest decile bore 76% of the PAYE tax burden and 66% of the PIT burden. Increased direct taxes, together with increased transfers, reduced poverty by 6.4% in 2024.

Unfortunately, the Government is as unlikely to increase direct taxes as it is to reduce military expenditure. It has also backtracked on its campaign promise to increase daily wage in the estate sector to Rs. 2,000 and subsequent Budget pledge to increase estate worker daily wage to Rs. 1,700. Incidentally, it will be instructive to see whether the Government moves beyond rhetoric to ratify even one of the 53 ILO Conventions Sri Lanka has evaded ratifying, especially such fundamental ones as C155 (Occupational Safety and Health Convention, 1981) and C187 (Promotional Framework for Occupational Safety and Health Convention, 2006).

Contrary to its change-centric rhetoric and transformational promises, the Government shows a debilitating inability to take on entrenched political, business, military or religious interests. For instance, throughout the campaign, and even before, the NPP/JVP promised to decriminalise homosexuality by scrapping colonial era sodomy law. But once in Government, it went mute on the promise, obviously due to its unwillingness to upset temple and church dovecots. The resistance to direct taxes (especially wealth tax and inheritance tax) is also likely to come from within the ruling party (JVP) and the ruling coalition NPP. NPP/JVP ministers and parliamentarians might march under the proletarian banner on International Workers Day but their asset declarations place them firmly within property-owning and middle/high income cohorts. Why would they back taxation measures which would hurt their personal finances, even if doing so would benefit Sri Lanka as a whole and non-privileged Lankans in particular.

Another reason for Government’s curious timorousness might be an insufficient understanding of socio-economic and political realities, beyond familiar ideological matrixes. Take, for instance, the Government’s fear of antagonising Israel. Is it due to the mistaken belief that if we utter a word of criticism, Sri Lanka will lose Israeli jobs and Israeli tourists? If so, the Government obviously doesn’t understand that Israel is today a near-pariah state. There are very few countries in the world (including countries far poorer than us) who will send their citizens to work in a state which is morally abhorrent and unsafe (due to its penchant to start regional wars). Similarly, there are very few countries where Israeli tourists feel welcome and protected.

As Israeli columnist Dani Bar On wrote, ‘I escaped to a Greek Nudist Paradise only to discover Israelis are hated there too.’ He went to the remote Samothrace in Northern Aegean, only to encounter telling graffiti: ‘A vacation from Genocide – Not here’ (Haaretz – 18.9.2025). Sri Lanka is probably the only country in the world which bails out Israeli tourists who attack its own citizens (contrary to Sinhala-Buddhist extremist propaganda, the hotelier assaulted by two Israeli tourists in Arugam Bay is a Sinhalese). In this extremely unfavourable global context, Israel needs us more than we need Israel, a truth as alien to the NPP/JVP mindset as the desirability of direct taxes.

But the Government is ahead on two scores: its seemingly sincere desire to tackle waste and corruption; and the Opposition.

This unprecedented Opposition

Former Secretary General of Parliament Nihal Seneviratne’s memoir, ‘Memories of 33 Years in Parliament’, provides glimpses of a past which seems more akin to another planet than another country. During his long career, he often acted as secretary to Lankan parliamentary delegations on international visits.

‘I recall one of our members of an Inter-Parliamentary Union delegations in a faraway Scandinavian country coming to see me with what he called a ‘huge problem.’ He had an hour long telephone call to his spouse in Sri Lanka. He told me she had been in a delicate state of health and he needed to speak to her. He had then been hit with a telephone bill amounting to over 100 Euros. He wanted me to settle this bill. I then very gently reminded him that at the start of the trip, I had very politely told all delegates that any personal overseas telephone calls would be on their own account. He wanted me to speak to our ambassador in that country and ask him to foot the bill which I politely refused to do. He finally had to pay the bill himself’ (excerpted in ‘The Sunday Island’ – 2.3.2025).

That was the country we had and lost. Lost to such a degree that when the NPP/JVP Government introduced the long awaited bill to scrap presidential privileges, the Opposition, instead of backing it, took the coward’s way out by staying away from the chamber during voting time.

During the time of the pandemic and the economic crisis, the Government spent a staggering sum of Rs. 421 million on renovating Mahinda Rajapaksa’s presidential retirement evidence. Rajapaksa obtained permission for this project via two cabinet papers which he presented in 2020 and 2021 in his capacity as Prime Minister (he was also the Minister of Finance). According to information obtained by the Daily Mirror under an RTI request, over Rs. 15 million was spent on bathroom accessories, over 15 million for granite laying and almost 32 million for electrical work (https://www.dailymirror.lk/expose/Renovation-of-MRs-official-residence-No-proof-to-show-Govt-procurement-guidelines-were-followed-during-purchases-through-Lanka-Building-Materials-Corporation-Limited/333-304174).

This horrendous expenditure was made under the Presidential Privileges Act. The Opposition was so lost to all sense, it didn’t realise how the Rajapaksas abused this Act and that repealing it was a demand by many who voted for Sajith Premadasa/SJB and Ranil Wickremesinghe/UNP in the last two elections.

The non-SLPP Opposition went onto trump that inanity with an obscenity, joining hands with the Rajapaksas at the UNP convention. And applauding Sagara Kariyawasam when he came out with some of the most shameful lines ever with customary shamelessness: ‘Our two camps made the same major mistake. Both of us, in order to gain power, ignored the services rendered by our opponents to the country.pointed our finger at the opposite side and called them ‘Thief, Thief, Thief’, with no proof, with no reason. That error was committed by us and by you’ (https://www.youtube.com/watch?v=u02YkZdqdEw).

With one blow, he did the Government’s job for it, by labelling the entire Opposition untruthful, untrustworthy, and opportunistic, a bunch of imposters who would say anything, do anything for power. He – and his audience – lacked the sense to realise what a gift they presented to a Government squirming under the verbal faux pas of its ministers.

Ganga Addara isn’t just another concert; it’s a celebration of Sri Lankan music with a powerful blend of tradition and innovation, taking place on 2 October at the Lionel Wendt Theatre.

At the heart of the evening is the specially expanded DLB Squared Band, featuring sitar, tabla, along with contemporary instruments. Together, they will give beloved local classics a captivating fusion of tradition and innovation, promising audiences an exhilarating musical journey.

For a visual complement to the music, the brothers will perform in outfits designed exclusively through a collaboration between Sonali Dharmawardena and Asanka de Mel of LOVI. Created especially for the concert, the designs embody a unique blend of heritage and modernity.

‘With Ganga Addara, we wanted to honour Sri Lanka’s musical roots while daring to present them in a new way,’ said Ishan De Lanerolle. ‘The sitar, the tabla, the band, and even our stage wear are all about blending heritage with innovation for one unforgettable night. We’ll also be performing completely unamplified-which is a rare challenge with so many instruments on stage-but that’s the thrill of the journey! The stage itself will be set very differently to create a truly immersive experience, and we’re deeply grateful to Sonali Dharmawardena and Asanka of LOVI for coming together to design these special outfits.’

The evening promises a colourful, vibrant, and immersive atmosphere, making Ganga Addara a celebration of Sri Lankan music and style.

Tickets, priced from Rs. 1,500 (balcony) to Rs. 10,000 (premium stalls), are moving fast with stalls nearly sold out. For reservations, call, text or WhatsApp 0777 996 991.

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI), which returned to positive territory in August, continued its upward trend toward the inflation target in September 2025.

The Central Bank said, headline inflation (Y-o-Y) accelerated to 1.5% in September from 1.2% in August, in line with the Central Bank’s near-term projections.

It added that the food inflation (Y-o-Y) accelerated to 2.9% in September from 2% registered in August, while the non-food inflation (Y-o-Y) decelerated marginally to 0.7% in September from 0.8% in August.

On a month-on-month basis, the CCPI increased by 0.17% in September 2025, for which the food category contributed 0.10 percentage points and the non-food category contributed 0.07 percentage points.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, remained unchanged at 2% in September 2025.

‘Realised quarterly average headline inflation for Q3-2025 is in line with Central Bank’s projections. The latest projections show a gradual acceleration of inflation in the period ahead towards the target of 5%, with the support of appropriate policies,’ the CBSL added.

AIA Insurance yesterday announced its continued dominance in the life insurance industry, being recognised as Sri Lanka’s #1 MDRT (Million Dollar Round Table) company with the highest number of MDRT members.

It said with a remarkable 332 MDRT Members in 2025- across Agency Distribution (including Alternate) and Partnership Distribution sales channels-AIA continues to set the standard for excellence, professionalism, and customer-centric service in the insurance industry.

MDRT membership is internationally recognised as the pinnacle of success in the life insurance and financial services industry. To qualify, advisors must meet stringent requirements in premium generation, demonstrate exceptional professional knowledge, uphold the highest ethical standards, and deliver outstanding client service. Being named Sri Lanka’s #1 MDRT company reinforces AIA’s role as a trusted leader in empowering Sri Lankans to secure their financial futures, protect what matters most, and live healthier, longer, better lives.

AIA Sri Lanka Director and CEO Chathuri Munaweera said: ‘AIA is driven by the purpose to help people live healthier, longer, better lives. Achieving the #1 MDRT ranking in Sri Lanka is a powerful validation of the dedication and impact of our sales personnel from agency distribution, agency alternate and partnership distribution channels. Their ability to consistently deliver world-class service, values that they uphold and the shared commitment to keep living them are truly inspiring.’ AIA said its success in Sri Lanka is part of a larger story. In 2025, AIA Group was once again recognised as the #1 MDRT multinational company in the world, marking its 11th consecutive year at the top. In addition to AIA’s global #1 MDRT status, 11 of its markets, including Hong Kong SAR, China, Thailand, India, Singapore, Malaysia, Macau SAR, Myanmar and Sri Lanka achieved #1 MDRT status, with the highest number of qualifying insurance agents in their respective markets.

The overnight net liquidity surplus in the inter-bank money market surged to Rs. 198.79 billion yesterday, reaching the highest level since 05 June. An amount of Rs. 203.36 billion was deposited at Central Banks SDFR (Standing Deposit Facility Rate) of 7.25%, while an amount of Rs. 4.57 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 8.25%.

The weighted average rates on call money and repo were registered at 7.87% and 7.88% respectively.

Meanwhile, the Treasury Bills auction scheduled to be conducted today will have a total offered amount of Rs. 43 billion, an increase of Rs. 5.00 billion over the previous week. The auction will consist of Rs. 8.00 billion on the 91-day, Rs. 25.00 billion on the 182-day and Rs. 10.00 billion on the 364-day maturities.

For context, at the previous weekly Treasury Bill auction (held on 24 September) the weighted average yields remained unchanged. Accordingly, the rate on the 91-day, 182-day and 364-day tenors remained at 7.57%, 7.89% and 8.02% respectively. This marks the 10th week where T-Bill weighted averages have stayed mostly unchanged at auctions. In terms of subscription, 90.41% of the total offered amount was raised, with successful bids amounting to Rs. 34.35 billion against the Rs. 38.00 billion on offer in the first phase of competitive bidding. This marked the fifth consecutive auction that fell short of fully raising the targeted amount. Subsequent to the T-Bill auction an additional amount of Rs. 275 million was raised at the second phase.

The secondary Bond market remained largely subdued for a second consecutive day. Market participants adopted a watchful stance, leaving conditions at a virtual standstill for much of the session. Yields, however, edged up marginally during trading, with two-way quotes closing the day slightly up.

The 01.02.26 maturity traded at the rate of 8.00% and the 15.09.27 maturity was seen trading at the rate of 8.77%. The 15.03.28 and 01.05.28 maturities were seen trading at the rates of 9.05% and 9.10% respectively. The 15.06.29, 15.09.29 and 15.12.29 maturities were seen trading at the rates of 9.48%, 9.50% and 9.60% respectively. The 01.07.32 and 01.10.32 maturities were seen trading at the rates of 10.65% and 10.40% respectively. The 15.09.34 maturity traded between the rates of 10.82%-10.80%.

The Colombo Consumer Price Index (CCPI; Base 2021=100) for the month of September was recorded at a positive + 1.5% on its point to point. This is as against its previous month’s figure of + 1.20%, which was incidentally the first instance of positive inflation in 11 months up to that point. The annual average was registered at -1.4% as at September.

The total secondary market Treasury Bond/Bill transacted volume for 29 September was Rs. 2.30 billion.

Forex market

In the Forex market, the USD/LKR rate on spot contracts closed the day steady Rs. 302.55/302.60 unchanged against the previous day.

The total USD/LKR traded volume for 29 September was $ 103.05 million.

Last week, at the UN General Assembly, the UK, France, Canada and Australia recognised Palestine as an independent, sovereign state. With the latest development, 157 of 193 UN member states recognise Palestine as a sovereign, independent country. The acknowledgement of statehood of Palestine by countries that have been sympathetic to Israel in the past represents the growing international isolation of the Jewish state as well as the overwhelming, international opposition towards Israel’s military offensive in Gaza.

At the recent Doha Summit, representatives from the United Arab Emirates, Bahrain and Morocco – the Middle East nations that maintain diplomatic ties with Israel as part of the Abraham Accord – agreed to review diplomatic and economic relations with the beleaguered state.

In view of the massive international backlash Israel is facing as the war in Gaza escalates, Israeli Prime Minister Benjamin Netanyahu had warned his country could face isolation for years and has no choice but to stand on its own. Israel is currently encountering either partial or complete arms embargoes from France, the Netherlands, the UK, Spain, and Italy.

At least 67,000 people have been killed and another 167,000 have been wounded since the war in Gaza began in October 2023. Some international observers have opined the recognition of statehood by few countries in the West as a mere face-saving exercise in the wake of growing worldwide displeasure about the severe humanitarian catastrophe that is taking place in the Middle East.

Despite the overwhelming international censure, the US, Israel’s biggest ally, is firmly backing the Middle East state. Although former President Joe Biden was expressing a sense of reservation in terms of providing unconditional support to Israel during the latter stages of his tenure, the Trump administration has adopted a markedly pro-Israel stance.

Meanwhile, the UN General Assembly last month voted to endorse a Hamas-free government for Palestine. Israel and Palestine living side by side in peace with recognised borders has been advocated as the lasting and viable solution to one the most pressing and brutal conflicts in the world. However, Hamas has steadfastly refused to accept the existence of Israel. Many commentators in the Sri Lankan media who express their views about the conflict in the Middle East often overlook the atrocities committed by Hamas. Tactics and ideology of Hamas and its backers have been recognised as the foremost obstacle to peace in the region. In fact, the devastating two-year-long war began on 7 October 2023, when Hamas and other Palestinian militant groups launched an attack on Israel, in which 1,195 Israelis and foreign nationals, including 815 civilians, were killed while 251 were taken hostage.

Sri Lanka has been a staunch supporter of the cause of Palestine. The top political leaders of the NPP were enthusiastic supporters of Palestine before coming into power and opposed Israel vociferously. Nevertheless, critics have pointed out that since capturing power, the ruling political party has softened its stance on Israel. Surprisingly, the Ministry of Foreign Affairs in its statement about the Israeli airstrike on Qatar on 9 September did not even include the name of Israel.

The Trump administration shared a 21-point plan to bring permanent peace in Gaza few days ago on the sidelines of the UN General Assembly. It envisions the pathway for a state of Palestine while advocating for immediate release of Israeli hostages. Decisive and forceful action is imperative to bring lasting peace in the Middle East, and it requires sacrifices from both Israel and Palestine.