Asianet Pakistan Private Limited

Bandaranaike International Airport (BIA) recorded a 14.4% year-on-year increase in air traffic during the first eight months of 2025, reflecting a steady recovery in aviation activity, the Ministry of Transport, Highways, Ports, and Civil Aviation said.

Between January and August, the airport handled 44,185 flight movements compared to 38,607 in the same period last year. August saw the highest traffic so far this year, with 5,976 aircraft movements.

Air travel continues to strengthen ahead of the upcoming tourist season, and steps are being taken to manage higher flight volumes and maintain operational efficiency for passengers and airlines, aviation authorities said.

The Government has decided to take some steps to make the Mattala Rajapaksa International Airport (MRIA), Hambantota, a profitable venture by granting concessionary periods related to deviation tax for airlines operating from the airport, and also to establish a wildlife office at the premises to minimise damages from wild animals to its infrastructure.

The Cabinet of Ministers at their meeting on Monday approved these directives to attract more scheduled international airlines to the MRIA and also to facilitate existing airlines to continue their operations.

Cabinet Spokesman and Media Minister Dr. Nalinda Jayatissa yesterday said the Cabinet of Ministers had approved the proposal presented by the Transport, Highways, Ports and Civil Aviation Minister to further extend the currently implemented exemption period for the deviation tax until 26 June 2027.

Dr. Jayatissa said the decision aims to encourage more airlines to operate to Mattala, noting that carriers such as Azur Air have already expressed interest in commencing services.

He recalled that the Government had earlier introduced the tax exemption to stimulate air traffic through the airport, which has been underutilised since its opening.

He also announced that the Cabinet has approved the proposal submitted by the Environment Minister to establish a wildlife office at the MRIA to ensure the safety of air passengers, airport staff, and airport infrastructure by identifying and properly managing such wildlife threats in advance.

This is also intended to maintain uninterrupted air services by minimising possible delays and disruptions in airport operations.

Minister Dr. Jayatissa said that Cabinet approval was given to establish the wildlife office at the MRIA mainly to prevent frequent damages caused by wild animals to its infrastructure and its operations. A significant cost has been incurred to the Airport and Air Services Company Ltd., to repair such damage to the MRIA’s infrastructure.

The Minister said 10 Civil Defence Department soldiers would be attached to the wildlife office proposed to be set up in the MRIA.

A Buddhist monk from Rathupaswala, Ven. Theripahala Siridhamma Thero, began a hunger strike in Tangalle yesterday to protest the Government’s decision to withdraw the security detail of former President Mahinda Rajapaksa.

The protest started around 1 p.m. near the D. S. Senanayake statue, opposite Carlton House in Tangalle, according to local reports.

The monk is demanding the reinstatement of security for Rajapaksa and other former presidents, arguing that removing state protection for a former head of state is unacceptable and poses risks to their safety.

Ven. Siridhamma Thero said he will continue the fast until the government reverses the decision and restores full security arrangements.

CA Sri Lanka President Heshana Kuruppu addressing the institute’s 46th National Conference yesterday said Sri Lanka must not sacrifice economic momentum to avoid future Macro-Linked Bond (MLB) payments, arguing that the long-term benefits of sustained growth far exceed the added debt service costs.

He said Sri Lanka should not shy away from growth because of MLB terms. An International Monetary Fund (IMF) working paper estimates that from 2028 to 2038, Sri Lanka could pay between $ 150 million and $ 270 million a year, depending on GDP outcomes between 2025 and 2027, or about $ 2 billion over the decade.

‘Should we aim for lower growth to avoid these payments? The answer is no. The economic benefits of sustained higher growth will outweigh the additional debt service costs. The price of standing still is always greater than the price of moving forward,’ he said.

Kuruppu said the Public Finance Management Act, Public Debt Management Act, and Central Bank Act have improved transparency, but they will only deliver if backed by capable professionals who apply international standards and sound fiscal practices.

‘Implementing accounting standards, effective procurement and investment practices, and prudent debt strategies all depend on strong financial expertise in the public sector,’ he said.

He pointed to Cyprus, where embedding professional accountants in ministries lifted the share of qualified finance staff from 7% to 33% by 2022. Sri Lanka is far behind, with only 38 professionally qualified accountants among 1,600 public finance officers managing an estimated Rs. 7 billion in expenditure.

CA Sri Lanka has offered 25 full scholarships for an MBA in Public Finance Management and is working with Treasury Secretary Dr. Harshana Suriyapperuma to institutionalise the Chartered Public Finance Accountant qualification, developed seven years ago but not yet implemented.

He said market credibility is essential to attract capital and that ethics are central to the profession’s role. ‘The numbers we certify are not mere figures on paper. They form the foundation upon which investors, both local and global, build confidence in our economy. When we sign an audit report, we are underwriting Sri Lanka’s credibility,’ he said.

Sri Lanka under a public private sector initiative last month wooed Japanese investor interest at a forum in Tokyo. Sri Lanka’s effort was led by President Anura Kumara Disanayake and spearheaded by a big delegation led by Sri Lanka Japan Business Council under the aegis of the Ceylon Chamber of Commerce. The forum was a key point of Disanayake’s State visit to Japan which included presiding over Sri Lanka Day at Expo 2025 in Osaka.

The forum was organised by the JETRO, Ministry of Economy, Trade and Industry (METI), Sri Lanka Embassy in Japan, the Japan-Sri Lanka Business Cooperation Committee, and the Board of Investment (BOI). It was supported by the Japan International Cooperation Agency (JICA).

President Disanayake and Japanese Economy, Trade and Industry State Minister Dr. Ogushi Masaki spoke of the potential to enhance bilateral economic ties. Others who spoke were JETRO Chairman and CEO Ishiguro Norihiko, Japan-Sri Lanka Business Cooperation Committee Chairman Kobayashi Fumihiko, President’s Chief Adviser on Digital Economy Dr. Hans Wijayasuriya, METI Director for Southwest Asia Region – Trade Policy Bureau Shimano Toshiyuki, Ito Spring Co., CEO Kawashima Miwako, Tos Lanka Factory Manager Tanaka Nobuyuki, BOI Assistant Director – Desk Officer for Japan Arunya De Silva and The Ceylon Chamber of Commerce (CCC) Chairperson Krishan Balendra. The private sector delegation comprised SLJBC Vice President and Spear International Ltd., Chairman and Managing Director Shamil Mendis; SLJBC Treasurer and MendisOne Chairman Rohitha Mendis; SLJBC Immediate Past President and Andrew the Travel Company Managing Director Mahen Kariyawasan; BOV Capital Managing Partner Prajeeth Balasubramaniam; Celestia International CEO Chandana Silva; Connaissance De Ceylan CEO Chamin Wickramasinghe; EW Information Systems Chairman Sanjeewa Wickramanayake; Hayleys PLC Director Sarath Ganegoda; hSenid Group Chairman Dinesh Saparamadu; Lanka Harness Executive President Rohan Pallewatta; MAC Holdings Managing Director Andre Fernando; MendisOne Managing Director Rishantha Mendis; Microsoft Sri Lanka and Maldives Country Manager Harsha Randeny; Tomo Wold Ceylon Chairman Nishantha Perera; Transfood Lanka Director Sajahan Pasie, NCINGA Group Managing Director Vajira Wijesinghe, and The CCC Assistant Secretary General Dinithi Dias.

Apart from being one of the leading development partners for Sri Lanka and top investors, Japan is Sri Lanka’s 15th largest export market at $ 170 million and Sri Lanka’s 16th biggest source for imports at $ 250 million as per 2024 data. Japan is also the 16th biggest source market for tourists at 25,000 in the first eight months of 2025

Five State-Owned Enterprises (SOEs) under the Industries and Enterprise Development Ministry have handed over a total of Rs. 757.4 million in dividends to the Treasury, reflecting improved performance under the new Government.

E.B. Creasy and Co. PLC has made a further Rs. 400 million investment in subsidiary company Lanka Special Steels Ltd.

The investment was made by way of a direct investment of Rs. 300 million in 27.2 ordinary shares at Rs. 11.04 and converting Rs. 100 million worth of debt due from Lanka Special Steels into equity by the allotment of 9 million shares at Rs. 11.04 a share.

On 27 February 2024, E.B. Creasy disclosed that its Board had deferred an earlier decision to dispose 100% of its equity stake in Lanka Special Steels Ltd. to another of its subsidiaries Laxapana PLC in order to re-evaluate the proposed transaction.

On 8 April 2025, E.B. Creasy announced that it would convert Rs. 400 million of debt due from Lanka Special Steels into equity comprising 29.3 million shares at Rs. 13.65 each while negotiated the sale of its stake to Laxapana PLC. Discussions are still ongoing, E.B. Creasy said in stock exchange filing yesterday.

Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa has urged those questioning about the legality of the appointment of Ranga Dissanayake as Director General (DG) of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to seek redress from the Supreme Court.

Addressing the weekly post-Cabinet meeting media briefing, he said that if the selection made by the Constitutional Council was flawed, irregular, and unconstitutional, former Minister Udaya Gammanpila or any other concerned party could go through a legal process to challenge Dissanayake’s appointment.

‘Criticising is of no use when there is a legal process available. I know former Minister Gammanpila is well conversant with the law in this regard,’ he said, questioning the motive behind raising allegations against the CIABOC DG long after his appointment was made.

Dr. Jayatissa expressed his suspicion over the timing of the allegation when the CIABOC had completed several investigations and begun arrests connected to corruption cases.

‘We have doubts whether some parties, including former Minister Gammanpila, are trying to discredit the CIABOC as they have some other interests,’ he said, adding that Government views such efforts as attempts not by those who are against fraud, corruption, and bribery, but only those who want to shield some involved in corruption and bribery.

He said that those who truly stand against fraud and corruption would not attack the CIABOC at a time when it is performing its duties.

Meanwhile, he reiterated the Government’s commitment to upholding the independence of the CIABOC, stressing that investigations into complaints should be carried out promptly and without interference.

Dr. Jayatissa emphasised that while the Government provided facilities and resources to investigative institutions such as the CIABOC and the Criminal Investigation Department (CID), it would not intervene in their operations.

‘If someone makes allegations against an institution like the CIABOC, the best solution is for the DG or the Commission itself to respond, but not the Government,’ the Minister said.

He also said that the Government had full confidence in the officials of the CIABOC as they were performing their duties responsibly and professionally.

According to Dr. Jayatissa, the attempts to level baseless accusations against the CIABOC appeared to be efforts to undermine its ongoing investigations and the best means to challenge the appointment of the CIABOC DG, who has extensive legal experience as a former Magistrate and High Court Judge, was through a legal process.

Answering a question whether there was a lethargy in taking legal actions against those who have corruption charges in the Government, he said all complaints were going through a due legal process.

‘If any allegations have been made against ministers, the CIABOC will continue to investigate them according to its procedures. The Government remains committed to ensuring the CIABOC functions independently and efficiently to strengthen the anti-corruption framework,’ he stressed.

Calls for National Investment Facilitation Authority and Digital Land Bank to attract FDI

Proposes National Green Energy Fund and Govt.-backed Green Bonds to accelerate renewable transition

Seeks SME Export Fund, tax holidays and concessional loans to boost small exporters

Urges unified tourism branding and infrastructure fund to promote high-value, experiential travel

OPA President Sujeewa Lal Dahanayake

The Organisation of Professional Associations (OPA) has submitted a comprehensive set of proposals for the 2026 National Budget, outlining measures to strengthen fiscal stability, revive growth, and ensure equitable development. The recommendations, representing the views of 52 professional bodies and over 60,000 members, were presented to Treasury Secretary Dr. Harshana Suriyapperuma following consultations with a multidisciplinary committee appointed by the OPA.

The OPA proposal document is as follows:

Background

President Anura Kumara Disanayake, presenting the maiden Budget of the National People’s Power (NPP) Government last February, stated: ‘A Budget is not just a set of revenue and expenditure proposals for the upcoming year, it is also a reflection of the Government’s approach to building the economy and overall policy.’

Taking a cue from this perspective, the OPA appointed a Committee of its members with multidisciplinary expertise.

The proposals formulated by the Committee were presented to Treasury Secretary Dr. Harshana Suriyapperuma on 12 September. The OPA delegation had a cordial, constructive consultation with the Secretary. These proposals reflect viewpoints of 52 professional associations, 34 disciplines, and over 60,000 professionals of the OPA.

Objective

The Budget proposals were formulated with the aim of reaching the following Government priorities.

Stability – meeting International Monetary Fund (IMF) and fiscal targets.

Growth – revive stalled mega projects, enhance exports, enhance employment opportunities, and increase national productivity.

Equity – integrate people as participants and beneficiaries of the growth process while protecting vulnerable groups, reducing rural-urban disparities, and ensuring inclusive access to health, education, and nutrition.

Proposals

Foreign Direct Investment promotion

Establish a National Investment Facilitation Authority (NIFA) as a one-stop shop to fast-track the approval process within 60 days.

Establish a Digital National Land Bank (GIS-based) to identify lands for industry, tourism, agribusiness, and energy.

Launch ‘Invest Sri Lanka 2030’ campaign targeting renewable energy, manufacturing, technology, export promotion, tourism infrastructure, and agribusiness.

Enhance investor aftercare services with a dedicated Investor Relations Cell and annual CEO Roundtables.

Divestment of vested and unutilised assets

Establish a high-powered national enterprise within the Finance Ministry to divest, vest, acquire, and/or unutilised public property; divest assets of defunct financial institutions and distribute proceeds to cover statutory payments due and to settle depositor invested funds.

Tourism development

Develop a 10-year unified branding strategy positioning Sri Lanka as a high-value, must-visit, experiential destination with a targeted marketing plan and a campaign.

Establish a Special Tourism Infrastructure Fund for connectivity, premium visitor facilities, sustainability development, and luxury tourism infrastructure.

Implement a Tourism Skills Accelerator Program and a National Tourism Quality Standards Certification.

Shift policy focus from arrivals to yield: set spending-per-tourist targets and promote wellness, Meetings, Incentives, Conferences and Exhibitions (MICE), yachting, and cultural tourism.

Convert underutilised Government buildings for tourism accommodation and recreation using Public Private Partnership (PPP) models.

Expand the tourism value chain to trickle down benefits to rural communities.

Develop wellness tourism and community-based tourism programs.

Agriculture

Develop an e-database of underutilised land with potential for agriculture.

Consolidate small agricultural plots through the concept of cooperative/collective farming.

Develop economic centres with cold storage facilities.

Expedite the process of mechanisation to overcome the labour issue.

Provide incentives to encourage universities and research institutes for pragmatic research on value additions in agriculture and livestock development.

Revisit Free Trade Agreements (FTAs) with emphasis on seeking additional quotas for agricultural products.

Health

Promotion of primary preventive healthcare system and wellness programs jointly with Western medical facilities and indigenous Ayurveda-based drugs, therapies, immunity, and patient care.

Establish an educational training and research hub for pharmaceutical manufacturing and quality testing of medicine.

Exempt local pharmaceutical manufacturers from payment of VAT or provide a rebate on VAT payment.

Export-based Small and Medium Enterprises (SMEs)

Create an SME Export Development Fund to provide concessional loans.

Grant a five-year tax holiday for new SME exporters.

Subsidise costs of international certifications and at State labs i.e, ITI.

Build a national export information platform and SME Export Portal.

Support logistics with railway-based cargo services and SME export hubs.

Strengthen training facilities for SME Exporters to enhance capacity and market access.

Entrepreneur training

Introduce practical entrepreneur training facilities at Government skills development centres such as the Vocational Training Authority (VTA), to familiarise with banking practices, bankable project preparation, and market potential before embarking on a business venture.

SME for migrant employment returnees

Returnees after serving a period of more than two years as migrant employees to be provided concessionary loan facilities to cover up to 50% of the investment required for an SME project.

Prevention of road accidents

The financial and human cost and loss caused by road accidents is immense and on the increase. At present, errant drivers are punished and imposed with penalties. The OPA proposed the introduction of a reward scheme for the topmost police divisions that control traffic offenses to a lesser number, resulting in fewer accidents. The rewards will be considered on a monthly, quarterly, biannual, and annual basis.

Suitable criteria to ensure the commitment required from each Police division are based on the number of registered vehicles within a district. Insurance companies can share the cost and partner in this scheme, as they will be a beneficiary of a lesser number of road accidents.

‘Prajashakthi Program’: Integration with national economy

Establish links between the Prajashakthi Program and the national economy to create employment and income generation opportunities in the periphery. This can be achieved by bringing local authorities, Samurdhi Banks, and industries located in the periphery i.e, garment factories, into the program as they are connected to the national economy.

Revival of rural industry

There are many traditional, local, and cottage industries in rural areas. They face issues in accessing information, raw materials, markets, financial assistance, technology, design, etc. They are location-specific. The OPA proposed that the Industries Ministry, with organisations under its purview, draw up a program together with Prajashakthi Program to identify issues and build up linkages and access required by these industries.

Integrated extension service

There are extension arms under many Government agencies. They are scattered, fragmented, and working in isolation. An extension officer in each agency visits rural areas with a package relevant to his or her organisation. People need a single integrated set of recommendations. The OPA proposed to bring all extension arms of different agencies under a single umbrella and establish an integrated extension service.

Green energy transition

Heavy reliance on fossil fuels undermines energy security and climate goals. Renewable energy investments face approval delays, financial barriers, and a lack of incentives, despite strong solar, wind, and hydro potential.

Establish a National Green Energy Fund with blended finance

Provide feed-in tariff guarantees and fast-track approvals for renewable projects.

Issue Government-backed Green Bonds to finance renewable infrastructure.

Promote rooftop solar through subsidies and concessional loans for SMEs and households.

Link green energy adoption with industrial parks and launch a Green Skills Accelerator.

Secure green energy-based funding to assist in the installation of storage batteries.

Ensure getting carbon credits for renewable energy.

Way forward

The OPA did not make proposals related to the sectors of education and digitalisation as the Government is progressing with comprehensive programs, at present.

Success in implementation of the proposals necessitates: Prioritisation through a phased roadmap, governance safeguards and independent audits, comprehensive equity-focused, and the efficient delivery by the public sector.

The absence of the aforesaid matters being addressed poses a risk of perpetuating a cycle of under-delivery and over-ambition. Further, stringent execution capabilities, transparent safeguards, and a thorough evaluation of incentives relative to revenue requirements must be in place.

State-Owned Enterprises (SOEs) under the Industries and Enterprise Development Ministry – Lanka Mineral Sands, BCC Lanka Ltd., National Salt Company, Lanka Phosphate Company, and Lanka Graphite Ltd., – have handed over a portion of their dividends earned under the new Government to the Treasury.

The funds were officially presented to Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando and Treasury Secretary Dr. Harshana Suriyapperuma.

Lanka Mineral Sands Acting Chairman Gayan Wellala contributed Rs. 500 million from dividends earned over the past nine months to the Treasury. He stated that the institution aims to achieve a revenue target of Rs. 5 billion by the end of this year.

BCC Lanka Chairman H.A. Prasanna Indrajith handed over Rs. 50 million to the Treasury as part of the company’s dividends. Notably, BCC Lanka had previously been a loss-making enterprise that was slated for closure. The company has now accumulated fixed deposits worth Rs. 105 million during the current year.

National Salt Company Chairman Gayan Wellala contributed Rs. 100 million in dividends to the Treasury. Despite challenges faced earlier this year due to a nationwide salt shortage, the company has recovered strongly over the past six months. The Chairman expressed confidence that the company would record the highest production revenue in its history by the end of the year.

Lanka Phosphate Company Chairman Ananda Premakumara, who was also present, announced that Rs. 100 million will be remitted to the Treasury next week, while the remaining dividends will be reinvested for the company’s development.

Lanka Graphite Ltd., Chairman P.V.A. Hemalal, who participated in the event, had previously remitted Rs. 7.4 million to the Treasury. Significantly, this marks the first time in 14 years that Lanka Graphite has paid funds to the Treasury.

In total, the five enterprises contributed Rs. 757.4 million to the Treasury as part of their semi-annual dividend payments, with further contributions expected from full-year earnings.

Industries and Enterprise Development Minister Sunil Handunneththi, Deputy Minister Chathuranga Abeysinghe, Ministry Secretary Thilaka Jayasundara, and other officials were also present at the occasion.