SRI LANKA NEWS
(SEPTEMBER 2025)
Compiled by Victor Melder
Sri Lanka’s Colombo district recorded a 1.2 percent increase in consumer prices in August from a year ago, turning from a 0.3 percent decline in prices continued through July, ending the 11-month spell of negative inflation, which set off in September last year. The August inflation print is also in line with the Central Bank’s inflation forecast, which projected inflation to return to positive from the third quarter, before reaching its 5.0 percent medium-term target by the middle of 2025. Despite the annual prices resumed rising, predominantly due to the lower base effects last year, the prices measured monthly fell 0.4 percent in August, rising from the 0.2 percent decline in July. This was due to the mostly lower food prices in August compared to July levels. For instance, the food prices measured monthly fell 1.5 percent in August from July levels, after falling 2.5 percent in July. This was mainly due to the decline in the prices of commodities such as rice, sea fish, dried fish, eggs, fresh fruits, vegetables, red onions, green chilies, salt and the likes in August, which outstripped the modest increase in prices of chicken, milk powder, coconut and coconut oil and the likes. However, the annual food prices rose by 2.0 percent, picking up from a 1.5 percent rise through July 2025. Meanwhile, the non-food prices rose by a modest 0.2 percent in August, slowing from the 1.0 percent increase in July, which was mainly caused by the increase in the electricity tariff hike, effects of which petered out by August. The prices of petrol and diesel rose but much more modestly while what the people spent on tuition fees too rose, albeit their rises were so modest that their total impact was mild on the overall index. The non-food price changes measured annually rose by 0.8 percent, turning from a negative 1.2 percent through July. Meanwhile, the so-called core prices, measured barring the often-volatile items such as food, energy and transport, rose by 2.0 percent in the year through August, picking up from a 1.6 percent increase through July. This reflects the firming up of underlying price pressures in the economy. (Daily Mirror, 2.9.2025)
The country’s total revenue increased by 26.6% to Rs 2,729 billion in the first seven months of 2025 from Rs 2,156 billion the same period of 2024. The revenue from income tax increased by 8.3% to Rs 525 billion in the first seven months of 2025 from Rs 485 billion compared to the same period of 2024. Revenue from VAT increased by 27.5 % to Rs 935 billion in the first seven months of 2025 from Rs 733 billion the same period of 2024, the Monthly Fiscal Review Report issued by the Ministry Of Finance, Planning and Economic Development said. The budget deficit in normal terms narrowed by 36.3% to Rs 556.1 billion in the first seven months of 2025 from Rs 872.6 billion the same period of 2024 mainly due to the increase in government revenue including grants by 26.5 % to Rs 2,734.9 billion by the seven month of 2025 from Rs 2,161.8 billion in the same period of 2024. Meanwhile recurrent expenditure increased by 12.3% with capital and net lending declining by 19.7%. GDP at constant prices was Rs Rs 3,477.1 billion the first quarter of 2025, compared to Rs 3,318.8 billion in the same period of 2024. The economy expanded by 5.1% in the first quarter of 2025 compared to the 4.8% expansion recorded in the quarter of 2024. In the first seven months of 2025, the key revenue -collecting agencies achieved 55% of their annual estimates. The Customs became the largest contributor representing 48% of the tax revenue collected and this surpassed the revenue collected from the IRD. The second largest contributor is the IRD, representing 46% of the tax revenue collected. The third largest contributor is the Excise Department. Meanwhile, revenue from Excise Duty on motor vehicles significantly increased by 528 % to Rs 193% billion in the first seven months of 2025 from Rs 31 billion in the same period of 2024. However, Excise Duty on petroleum marginally decreased by 0.5 to Rs 117 billion in the first seven months of 2025. (Daily News, 3.9.2025)
The Cabinet has approved to abolish the concessional payment scheme granted to former Members of Parliament (MPs) for the purchase of houses from the Viyathpura Housing Complex. In July 2022, Cabinet approval was first granted to provide 101 housing units from the complex on a rental basis for one year to MPs who had lost their homes during the unrest of May 9, 2022. However, in July 2024, following requests from the MPs, Cabinet approved the sale of these units at a reduced price. While the houses are valued for the general public between Rs. 15.5 million and Rs. 22 million, MPs were allowed to purchase them at concessionary rates ranging from Rs. 13.34 million to Rs. 18.21 million. Under the scheme, 25% of the purchase price was to be paid upfront, with the balance to be settled over 15 years at an annual interest rate of 10%. By December 31, 2024, a total of 29 MPs had deposited the 25% advance payment. However, the Urban Development Authority (UDA) reported a loss of Rs. 92.126 million due to the scheme.The Cabinet has now decided to abolish the concessional payment method with immediate effect. If the MPs concerned agree, the houses will instead be made available to the general public at the previously approved concessionary prices. (Daily Mirror, 4.9.2025)
Approximately 200 children with cancer die every year in Sri Lanka, according to Dr. Suraj Perera, Consultant Community Physician attached to the National Cancer Control Programme (NCCP). Speaking at a media briefing organized by the Health Promotion Bureau today (September 4) to raise awareness on childhood cancer, Dr. Perera stressed that this situation could be reduced if children receive timely medical treatment. “In 2022, out of all cancer patients identified, 904 were children diagnosed with cancer. When we look at data over the past 15 years, it clearly shows that there hasn’t been a significant increase in childhood cancer cases. The numbers have typically remained within the 600 to 800 range. Now, around 900 cases of childhood cancer are being reported annually,” Dr. Perera said. According to statistics from the Department of the Registrar General, about 200 children died of cancer in 2019, and recent data confirms that this remains the average number of deaths each year. Dr. Perera noted that some of these deaths involved children who could have recovered if diagnosed and treated earlier.Pediatrician Dr. Rukmal Gunathilaka, also addressing the briefing, explained that symptoms of childhood cancer vary depending on the type and location. For example, brain cancers may cause persistent headaches, while leukemia—the most common childhood cancer—can cause fever and lethargy. He urged parents to be vigilant and seek specialist care if symptoms persist. (Daily News, 4.9.2025)
In light of the increased illegal hunting activity resulting in the deaths of wildlife, authorities have stepped up efforts to apprehend poachers operating in wildlife reserves. A senior official at the Department of Wildlife Conservation told Daily Mirror that the department has scaled up the measures to crack down on poachers. “We have identified the areas where poaching is most prevalent. As such, the patrol measures have been intensified,” the official stated. “People can also contribute to the endeavour by informing the authorities via 1992 about the poachers,” the official added. According to official data, elephant and leopard deaths in Sri Lanka are climbing at an alarming rate, with new figures showing dozens killed in just the first eight months of this year. The Department of Wildlife Conservation says 268 elephant deaths have been reported in 2025. Of the deaths, 47 elephants were killed by gunfire, 40 electrocuted and 13 killed by trains, 26 from explosives concealed in food items known as ‘hakka patas’.A total of 248 elephants died in 2024 from various causes. Meanwhile, a total of 13 leopards have so far been killed in 2025. The majority of deaths are caused by leopards being trapped in snares or falling victim to ‘hakka patas’. (Daily Mirror, 6.9.2025)
A wave of armed violence spread across the Western Province on Friday and yesterday, as four separate shooting incidents were reported across Grandpass, Maradana, Negombo, and Panadura. This is considered the highest number of shootings to occur in 12 hours in recent years. Police said that one person was killed and at least two others injured, while in two of the cases gunfire was directed at property, with no injuries to anyone reported. The first incident occurred just after midnight near the Mahawatta Clock Tower in Grandpass, where a 26-year-old man from Kelaniya was fatally shot by gunmen on a motorcycle. Hours later, in Panchikawatte, Maradana, another person sustained injuries in a similar drive-by shooting. Police said the perpetrators fled the scene before they could be apprehended. At around 1.40 a.m., residents in Kuttiduwa, Negombo, reported that two men on a motorcycle opened fire at a private residence. Although no injuries were recorded, bullets recovered at the scene have been sent for forensic testing. The fourth incident was reported in Alubomulla, Panadura, where unidentified assailants targeted a small business premises, firing several rounds into the building before fleeing the scene. No casualties were reported. Police said that the incidents bear the hallmarks of organised crime and may be linked to underworld rivalries. Sri Lanka has recorded 96 shootings in 2025 so far, resulting in 50 deaths and injuries to 53 persons. Law enforcement authorities said special teams have been deployed to investigate the four incidents, with CCTV footage and eyewitness accounts being collected. Patrols in the affected areas have also been stepped up to reassure residents, the Police said. (Sunday Observer, 7.9.2025)
Poverty in Sri Lanka has been rising slowly but steadily since the economic crisis from 2022-2024 which saw a marginal improvement with economic growth re-bouncing. Many households in the ‘middle income’ bracket were pushed down to the ‘poor’ segment during the crisis. According to the World Bank, poverty continued to increase in 2021, and doubled between 2021 and 2022, from 13.1 to 25.0 percent ($3.65 per capita, 2017 PPP) pushing 2.5 million people into poverty in 2022. The official poverty line by district by the Census and Statistics Department which tracks the minimum expenditure per person per month shows that during the first six months this year the minimum expenditure per person per month has increased from 16,334 in January to 16,516 in June. District-wise the minimum expenditure per person is high in Colombo compared to the other districts and the index has increased during first six months this year from 17617 in January to 17813 in June. Gampaha district takes the second slot followed by Kaluara, Kandy and Matale districts with the minimum expenditure per person per month at 17,721, 17,337, 16,766 and 16,742. The growth trend in the poverty index is seen in all districts as well during the first six months this year. The Official Poverty line at the National level for June, 2025 is Rs. 16,516. The lowest in the minimum expenditure per person per month is in the Moneragala district. (Sunday Observer, 7.9.2025)Sri Lanka’s tea crop posted mixed results in August, with monthly production falling year-on-year (YoY), while cumulative output for the first eight months of 2025 showed healthy growth compared to both 2024 and 2023. Data analysed by Forbes & Walker Research said tea production in August 2025 amounted to 19.68 million kilograms (Mnkg), down by 1.66 Mnkg or 7.77% YoY against 21.34 Mnkg recorded in August 2024. All elevations registered declines during the month, except for the Green Tea segment, which managed to record gains over the corresponding period last year. However, when compared with 18.36 Mnkg produced in August 2023, the latest monthly figure reflects an improvement of 7.20% YoY or 1.32 Mnkg. Despite the setback in August, Forbes & Walker Research noted that the cumulative tea crop for January-August 2025 rose to 176.82 Mnkg, marking an increase of 4.34 Mnkg or 2.51%, over 172.48 Mnkg in the same period of 2024. All elevations contributed to the YoY growth in the first eight months. When compared with 174.59 Mnkg for January-August 2023, this year’s cumulative total shows an increase of 2.23 Mnkg. On this longer-term comparison, however, only Low and Medium Grown teas, along with Green Tea, registered positive variances, while the High Grown output dipped slightly Industry analysts note that while August’s weaker performance may reflect weather and operational challenges, the overall trajectory for 2025 so far points to a steady recovery in production volumes, supported by consistent gains in most growing regions. (Financial Times, 18.9.2025)
A three-judge bench of the High Court today sentenced Niraj Roshan, alias ‘Ali Roshan’ to 15 years of rigorous imprisonment and imposed a fine of Rs. 20.6 million, after finding him guilty of unlawfully keeping five elephants without valid permits. The accused was convicted on charges of fraudulently altering the elephant registry maintained by the Department of Wildlife Conservation and illegally keeping five elephants in his possession. The High Court acquitted and released three other accused, namely Uchitha Nishantha Dammika, Palihepitiya Gamage Jayalath and Paskuwel Fonseka Priyanga Sanjeewani, who had been indicted in connection with the same incident. According to the prosecution, between July 2009 and August 2015, in the areas of Maharagama, Arawwala, Nawala, Battaramulla and Oruwala, the accused, together with unidentified individuals, had allegedly conspired to traffic elephants, committed offences of elephant trafficking and unlawfully kept elephants in their possession, knowing that the animals had been stolen.The Attorney General had filed 33 indictments against the accused under the Code of Criminal Procedure Act and the Public Property Act. (Daily Mirror, 19.9.2025)
A fire that raged for several days destroyed more than 1,000 acres of forest in the Nonpareil Estate area, located near the popular tourist zones of Balangoda and Belihuloya. The blaze.The particular forest is in a vital catchment area of the Samanalawewa Reservoir. It is also home to a diverse range of wildlife, including bats, squirrels, civets, and numerous bird species. Beyond its rich biodiversity, the forest is known for its vast array of medicinal plants and trees, vital to traditional Ayurvedic medicine. B.M. Gunathilaka, Chief Medical Officer at the Balangoda Gampaha Siddha Ayurveda Medical Center, expressed deep concern over the loss. “In an era where Ayurvedic medicinal plants are increasingly scarce, this forest holds invaluable herbs such as Suduhandu, Nelli, Aralu, Binkohomba, Weniwel, and Puswel, along with fruits like Weralu, Madan, and Himbutu. It is imperative that those responsible for this destructive fire are identified and brought to justice,” he said. (Daily Island, 19.9.2025)
The country’s manufacturing and services sectors in August have expanded, as per the Purchasing Managers’ Index (PMI), its compiler the Central Bank of Sri Lanka (CBSL) said. The Manufacturing PMI registered an index value of 55.2 in August indicating an expansion in manufacturing activities, though at a slower rate compared to 62.2 in July 2025. The CBSL said this expansion has remained above the neutral threshold during the month from all sub-indices. Growth in New Orders and Production was supported largely by the food and beverages manufacturing sector. The Stock of Purchases sub-index also recorded an expansion, in line with the New Orders and Production activities. The Employment sub-index remained in the positive territory during August, indicating favourable Employment conditions. However, Suppliers’ Delivery Time continued to lengthen during the month, with some respondents reporting delays in international shipping The CBSL said the industry manufacturers were optimistic about the outlook for the next three months, largely underpinned by the anticipated seasonal demand towards the year end. The Services PMI registered an index value of 68.9 in August showing accelerated expansion in services activity following a similar trend observed in the same period last year, albeit at a slower rate compared to 70.1 in July 2025. Business activities continued to expand in August 2025 supported by the improvements observed across many sectors. The expansion was buoyed by strong performance in wholesale and retail trade, other personal services, and accommodation, food and beverage services, which increased amid high tourist arrivals. Positive developments were also observed in business activities related to financial services, driven by the increase in lending activities. The CBSL said the New Businesses rose to 66.8 in August from 64.9 in July primarily due to the expansions observed in wholesale and retail trade, and financial services related activities. Employment continued to increase in August, reflecting further recruitments in several companies to support ongoing operational requirements. However, Backlogs of Work declined slightly compared to the previous month. The CBSL noted that Expectations for Business Activities over the next three months continued to improve supported by favourable macroeconomic conditions and seasonal factors, including higher tourist arrivals.(Financial Times, 18.9.2025)
A total of 1,897 persons have lost their lives in road accidents over the past nine months, Traffic Police Director SSP Manoj Ranagala revealed. Speaking to a TV channel, SSP Ranagala said the number of reported road accidents has risen to 1,781 this year, highlighting a worrying upward trend. He emphasised the urgent need for stricter law enforcement and more responsible driving to curb the rising toll. The Traffic Police have installed 70 high-speed detection machines across the country to monitor reckless driving, SSP Ranagala added. Officials also noted a sharp increase in motorcycle accidents in 2025, with 923 accidents reported, resulting in 514 fatalities. SSP Ranagala called for improved road safety measures and greater public awareness to prevent further tragedies on the nation’s roads. (Daily Mirror, 22.9.2025)
The consumer prices, as measured by the National Consumer Price Index (NCPI), climbed 1.5 percent in August from a year earlier, accelerating from July’s 0.7 percent. The change reflects the lingering impact of lower prices seen at the same time last year.
Everyday items such as vegetables, fresh fish, coconuts, green chilies, rice and salt saw price drops, though some food items, including chicken, dried fish and coconut oil, recorded modest increases. Over the 12 months through August, food prices were up 2.9 percent, primarily due to base effects, as the country was emerging from a months-long deflationary period that ended in April this year, according to the official data.
Meanwhile, the NCPI-measured non-food inflation edged up 0.1 percent month-on-month and 0.4 percent year-on-year, reflecting modest price pressures outside the food basket. Core inflation, which excludes volatile food, energy and transport items, climbed to 1.5 percent in August, from 0.9 percent in July, signaling a firming of underlying price pressures.The more frequently cited Colombo Consumer Price Index, which had been falling through July, turned positive in August, with a 1.2 percent increase, its first in 11 months.The Central Bank is set to announce its September interest rate decision tomorrow, with markets widely expecting no change. Despite the uptick in inflation, readings remain well below the Central Bank’s medium-term target of 5 percent. The policymakers project inflation will reach target levels only by mid-2026, supported by the recovering demand as the consumers gradually increase spending.The Central Bank is also closely monitoring private sector credit, which has exceeded Rs.200 billion in consecutive months, growing at nearly 20 percent year-on-year. Further, monetary easing, despite some room to manoeuvre, could drive credit to unsustainable levels, putting pressure on both prices and the external sector, officials have warned.Analysts say the increase in core inflation is likely to restrain the Monetary Policy Board from further easing, as the policymakers aim to protect the stability in the economy. (Daily Mirror, 23.9.2025)
The tusker known as ‘Sapumal’, a well-known resident of the Hurulu Eco Park and Minneriya National Park, has reportedly been shot by unidentified individuals. Safari jeep drivers at Kaudulla National Park have confirmed sightings of the injured elephant, according to an Ada Derana reporter. ‘Sapumal’, believed to be around 25 years old, is renowned for his striking tusks, which measure over two and a half feet in length. (Daily Mirror, 23.9.2025)
National Child Protection Authority (NCPA) has reported that 44 complaints related to teenage pregnancies have been filed in the first seven months of 2025. This data was obtained following a Right to Information (RTI) request made by the Sri Lanka Press Institute to the Ministry of Health under the Right to Information Act (No. 12 of 2016), seeking details on teenage pregnancies over the past year. According to the Ministry’s records, 1,872 teenage pregnancies were reported in Sri Lanka in 2024. The five areas with the highest number of reported teenage pregnancies last year were Batticaloa (158), Puttalam (153), Trincomalee (146), Gampaha (140), and Kalmunai (95). (Daily News, 2.9.2025)
Sri Lanka’s tea export earnings in the first eight months of 2025 has reached its highest level since 2014, according to Customs data analysed by Asia Siyaka Research. Sri Lanka exported 174.5 million kilograms (Mnkg) of tea during the period January-August 2025, up 7% from 162.5 Mnkg a year earlier, earning an export revenue of Rs. 306 billion or $ 1.2 billion in the eight-month period, compared to Rs. 288 billion or $ 942 million a year ago. “Interestingly the 2025 US dollar earnings for the period ending August are the highest since 2014 when the country recorded $ 1.09 billion. In that year, however, the total quantity shipped for the period was 214 Mnkg,” Asia Siyaka Research said. The approximate FOB value per kilo therefore, converts to $ 5.88 per kilogram, higher than $ 5.80 achieved last year and significantly up on the comparable 2014 number of $ 5.09. A review of the segments that make up total exports has Bulk Tea shipments accounting for 42% of the total while Packet Tea has grown to 45% from 40% a year ago. Tea Bag exports have held steady at 10% of the total, while growing quantity from 16.6 to 17.2 Mnkg this year. High value instant tea has grown from 1.8 to 2.2 Mnkg, while green tea exports have remained steady at 2% of the total. Total value-added exports have therefore risen to a 58% of the total compared with 53% last year. A review of the prime destinations for Sri Lanka tea exports has Iraq topping the list with a quantity of 26 Mnkg amounting to 15% all shipments. Coming in second is Russia with imports of 14.7 Mnkg, but lower than the quantity of 16.5 Mnkg imported in 2024. Export to and through Libya has jumped a massive 198% YoY from 4.8 Mnkg to 14.3 Mnkg by end August 2025. The UAE follows with a quantity of 12.7 Mnkg and shipments to Turkey are at 12.4 Mnkg. Export to Iran have risen 6% to 8.3 Mnkg and is followed by Chile whose imports have grown 37% YoY to 7.7 Mnkg. Exports to China had declined to 6.8 Mnkg and Azerbaijan 5.9 Mnkg and Saudi Arabia 5.8 Mnkg round off the top ten destinations. (Financial Times, 24.9.2025)
The recent census has revealed that there are 5.1 million toque monkeys, 1.7 million other monkeys in Sri Lanka while it has been found that the population of Grizzled Giant squirrels is 2.6 million. The population of peacocks is 4.2 million. Deputy Minister Namal Karunaratne who revealed this information said only Rs 3.8 million has been spent for the census. (Daily Mirror, 25.9.2025)
Around 15 new breast cancer patients and three related deaths are recorded in Sri Lanka each day, health officials has revealed. Director of the National Cancer Control Programme Dr. Shreeni Alahapperuma told a press briefing recently that 19,457 women had been diagnosed with cancer in 2022, including 5,477 breast cancer patients, accounting for 28% of all female cases. She warned that while breast cancer was curable if detected early, nearly 30% of cases were identified at advanced stages. Official data show 15,245 cancer deaths occur annually, of which 798 are due to breast cancer. Consultant Community Physician Dr. Hasarali Fernando urged women over 20 to perform regular self-breast examinations or clinical checkups. She cited risk factors such as age above 50,family history, genetic mutations and prolonged exposure to estrogen.She recommended women aged 20–40 to undergo a clinical examination once every three years, while those over 40 should have an annual checkup. (Daily Island, 26.9.2025)
An academic has revealed that as many as 1.2 million families in Sri Lanka are headed by women, with the number steadily increasing due to the country’s high divorce rate. Dr. Anusha Edirisinghe, Senior Lecturer in Sociology at the University of Kelaniya, underscored the significant role women play in Sri Lankan society during a panel discussion held on Friday. She emphasized the urgent need to economically empower women, noting that strengthening their financial stability is essential for the well-being of their families and the broader community. (Sunday Mirror, 28.9.2025)
Only two out of five people are computer-literate in Sri Lanka in 2024, with 64.1 per cent of Sri Lankans unable to use a computer, according to statistics released by the Department of Census and Statistics. The Department said the computer literacy rate remained shockingly low, and “The survey results show a decrease of 3.1 percentage points from 2023 to 2024. (Sunday Mirror, 28.9.2025)
The Government continues to improve its fiscal performance with the overall Budget deficit for the first eight months of 2025 falling 54.88% from a year ago to Rs. 411 billion, according to the latest data released by the Central Bank of Sri Lanka (CBSL). The overall Budget deficit in the eight months to the end of August 2024 was Rs. 911 billion. Tax revenue for the eight months grew 31% from Rs. 2.35 trillion a year ago to Rs. 3.07 trillion, with non-tax revenue growing 8% from Rs. 209 billion to Rs. 226.2 billion. Grants fell 17.3% to Rs. 6.7 billion, compared to Rs. 8.1 billion a year ago. Recurrent expenditure in the eight months to end August 2025 grew at a slower pace than revenue, growing 11% from Rs. 3.04 trillion a year ago to Rs. 3.4 trillion. Capital and lending excluding repayments fell sharply by 24% from Rs. 435 billion a year ago to Rs. 331 billion.
The Government recorded a primary balance surplus of Rs. 1.27 trillion in the eight months, up 97% from Rs. 648.7 billion a year ago, with overall Budget deficit declining 55% from Rs. 911 billion a year ago to Rs. 411 billion. CBSL data published debt figures for the first six months of 2025. Total outstanding Government debt was up 3% from Rs. 28.7 trillion a year ago to Rs. 29.6 trillion, with outstanding foreign debt growing 3.8% from Rs. 10.4 trillion to Rs. 10.8 trillion. Total domestic Government debt in the seven months grew 2.7% from Rs. 18.3 trillion a year ago to Rs. 18.8 trillion. Outstanding Treasury Bills fell 3.4% from Rs. 4.1 trillion a year ago to Rs. 3.9 trillion with Bonds up 6% from Rs. 14 trillion a year ago to Rs. 14.9 trillion. (Financial Times, 30.9.2025)
