SRI LANKA NEWS
(DECEMBER 2025)
Compiled by Victor Melder
In the wake of massive floods that have ravaged one-third of the country, Sri Lanka requires Rs. 31 billion as of November 28 for the restoration of agriculture, irrigation tanks, and damaged canals, according to a communication from the Foreign Ministry.In the immediate aftermath of the disaster, the Ministry issued an appeal for international assistance. The government has requested Rs. 15 billion for the restoration of paddy lands and vegetable crops destroyed by heavy rains. In addition, Rs. 4.8 billion is needed for the rehabilitation of minor irrigation tanks, Rs. 900 million for the repair of anicuts, Rs. 8.3 billion for minor irrigation systems, and Rs. 1.8 billion for irrigation canals. As many as 510,000 hectares of cultivated rice fields have been washed away by the floodwaters. To re-cultivate these lands, the government has sought fertiliser from international donors—112,000 metric tons of Urea, 30,000 metric tons of MOP, and 30,000 metric tons of TOP. Following the initial appeal, further damage has occurred to the irrigation system, with the breach of the Mavil Aru dam wall in the Eastern Province being the latest incident. (Daily Mirror, 1.12.2025)
Prices of essential food items soared across the country yesterday morning as ongoing adverse weather and disaster conditions severely disrupted supply chains. Vegetable prices rose by more than threefold while fish prices doubled, with major wholesale markets including Peliyagoda and Dambulla reporting severe shortages. Many sections of these economic centres were left deserted as deliveries failed to arrive, leaving traders with only limited stocks,mainly of up-country vegetables. At the Peliyagoda vegetable market, wholesale prices reached record levels, with carrots selling at Rs. 1,500 per kilogram, beans at Rs. 1,300, leeks at Rs. 1,200, and cabbage between Rs. 900 and Rs. 1,000 per kilogram.Traders said the small available stocks were cleared within a few hours. Other vegetables also recorded steep increases, with pumpkin selling at Rs. 600 per kilogram, brinjal at Rs. 900, and green chillies climbing to Rs. 1,500 per kilogram. Supplies of many other vegetables were either extremely limited or unavailable altogether. The situation was similar at the Peliyagoda fish market, where stocks were scarce. Wholesale prices were reported at Rs. 800 per kilogram for balaya and linna, while salaya was selling at Rs. 600 per kilogram. A wholesale trader explained that the shortage was caused by fishermen being unable to go out to sea due to rough weather and the removal of fishing cages for safety reasons. He added that there was little hope of regular fish supplies returning for at least the next two days. Consumers across several districts reported difficulties in purchasing essential food items, as both limited availability and soaring prices continued to place added pressure on households already affected by the continuing disaster situation. (Daily Mirror, 1.12.2025)
Sri Lanka’s import bill is likely to face upward pressure due to the ongoing floods, which have created an increased need for the replacement of damaged capital goods and equipment during restoration work, The Island learns. This comes at a time when the country’s merchandise trade deficit had already expanded significantly in the first ten months of 2025, reaching US$ 6,182 million, compared to US$ 4,745 million in the same period last year, according to the latest Weekly Economic Indicators report released by the Central Bank. The data for the period ending October 2025 reveals a challenging external sector performance, driven by a faster rise in import expenditure relative to export earnings – a trend likely to be exacerbated by the ongoing flood situation. Export earnings showed a modest growth of 6.4% (year-on-year), climbing to US$ 11,364 million. This increase was primarily led by a strong 13.0% surge in agricultural exports and a 39.8% jump in the export of food, beverages, and tobacco. However, this was offset by a 12.4% decline in earnings from petroleum product exports. In contrast, import expenditure surged by 13.8% to US$ 17,546 million. A striking 59.6% increase in the import of consumer goods was a major contributor to this growth, signaling a rise in domestic demand. Imports of investment goods also rose robustly by 20.5%. This imbalance led to a deterioration in the terms of trade, which fell by 2.0% to 85.9 index points in October 2025, indicating that the prices of imports rose faster than the prices of exports. Beyond the trade figures, the report highlighted several other key developments in the economy for the week ending 28 November 2025: The widening trade deficit underscores the ongoing pressures on the country’s balance of payments, even as other sectors like construction show signs of growth. Economists are closely watching the trends in import demand and export performance in the coming months for signs of rebalancing. The ongoing floods are expected to exert further upward pressure on import expenditure, as government institutions, businesses and households will need to replace damaged machinery and equipment. (Daily Island, 1.12.2025)
The Commissioner-General of Essential Services in a press release on 3rd December. states that according to the reports received regarding the damage caused to various sectors, it has been identified that 1777 tanks, 483 dams, 1936 canals and 328 agricultural roads belonging to the Department of Agricultural Services have been damaged, and it has been reported that 137,265 acres of land have been destroyed, and 305 minor irrigation channels have also been damaged. In addition, 246 roads belonging to the Road Development Authority that were obstructed have been restored to traffic. However, 22 bridges in the country’s road system have been destroyed, of which 6 are in the Uva Province, 4 in the Northern Province, 4 in the North-Western Province, 3 in the Western Province, 2 in the Central Province, 2 in the Eastern Province, and 1 in the North-Central Province. It has also been identified that the country’s railway system has been severely damaged, and out of the total railway system of 1,593 km in length, only 478 km can be used for train operations at this time. 91% of the broken telephone connections have been restored by now. However, the restoration of telecommunication facilities in the Nuwara Eliya district needs to be further carried out. Also, 11315 out of 16178 power substations that were disrupted due to the disaster have been reactivated, and accordingly, 2,526,264 out of 3,531,841 consumer power connections, or 72%, have been restored. (Daily Island, 4.12.2025)
According to the UN Office for the Coordination of Humanitarian Affairs (OCHA), 998,918 people across all 25 districts of Sri Lanka have been affected by the severe flooding and landslides triggered by Cyclone Ditwah, which made landfall on November 28 before moving back over the Bay of Bengal. The disaster has resulted in 212 deaths and 218 people reported missing. More than 180,000 people from over 51,000 families are currently sheltering in 1,094 government-run safety centres, as search and rescue operations continue. Initial assessments revealed that over 15,000 homes have been destroyed, while more than 200 roads remain impassable, at least 10 bridges have been damaged, and sections of the rail network and national power grid have been affected. The hardest-hit districts include Gampaha, Colombo, Puttalam, Mannar, Trincomalee, and Batticaloa, while deadly landslides in the central hill country have devastated Kandy, Badulla, and Matale. Flooding along the Kelani River, which runs through Colombo and surrounding low-lying areas, continues to hamper access and disrupt communication from affected communities, complicating relief operations. Northern districts such as Jaffna have reported severe disruptions to electricity, mobile networks, and transport, leaving entire villages isolated. Access to clean water remains a major concern, with several areas receiving little or no supply. OCHA has highlighted that Sri Lanka’s already fragile health system is under severe pressure. Several district hospitals remain flooded and are receiving only limited supplies, with critically ill patients being airlifted to functioning facilities. The World Health Organization (WHO) warned that the floods significantly increase the risk of vector-borne, food-borne, and water-borne diseases, urging communities to take precautions such as preventing mosquito bites, ensuring food safety, and using safe drinking water. Response efforts are further hindered by recurring landslides and the breach of multiple tank bunds, including at Mavilaaru, heightening risks in Trincomalee and Batticaloa. Authorities have also warned of rising food insecurity, as submerged farmland, damaged storage facilities, and severed supply routes threaten shortages and potential price increases in the weeks ahead. Humanitarian agencies continue to work alongside government authorities to provide relief, restore essential services, and support affected communities across the island. (Daily Mirror, 1.12.2025)
Sri Lanka’s flood and landslide emergency intensified yesterday in the aftermath of Cyclone Ditwah, with the Disaster Management Centre reporting 366 deaths, 367 people missing and 1,151,776 individuals affected across 25 districts as of 12 p.m. on 1 December. The latest situation report shows that 316,366families have been impacted, reflecting the scale of the crisis as authorities widen response efforts. The DMC said 1,564 safety centres are now operating island-wide and are sheltering 61,612 families, totaling 218,526 displaced people. Many of these centres are congested and coping with limited resources, while access to some affected areas remains restricted by washed-out roads, submerged settlements and continuing rains. nAs of 10:00 a.m. yesterday, the highest number of casualties has been reported from the central region. Kandy recorded 88 deaths and 150 missing, the largest figure for any district, as rescuers contend with landslides and unstable slopes. Badulla has reported 71 deaths and 53 missing, with teams continuing to search through areas cut off by earth slips and debris. Nuwara Eliya reported 75 deaths and 62 missing, with persistent rainfall hampering clearing operations and assessments. Large population centres in the Western Province and North Western Province are among the districts with the highest number of people affected or displaced. Gampaha has reported 218,899 affected persons with 4,799 families housed in safety centres. Colombo has recorded 218,123 affected individuals and 5,303 displaced families in shelters. Puttalam, one of the earliest districts hit by rising water levels, has reported 173,165 affected persons and 4,104 families in relief centres.nMannar, Trincomalee, Anuradhapura and Polonnaruwa are also experiencing significant displacement, each hosting thousands of evacuees in temporary shelters. Mannar has 79,946 affected people and 5,273 families in centres. Trincomalee has 71,944 affected persons, with nearly 5,000 families now housed in 53 shelters. Anuradhapura has reported 30,703 affected persons and 2,497 displaced families, while Polonnaruwa has 24,845 affected individuals and 3,472 families in centres.Northern districts, including Jaffna, Mullaitivu, Kilinochchi and Vavuniya, have recorded lower fatalities but continue to report substantial displacement. Mullaitivu has 102 safety centres accommodating 1,410 families. Jaffna has 57 centres housing 1,619 families. Kilinochchi and Vavuniya have reported steady increases in evacuees as flood levels rise across low-lying pockets. Southern districts such as Matara, Hambantota and Galle remain comparatively less affected, with limited displacement and isolated damage reports. However, disaster officials warned that conditions could deteriorate depending on the next spell of rainfall and the rate at which reservoirs and rivers continue to swell. Emergency response units have been deployed across all provinces, supported by the military, police and local authorities. Evacuations, supply distribution and clearance of blocked access routes continued through the day, although officials acknowledged that shortages of clean water, medical care and fuel for generators were already placing pressure on several large shelters. The DMC said that figures are likely to change as assessments progress and access improves to isolated or cut-off villages. Officials said district-level reporting teams are continuing to compile updates as weather conditions evolve. (Financial Review, 2.12.2025)
The Disaster Management Centre (DMC) reported that the death toll from the ongoing disaster situation impacting all 25 districts has risen to 410. According to the latest update, 1.4 million people from 407,594 families have been affected as floods, landslides and severe weather continue to batter the country. The DMC further stated that 565 houses have been fully damaged, while 20,271 houses have suffered partial damages. Despite the improving weather in some areas, 233,015 people remain displaced, with 1,441 individuals currently sheltered in safety centres across the island.(Daily Mirror, 2.12.2025)
Sri Lanka’s highway network has sustained damages roughly estimated at a staggering Rs.190 billion following the recent weather-induced disasters such as floods, earth-slips and landslides, an official said. Cyclone Ditwah brought torrential downpours that triggered floods, riverine floods, earth-slips and landslides across the country. The entire district was affected, more or less, killing nearly 500 people and affecting well over 1.5 million. Director General of the Road Development Authority (RDA) Wimal Kandambi told Daily Mirror that the rough estimate of the damage to the highway network stood at Rs,190 billion at the moment. However, he said there was no major damage to the expressways this time. During the disaster, the entire Kandy district remained cut off from the rest of the country with all the highways linking the city with other areas being damaged. (Daily Mirror, 4.12.2025)
The Industry and Entrepreneurship Development Ministry has reported that 416 manufacturing and export factories across Sri Lanka have been affected by Cyclone Ditva. The ministry has proposed providing 25% of the total damages to the affected factories immediately. Restoration efforts are currently underway using a data collection method. Factory owners are urged to report damages via the hotline 071 266 6660 by December 16.The highest number of affected factories have been recorded in the districts of Gampaha, Colombo, Puttalam, Trincomalee, Kegalle, Kurunegala, Matara, Kandy, and Batticaloa. The ministry has allocated Rs. 3 billion in non-repayable subsidies to support the rebuilding of these industries, with urgent steps being taken to release the funds. Many industrialists have also called for the restoration of water, electricity, and road infrastructure to facilitate faster recovery. (Daily Mirror, 5.12.2025)
The economic loss of Cyclone Ditwah is roughly estimated at around US $ 6 to 7 billion – more than three times the damage caused by the 2004 tsunami, an official said yesterday. Newly appointed Commissioner General of Essential Services Prabath Chandrakeerthi told Daily Mirror this was a rough estimate only, and a proper post-disaster assessment would be carried out later to work out the economic recovery plan. According to him, the economic damage of the 2004 tsunami was estimated only at US $ 1.5 to 2 billion. Asked whether the government will alter the 2026 budget and seek fresh engagement with the International Monetary Fund (IMF), Mr. Chandrakeerthi said it would be considered only after the proper assessment of the economic loss. “We have only a rough estimate now,” he said.(Daily Mirror, 5.12.20250
The Situation Report issued by the Disaster Management Center [DMC] at 2000hrs on Saturday [06] confirms that 607 persons have died due to the recent flooding and landslides while another 209 persons were missing. The death toll in the Kandy district which one of the most affected districts has risen to 232, and 1800 houses have been fully damaged. The number of missing persons reported is 81 100,124 persons belonging to 29,874 families were being housed at 990 safety centers established by the government. (Sunday Island, 7.12.2025)
Official reserves have dipped 3% from a month ago to $ 6.03 billion as of end-November 2025 from $ 6.21 billion in end-October, latest Central Bank of Sri Lanka (CBSL) data showed. The end-November reserves figure is the lowest for 2025. Reserves peaked at $ 6.51 billion in March. Reserves stood at $ 6.45 billion a year ago, end-November 2024. As of end-November 2025, foreign currency reserves fell to $ 5.94 billion from $ 6.1 billion, while gold reserves increased to $ 85 million from $ 80 a month earlier. International Monetary Fund (IMF) special drawing rights was down to $ 2 million from $ 31 million a month ago. The CBSL estimates foreign currency payments over the next 12 months at $ 2.05 billion. (Financial Times, 8.12.2025)
An estimated 2.3 million people – more than half of them women – were living in areas flooded by Cyclone Ditwah that struck Sri Lanka on 28 November. New geospatial analysis from the United Nations Development Programme (UNDP) shows floodwaters from the cyclone inundated more than 1.1 million hectares – almost 20 percent of the country’s land area – and caused significant damage to homes, infrastructure and essential services. The analysis, which draws from disaster related data from the Government of Sri Lanka, provides a nationwide picture of the cyclone’s impact, which is being termed as one of the worst flooding disasters to hit Sri Lanka in decades. Over half of the people in the flooded areas were living in households already facing multiple vulnerabilities before the cyclone, including unstable income, high debt, and limited ability to cope with disasters. Under these conditions, even moderate shocks can turn into long-lasting setbacks. The floodwaters reached nearly 720,000 buildings, about one in every twelve buildings in the country. Over 16,000 kilometres of roads, enough to circle the island’s coastline more than twelve times, were exposed to flooding. Similarly, over 278 km of railway tracks and 480 bridges were located in flooded areas. The exposed population includes approximately 1.2 million women, 522,000 children and 263,000 older persons, with over 60% of all exposed people living in just two districts (Colombo and Gampaha). Many in affected areas across the country live in high-risk, disaster-prone areas, requiring a permeant solution. This concentration of exposure is placing heavy pressure on essential services “Where high flooding and high vulnerability overlap, recovery is likely to be slower and more costly. Early action in these locations is critical,” Kubota said. In the country’s hilly inland, the cyclone triggered around 1,200 landslides. Working closely with the national authorities and partners, UNDP is calling for scaled-up early recovery support to help communities get back on their feet. This includes restoring essential services, supporting affected households, particularly women, children, and older persons, repairing key transport and service-delivery infrastructure, and strengthening local systems for future climate resilience. “After one of its worst economic crises and a slow but steady recovery underway, Sri Lanka cannot shoulder more debt to cover the costs of a rebuild from this massive natural disaster”, said Azusa Kabota. “International partners must step up with affordable financing and innovative instruments that enable a rapid recovery and rebuilding with greater resilience, without the country falling off the debt cliff. (Daily Mirror, 9.12.2026)
According to the latest report from the Disaster Management Center, Cyclone Ditwah has caused extensive damage across Sri Lanka, completely destroying 5,325 houses nationwide. The Kandy district reported the highest number of fully destroyed houses at 1,815, followed by Nuwara Eliya with 767 homes. Other severely affected districts include Kurunegala (476), Puttalam (415), Badulla (404), and Kegalle (300). In addition to fully destroyed homes, a significant number of houses were partially damaged. Kandy again tops the list with 13,422 houses, followed by Kegalle (11,601), Ratnapura (7,869), Badulla (7,291), Gampaha (5,830), Puttalam (4,809), Vavuniya (4,135), Nuwara Eliya (4,135), Kurunegala (3,600), Polonnaruwa (3,526), and Anuradhapura (2,249). The calamity has also displaced large numbers of people, with Puttalam district being the most affected: 349,429 individuals from 98,146 families. Colombo district follows closely, with 328,847 people from 85,803 families displaced. Other heavily impacted districts include Kandy (161,140 people, 51,098 families), Trincomalee (86,376 people, 25,999 families), Kurunegala (85,891 people, 25,055 families), Mannar (77,451 people, 23,641 families), Mulathivu (67,340 people, 22,918 families), and Anuradhapura (72,359 people, 21,948 families). Authorities continue to assess the damage and provide relief to affected families as part of ongoing disaster response efforts .(Daily News, 9.12.2025)
The external debt stock reached $ 37,238 million at end-September 2025, rising $ 100 million from the previous quarter, according to the Public Debt Management Office’s latest Quarterly Debt Bulletin.Sri Lanka settled $ 1.36 billion in external debt servicing in the first half of 2025, covering 55% of the $ 2.45 billion due for the full year, according to data from the Public Debt Management Office and the Central Bank of Sri Lanka (CBSL). This leaves $ 1.09 billion to be met in the second half of the year. CBSL Governor Dr. Nandalal Weerasinghe recently said that annual external debt servicing will average around $ 2.75 billion till 2027 under current commitments. From 2028 onwards, it is projected to rise, reaching between $ 3.2 billion and $ 3.5 billion, and peaking at close to $ 4 billion in certain years within the next decade, he said.
According to the 3Q 2025 Debt Bulletin, multilateral lenders account for 37% of the external portfolio, followed by commercial debt at 34% and bilateral debt at 29%. ISBs continue to dominate commercial liabilities, representing roughly 81% of the category, with the balance comprised of syndicated foreign-currency term facilities. The ADB and the World Bank together make up more than 83% of multilateral exposures. Among bilateral creditors, 59% of outstanding loans are from non-Paris Club lenders, while 41% originate from Paris Club members. The bulletin records substantial progress in the external debt restructuring process since the country defaulted its debt in April 2022. On 26 June 2024, Sri Lanka concluded debt treatment agreements with the Official Creditor Committee and separately with the Export-Import Bank of China. Amendment arrangements were signed to operationalise both sets of agreements. The restructuring of loans from the China Development Bank was completed through amendment agreements on 24 December 2024. Commercial restructuring proceeded in parallel. An agreement in principle with ISB holders was reached on 19 September 2024, with the subsequent bond exchange finalised on 16 December 2024. Participation reached nearly 98%, enabling almost the entire stock of defaulted ISBs to be converted into new instruments. Progress with Paris Club creditors continued through 2025. Sri Lanka concluded bilateral amendatory agreements with Japan on 24 March 2025, with the Export-Import Bank of India on 25 March (Lines of Credit) and 3 April (Buyer’s Credit Agreements), and with the Government of France on 16 June. Agreements with EXIM Bank of Hungary on 01 July and the United Kingdom on 22 August brought total completion of restructuring commitments to about 94% More recently, SriLankan Airlines reached an agreement in principles with external Bondholders holding $ 175 million worth of debt instruments.
With these arrangements in place, the Government has resumed regular debt servicing to the respective creditor partners.(Financial Times, 10.12.2025)
The Official Poverty Line (OPL) across all districts in October this year has increased, according to a Department of Census and Statistics (DCS) survey. The OPL at the National level has increased during the preceding months to October, 2025. The OPL increased to Rs. 16,421 in October from Rs. 16,413 in the previous month and Rs. 16,397 in August. Districtwise the OPL was high in Colombo at Rs. 17,710 which had increased from Rs. 17,684 in August to Rs. 17,702 in September. The lowest OPL has been reported from the Moneragala district recording Rs. 15,701 though it had risen from Rs. 15,678 in August to Rs. 15,694 in September. The OPL at national level had been declining since January 2024 from Rs. 17,014 to Rs. 16,191 in December the same year. However, poverty in Sri Lanka is 24.5% of the population as of 2024, according to World Bank and IMF estimates. The The OPL was updated based on the 2012/13 Household Income and Expenditure Survey. District Official poverty lines have been re-estimated adjusting for price differences using the National Consumer Price Index (NCPI) (Base: 2021=100). The Official poverty line increased due to the higher National Consumer Price Index (NCPI) value reported in October, 2025 compared to the preceding month. The National Consumer Price Index (NCPI) is a macroeconomic indicator compiled to measure inflation and is more precise for estimating the Official Poverty Line (OPL). The index adheres to methods consistent with international best practices and is calculated using the prices gathered from all nine provinces. The first base year for the NCPI was 2013 (Base: 2013=100). A decade after its setting up, the OPL was updated based on the data from the Household Income and Expenditure Survey (HIES) conducted in 2012/13. Updated OPL was published in 2021 based on data from the HIES conducted in 2019 and adjusted for changes due to inflation based on the NCPI (Base : 2013=100). The revised OPL value in 2012/13 was Rs. 5,223 and Rs. 6,966 for 2019. District level official poverty lines have been revised based on spatial price indices developed using data from the HIES-2019. National and district level poverty lines are calculated on an ongoing basis using the NCPI computed monthly by the DCS. (Sunday Observer, 14.12.2025)
The Government has drawn attention to providing compensation of Rs. 10,000 per coconut tree, along with coconut saplings, to farmers whose coconut trees were destroyed by the recent Cyclonic Storm Ditwah. Chairman of the Coconut Cultivation Board, Dr. Sunimal Jayakody, said the coconut industry has been severely affected by the disaster and requested the public to submit relevant information to facilitate the compensation process. He further said that a large number of coconut saplings at the Coconut Cultivation Board’s seed coconut nursery in Kilinochchi were submerged due to flooding caused by heavy rains. Dr. Jayakody added that plans are in place to replant coconut saplings in the future to replace trees destroyed by landslides and floods.Meanwhile, the Coconut Development Authority stated that damages to coconut-related industries caused by the cyclone and floods have been estimated at approximately Rs. 1,576 million. The Authority has so far received reports of 87 coconut-related industries that have been severely affected. (Daily Mirror, 14.12.2025)
The total number of houses completely destroyed across Sri Lanka due to the calamity triggered by Cyclone Ditwah has exceeded 6,000, according to the latest report issued by the Disaster Management Centre (DMC). The DMC said a total of 6,164 houses have been completely destroyed, while a further 112,110 houses have sustained partial damage nationwide as a result of adverse weather conditions. Among the affected areas, the Kandy District has recorded the highest number of completely destroyed houses, with 2,013 homes reduced to rubble. The Nuwara Eliya District reported the second-highest number, with 767 houses destroyed. Meanwhile, the Puttalam District has recorded the highest number of partially damaged houses, totaling 21,137. The district has also reported 632 houses completely destroyed due to the severe weather experienced over the past two weeks, the DMC added. The total number of people affected by Cyclone Ditwah has risen to 2.2 million, with 1.7 million people severely impacted, according to the latest figures released by the Disaster Management Centre. Director General of the Centre, Sampath Kotuwegoda, said that approximately 495,000 families have been affected by the cyclone and its aftermath. He further revealed that 629 bodies have been recovered so far, while 211 people remain missing, based on reports received from District Coordination Offices. (Daily Mirror, 14.12.2025)
Total private sector borrowings in October 2025 spiked to a record Rs. 246.10 billion, resulting in the total outstanding amount reaching Rs. 9.76 trillion, up 24.1% from a year ago. This is the highest monthly private sector borrowing this year after Rs. 236 billion in September, followed by Rs. 227 billion in August. According to the latest Central Bank of Sri Lanka (CBSL) data, domestic banking sector credit to the private sector in October amounted to Rs. 247.7 billion. The outstanding private sector debt stock from domestic banks during the first 10 months of 2025 was Rs. 9.76 trillion, up 25.8% from a year ago, and Rs. 583 billion from overseas banks, unchanged from a year ago. Outstanding credit stock to the Government grew 2.8% year-on-year (YoY) to Rs. 8.2 trillion as of end-October, with credit from domestic banks up 2.8% YoY to Rs. 6.3 trillion. Total credit to public corporations was down 12% YoY to Rs. 587 billion, with the domestic banking sector debt stock at Rs. 534 billion, down 13.35% from a year ago. Private sector credit growth data will likely be as encouraging for November 2025. However, the impact of Ditwah on private sector credit will only be known over the next few months. In end-November, the CBSL, delivering the sixth and final Monetary Policy Review for 2025 announced that rates would remain unchanged at 7.75%. CBSL Governor Dr. Nandalal Weerasinghe said then that further easing of rates is still possible as the country had built sufficient buffers – monetary, reserves, and fiscal – if there are any global headwinds. However, the comments came before Cyclone Ditwah hit the island. Post-Ditwah, Dr. Weerasinghe said the CBSL expects supply chain disruptions from the cyclone to cause only a brief increase in inflation to about 3%. He said inflation should revert once bottlenecks clear. “Over a period of time, once supply chain issues are addressed, I would say we will come back to the normal inflation trajectory,” he said. “We will maintain stability going forward, as we have been doing so far under the framework.” The CBSL has also announced several measures to help businesses affected by the Ditwah disaster to access bank credit at concessionary rates and terms. At the regulatory level, the CBSL has directed licenced banks to roll out targeted debt relief and concessional credit for borrowers affected by the recent cyclonic disaster. The measures include suspending capital and interest repayments on existing facilities for three to six months on a case-by-case basis, extending new loans with capped interest rates, waiving penal charges and fees until end-January 2026, and easing access to credit without automatic rejection based on adverse Credit Information Bureau (CRIB) records. The relief is to be granted on request by affected borrowers by 15 January 2026 and is intended to support households and businesses while preserving financial system stability. (Financial Times, 15.12.2025)
Workers’ remittances during the first 11 months have crossed the $ 7 billion mark, aided by a record $ 673.4 million inflow in November 2025. The November inflow represents a robust 27% year-on-year (YoY) increase, extending a series of record monthly performances seen this year. Despite easing slightly from October’s $ 712 million, November’s inflows remained significantly stronger than historical benchmarks. Cumulatively, workers’ remittances for the first 11 months of 2025 surpassed $ 7.1 billion, reflecting a 20.7% YoY increase and the strongest performance for the January-November period since 2016. The year-to-date (YTD) total is also 9.7% higher than the $ 6.5 billion recorded during the same period of 2016, a benchmark year that still holds the record for the highest annual remittance inflow of $ 7.24 billion. While November’s inflow was $ 38.6 million lower than October’s peak, it comfortably exceeded the $ 567.37 million recorded in November 2016, highlighting the resilience of remittance flows amid global economic uncertainty. Remittances continue to be Sri Lanka’s single largest source of foreign exchange, playing a critical role in stabilising the balance of payments. The post-crisis recovery in remittances has been particularly pronounced. In 2023, inflows surged by 57% to $ 5.96 billion, rebounding sharply from a 12-year low of $ 3.78 billion in 2022 during the height of the economic crisis. This momentum carried into 2024, when remittances increased by a further 10.1% to $ 6.57 billion, supported by a rise in outbound labour migration as many Sri Lankans sought employment overseas following the collapse. Historically, between 2014 and 2018, Sri Lanka’s annual worker remittances averaged around $ 7 billion, or roughly $ 600 million per month, reinforcing the sector’s longstanding role as a stabilising pillar of the economy. With YTD inflows already exceeding $ 7.1 billion, 2025 is shaping up as one of the strongest years for remittances since the pre-crisis period, providing much-needed support to external finances. (Financial Times,15.12.2025)
The Registrar General’s Department has confirmed that the birth and marriage registration certificates of over one million people have been destroyed due to the landslides and floods caused by Cyclone Ditwah. Registrar General Mrs. Shashi Devi Jaldeepan said that mobile service programs have already been launched to issue new birth and marriage certificates to those affected. The Department estimates that more than half of the nearly 2.2 million people impacted by the recent disaster have lost these vital documents. Under the initiative, registration certificates are being issued free of charge through a one-day expedited service in 22 districts affected by the disaster. In addition, efforts are underway to issue death certificates for individuals who died in the landslides and floods or remain missing. So far, the mobile service program has been carried out in Kottawa and Kandy districts. District Deputy Registrars are currently collecting data on people who do not have birth and marriage certificates. Mrs. Jaldeepan further said that the Department aims to complete the issuance of these certificates before the end of January next year. (Daily Mirror, 16.12.2025)
Sri Lanka’s tea production declined in November 2025, reversing the marginal gains seen a month earlier, although cumulative output for the year to date remained ahead of last year’s levels. Provisional data compiled by Forbes & Walker Research show November production at 21.45 million kilos (Mnkg), a decrease of 1.28 Mnkg from 22.73 Mnkg recorded in November 2024. All elevations recorded negative variances year-on-year. Compared to November 2023, however, output increased by 1.67 Mnkg from 19.78 Mnkg. High Grown production fell 8.41% year-on-year to 4.59 Mnkg, while Medium Grown output declined 7.58% to 3.89 Mnkg. Low Grown production decreased by 3.96% to 12.78 Mnkg, accounting for the largest absolute drop in volume, a decline of 0.53 Mnkg. Green tea output slipped 5.28% to 192,855 kilos. Against 2023 levels, all categories except green tea recorded increases, with Medium Growns posting a double-digit gain.
Cumulative production for January to November 2025 reached 242.57 Mnkg, up 1.69 Mnkg from 240.88 Mnkg in the corresponding period of 2024. All elevations recorded gains compared to last year, with High Grown output rising 1.18% to 50.55 Mnkg, Medium Grown increasing 1.85% to 43.49 Mnkg, and Low Grown edging up 0.17% to 146.40 Mnkg. Green Tea production increased 3.17% to 2.14 Mnkg.
Compared to the 236.28 Mnkg produced in the first 11 months of 2023, cumulative output in 2025 reflects an increase of 6.29 Mnkg. Medium Grown, Low Grown, and Green Tea segments exceeded 2023 levels, while High Grown production remained 4.52% below the corresponding period. (Financial Times, 17.12.2025)
The total number of houses completely destroyed across Sri Lanka by the calamity triggered by Cyclone Ditwah has surpassed 13,000, according to the Disaster Management Centre (DMC). The DMC said 13,781 houses have been reduced to rubble, while a further 101,055 houses have sustained partial damage nationwide due to adverse weather conditions. Among the affected areas, the Kandy District recorded the highest number of completely destroyed houses, followed by the Nuwara Eliya District. Meanwhile, the Puttalam District reported the highest number of partially damaged. (Daily Mirror, 17.12.2025)
Sri Lanka’s tea production declined in November 2025, reversing the marginal gains seen a month earlier, although cumulative output for the year to date remained ahead of last year’s levels. Provisional data compiled by Forbes & Walker Research show November production at 21.45 million kilos (Mnkg), a decrease of 1.28 Mnkg from 22.73 Mnkg recorded in November 2024. All elevations recorded negative variances year-on-year. Compared to November 2023, however, output increased by 1.67 Mnkg from 19.78 Mnkg. High Grown production fell 8.41% year-on-year to 4.59 Mnkg, while Medium Grown output declined 7.58% to 3.89 Mnkg. Low Grown production decreased by 3.96% to 12.78 Mnkg, accounting for the largest absolute drop in volume, a decline of 0.53 Mnkg. Green tea output slipped 5.28% to 192,855 kilos. Against 2023 levels, all categories except green tea recorded increases, with Medium Growns posting a double-digit gain. Cumulative production for January to November 2025 reached 242.57 Mnkg, up 1.69 Mnkg from 240.88 Mnkg in the corresponding period of 2024. All elevations recorded gains compared to last year, with High Grown output rising 1.18% to 50.55 Mnkg, Medium Grown increasing 1.85% to 43.49 Mnkg, and Low Grown edging up 0.17% to 146.40 Mnkg. Green Tea production increased 3.17% to 2.14 Mnkg. Compared to the 236.28 Mnkg produced in the first 11 months of 2023, cumulative output in 2025 reflects an increase of 6.29 Mnkg. Medium Grown, Low Grown, and Green Tea segments exceeded 2023 levels, while High Grown production remained 4.52% below the corresponding period. (Daily Financial Times, 18.12.2025)
The total lendings by commercial banks and non-banking institutions in 2024 has exceeded Rs 1 trillion, Opposition MP Ravi Karunanayake told Parliament today. MP Karunanayake, who raised a question on the issue, inquired as to how the increasing of debt creation could affect the economy. (Daily Mirror, 18.12.2025)
Sri Lanka’s export sector has continued its strong upward trajectory, recording a significant 5.8 % y-o-y growth during the period from January to November 2025. Based on Sri Lanka Customs statistics and estimated export figures for Gems & Jewellery, Petroleum Products and services, total exports reached US$ 15,776.36 Mn, the performance signals sustained growth and improved external trade conditions. In November 2025 alone, total exports, comprising both merchandise and services reached to US$ 1,364.52 Mn, reflecting an impressive year-on-year growth of 5.56 % over November 2024. This performance highlights the strength of Sri Lanka’s export sector and the effectiveness of the strategies implemented to expand market access and enhance global competitiveness. Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB), stated that Sri Lanka’s export earnings during the January–November 2025 period reached US$ 15,776.36 million, reflecting strong year-on-year growth. He noted that this performance underscores the resilience and competitiveness of Sri Lanka’s export sector, supported by the recovery of key markets, sustained production capacity, and the effective implementation of export development strategies. He further emphasized that the encouraging growth reflects Sri Lanka’s deeper integration into global trade and the continued focus on enhancing export competitiveness and market diversification, with exporters demonstrating resilience and innovation in navigating evolving global challenges. He also highlighted that achieving over 86.3% of the annual export target by the end of November 2025 is a clear indication of the strength and commitment of Sri Lanka’s export community. In November 2025 alone, merchandise exports grew by 5.95 % year-on-year, reaching US$ 1,053.22 Mn, according to provisional data of Sri Lanka Customs including the estimates for Gems & Jewellery and Petroleum Products. For the period January to November 2025, merchandise exports totaled US$ 12,417.98 Mn, reflecting 6.41 % increase compared to the same period in 2024. In November 2025, earnings from services exports estimated to have increased by 4.27% to US$ 311.3 Mn. Over the period of January to November 2025, services exports are estimated to have increased by 3.63 %, totaling US$ 3,358.38 Mn. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings. The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island. (Daily News, 23.12.2025)
All forms of street vending within the Kandy Municipal Council area will be banned from January 1.The Kandy Mayor said the decision had been taken as part of efforts to preserve it as a clean and aesthetically pleasing city and to allow the public to move freely while enjoying its surroundings. He said the ban would apply not only to streets in the city centre but across the entire municipal council area. The move, he added, follows long-standing public requests for a more systematic regulatory framework within the Kandy urban area and is aimed at ensuring public convenience and welfare. Wijenayake stressed that the decision would be implemented without reversal. The Kandy Municipal Council has already issued formal notices to pavement vendors directing them to cease operations. Street vendors had requested a three-month grace period to relocate, which will expire on December 31. (Daily Island, 26.12.2025)
Sri Lanka Customs has achieved a record revenue of Rs. 2,497 billion in 2025, exceeding the revised annual target, according to Customs Media Spokesperson and Director Chandana Punchihewa. The Ministry of Finance had initially set a target of Rs. 2,115 billion for the year. Collections surpassed this figure by November, prompting a revision of the target to Rs. 2,231 billion, which has now also been exceeded. The growth in revenue is attributed to a combination of internal measures introduced by Customs and the resumption of vehicle imports, which significantly increased collections. Last year’s revenue target stood at Rs. 1,531 billion, and the higher 2025 target reflected both the allowance of vehicle imports and the expectation of stronger Customs performance. According to Punchihewa, vehicle imports played a major role in exceeding the target, alongside the various operational improvements and measures adopted by Customs to boost revenue. (Daily News, 29.12.2025)
A brief by the ILO outlines the devastating labour market impact of Cyclone Ditwah, which made landfall in Sri Lanka in late November. It shows that up to 374,000 workers have been potentially affected by flooding and landslides, with potential income losses accruing to US$48 million per month. The brief calls for a mix of emergency cash employment-intensive early recovery programs to restore livelihoods, sectoral assistance to agriculture, fisheries and plantation, and longer-term strengthening of social protection systems to increase resilience.The brief combined remote sensing data on flood extent, population, agriculture and nightlight with labour force survey data to provide a preliminary snapshot of the situation in the affected area. This innovative approach provides timely insights into the potential impact on livelihoods and aims to guide both the emergency response and medium-term support to help workers regain a foothold in the labour market. The ILO research estimates that up to 374,000 workers worked in the area directly impacted by floods and landslides. This represents US$48 million in potential earnings lost per month if these workers are unable to work or find quality employment elsewhere. Agriculture and fisheries sector were severely hit. Up to 23 per cent of rice-cultivating land has been affected by the floods, and preliminary estimate of output losses in the tea industry could be as high as 35 per cent. In the latter, smallholder farmers, who account for 70 per cent of sectoral output, have been disproportionately affected. Considering these disastrous conditions, the brief calls for immediate measures to support the restoration of livelihoods. Emergency cash assistance and the widespread rollout of employment-intensive recovery activities that ensure decent working conditions should be prioritized in the short -term, combined with specific sectoral support and assistance to MSMEs to swiftly restore means of production. (Daily Island, 26.12.2025)
Sri Lanka’s apparel industry has delivered a robust performance during the first 11 months of 2025, with cumulative exports reaching $ 4,571.99 million, marking a 5.42% increase over the same period last year, according to data released yesterday by the Joint Apparel Association Forum (JAAF). Sri Lanka’s total apparel exports for November 2025 reached $ 367.60 million, representing a slight decrease of 1.96% compared to $ 374.94 million in November 2024.The monthly performance showed mixed results across key markets: US $ 152.32 million (up 5.79% from $ 143.98 million), EU (excluding UK) $ 119.61 million (up 3.35% from $ 115.73 million), UK $ 43.63 million (down 13.83% from $ 50.63 million), and other markets $ 52.04 million (down 19.44% from $ 64.60 million). Despite the November softness, cumulative apparel exports for the 11-month period from January to November 2025 demonstrate solid growth, reaching $ 4,571.99 million—a 5.42% increase over the corresponding period in 2024 ($ 4,336.84 million). Year-to-date (YTD) performance by market: EU (excluding UK) $ 1,435.39 million (up 13.07%); other markets $ 742.98 million (up 5.75%); US $ 1,769.08 million (up 1.73%); and UK $ 624.54 million (down 0.22%). The JAAF said: “The 5.42% growth in our cumulative exports for the first 11 months of 2025 reflects the resilience and adaptability of Sri Lanka’s apparel sector in navigating a challenging global environment. While we experienced a modest 1.96% decline in November, this should be viewed within the broader context of our strong YTD performance.” “Particularly encouraging is our 13.07% growth in the EU market, which demonstrates the success of our strategic focus on strengthening relationships with EU buyers and meeting their increasingly stringent sustainability and compliance requirements. Similarly, our continued growth in the US market, despite tighter margins, shows that Sri Lankan manufacturers remain competitive on quality, delivery, and ethical manufacturing standards,” it added. (Financial Times, 31.12.2025)
Sri Lanka crossed the 2.3 million tourist arrivals milestone on 26 December, marking its strongest post-crisis performance and edging towards passing the 2018 record of 2.33 million visitors. As per Sri Lanka Tourism Development Authority (SLTDA) data up to 25 December, cumulative arrivals stood at 2,298,987, with the 2.3 million mark crossed the following day. This places 2025 marginally ahead of the previous all-time high of 2.33 million visitors recorded in 2018, and around 12% higher than the 2.05 million arrivals recorded in 2024, underlining the sector’s recovery momentum. During the first 25 days of December, Sri Lanka welcomed 195,394 tourists for the month, compared with 191,465 during the same period in December 2024, a growth of just over 2% year-on-year (YoY). Against a full-month target of 344,309 arrivals, this leaves a gap of nearly 149,000 visitors to be achieved in the final six days of the year. That would require daily arrivals of close to 25,000, from 7,816 at present, making the monthly target mathematically unrealistic Based on historical year-end patterns and current run rates, December is now expected to close in the range of 260,000-270,000 arrivals, broadly in line with last year rather than the aggressive target set for 2025. This would take total arrivals for the year to around 2.35-2.4 million, effectively meeting the revised lower-end objective, but falling short of the more ambitious scenarios. (Financial Times, 31.12.2025)
