SRI LANKA NEWS (FEBRUARY 2026) – By Victor Melder
Sri Lanka recorded a current account surplus of USD 1.7 billion (provisional) in 2025, supported by consistent monthly surpluses and a historic high in workers’ remittances exceeding USD8 billion, the External Sector Performance December 2025 report issued by the Central Bank of Sri Lanka said. The report says that the merchandise trade deficit widened on a year-on-year basis in December 2025. Further, the cumulative trade deficit widened to around USD 7.9 billion in 2025 compared to 2024, despite export earnings recording a historically high level in 2025. Vehicle imports, including both personal and commercial vehicles, amounted to USD 301 million in December 2025, bringing cumulative vehicle imports in 2025 to USD 2,047 million. The terms of trade deteriorated on a year-on-year basis in December 2025, as the decline in export prices exceeded the decline in import prices. The terms of trade in 2025 also deteriorated marginally compared to the previous year. The United States, India, and the United Kingdom remained the top export destinations, while China, India, and the United Arab Emirates continued to be the leading sources of imports in 2025. The surplus in the services account increased in December 2025 on a year-on-year basis, rising to USD 344 million from USD 127 million in December 2024. Accordingly, the cumulative services account surplus during 2025 rose to USD 3.7 billion, compared to USD 3.4 billion in 2024. In December 2025, tourist arrivals recorded an increase on both month-on-month and year-on-year basis. Tourist arrivals in 2025 surpassed the level recorded in 2018, while recording a year-on-year growth of 15.1% compared to 2024. However, tourist earnings remained below the 2018 level, due to the downward revision of estimates of average expenditure per day and the average duration of stay, while recording a marginal growth of 1.6% compared to 2024. The report said workers’ remittances amounted to USD 879 million in December 2025. On a cumulative basis, workers’ remittances during 2025 increased by 22.8 % on a year-on-year basis, surpassing USD 8 billion to reach a historic high. Workers’ remittances may include other remittances, such as those received following Cyclone Ditwah. In December 2025, foreign investments in the government securities market recorded a marginal outflow of USD 5 million, while cumulative investments during 2025 amounted to a net inflow of USD 248 million, compared to a net outflow observed in 2024. Meanwhile, foreign investments in the Colombo Stock Exchange (CSE), including both primary and secondary market transactions, recorded a net outflow of USD 7 million in December 2025, contributing to a cumulative net outflow of USD 122 million for 2025, following a net inflow in 2024. Gross official reserves (GOR), including the swap facility with the People’s Bank of China (PBOC), improved to around US$ 6.8 billion by end 2025, even amidst continuous external debt service payments due to the receipts from multilateral institutions and net forex purchases by the Central Bank. Following a depreciation in 2025, the Sri Lanka rupee appreciated by 0.2% against the US dollar during January 2026. Meanwhile, export earnings increased by 6.3% (year-on-year) to USD 13,581 mn in 2025, recording the highest level of export earnings on record. This growth was mainly supported by higher exports of textiles and garments (5%), food, beverages and tobacco (37.4%), and coconut-related products (37.7 %), among others. Import expenditure increased by 14% (year-on-year) to USD 21,480 mn, mainly driven by a substantial increase in vehicle imports in 2025 compared to the previous year. (Daily News, 2.2.2026)
India has increased budgetary assistance to Sri Lanka to INR 4 billion ($ 43.6 million) in its 2026-27 Budget, up from INR 3 billion ($ 32.7 million) in the revised estimates for 2025-26. According to the Notes on Demands for Grants of the External Affairs Ministry, actual Indian assistance to Sri Lanka amounted to INR 3.17 billion ($ 34.6 million) in 2024-25, before being budgeted and revised at INR 3 billion in 2025-26. The 2026-27 allocation represents an increase of around 33% year-on-year. Sri Lanka’s higher allocation comes within a largely unchanged regional assistance framework. Total Indian aid to foreign countries has been budgeted at INR 56.86 billion ($ 620.1 million) for 2026-27, compared to INR 57.84 billion ($ 631.0 million) in the revised estimates for 2025-26. Bhutan remains the single largest recipient of Indian assistance, with an allocation of INR 22.89 billion ($ 249.7 million) in 2026-27. Nepal has been allocated INR 8 billion ($ 87.3 million), while the Maldives is set to receive INR 5.5 billion ($ 60.0 million). Sri Lanka’s allocation places it among India’s more significant bilateral aid partners in the region. Overall expenditure of the External Affairs Ministry has been increased to INR 221.19 billion ($ 2.41 billion) for 2026-27, compared to INR 217.43 billion ($ 2.37 billion) in the revised estimates for 2025-26. (Financial Times, 2.2.2026)
A special Gazette notification has been issued permitting the employment of women over 18 years of age for night work in the hospitality and food service industries, under strict conditions designed to protect their safety, health, and welfare. The Extraordinary Gazette, published on January 30, amends existing regulations under the Shop and Office Employees (Regulation of Employment and Remuneration) Act, expanding opportunities for female workers to be employed during night hours. Under the new rules, women aged 18 and above may work between 6.00 p.m. and 6.00 a.m. in sectors including hospitality, food and beverage services, and related establishments.The Gazette places clear responsibilities on employers, making them fully accountable for the healthcare, safety, and welfare of female employees engaged in night work. Employers must provide suitable accommodation from the end of a shift until 6.00 a.m., or arrange safe transport to the employee’s usual residence if the shift ends during night hours. The regulations also stress the need for a safe working environment, including measures to ensure protection during night-time operations. The amendments were made under Section 66 of the Act and were issued by Minister of Labour Dr. Anil Jayantha Fernando. (Daily Mirror, 2.2.2026)
Plantation companies are expected to spend more than 6 billion rupees to fund their share of a landmark wage increase for estate workers, the largest in the sector’s 200-year history. The government on Friday signed an agreement with regional plantation companies to raise the daily wage of plantation workers from Rs. 1,350 to Rs 1,750. Under the deal, companies will contribute Rs 200 per worker a day, with the government providing the remaining Rs 200. The revised wage will take effect on 10 Feb. The agreement, finalised at the Ministry of Plantations and Community Infrastructure, formalises a proposal made by President Anura Kumara Dissanayake in the 2026 national budget. President Dissanayake had first announced the plan during the budget presentation in November last year, with the support of several opposition lawmakers, including Jeewan Thondaman, Mano Ganesan, Palani Digambaram, and V. Radhakrishnan. Following the budget’s approval, a government delegation led by Minister Samantha Vidyaratna and Deputy Minister Sundaralingam Pradeep held discussions with plantation companies to finalise the wage structure. On 19 Jan, the Cabinet approved relief measures to improve living standards in estate communities, with 5 billion rupees allocated this year for implementation, Cabinet spokesperson Dr. Nalinda Jayatissa said. The Planters’ Association of Ceylon said that plantation companies would collectively spend over Rs 6 billion to cover their share of the increase. (Daily Mirror, 2.2.2026)
Sri Lanka Customs has recorded a strong start to the year, collecting over Rs. 232 billion in revenue in January, significantly exceeding its monthly target and reinforcing its role as one of the Treasury’s key revenue-generating institutions. Official data show that Customs collected Rs. 232.55 billion during the month, surpassing the January revenue target of Rs. 160.2 billion by Rs. 72.35 billion, or 45%. The performance marks one of the strongest monthly revenue outcomes for the Department in recent years. Notably, Customs had already collected Rs. 175.4 billion within the first 22 days of January, exceeding the monthly target by 9.5% even before the end of the month, indicating sustained momentum in import-related revenue inflows. For 2025, Sri Lanka Customs has been assigned an annual revenue target of Rs. 2,207 billion, which is 13.5% lower than last year’s target, primarily due to expectations of a sharp decline in vehicle imports following changes in import policy and demand conditions. Despite the lower annual target, January’s performance suggests a stronger-than-anticipated start to the year In 2024, Customs recorded a historic revenue collection of Rs. 2,551 billion, exceeding a revised annual target of Rs. 2,241 billion. This represented a 64.2% increase compared to the previous year’s revenue of Rs. 1,553 billion, underscoring the significant recovery in trade activity and revenue administration. Officials attribute the January surge to a combination of factors, including increased import volumes, favourable currency movements, and enhanced enforcement measures. Tighter monitoring to curb under-invoicing and misdeclaration of goods has played a key role in strengthening compliance and boosting State revenue. The robust performance has positioned Sri Lanka Customs as a critical pillar of Government revenue in 2025, providing an important buffer as the State works to meet fiscal consolidation targets under the International Monetary Fund (IMF)-supported economic reform program. Analysts note that sustaining this momentum will be vital amid anticipated fluctuations in import patterns, particularly in the vehicle sector, over the course of the year. (Financial Times, 3.2.2026)
Sri Lanka’s internet users stood at 13.9 million last year, an increase of 1.5 million since 2024. It, indicates that 40.3 per cent of the population in Sri Lanka still do not use the internet in their day-to-day life, according to a report by Datareportal. The report titled ‘Digital Sri Lanka 2026’ says that “9.37 million people in Sri Lanka did not use the internet at the end of 2025.” The report further said that among the population aged 18 and above, social media users stood at 9 million by the end of last year, which is 52.5 per cent of the total population (18 and above) and has increased by 870,000 from 2024. Besides, 43.4 per cent of Sri Lanka’s social media user identities are female, as per data. Datareportal also stated that “YouTube’s potential ad reach in Sri Lanka increased by 690 000 (+8.5 per cent) between the end of 2024 and late 2025. Meanwhile, on a quarter-by-quarter basis, the data show that the number of users that marketers could reach with ads on YouTube in Sri Lanka increased by 380 000 (+4.5 per cent) between July 2025 and October 2025.” Data published in Meta’s planning tools show that Instagram’s potential ad reach in Sri Lanka increased by 400 thousand (+21.6 per cent) between October 2024 and October 2025. On a quarterly basis, the company’s data also reveal that the size of Instagram’s ad audience in Sri Lanka increased by 100 thousand (+4.7 per cent) between July 2025 and October 2025. (Daily Mirror, 3.2.2026)
Former Prisons Department Spokesman, Lion Jagath Chandana Weerasinghe, said heavy congestion prevails in prisons across the country, noting that 40,000 prisoners are being detained nationwide in facilities with a capacity of only 10,500. Addressing a seminar he said 65 per cent of the prisoners were Sinhala Buddhists and the majority of them have been involved in the contraband trade of drug trafficking or drug peddling. “Among the 40,000 prisoners and suspects, 66 children are included. In addition, 806 convicts sentenced to death, including 18 women, are held in condemned cells. About 2,000 women suspected of involvement in murder, robbery, and drug offences are on remand. The majority of detainees are uneducated, and several are illiterate. It is sad that the victims of this startling situation are young men and women. Even the son of a senior official in the Education Administrative Service is serving a jail term for a drug offence,” he said. He further stated that children are at risk of falling prey to anti-social activities at the instigation of organised gangs. He urged parents to inculcate social values in their children during their formative years and lead them along the right path to make the country a better place to live. (Daily Mirror, 7.2.2026)
A 150-hectare site near the Kalu Ganga Reservoir in Matale District has been earmarked for Sri Lanka’s first-ever holding centre for Toque Macaques, the Department of Wildlife Conservation (DWC) announced. The centre will feature water, food, and security facilities, providing a safe environment to manage macaques that cause damage in nearby communities. The Matale District Development Committee has approved the project, following a recommendation from the DWC. Wildlife Range Officer Chamath Lakshman Perera told the Committee that similar holding centres operate in several countries, including Malaysia. A total of Rs. 283.87 million has been allocated for the project. Under the plan, macaques causing destruction will be captured and relocated to the centre. Population control measures will include fitting loops on female monkeys to prevent breeding. The facility will be secured to ensure the animals cannot escape back into the wild. Officials said the site has sufficient natural food sources, but additional supplies will be provided if necessary. Each macaque is expected to require around 70 grams of food per day. The project aims to balance wildlife conservation with community protection, offering a model for managing human-macaque conflicts in the country, Perera said. (Daily Island, 9.2.2026)
Badulla District has been identified as one of the areas in Sri Lanka where children are most frequently subjected to abuse by their own parents, largely due to the absence of birth certificates, Minister of Women and Child Affairs Saroja Savitri Paulraj said. The Minister revealed that over 3,000 children living on estates remain without birth certificates, leaving many effectively unregistered in official records. She said steps have already been taken to issue these children with presumed age certificates. “The highest number of cases of children being assaulted by their parents has been reported from Badulla. The main reasons are parental addiction to alcohol and drugs, as well as illiteracy,” the Minister added. She also noted that 103 children lost one or both parents due to Cyclone Ditwah, and a special program has been launched under presidential instructions to ensure their care, protection, and future safety. Meanwhile, a female officer from the Badulla Women and Children’s Unit said that by 2025, 83 cases of rape and child abuse had been reported in the district, along with 273 complaints of domestic violence. She warned that 51 children have become vulnerable after their parents migrated overseas, with many left in the care of elderly grandmothers, posing risks to their health and safety. Monthly monitoring has been introduced for these children under five categories. With crimes against women and children on the rise, the Badulla Women and Children’s Unit has also launched a special program to identify and support vulnerable families in the district.(Daily Mirror, 9.2.2026).
Of the six fallen elephants found in the Madhu jungles over the weekend, two died, police said. Sources said that though Wildlife personnel treated them, two couldn’t be saved. Police suspect poisoning.(Daily Island, 11.2.2026)
Colombo, Feb. 10 (Daily Mirror) – The first female conductors appointed to the Sri Lanka Transport Board (SLTB) assumed duties today (February 10). The women commenced their duties from the Makumbura Multi-Modal Centre (MMC) in Kottawa, officially beginning their roles as conductors on state buses. A total of 19 women were recently appointed as SLTB conductors, becoming the first female conductors in the history of the state bus service.(Daily Mirror, 11.2.2026)
Sri Lanka has made significant strides in global perceptions of public sector integrity, moving up 14 places in the 2025 Corruption Perceptions Index (CPI) released yesterday (10) by Transparency International. The latest CPI, which evaluates more than 180 countries and territories on perceived levels of public sector corruption shows Sri Lanka’s score rising from 32 in 2024 to 35 in 2025. This increase has elevated the country’s ranking from 121st to 107th globally. (Daily Mirror, 12.2.2026)
Sri Lanka continues to face a growing public health challenge as more than one-third of the country’s adult population is now classified as overweight or obese, according to a national nutrition and diet study conducted by International Food Policy Research Institute and Department of Applied Nutrition, Wayamba University of Sri Lanka. The report which was released in 2024 says that among adults, overweight and obesity are significantly more common in women, with prevalence rates roughly 10 percentage points higher than in men. While obesity is less common among younger children, approximately 12 percent of adolescents in Sri Lanka are overweight or obese, signaling a growing risk of long-term health problems. Health experts warn that obesity is closely linked to the country’s increasing burden of non-communicable diseases. NCDs account for 84 percent of all deaths in Sri Lanka, with diabetes-related death and disability rising by 34.8 percent between 2009 and 2019. The report highlights that “overweight and obesity are part of a broader “double burden of malnutrition” affecting the country, where undernutrition and micronutrient deficiencies coexist alongside rising rates of diet-related non-communicable diseases (NCDs).” Nearly 30 percent of adults have hypertension, and about one-quarter of the population lives with diabetes, conditions strongly associated with unhealthy diets and excess body weight. Dietary habits are identified as a major contributing factor. Sri Lankan meals are largely centered on rice and other starchy staples, often with limited quantities of nutrient-rich foods. Only 27.5 percent of adults consume the World Health Organization’s recommended daily intake of fruits and vegetables, while national supply levels remain below recommended standards. The report notes that improving diet quality, increasing fruit and vegetable consumption, and reducing unhealthy food intake are essential steps to address obesity and prevent diet-related diseases. (Daily Mirror, 12.2.2026)
A 68-year-old woman was killed and three others injured after two wild elephants stormed into the Valaichchenai town in Batticaloa early this morning. The incident occurred at around 6:00 a.m. when the elephants reportedly entered the town and nearby village areas, triggering panic among locals. However, the victim, who was selling string hoppers at the time, was attacked by one of the elephants during the intrusion. She succumbed to her injuries at the scene. Three other individuals sustained injuries in the incident and were rushed to the hospital for treatment. Wildlife and police officials were alerted, and steps were taken to drive the elephants back into the nearby forest areas. (Daily Mirror, 13.2.2026)
The widespread availability of anti-Rabies vaccines in Government hospitals had helped reduce the number of Rabies deaths to 14 last year, Public Health Veterinary Services (PHVS) Director Dr. Niroshan Gamage said. Despite this progress, the number of dog bite cases remain high, according to Public Health Inspectors (PHIs). Around 500 people seek hospital treatment for dog bites daily, with the Western Province including Colombo and Gampaha districts, reporting the highest numbers, PHIs said. “Dog bites have increased significantly, and so has the number of dogs,” said President of the PHI Union, K.A.P. Boralessa. “This follows the country’s official ban on dog culling in 2006,” the Union official added. PHI Union Secretary M.A.A.D.S. Muthukuda said that the roaming dogs are believed to be responsible for around 75 percent of minor road accidents involving motorcycles, bicycles and to some extent, other vehicles, although no formal survey has been conducted so far. Dr. Gamage said the PHVS had conducted awareness campaigns on Rabies and expanded efforts to sterilise and vaccinate stray dogs across the country. The Government spent Rs 800 million on Rabies control in the past year, expending Rs 280 million on medicines for people treated following Rabies-infected dog bites, Rs 180 million on vaccinating animals and Rs 200 million on sterilising animals. Dr. Gamage said the number of dog bites reported annually ranges from 150,000 to 200,000, while rough estimates put the number of dogs at 2.5 to 2.7 million. The Association of Companion Animal Practitioners (ACAP) reports around 250,000 animal bites every year. He said there had been a temporary increase in the number of dogs in some areas, particularly in sacred cities and towns where the animals are fed by the public and allowed to breed. “There has been no scientific study on the number of dogs in the country,” he said. “We recently discussed with Prof. Ashoka Dangolla of the Faculty of Veterinary Medicine and Animal Science at Peradeniya University, as to how such a survey could be carried out.” The World Health Organization (WHO) recommends a comprehensive “One Health” approach to Rabies control, combining mass dog vaccination, public awareness, surveillance and prompt post-exposure treatment of humans. PHVS sources said the country has adapted to this by gradually increasing dog vaccination coverage, promoting sterilisation programs through district Veterinary Units, and maintaining free anti-Rabies treatment for bite victims across Government hospitals. PHIs said the vaccination and sterilisation efforts conducted by District Veterinary Units have been low relative to the number of stray dogs, due to constraints such as staff shortages and limited support from the Local and Municipal authorities. “As PHIs, we focus predominantly on human Rabies control,” said PHI Union Secretary Muthukuda.(Sunday Observer, 15.2.2026)
The Bill to abolish the pensions of Members of Parliament (MPs) was passed in Parliament yesterday, marking a significant legislative step on a matter that has long been the subject of public debate. The Parliamentary Pensions (Repeal) Bill was passed in Parliament with 154 voting for and 2 against. Earlier this month, the Supreme Court ruled that the Parliamentary Pensions (Repeal) Bill does not contain any provisions that are inconsistent with the Constitution, allowing it to be passed by Parliament with a simple majority. The ruling was communicated to the Speaker in accordance with Article 121(1) of the Constitution, following a legal challenge to the Bill. Announcing the Court’s decision in Parliament on 6 February, the Speaker said the Supreme Court had confirmed that none of the Bill’s provisions violate constitutional provisions, clearing the way for its enactment. The Parliamentary Pensions (Repeal) Bill gazetted in January this year, aims to abolish pension entitlements for MPs and their spouses under the existing Parliamentary Pensions Act. It received Cabinet of Ministers and Attorney General approval before being gazetted for presentation in Parliament. (Financial Times, 18.3.2026)
Sri Lanka’s Foreign Minister Vijitha Herath and Portugal’s Foreign Minister Paulo Rangel agreed to establish a joint committee to conduct a preliminary study on the return of Sri Lankan artefacts currently held in Portugal. During an official meeting at the Ministry of Foreign Affairs, Minister Rangel expressed support for the proposal made by Minister Herath regarding artefacts taken away during the Portuguese rule, stating that the proposal should be accepted and that a joint committee will be formed to study the matter. The discussion also focused on the implementation of the Cultural Agreement between Sri Lanka and Portugal, with plans to initiate further dialogue on its execution. The two Ministers also discussed strengthening cultural and human relations based on historical ties and agreed to develop programmes to enhance cooperation in investment, trade, tourism and renewable energy. Both sides emphasised establishing a political dialogue mechanism to advance bilateral relations and addressed regional and global issues of mutual importance. Continued collaboration within the United Nations was also reaffirmed. In addition, Minister Herath expressed gratitude for Portugal’s emergency disaster relief assistance following Cyclone Ditwah and requested further support for reconstruction efforts in Sri Lanka. (Daily Mirror, 25.2.2026)
Health authorities have raised concerns over a growing number of colorectal cancer cases reported among Sri Lankans aged between 30 and 50, contributing to nearly 3,000 cases recorded in the country during 2022. Regional Director of Health Services Dr. Senaka Thalagala said colorectal cancer is now the second most common cancer among men and the third among women in Sri Lanka. Medical experts noted that colorectal cancer was traditionally more common among individuals over the age of 50. However, recent data indicate a noticeable rise in cases among younger adults, pointing to a concerning shift in disease patterns. Speaking at a media briefing held at the Health Promotion Bureau, Consultant Community Physician Dr. Hasarali Fernando of the National Cancer Control Programme described the trend as a serious public health issue. She emphasised the importance of early screening, timely diagnosis and increased public awareness to reduce the growing risk. Dr. Fernando also urged the public not to ignore early warning signs and to seek medical advice promptly if symptoms appear. (Daily Mirror, 26.2.2026)
The Department of Census and Statistics (DCS) has set Sri Lanka’s official poverty line at Rs. 16,730 per person per month for January 2026, reflecting the minimum amount needed to meet basic needs. Colombo emerges as the country’s most expensive district, with an individual requiring Rs. 18,044 monthly to cover essential living costs. The national poverty line, continuously updated to account for inflation and changing economic conditions, has been recalculated using the National Consumer Price Index (NCPI) with a new base year of 2021 (Base: 2021=100). The framework for determining basic needs continues to rely on the 2012/13 Household Income and Expenditure Survey. A decade-long comparison shows a sharp rise in living costs. In 2012/13, the poverty line hovered just above Rs. 5,000 per month, rising gradually to around Rs. 6,000 by 2016 and Rs. 7,000 by 2019. Economic disruptions and inflation accelerated this growth, with the line surpassing Rs. 16,000 in early 2025 and reaching Rs. 16,730 last month.District-level analysis shows considerable variation across the island. Colombo consistently remains the district with the highest poverty line, requiring an individual to spend a minimum of Rs. 18,044 per month to meet basic needs in January 2026. This is closely followed by other districts in the Western Province, with Gampaha at Rs. 17,951 and Kalutara at Rs. 17,562. Other major districts across the island also highlight varying economic dynamics; for instance, the poverty line stands at Rs. 16,983 in Kandy, Rs. 16,998 in Galle, Rs. 16,434 in Kurunegala, and Rs. 16,327 in Jaffna. Conversely, Moneragala recorded the lowest minimum requirement among the districts at Rs. 15,997. The recent increase in the official poverty line was driven by a higher NCPI value, with year-on-year inflation for January 2026 reported at 2.4% and the NCPI reaching 211.4. (Daily Mirror, 26.2.2026)
Land values in Colombo District continued their upward trajectory in the second half of 2025, with the Land Valuation Indicator (LVI) recording a 10.6% year-on-year increase, according to the statistics of the Central Bank of Sri Lanka (CBSL). The LVI reached 261.9 during July–December 2025 period, reflecting broad-based growth across residential, commercial and industrial land segments. Residential land value rose by 12.4% year-on-year, while commercial and industrial lands recorded an increase of 11.3% and 8.0%, respectively, compared to the corresponding period in 2024. On a semi-annual basis, the overall LVI increased by 2.1% compared to the first half of 2025. Commercial and residential land segments posted stronger gains during the six-month period, while industrial land values recorded a more moderate uptick. The LVI, which is based on 2017 as the benchmark year (2017 H1 = 100), captures movements in land prices across all 13 Divisional Secretariat (DS) Divisions in the Colombo District. The indicator is compiled using average per perch bare land prices obtained from the Government Valuation Department. The Central Bank noted that the index, previously known as the Land Price Index (LPI), was rebased and renamed as the LVI from 2020 onwards and is released on a semi-annual basis. The sustained increase in land value signals continued demand for property in Colombo, underpinned by activity across residential, commercial and industrial sectors. (Daily News, 27.2.2026)
