SRI LANKA NEWS
(OCTOBER 2025)
Compiled by Victor Melder
Alcohol consumption in Sri Lanka has shown a decade-long downward trend, with a new 2024 survey revealing that fewer than 30% of men are current drinkers. Another survey conducted has revealed that tobacco use has also recorded a significant reduction in Sri Lanka and that the rate of current smokers among men has fallen to 21.6%. Both studies were conducted by the Alcohol and Drug Information Centre (ADIC) in 2024 and found that most of the young people view drinking alcohol as a purposeless behaviour and smoking as a useless behaviour. According to the studies, there is a significant generational shift in attitudes, with young people increasingly quitting alcohol and smoking. The “Trend Survey on Alcohol Consumption in Sri Lanka – 2024” surveyed males aged 15 and above across 11 districts, including Colombo, Jaffna, Galle, and Badulla. It found that 29.1% of participants were current consumers, defined as having consumed alcohol within the 30 days prior to the survey. This continued decline is attributed to successful alcohol control policies, public awareness campaigns, and community interventions. The most striking is the finding that 27.9% of all participants reported being successful quitters. The motivations for quitting, however, varied significantly by age. While older individuals cited health concerns, younger people were more likely to quit because they perceived drinking as pointless. The study highlights the need for age-specific prevention strategies that address the different values of each generation. Peer pressure – a key driver for initiation. Despite the positive trend in quitting, the survey emphasises the powerful role of social influence in starting to drink as a significant 46.6% of current consumers reported that their first experience with alcohol was with friends. This finding reveals the critical importance of addressing peer pressure in prevention efforts, especially for young people. Among current drinkers, 18.0% were between the ages of 15 and 21, indicating that a substantial number of young people are still initiating alcohol use. ADIC recommends implementing a national prevention program aimed specifically at children and youth to discourage them from starting in the first place. Tax hikes curb production while boosting revenue The report also highlights the impact of government fiscal policy on alcohol consumption as statistics from the Excise Department of Sri Lanka shows a sharp decline in total alcohol production after 2022, with successive increases in excise duties. The Government implemented a 20% tax hike in June 2023, followed by another 14% in January 2024, with a further 6% increase planned for January 2025. While production has fallen, government revenue from alcohol excise taxes has soared, rising from Rs. 169.49 billion in 2022 to Rs. 223.25 billion in 2024. This trend, according to the report, demonstrates the effectiveness of taxation as a dual-purpose tool recommended by the World Health Organization (WHO) where it successfully increases government income while simultaneously helping to reduce alcohol-related harm. Calls for stronger policies and enforcement The ADIC has recommended several initiatives to strengthen Sri Lanka’s alcohol control framework to reduce initiation and address the health, social, and economic impact of alcohol use. They are to expedite the adoption of proposed amendments to the National Authority on Tobacco and Alcohol (NATA) Act, to implement a scientific tax formula that automatically increases excise duties annually in line with inflation and economic growth and to cease issuing temporary liquor licenses and stop granting new licenses under the pretext of promoting tourism. The study has also recommended enhancing law enforcement to control the illegal alcohol market, to prevent interference from the alcohol industry aimed at weakening policies and to improve and implement counselling and treatment services for individuals struggling with alcohol dependency. Smoking declines due to shift in attitudes Meanwhile the ADIC study on tobacco use in Sri Lanka has also found a sharp decrease in smoking mainly due to the success of national tobacco control policies and a significant generational shift in attitudes, with a majority of young people quitting or reducing their use because they perceive smoking as a useless behaviour. The ‘Trend Survey on Tobacco Use in Sri Lanka – 2024’ surveyed males aged 15 and above across 11 districts to map contemporary smocking patterns. The findings show that while progress is being made, significant challenges, particularly peer pressure and industry influence, remain in the effort to create a tobacco-free generation. A positive decline: More quitters and reduced consumption The survey reveals a notable positive trend: 36.5% of all participants have successfully quit smoking, and an additional 20.9% of current smokers have reduced their consumption. This decline is largely attributed to important public health measures, especially tax increases. According to the report, a 20% excise duty hike on cigarettes in 2023 proved highly effective. It not only increased government revenue by Rs. 7.7 billion but also led to a significant 18% reduction in cigarette production, equivalent to 521.5 million fewer sticks compared to the previous year. This is also going with WHO’s recommendations that higher prices reduce the affordability of tobacco and, in the long run, decrease consumption. The reasons for quitting and reducing use differ while price changes were a major factor. The most cited reason was the perception of tobacco use as a ‘useless behaviour’, particularly among the younger population. Peer pressure and social gatherings Despite the overall decline, the survey highlights that young people remain a vulnerable group as 11.6% of current smokers are between the ages of 15 and 21, indicating that underage smoking is a persistent issue. The primary reason for initiation, according to ADIC findings, is social influence. The report states that the majority of initiations occur at social gatherings, with peer pressure being a key driving factor. ADIC warns that promotions by the tobacco industry through traditional and social media also play a significant role in creating a positive image of smoking among vulnerable groups. The study highlights the urgent need for enhanced awareness within communities and stronger policy formulations to delay or prevent young people from starting to smoke. Implement a ‘Tobacco-Free Generation’ The ADIC survey findings recommend several measures crucial to prevent smoking among underaged individuals. One of the main recommendations is to implement a ‘Tobacco-Free Generation’ Policy recommended by the Sri Lanka Medical Association, where sale of tobacco products to be banned to anyone born after 2010, which will facilitate substantial social and economic gains in the long run. Among other recommendations of the ADIC are banning single stick sales to make cigarettes less affordable and accessible, especially to youth. The report calls for the strict implementation of the ban on selling single sticks, enforcing sales restrictions as survey calls for better enforcement of existing laws, including the prohibition of tobacco sales within a 100-metre radius of schools and to underage individuals, and creating a National Prevention Program, which the ADIC recommends as a program to expose tobacco industry tactics and reinforce the message that smoking is a ‘purposeless and harmful behaviour’. (Sunday Financial Times, 5.10.2025)
Sri Lanka’s current account surplus expanded in the first eight months of 2025, reaching $ 2.04 billion on the back of stronger remittances, services and tourism earnings, and moderate export growth, even as the merchandise trade deficit widened, the Central Bank of Sri Lanka (CBSL) said.In its latest external sector data release, the CBSL said that the current account registered a surplus of $ 2.04 billion during the first eight months of 2025, up 26.1% year-on-year (YoY) from $ 1.6 billion in the same period last year. Merchandise trade dynamics showed signs of easing as the trade deficit narrowed in August 2025 to $ 414 million, compared to $ 422 million a year ago, with exports growing at a faster pace, up 4% YoY to $ 1.28 billion in August 2025, compared to imports, which grew 2.6% to $ 1.69 billion during the month. In the first eight months of 2025, the merchandise trade deficit widened 19.6% to $ 4.26 billion, up from $ 3.56 billion a year ago. Imports grew by 10.5% YoY to $ 13.34 billion, compared to $ 12.07 billion a year earlier, while merchandise exports grew at a slower 6.7% to $ 9.07 billion from $ 8.5 billion a year ago. The terms of trade deteriorated in August 2025, as the rise in import prices outpaced the increase in export prices, while the Sri Lankan rupee depreciated 3.3% year-to-date (YTD) to end-September 2025 against the US Dollar. The services sector declined by 5.4% year-on-year in August 2025 to $ 291 million relative to its $ 308 million performance in the corresponding period of 2024. However, net inflows in the services sector recorded a 2.3% YoY increase during January-August 2025, amounting to $ 2.66 billion. Tourist arrivals reached 198,235 during the month of August 2025, marking a growth of 20.4% compared to August 2024. However, tourism earnings fell 8.2% YoY to 259 million. Further, earnings from tourism were estimated at $ 2.3 billion during January-August 2025, recording a 5.7% increase compared to $ 2.1 billion in the corresponding period of 2024. Workers’ remittances amounted to $ 681 million in August 2025, up 18% from a year ago with cumulative remittances growing 19.3% to $ 5.1 billion from $ 4.3 billion a year ago. However, foreign investment activity was mixed. Foreign investments in the Government securities market continuing to record a net inflow of $ 32.9 million in August 2025, compared to $ 30 million outflow a year ago.
Foreign investments in the Colombo Stock Exchange (CSE), covering both primary and secondary markets, recorded a net outflow of $ 15.2 during the month, down 219.6% from a $ 12.7 million inflow a year ago.During the eight-month period, the CSE recorded a $ 69 million outflow, down 258% from a $ 43.6 million inflow a year ago while inflows to Government securities surged 155% to $ 140.2 million compared to a $ 251 million outflow a year ago. Debt related investment inflows grew 34% YoY to $ 714 million in the eight-month period while portfolio investments fell 39% to $ 332.6 million. Gross official reserves, including the swap facility with the People’s Bank of China (PBOC), was up marginally from a month earlier at $ 6.2 billion as of end-August 2025 amid debt servicing, the CBSL said. (Sunday Financial Times, 5.10.2025)
Sri Lanka has witnessed a troubling rise in crimes against children over the past three years, according to a recent National Audit Office report. Between 2022 and 2024, a total of 8,492 cases, including sexual abuse, murder, and exploitation, were recorded.The audit highlights 4,309 incidents of sexual abuse and notes that 54 children were killed during this period. Year-wise, the report shows 2,821 cases in 2022, 2,764 in 2023, and 2,907 in 2024, reflecting a steady increase in offenses against minors. The figures were included in the 2024 Police Department performance report, underscoring the urgent need for strengthened child protection measures. (Sunday Island, 5.10.2025)
Around 100 new cancer patients are being diagnosed in Sri Lanka every day, amounting to nearly 35,000 cases annually, it was revealed. According to Health and Media Minister Dr. Nalinda Jayatissa, oral cancer remains the most commonly detected form in the country. He further pointed out that cancer treatment places a heavy burden on the health sector, with nearly 30 percent of total drug expenditure allocated to cancer medicines. “Although the number of cancer drugs is comparatively small, their costs are extremely high,” he noted. Dr. Jayatissa also drew attention to the wider threat posed by non-communicable diseases (NCDs), which account for most deaths among Sri Lankans aged 30 to 70. As such, he urged the public to focus on prevention, early detection, and lifestyle changes to address the rising incidence of cancer and other NCDs. (Daily Mirror, 6.10.2025)
The Sri Lankan government has announced a major Cabinet reshuffle to accelerate its 2026 development goals. Accordingly, Bimal Ratnayake has been appointed as the Minister of Transport, Highways and Urban Development, Anura Karunathilaka as the Minister of Ports and Civil Aviation and Susil Ranasinghe as the Minister of Housing, Construction and Water Supply. In addition, ten Deputy Ministers have also been appointed. Deputy Ministers are as follows: Dr. Anil Jayantha Fernando – Deputy Minister of Finance and Planning, T.B. Sarath – Deputy Minister of Housing, Construction and Water Supply, M. Muneer – Deputy Minister of Religious and Cultural Affairs, Eranga Gunasekara – Deputy Minister of Urban Development, Dr. Muditha Hansaka Wijemuni– Deputy Minister of Health, Aravinda Senarath Vitharana – Deputy Minister of Lands and Irrigation, H.M. Dinindu Saman Kumara – Deputy Minister of Youth Affairs, U.D. Nishantha Jayaweera – Deputy Minister of Economic Development, Dr. Kaushalya Ariyarathne– Deputy Minister of Mass Media M. Arkam – Deputy Minister of Energy (Daily Mirror, 10.10.2025)
The Defence Ministry and Police have stepped up operations to arrest and take action against over 50,000 tri-forces members, including officers, who have left the service or are absent without official leave (AWOL).. Deputy Defence Minister Aruna Jayasekara said that 54,087 personnel of the tri-forces are currently AWOL. This includes 385 Army officers and 47,265 other ranks, 46 Air Force officers and 3,396 other ranks, and 87 Navy officers and 3,108 other ranks. He added that several personnel are abroad without leave. 232 Army officers and 93 other ranks, 19 Navy personnel, and 15 Air Force personnel. Military Spokesman Brigadier Franklin Joseph said operations are ongoing to arrest personnel who are AWOL, after which disciplinary action will be taken before they are legally discharged from service. He added that those absent for less than a year may either be discharged or reassigned. “We have warned those absent without leave to report to their regiments to be discharged, or we will arrest them and proceed with disciplinary action before discharge,” he said. Regarding concerns that the high number of personnel leaving the service could affect Sri Lanka’s plan to downsize the military by 2030, Brigadier Joseph acknowledged the challenge but said downsizing plans account for the number of personnel who may go AWOL each year. Earlier this year, Defence Secretary Sampath Thuyacontha ordered the immediate arrest of deserters following a rise in organized crime involving former military personnel, particularly those with weapons training. Thousands of deserters have been arrested in the first nine months of 2025 as part of these operations. (Daily Mirror, 10.10.2025)
Total private sector borrowings increased to Rs. 226.8 billion in August 2025, the highest monthly figure after Rs. 221 billion in June 2025, resulting in the outstanding amount crossing Rs. 9.28 trillion during the first eight months of the year, up 8.7% from a year ago. According to the latest Central Bank of Sri Lanka (CBSL) data, domestic banking sector credit to the private sector in August amounted to Rs. 239.2 billion, while credit from foreign banks fell by Rs. 12.4 billion The outstanding private sector debt stock from domestic banks during the first eight months of 2025 was Rs. 8.68 trillion, up 8.3% from a year ago. Total private sector borrowings in August was the highest for the year behind June. In April, credit demand was low at Rs. 87 billion, a development linked to the Sinhala-Tamil New Year holidays. February saw Rs. 105 billion in demand for credit, whilst January suffered a reduction of Rs. 4.6 billion following a recent high of Rs. 193 billion in credit demand in December 2024. Outstanding credit stocks to the Government grew 4.8% year-on-year (YoY) to Rs. 8.38 trillion as of end-August, with credit from domestic banks up 19.5% YoY to Rs. 6.44 trillion. Total credit to public corporations was down 41% YoY to Rs. 618 billion, with the domestic banking sector debt stock at Rs. 564.4 billion, down 42% from a year ago. (Financial Times, 13.10.2025)
Sri Lanka’s workers’ remittances surged to $ 695.7 million in September, marking the third highest monthly inflow so far in 2025, according to the latest data released by the Central Bank of Sri Lanka (CBSL). The figure reflects a 25.2% year-on-year (YoY) increase and represents the sixth consecutive month of record inflows, underscoring the steady recovery of foreign worker earnings. Cumulatively, workers’ remittances in the first nine months of 2025 rose 20% YoY to surpass $ 5.8 billion, registering the strongest performance for the period since 2020. The year-to-date (YTD) figure also represents an 8% increase compared to the over $ 5.38 billion registered in the same period of 2016—the year that holds the record for the highest annual workers’ remittances inflow at $ 7.24 billion. The sharpest post-crisis rebound was in 2023, when workers’ remittances grew by 57% to $ 5.96 billion, recovering from a 12-year low of $ 3.78 billion in 2022. In 2024, workers’ remittances hit a four-year high of $ 6.57 billion, up by 10.1% from 2023. This growth was followed by a record wave of people seeking foreign employment after an unprecedented economic crisis. Historically, the highest-ever annual workers’ remittances were recorded in 2016, whilst between 2014 and 2018, the annual inflows averaged around $ 7 billion, or roughly around $ 600 million per month. (Financial Times, 13.10.2025)
Official reserve assets inched upward to $ 6.24 billion as of end September 2025, after stagnating at $ 6.1 billion the previous two months. According to the latest Central Bank of Sri Lanka (CBSL) data, foreign currency reserves amounted to $ 6.18 billion by end-September, with Gold reserves amounting to $ 58 million. The CBSL expects a $ 2.1 billion outflow within the next 12 months, including debt servicing. Last week, the International Monetary Fund (IMF) said strong tourism receipts, remittances, and exports have helped offset the impact of higher imports on reserves. IMF Mission Chief Evan Papageorgiou said: “Reserve accumulation is an outcome of many variables, not just the imports of vehicles which remove dollars from the market, but also offsetting aspects with strong tourism, strong remittances, and ongoing general strength on the export sector.” He added that the CBSL remains on track to meet or exceed its net international reserve target. (Financial Times, 13.10.2025)
A new study has revealed that a large number of Sri Lankan adolescents are facing serious mental health challenges, with one in four showing clinically significant symptoms of depression and more than half reporting high levels of psychological distress. The research, conducted among over 1,000 upper school students in the Gampaha district, examined adolescents from urban, semi-urban, and rural settings. According to the study, 24 per cent of students displayed symptoms of depression, while 60 per cent reported significant psychological distress. Researchers identified several key risk factors contributing to higher stress levels. These included being female, exposure to violence, low levels of physical activity, daily social media use, parental conflicts, and heavy academic pressure. The findings also suggest that female adolescents are particularly vulnerable to stress and depression compared to their male peers. Commenting on the findings, Consultant Child and Adolescent Psychiatrist, Miyuru Chandradasa, a key contributor to the study, said the results should serve as a wake-up call for parents, educators, and policymakers. He stressed the importance of creating supportive environments at home and in schools, promoting physical activity, and reducing stigma around seeking mental health support. With adolescent years being a critical stage for emotional and social development, he warned that failure to address these issues could have long-term consequences for the country’s future generation. (Daily Mirror, 13.10.2025)
The Sri Lanka Tourism Development Authority (SLTDA) announced that 1,788,235 tourists visited Sri Lanka in 2025 up to now, with 62,741 arrivals during the first 12 days of October 2025. SLTDA highlighted that 38,475 tourists arrived from October 1 to 7, 2025, while 24,266 arrived from October 8 to 12, 2025.Meanwhile, tourist arrivals from major source countries have increased, with India leading at 18,299 visitors, followed by China with 5,417, the United Kingdom at 4,874, Germany with 3,804, Australia at 2,954, and the United States with 1,558. (Daily Mirror, 14.0.2025)
Sri Lanka Police have confiscated assets valued at Rs. 3,902 million from organised crime figures between 2021 and 2024, Police Media Spokesperson Assistant Superintendent of Police (ASP) F.U.K. Wootler said yesterday. ASP Wootler said assets worth an additional Rs. 730 million have been seized so far in 2025. The confiscated properties include 354 gold sovereigns, 72 vehicles, 35 houses, cash amounting to Rs. 670 million, and around 37 acres of land linked to major drug traffickers. He said that police inspections and raids carried out from 1 January to 13 October 2025, have led to the screening of 5.7 million individuals through body checks and interrogations, that’s 26% of the population. During this period, 4,802 wanted suspects were arrested in daily operations, and legal proceedings are underway against them. ASP Wootler said police efforts to identify and seize illegally acquired assets will continue as part of an intensified crackdown on organised crime and narcotics-related networks.(Financial Times, 15.10.2025)
The annual cost of cybercrime to Sri Lanka could range between $ 450 million and $ 1 billion, Asian Development Bank (ADB) Digital Sector Office Director Antonio Zaballos said yesterday, calling for stronger cybersecurity measures and a shift in national awareness as the country expands its digital economy. Speaking at the ADB’s Serendipity Knowledge Program (SKOP) on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development held in Colombo, Zaballos said global losses from cybercrime have reached $ 10.5 trillion, or nearly 9% of the world’s GDP. “If we were just doing a rough estimate, and we consider just between 0.5-1% of the total GDP of Sri Lanka, we would be talking around $ 450 million to $ 1 billion a year related to cybercrime,” he said. He cautioned that as economies become increasingly connected, they also become more vulnerable. “The more connected we are, the more at risk we are,” Zaballos said, describing cybersecurity as both a development and technical challenge that must be addressed through cooperation between governments, the private sector, and citizens. Data Protection Authority Chairman Rajeeva Bandaranaike said Sri Lanka’s challenge lies not only in technology but in fostering a culture of data privacy and cybersecurity. “We don’t have a culture of data privacy and data protection, and awareness levels are very low,” he said. “It’s about policymakers taking ownership and embedding a sense of responsibility across society.” Bandaranaike said Sri Lanka’s forthcoming Data Protection Act and cybersecurity legislation would lay the groundwork for better governance, but long-term awareness building was equally important. “Like helmets and seatbelts, data protection will eventually become second nature, but it requires consistent enforcement and education,” he said. (Financial Times, 16.10.2025)
Within the next decade almost 25 percent of Sri Lankans will be above the age of 60, Minister of Health and Mass Media Dr. Nalinda Jayatissa said, addressing the issue in Sri Lanka’s population growth decline that has been consistent for the past few years. Speaking at a media briefing held on the second day of the 78th Session of the WHO Regional Committee for South-East Asia, Dr. Jayatissa said that, this figure would be comparatively higher than the South-East Asia Regional average, where around one-fifth of the population is projected to be aged over 60. The Minister emphasized the importance of strengthening accessibility to the health system for the elderly. “This goal can be achieved by enhancing primary health care. Currently, we are establishing 1,000 new primary health care institutions, in addition to the 1,100 already operating in divisional hospitals and Primary Medical Care Institutions. Within the next three years, over 2,000 such facilities will function across the country,” he said. “Ensuring healthy ageing is a challenge. However, as a government, we do not view it as a burden, not to the nation, the economy, or the health system,” Dr. Jayatissa stated. Dr. Jayatissa also pointed out that while Sri Lanka’s health workforce has effectively addressed challenges in communicable diseases and maternal and child health, the nature of public health challenges is now shifting. “As such, we have begun training our health workforce accordingly and have revised the training curriculum,” he said. According to a United Nations Population Funds (UNFPA) report released in 2012 “Sri Lanka is one of the rapid ageing societies in South Asia and the latest Sri Lanka Population and Housing Census (SLPHC) reports that the share of elderly population over 60 years old in 2012 was 12.4 percent. This figure will be doubled by the mid of the century (De Silva, 2015). Then one in every four persons will be aged 60 years or over.”(Daily Mirror, 16.10.2025)
The Inland Revenue Department has exceeded its tax revenue target for the first nine months of 2025, collecting 102% of the estimate, according to data presented to the Parliamentary Committee on Ways and Means. Officials said the department collected Rs. 1.64 trillion by the end of September, against an expected Rs. 1.61 trillion, reaching 75% of its full-year goal of Rs. 2.19 trillion The figures were reviewed during a recent committee session chaired by MP Wijesiri Basnayake. Attention was also drawn to the plans and challenges for increasing tax revenue, including digitalisation, and tax management. Accordingly, the Committee Chairman informed the officers to provide the Committee with proposals related to the reforms expected from the Inland Revenue Department, the Parliament Secretariat said in a statement yesterday.
Inland Revenue Commissioner General R.P.H. Fernando and senior officials attended the meeting, where members proposed further reforms to strengthen tax administration and improve efficiency. (Financial Times, 17.10.2025)
Nearly 25,000 people suffer severe, long-term injuries each year as a result of road accidents, health officials have pointed out. This was revealed ahead of the National Trauma Conference 2025. According to the National Trauma Secretariat, six to eight people die every day in road accidents across the country, while nearly one million people receive treatment annually for accident-related injuries at state hospitals. “In line with the Sustainable Development Goals (SDGs), Sri Lanka aims to reduce road accident deaths by 50% by 2030, compared to 2020 levels,” the Secretariat stated. Meanwhile, the Health Ministry said the conference will serve as a platform to raise public awareness, strengthen emergency response systems, and reduce preventable deaths and disabilities caused by accidents. The conference, themed “Tackling Turbulences: Teaming up for Transformation,” will be held on October 17 at the Hotel Galadari, under the patronage of Health and Mass Media Minister Dr. Nalinda Jayatissa. It is organised by the National Trauma Secretariat, together with the Ministry of Health and the World Health Organisation (WHO). Daily Mirror, 17.10.2025.
The Government of Sri Lanka has secured financial assistance from the Asian Development Bank (ADB) to support the Strengthening Integrated Health Care and Governance for Universal Health Coverage Program. The agreement includes a USD 100 million loan under ADB’s Regular Ordinary Capital Resources and an externally financed grant of USD 6.9 million from the Pandemic Prevention, Preparedness and Response Trust Fund (Pandemic Fund). The funding will be provided under the Result-based Lending modalityThe program aims to support the national strategic framework for improving the efficiency and quality of secondary health services as the first referral care, ensuring progress toward universal health coverage. It focuses on three main areas such as enhancing first referral care services, strengthening pandemic prevention, preparedness, and response and improving technical capacity in the health sector and managing the pharmaceutical supply chain. The Loan and Grant Agreements were signed on today at the Treasury in Colombo by Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development, on behalf of the Government of Sri Lanka, and Mr. Takafumi Kadono, Country Director of ADB Sri Lanka Resident Mission, representing the Asian Development Bank.(Daily Mirror, 18.10.2025)
National carrier SriLankan Airlines reported a Rs. 2.73 billion loss for the year ending 31 March 2025, compared with a profit of Rs. 7.9 billion the previous year, its annual report showed, a reversal representing a decline of about 134.6 percent% year-on-year. Revenue fell 10.8% to Rs. 303 billion from Rs. 339.6 billion, while operating expenditure decreased 11.7% to Rs. 276.3 billion from Rs. 313 billion. Total assets declined 6.1% to Rs. 189.2 billion from Rs. 201.6 billion, while shareholders’ funds remained negative at Rs. 379.5 billion, a marginal improvement of 0.6% from the previous year’s negative Rs. 381.7 billion. “The Airline recorded a net loss of Rs. 7.6 billion after accounting for unscheduled engine repair costs of Rs 2.2 billion and net finance charges of Rs. 31.6 billion,” Acting CEO and Group CFO Yasantha Dissanayake said. He said that passenger revenue declined by 15% YoY to Rs. 234.5 billion, primarily due to capacity limitations, global reduction of yields and the impact from exchange rate, since Sri Lankan Rupee exhibited an appreciation during FY 2024/25. In contrast, the cargo segment posted a 2% increase in revenue over FY 2023/24. Other revenues grew by 16% to Rs. 27.1 billion, driven primarily by ground handling and ancillary services provided to other carriers operating to Sri Lanka which reflected the market’s robust recovery. In line with Sri Lanka’s debt restructuring policy, the airline has been negotiating the timeline and manner of payment under the international Bonds in relation to which the interest had fallen due on 25 December 2022, 25 June 2023, 25 December 2023 and 25 June 2024 and in respect of the principal repayment which fell due on the 25 June 2024. (Financial Times, 22.10.2025)
Sri Lanka Customs data analysed by Siyaka Research confirms that the country earned $ 1.16 billion from tea exports for the period January to September 2025. Almost 10% more than last year’s figure of $ 1.06 billion for the comparable period.Sri Lanka exported a healthy 23.7 million kilogrammes (Mnkg) in the month of September this year, up 20% on last year’s quantity of 19.7 Mnkg and boosted the cumulative total for the calendar year which has now risen to 198.3 Mnkg, up 9% on last year’s nine-month total of 182.3 Mnkg. Based on total USD earnings of $ 1.16 billion, this converts to an approximate FOB value to $ 5.86 per kg compared with $ 5.81 in 2024 and $ 5.47 in 2023. Improved performance on value Addition which has risen to 58% of the total compared with 54% the year before has made a positive contribution. Tea in Packets are up 21% YoY with Instant Tea exports rising 25%. Shipments of Tea Bags have grown 6% YoY and account for 10% of tea exported from Sri Lanka. Exports to Iraq have risen 24%YoY to 30 Mnkg. Russia follows with quantities of 16.6 Mnkg down 10% on last year’s volume of 18.4 Mnkg. Exports to Libya have recorded a massive increase of 154% from 6.2 Mnkg to 15.9 Mnkg. Turkey follows with a quantity of 15.2 Mnkg up 14% on last year. The UAE a major transit point, has recorded a quantity of 14.2 Mnkg down 18% on last year. (Financial Times, 22.10.2025)
The Meteorology Department has issued a warning as harsh weather conditions are expected to lash out across the island in the coming days, with a threat to damaging homes and affecting people’s livelihoods. With two deaths already reported, officials warned that the dangerous conditions will continue for the next few days, with heavy rain, strong winds, and floods expected in many areas. Deputy Director Meril Mendis said a low-pressure area near the island is intensifying and moving west-northwest. Rainfall exceeding 100 mm is expected to continue, impacting Western, Sabaragamuwa, Central, North-Western, and Southern provinces after 1 pm. Residents are urged to remain alert and strictly follow all weather advisories. Strong winds of up to 40 kmph are forecast over the western slopes of the central hills, as well as in Western, Northern, North-Central, North-Western, Southern provinces and the Trincomalee District. Disaster Management Centre (DMC) Director Pradeep Kodippili reported that 740 people from 187 families have already been affected in Kurunegala, Galle, Anuradhapura, Kegalle and Badulla districts. Two deaths have been confirmed in Anuradhapura and Kegalle due to high winds and sudden floods, while 152 houses have been damaged. The National Building Research Organization (NBRO) has issued a Level 2 Amber landslide warning for Galle, Kalutara, Kandy, Kegalle, and Ratnapura districts. The Irrigation Department has flood warnings in place for low-lying areas of the Maha Oya and Deduru Oya basins, with water levels continuing to rise. Irrigation Director Suriyabandara reported that heavy rainfall, particularly in Baddegama (172 mm), has raised river levels across several basins, including the Kalu, Kelani, Gin, Attanagalu and Kirindi Oya. Reservoirs at Kirindi Oya and Lunugamvehera have also reached high levels, creating a risk of overflow. The Meteorology Department’s Natural Hazards Early Warning Centre has urged naval and fishing communities to exercise extreme caution. The low-pressure system is expected to intensify and approach Sri Lanka in the coming days, with wind speeds at sea forecasted at 55–65 kmph, accompanied by heavy thundershowers. Fishermen are strongly advised not to venture into these dangerous waters. Adverse weather has also disrupted transportation, with upcountry train services halted due to a landslide between Balana and Ihala Kotte.. Authorities continue to monitor the situation closely and advise all residents in vulnerable areas to stay indoors, follow official instructions, and take all necessary safety precautions. (Daily Mirror, 22.10.2025)
Latest data from the Central Bank of Sri Lanka (CBSL) shows that total outstanding balance on credit cards rose to Rs. 164.2 billion in August, up 3.9% from end-2024 and a 1.8% gain from the previous month. The data reflect sustained consumer demand amid easing inflation and improving confidence in household credit. Credit card usage has continued to expand in 2025, with the total number of active cards reaching 2.1 million by August, up 4.7% from December 2024.Global credit cards, those accepted internationally, accounted for the bulk of the market, rising to 2.09 million from 2 million in December, while locally accepted cards declined 6.9% over the same period to 9,099.Outstanding balances on global cards climbed 3.1% to Rs. 126.9 billion, while local card balances rose a faster 7.0% to Rs. 37.3 billion, suggesting stronger domestic spending momentum. (Financial Times, 23.10.2025)
Police said yesterday that thieves have broken into the museum of the historic Mahiyangana Raja Maha Viharaya and stolen several ancient Buddha statues stored there. The complaint, regarding the theft, was lodged by Ven. Urulewatte Dhammarakkhitha Thera, Chief Incumbent of the Mahiyangana Raja Maha Viharaya and a senior member of the Asgiriya Chapter of the Siyam Nikaya. According to police, the stolen Buddha statues were discovered during the recent renovation of the ancient stupa at the temple. Ven. Dhammarakkhitha Thera said the statues were made of copper alloy and weighed approximately 40 kilos in total. The thieves are believed to have entered the upper floor of the temple treasury by climbing onto its roof from a nearby tree, breaking through the ceiling.The monk further told police that the CCTV cameras in the treasury had been inactive for several months, though footage from a camera behind the building showed two individuals, on a scooter, passing the area around 1 am on the night of the incident. (Sunday Island, 26.10.2025)
Sri Lanka’s export sector continues to demonstrate resilience and steady growth during the period of January to September of 2025, recording total earnings of nearly $ 13 billion, up 7% from a year ago, latest data from the Export Development Board (EDB) showed. In September 2025 alone, total exports, comprising both merchandise and services reached to $ 1.47 billion, a 12.33% growth from a year earlier. In September 2025 alone, merchandise exports grew by 15.02% year-on-year (YoY), reaching $ 1.16 billion according to provisional data of Sri Lanka Customs including the estimates for Gems and Jewellery and Petroleum Products. For the period January to September 2025, merchandise exports totalled $ 10.2 billion, up 7.59% YoY. Meanwhile, services exports have emerged as a key driver of overall export growth. In September 2025, earnings from services exports was estimated to be $ 306 million. Over the first three quarters of the year, services exports are estimated to have increased by 4.48% YoY, totalling $ 2.7 billion. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings. Sri Lanka’s export portfolio recorded broad-based growth across key product and service categories in September 2025, supported by stronger global demand, higher value addition, and diversified market access. Export earnings from apparel and textiles increased by 1.53% year-on-year to $ 425.07 million, reflecting continued recovery in traditional markets. Tea exports, accounting for 12.8% of merchandise exports, grew by 17.06% to $ 137 million, driven by stronger sales of tea packets (11.58%), bulk tea (19.36%), and instant tea (70.44%). Export volumes rose by 20.11%, with shipments to Iraq, Turkey, and Libya recording significant gains of 28.86%, 122.6%, and 12.5% respectively. Coconut-based products recorded a notable 72.03% increase compared to September 2024, with kernel products up 100.34%, fibre products up 44.43%, and shell-based products up 33.7%. Earnings from coconut oil, milk powder, cream, and liquid coconut milk rose between 92% and 168%, reflecting robust global demand. Coco peat and related fiber products grew by 44.17% to $ 23.99 million, while activated carbon rose by 33.64% to $ 17.6 million. Food and beverages exports increased by 50.11% to $ 49.85 million, led by processed foods (71.97%), while seafood earnings surged 53.07% to $ 22.7 million, driven by strong exports of fresh and frozen fish. The gems and jewellery sector saw a 76.95% rise to $ 43.53 million, and electrical and electronic components grew by 29.5% to $ 36.39 million. ICT/BPM exports were estimated to increase by 27.05% to $ 157.76 million. Earnings from rubber and rubber products fell by 6.55% to $ 74.29 million, reflecting weaker tyre exports. Spices and essential oils declined 10.18% to $ 43.15 million due to reduced pepper shipments to India. Transport and logistics exports dropped by 14.95% to $ 128.44 million. From January to September 2025, cumulative export earnings totaled $ 12.99 billion, a 6.92% increase year-on-year. Merchandise exports rose 7.59% to $ 10.24 billion, while services exports increased 4.49% to $ 2.75 billion. Apparel, tea, coconut products, spices, and food and beverages led overall growth. Apparel exports increased by 6.22% to $ 4.01 billion, with shipments to the United States, United Kingdom, and EU rising 2.03%, 2.47%, and 14.08% respectively. Tea exports rose 9.8% to $ 1.16 billion, and coconut products increased sharply by 41.83% to $ 909.09 million, supported by strong sales of coconut oil, desiccated coconut, milk powder, cream, and activated carbon. Spices exports increased 2.41% to $ 329.84 million, and food and beverages rose 24.75% to $ 435.31 million. Seafood exports were up 2.89% to $ 184.56 million, and electrical and electronic components grew 1.77% to $ 315.96 million. ICT/BPM exports climbed 9.27% to $ 1.2 billion, while logistics and transport services increased 6.67% to $ 1.4 billion. In contrast, rubber and rubber-based exports declined 5.97% to $ 713.62 million, and ornamental fish exports fell 3.96% to $ 17.97 million. (Financial Times, 24.10.2025).
Sri Lanka has witnessed a significant drop in the number of marriages in 2024, according to the latest report from the Department of Census and Statistics. The total marriages registered last year stood at 139,290, a decrease of 12,066 compared to 151,356 in 2023. The trend of declining marriages has been evident since 2022, when 171,140 weddings were recorded during the peak of the economic crisis, followed by 162,628 in 2021.The past two years show a gradual reduction in marriage registrations. Sociologists attribute this decline to a combination of economic hardships, rising family responsibilities, prolonged higher education, and unemployment. They also highlight that insufficient income, youth reluctance to marry, and various social challenges are causing many to delay or forgo marriage altogether. (Daily News, 24.10.2025)
The Joint Apparel Association Forum (JAAF) yesterday said total apparel exports for the period January to September 2025 stood at $ 3.8 billion, up 6.83% from a year ago while exports recorded a modest year-on-year growth in September 2025, supported by stronger performance in the EU and other markets, despite declines in shipments to the United States and United Kingdom. Whilst the numbers are down from last month, JAAF noted that September has historically been lower than August. In September 2025, total apparel exports amounted to $ 403.01 million, reflecting a 1.58% increase compared to $ 396.73 million in September 2024. Exports to the USA and UK declined by 4.71% and 15.06% respectively, while exports to the European Union rose by 10.75% and shipments to other destinations grew by 19.49%. Despite mixed market trends during the month, the industry maintained steady progress over the first nine months of the year. Total apparel exports for the period January to September 2025 stood at $ 3.8 billion, marking a 6.83% increase compared to $ 3. 5 billion recorded during the same period in 2024. Exports to the United States grew by 1.73% to $ 1.46 billion, while the EU (excluding the UK) recorded a strong 14.24% growth, reaching $ 1.17 billion. Exports to the United Kingdom rose by 2.31% to $ 533.73 million, and other markets expanded by 10.45% $ 630.29 million. (Financial Times, 25.10.2025)
The Southern Province has recorded the highest number of student drug addicts and underworld activities in the country, while over 230,000 school students in the Colombo District have also fallen victim to drug addiction, Prisons Commissioner Jagath Weerasinghe revealed. Weerasinghe said 230, 980 schoolchildren in the Colombo District of the Western Province were found to be addicted to drugs — a figure that reflects the alarming spread of substance abuse among youth.“However, the Southern Province surpasses all others and is the region pushing the country towards this crisis,” he said. He further noted that the South also ranks number one for underworld activities, emphasizing a strong connection between organized crime and the rising student drug problem. Weerasinghe also revealed that several young children are currently in prisons. “There are 42 children below the age of five who are in prison due to the wrongdoings of their mothers. They are allowed to stay with their mothers until the age of five. After that, we have to separate them which is one of the saddest situations we face,” he added. (Daily Mirror, 28.10.2025)
Sri Lanka’s fiscal performance continued to strengthen, with the Budget deficit more than halving in the first nine months of 2025, according to the Finance Ministry’s latest Fiscal Review Report.The deficit fell 54.5% year-on-year (YoY) to Rs. 441.4 billion in the first nine months of 2025 from Rs. 970 billion a year earlier, mainly due to higher revenue collections, which grew 31% YoY to Rs. 3.83 trillion from Rs. 2.93 trillion. The primary account surplus more than doubled to Rs. 1.4 trillion.half of total tax receipts, collecting Rs. 1.7 trillion and achieving 80% of its annual target. The Inland Revenue Department contributed Rs. 1.64 trillion, reaching 75% of its estimate, while the Excise Department collected Rs. 168 billion, or 70% of its goal. Revenue from import VAT climbed 42% to Rs. 605 billion, while excise duties almost doubled to Rs. 552 billion. On the expenditure side, total spending rose 10% to Rs. 4.3 trillion, driven by a rise in recurrent expenditure to Rs. 3.8 trillion. Capital spending and net lending declined 2% to Rs. 455 billion, while interest payments increased 8.6% to Rs. 1.9 trillion. The International Monetary Fund (IMF) in its last review earlier this month noted the Government’s improving fiscal performance, but there was a lot more to be done. The release of the next tranche under Sri Lanka’s $ 3 billion Extended Fund Facility (EFF) will depend on Parliament approving a 2026 Budget aligned with the program’s fiscal and debt sustainability goals. The IMF said that the 2026 Budget should be in line with program parameters to continue building fiscal space on the back of strong revenue measures and prudent spending execution. It noted that improving tax compliance, broadening the tax base, and addressing revenue leakages remain key to sustaining fiscal progress, while efficient spending and stronger public financial management will help preserve fiscal discipline. Debt restructuring is nearing completion, the IMF said, adding that sustained reform momentum, particularly in public finance, State enterprise governance, and anti-corruption measures, will be critical to maintaining stability and investor confidence. (Financial Times, 29.10.2025)
Vehicle import duties surged 818% year-on-year to Rs. 349 billion in the first nine months of 2025, up from just Rs. 38 billion a year ago, according to the Finance Ministry’s latest Fiscal Review Report. According to CBSL data released in September 2025, vehicle imports reached $ 193 million in July, boosting the total to $ 668 million for the first seven months of the year. The value of motor vehicle imports is expected to reach $ 1.5 billion this year, up from the earlier projection of $ 1.2 billion, Central Bank Governor Dr. Nandalal Weerasinghe said last week. This means the Governor expects vehicle imports to total $ 830 million in the last five months of 2025. Earlier this month the International Monetary Fund (IMF) noted that the Government’s fiscal performance has been strong, primarily supported by taxes on motor vehicle imports. But the revenue boost from vehicle import taxes is seen as temporary and not a structural improvement in Sri Lanka’s revenue administration.(Financial Times, 29.10.2025)
The number of Sri Lankans leaving for overseas employment dropped by 5% in the first six months of 2025 to 143,037 workers, as improving economic conditions and rising domestic wages reduced outward labour migration, according to Central Bank of Sri Lanka (CBSL) data. In January, 25,873 people departed for foreign jobs, slightly above the 25,149 recorded a year earlier. Departures then fell to 22,271 in February, compared to 25,737 in 2024, and to 21,552 in March, against 24,158 last year. In April, 22,011 workers left, nearly unchanged from 22,220 a year ago, while May recorded 27,142 departures, marginally lower than 28,201 in 2024. The data show that departures have eased since February, reflecting a stabilising labour market at home following several years of high migration during the economic crisis.Meanwhile, workers’ remittances surged to $ 695.7 million in September, marking the third-highest monthly inflow so far in 2025, according to the CBSL. The figure reflects a 25.2% year-on-year increase and represents the sixth consecutive month of record inflows, underscoring the steady recovery of foreign worker earnings. Cumulatively, remittances in the first nine months of 2025 rose 20% year-on-year to exceed $ 5.8 billion, the strongest performance for the period since 2020. The year-to-date total is also 8% higher than the $ 5.38 billion recorded during the same period in 2016, which remains the year with the highest annual remittances at $ 7.24 billion. (Financial Times, 29.10.2025)
Sri Lanka has been identified as one of the countries with the fastest-growing elderly populations in Asia, health officials said yesterday. Community Health Specialist Dr. Nishani Ubayasekara said the country’s elderly population, which stood at 12% in 2012, has risen to 18% in 2024, and is projected to reach 25% by 2040 — meaning one in four Sri Lankans will be aged 60 or above. Speaking at a media briefing held at the Health Promotion Bureau, Dr. Ubayasekara said that the rise is largely due to increased life expectancy and a decline in birth rates.“Sri Lanka has been identified as having one of the highest rates of elderly population growth among Asian countries,” she said. Meanwhile, Dr. Sithira Seneviratne, a specialist in geriatrics at the Colombo National Hospital, said falls caused by frailty among older adults have now been recognized as a medical condition, underscoring the need for improved elderly healthcare and preventive programs.(Daily Mirror, 30.10.2025)
Sri Lanka is the second most expensive South Asian Association for Regional Cooperation (SAARC) country to live with cost of living for an individual being $506 or Rs. 153,899 excluding rent to live a comfortable life according to Numbeo, a user-generated cost-of-living statistics website. According to the website for a family of four living in the city of Colombo, the monthly costs are Rs. 570,997 excluding rent to live comfortably. This includes the cost of childcare, groceries, outings, dining, school fees, house expenses, vehicle expenses etc. Numbeo is the world’s largest cost of living database and a crowd sourced global resource for quality of life data. It provides insights into cost of living. According to the site Maldives is considered the most expensive SAARC country to live in comfortably with a cost of $840.4 per person. With people being burdened by both higher taxes and increased cost of living due to higher prices, the Central Bank’s ‘Annual Economic Review 2024’ notes that based on the National Consumer Price Index (NCPI), the estimated average monthly household consumption expenditure increased by 1.6 percent from Rs. 103,383 in 2023 to Rs. 105,063 in 2024. Nevertheless, this highlights a notable easing compared to the 74.9 percent increase recorded in 2022 compared to 2021, as well as the 16.5 percent increase in 2023 compared to 2022. In such situations, families increasingly resort to negative coping mechanisms when it comes to managing their spending. According to Central Bank of Sri Lanka (CBSL) data from September 18, 2024 to 18 September 2025, the average price per kilogramme for nine commonly consumed vegetables rose from Rs. 225 to Rs. 321.10, representing an overall increase of 42.7 percent.(
