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Sajith claims party thrown at TT to celebrate VAT increase

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SJB and Opposition Leader Sajith Premadasa yesterday alleged in Parliament that the Wickremesinghe-Rajapaksa government had thrown a party at Temple Trees Monday night to celebrate the increase of the Value-Added Tax (VAT) from 15% to 18%.

The Opposition Leader claimed that former President Mahinda Rajapaksa and all government MPs had attended the party hosted by Prime Minister Dinesh Gunawardena to celebrate the VAT increase.

The Opposition Leader said an SLPP MP who declared that he would not participate in the vote on the VAT increase had also been there.



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Court of Appeal upholds death sentence imposed by Colombo High Court for drug trafficking

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The Court of Appeal yesterday affirmed the death sentence imposed on Jayasingam Rajeev, alias Sudakaran, dismissing his appeal against the capital punishment handed down by the Colombo High Court for possession and trafficking of 2.53 grams of heroin.

The judgment was delivered by Justice Shashi Mahendran with the concurrence of Justice P. Kumararatnam, following consideration of the appeal filed by the defendant challenging the legality of the sentence.

Rajeev had been arrested on March 17, 2014, during a police raid in the Madampitiya area of Colombo, while allegedly in possession of 2.53 grams of heroin. The Attorney General subsequently indicted him before the Colombo High Court on charges of possession and trafficking of narcotics.

After trial, the High Court found the accused guilty on the relevant counts and sentenced him to death.

In his appeal, the defendant contended that the High Court had erred in law in imposing the death penalty. He argued that the trial judge had failed to consider alleged contradictions in the prosecution’s evidence and had not properly evaluated the legality of his arrest.

However, the Court of Appeal bench held that the High Court judge had correctly analysed and assessed the evidence before arriving at the verdict. The appellate court observed that the findings of the trial court were legally sound and found no basis to interfere with the conviction or sentence.

In its ruling, the Court of Appeal concluded that the prosecution had proved the charges against the accused beyond reasonable doubt, and accordingly dismissed the appeal, thereby upholding the death sentence.

by AJA Abeynayake

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Premier reaffirms commitment to strengthening Sri Lanka–India ties

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Prime Minister Dr. Harini Amarasuriya shaking hands with Indian High Commissioner Santosh Jha at a dinner reception organised by the Sri Lanka India Society to commemorate the 77th Republic Day of India and the 78th Independence Day of Sri Lanka, held on Thursday (26), at the Taj Samudra in Colombo.

Prime Minister Harini Amarasuriya, on Thursday, reiterated Sri Lanka’s commitment to deepening economic and cultural ties with India, stating that the country welcomes investors and tourists who contribute to sustainable growth.

She made these remarks while addressing a special celebration and dinner reception organised by the Sri Lanka India Society to mark the 77th Republic Day of India and the 78th Independence Day of Sri Lanka. The event was held on Thursday evening (26) at the Taj Samudra, Colombo.

According to the Prime Minister’s Media Division, the Society’s official magazine was launched at the ceremony, and the book ‘Port of Call’ was presented to the Prime Minister and the Indian High Commissioner.

Addressing the gathering, Dr. Amarasuriya noted that since its establishment in 1949, the Sri Lanka India Society has played a significant role in fostering relations between the two nations through cultural engagement, dialogue and sustained interaction, strengthening ties not only at government level but also between the peoples of both countries.

Reflecting on recent developments, the Prime Minister said the resilience of bilateral relations had once again been evident over the past year. She expressed appreciation for India’s support in facilitating the exposition of the sacred Devnimori relics in Sri Lanka.

She also recalled India’s swift response to the devastation caused by Cyclone Ditwah, noting that India acted as the first responder through ‘Operation Sagar Bandhu,’ extending assistance in rescue and relief efforts. The Prime Minister further welcomed India’s announcement of a long-term relief package amounting to USD 454 million to support Sri Lanka’s recovery and development initiatives.

Dr. Amarasuriya observed that the Sri Lanka–India partnership spans a wide range of sectors, including economic development, energy, connectivity, trade and investment, digital transformation, health, education, maritime security and people-to-people exchanges.

“As Sri Lanka progresses towards sustainable growth, we welcome increased investments from Indian businesses and greater tourist arrivals from India, while further strengthening our economic and cultural ties,” she said.

Reaffirming that India remains Sri Lanka’s closest neighbour and a key partner, the Prime Minister stressed the Government’s commitment to advancing cooperation for the mutual benefit of both nations and the wider region.

Indian High Commissioner Santosh Jha, addressing the event, described the bilateral relationship as one that transcends formal diplomacy and represents a strong and special partnership. He noted that the introduction of the first international degree programme offered outside India in Sri Lanka marked a new milestone in educational cooperation.

He also highlighted the steady expansion of collaboration in connectivity and people-to-people engagement, stating that India–Sri Lanka relations are currently experiencing significant growth.

The event was attended by ambassadors, diplomats, officials of the Indian High Commission and Government representatives.

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Lanka begins 2026 with robust export growth

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Sri Lanka’s export sector commenced 2026 with a strong momentum, recording a robust year-on-year growth of 13.71%, signalling a renewed momentum in external trade performance, the Sri Lanka Export Development Board (EDB) stated.

According to statistics released by the Sri Lanka Customs, together with estimated export figures for gems and jewellery, petroleum products, and services, total export earnings reached US$ 1,532.6 million.

The positive performance reflects broad-based growth across key export sectors, improving global demand conditions, and sustained national efforts to enhance export competitiveness at the outset of the year, the EBD noted.

Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board, stated: “Sri Lanka’s export earnings for January 2026 reached US$ 1,532.6 million, reflecting a strong year-on-year growth of 13.71% and a promising start toward achieving our annual export targets. This performance highlights the resilience and growing competitiveness of the country’s export sector, supported by the gradual recovery of key international markets, sustained industrial capacity, and the continued implementation of strategic export development initiatives. We remain confident that, with focused policy support and market diversification efforts, Sri Lanka is well positioned to maintain this positive momentum throughout 2026.”

In January 2026, merchandise exports recorded a year-on-year growth of 10.66 %, reaching US$ 1,165.02 million, according to provisional data released by Sri Lanka Customs, including estimated figures for gems and jewellery and petroleum products.

Meanwhile, services export earnings for January 2026 are estimated to have increased significantly by 24.59%, reaching US$ 367.55 million.

The services sector, comprising ICT/BPM, construction, financial services, and transport and logistics, continues to play a pivotal role in diversifying the country’s export basket while generating high value employment opportunities nationwide, further reinforcing Sri Lanka’s transition toward a more innovation driven and services-oriented economy.

Most export sectors recorded notable year-on-year increases in January 2026. Tea exports, which accounted for 12.8 % of total merchandise exports, increased by 8.11% to US$ 121.84 million, driven primarily by higher earnings from Bulk Tea (+ 9.72%) and Tea Packets (+ 2.3%). In terms of volume, tea exports grew by 6.9 %. Key markets such as Turkey, Russia, and Saudi Arabia recorded significant increases of 120.95 %, 8.84 %, and 11.24 %, respectively.

Coconut-based products also recorded a strong performance, with export earnings increasing 30.69 % year-on-year in January 2026. Within this sector, earnings from Coconut Kernel Products increased by 43.32%, while Coconut Shell Products grew by 46.87%, reflecting strong global demand and enhanced value addition.

Among Coconut Kernel Products, January 2026 exports showed substantial gains: Coconut Oil (+76.2%), Coconut Milk Powder (+60.71%), Coconut Cream (+47.94%), and Liquid Coconut Milk (+23.09%) compared to January 2025. Meanwhile, earnings from Activated Carbon, a key Coconut Shell product, increased by 39.51 %, reaching US$ 20.34 million, underscoring the sector’s expanding contribution to Sri Lanka’s export earnings.

Export earnings from Rubber and Rubber based products have increased by 3.88 % y-o-y to US$ 77.97 million in January 2026, driven by strong growth in Pneumatic & Retreated Rubber Tyres & Tubes, which increased by 18.61%.

The Food & Beverages sector recorded a significant 25.29% year-on-year increase, reaching US$ 52.31 million, with processed foods contributing the largest share of growth (+28.7%).

Electrical and electronics components showed remarkable growth, with earnings rising 50.79% to US$ 42.93 million, led by a 73.49% increase in exports of Insulated Wires and Cables.

Seafood exports surged 66.55% year-on-year to US$ 29.43 million, boosted by higher shipments of frozen fish (+37.64%) and fresh fish (+135.39%). Ornamental fish exports also recorded a significant growth of 70.06% to US$ 2.67 million.

Meanwhile, exports across all major services sectors are estimated to record positive growth in January 2026 compared with January 2025: ICT/BPM (+60.21%, US$ 177.83 million), Construction (+5.48%, US$ 11.6 million), Financial Services (+5.71%, US$ 5.29 million), and Transport and Logistics (+2.88%, US$ 172.83 million). This performance underscores the continued expansion and resilience of Sri Lanka’s knowledge and services driven economy, highlighting its growing contribution to national export earnings, the EDB stated.

Export earnings from Apparel & Textiles decreased by 2.82 % y-o-y, reaching US$ 447.25 million in January 2026, compared to the same month in 2025. This decrease was primarily due to a 2.73% drop in exports to the United States and a 1.82% decline in shipments to the EU region.

Spices and Essential Oils exports also declined by 4.57 % to US$ 37.21 million during the same period, largely driven by a significant 54.38% reduction in Pepper exports to India.

The estimated export value of Diamonds, Gems & Jewellery is expected to decrease by 10.96 %, reaching US$ 33.58 million in January 2026 compared to January 2025.

Sri Lanka’s key export destinations demonstrated resilient performance at the start of 2026. Among the top 10 markets, India, the United Kingdom, Germany, Italy, the Netherlands, China, and Australia recorded positive year-on-year growth, reflecting steady demand recovery and strengthened trade engagement across both traditional and emerging markets.

The United States, which remains Sri Lanka’s largest single export destination and accounts for approximately 22 % of total merchandise exports, recorded a marginal decline of 0.9% to US$ 257.85 million in January 2026 compared with the same period in 2025.

India continued to rank as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with exports expanding significantly by 38.67 % to reach US$ 113.57 million in January 2026. Meanwhile, exports to the United Kingdom increased by 3.18%, reaching US$ 82.08 million compared with January 2025.

In January 2026, exports to India and Pakistan accounted for 10.5 % of Sri Lanka’s total merchandise exports, increasing 38.26 % y-o-y to US$ 122.08 million.

Exports to India increased significantly by 38.67 %, driven mainly by higher shipments of Petroleum Oils, Apparel, Animal Feed and Electrical & Electronic Products. In parallel, exports to Pakistan increased by 32.97 %, reflecting higher shipments of Betel Leaves, Textile and Coconut Kernel Products.

Exports to the European Union (EU), which account for 22 % of Sri Lanka’s merchandise exports, increased during January 2026 by 12.27 %.

Exports to the top five EU markets were recorded as; Germany US$ 58.05 million (increased by 7.76 %), Italy US$ 57.05 million (increased by 25.27 %), Netherlands US$ 39.02 million (increased by 6.52 %), France US$ 21.49 million (decreased by 3.02 %) and Belgium US$ 21.11 (increased by 7.48 %) during the month of January 2026 in comparison to the corresponding period in 2025, the EDB added.

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