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FTA with Thailand: Need for SL to diversify trade portfolio stressed

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Subhashini Abeysinghe

By Rathindra Kuruwita

Over 50 percent of Sri Lankan exports to Thailand are gems, and Sri Lanka doesn’t face any trade barriers when exporting precious stones, Subhashini Abeysinghe, says Research Director at Verité Research.

Commenting on the recent free trade agreement between the two nations, she said in a recent television interview that Thailand imported around 300 billion U.S Dollars worth of goods each year, and Sri Lanka’s exports there amounted to about 100 million dollars.

“Thailand is one of the top sources for manufacturing and exporting jewellery. On the other hand, while Sri Lanka has a lot of gems, we are not a country that exports jewellery. We face no trade barrier in exporting gems to Thailand because they are an essential part of manufacturing jewellery,” she said.

Abeysinghe said the purpose of a free trade agreement (FTA) was to remove barriers to trade. She said that 30 percent of the types of goods Thailand already exports were not subjected to any tariffs.

“This means about 3,000 goods Thailand imports are already not taxed. These goods amount to 56 percent of total imports to Thailand. So, we already have duty-free access to over 150 billion dollars in the market, but we export miniscule amounts,” she said.

Abeysinghe said Sri Lanka had not been able to attract FDIs in manufacturing export-oriented products. Sri Lankan policymakers believed that the country would be able to attract such FDIs, if investors saw that Sri Lanka could export goods to many destinations without tariffs.

There was speculation that once the FTA with Thailand was signed, Sri Lanka would be able to attract Thai tourists, especially Buddhist tourists, she said, adding that Sri Lanka had the potential to develop Buddhist tourism.

“However, Thai tourists already have access to on-arrival visa facilities. Given that, I am not sure whether we can attract Thai tourists through an FTA. We can make things easier for tourists by changing the laws and regulations in the country. We don’t need an FTA for that,” she said.

Abeysinghe said Sri Lanka had an FTA with Singapore, a country that already had very low trade barriers. However, Thailand had trade barriers. For example, Sri Lankan garments face a 25 percent tariff when they enter the Thai market, she said.

She said in all trade agreements there was a “negative list,” a list of items that were not subjected to tariffs. Here, both Sri Lanka and Thailand have not relaxed duty on about 15 percent of imports.

“When we look at the FTA with Thailand, both sides have relaxed about 50 percent of the items that are traded. This is also divided into two categories, i.e., goods that are already not subjected to trade barriers and newly relaxed items. As we said earlier, already 30 percent of our exports are not subjected to barriers in Thailand. So, Thailand has only relaxed trade barriers on 20 percent of our exports. On the other hand, only 18 percent of Thai exports are bereft of trade barriers in Sri Lanka now. Here, we must contrast this agreement with the FTAs with India and Pakistan. We speak only about customs duties in the FTAs with India and Pakistan. However, with regard to FTAs with both Singapore and Thailand, we speak about all import duties,” Abysinghe said.

There is a 20 percent customs duty when one imports goods to Sri Lanka. Moreover, there is also a 10 percent Ports and Airports Levy (PAL) and sometimes a 40 percent cess. Thus, the total tax is about 70 percent, she said.

 “So, we have agreed to remove all 70 percent, not only customs duties,” she said.

When one looked at the FTA with Thailand, one could say Sri Lanka can export 5,000 items without any barriers, Abeysinghe said, adding that people tended to confuse product coverage and trade coverage.

“There are a lot of items here, but Sri Lanka produced very little. When we look at our export profile, 100 goods account for 80 percent of our exports. We have to see how many of these 100 items have been allowed into Thailand. When we look at the FTA, Thais have lifted barriers only on about 25 percent of those goods,” she said.

Abeysinghe said Thailand produced a large array of goods, and about 49 percent of their trade was covered by the FTA. The problem here was that, compared to Thailand, Sri Lanka did not produce diverse products at a competitive rate, she said.

“This is our Achilles’ heel. I am not sure whether the signing of an FTA will be a solution for this,” he said.

Abeysinghe said Sri Lanka was still heavily dependent on Western markets for its exports and relied on a few items like garments, tea, coconut and rubber.

“The fact that we have not been able to shift to Asian markets and most of our major exports are agricultural goods is a problem. ASEAN countries, on the other hand, are linked to global supply chains. Unlike them, electronics, machinery and components make up less than five percent of our exports. Thais import a lot of such goods. But they hardly import any garments. There is a big mismatch here,” she said.



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US sinks Iranian warship off Galle returning from Indian naval exercise

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IRIS Dena (F75)

Of 180 member crew, 30 rescued by Sri Lanka Navy

Iran warship IRIS Dena (F75), returning home after participating in the Indian International Fleet Review, and MILAN 2026 international naval exercises, has been sunk off Sri Lanka. The US, Russia and Iran were among 74 participants.

Speculation is rife that the US attacked the vessel in international waters as part of the continuing offensive action under Operation Epic Fury, launched on 28 February. Before the attack in the Indian ocean, President Trump declared that the Iranian Navy Headquarters and nine Navy vessels had been destroyed.

The ill-fated Moudge-class frigate participated in the Indian exercises with the US Navy’s Arleigh Burke-class guided-missile destroyer USS Pinckney (DDG-91) and the Marshal Shaposhnikov, a Udaloy-class frigate of the Russian Navy. Sri Lanka also participated in the exercises. SLNS Sagara and Israeli built Fast Missile Vessel Nandimithra represented Sri Lanka. Forty two warships and submarines and 29 aircraft had been involved.

At the time of the attack, the domestically built vessel was crewed by 180 officers and men.

The US Embassy here did not respond to The Island media query whether the US sank IRIS Dena . The Island was unable to get in touch with Iranian Ambassador in Colombo Alireza Delkhosh though he earlier indicated his availability later in the day.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, told the Parliament yesterday that the Sri Lanka Navy and the Sri Lanka Air Force had acted in less than an hour of receiving the distressed signal at 5.08 am.

According to the Minister, the first naval craft was dispatched by 6 am, followed by a second vessel at 7 am, while Air Force units joined the mission, including the deployment of a surveillance aircraft to support search operations.

Approximately 180 personnel were believed to have been on board the stricken vessel. Of them, around 30 were reported to be in critical condition.

“To save the lives of those 30 persons, we intervened immediately,” Minister Herath said, adding that the rescued crew members were being transported to Karapitiya Hospital for urgent medical treatment. Some had already arrived by the time of his statement.

SLPP MP Namal Rajapaksa asked whether the Iranian ship had been attacked within Sri Lanka’s Exclusive Economic Zone (EEZ).

Responding to questions raised by Opposition MPs, including NDF Badulla District MP Chamara Sampath Dassanayake, who alleged that the Iranian vessel may have been struck in Sri Lankan waters, the Minister said the ship had been outside Sri Lanka’s maritime boundary when it issued the distress call.

MP Dassanayake queried whether the frigate had been hit as part of the ongoing military escalation involving the United States and Israel against Iran. There was no immediate confirmation from the government regarding the cause of the emergency.

Minister Herath stressed that Sri Lanka’s intervention was guided solely by humanitarian considerations and international obligations.

“We are bound by the International Convention on Maritime Search and Rescue (SAR) of 1979, which we have signed,” he told Parliament.

Under the convention, a signatory state is required to respond to maritime emergencies, regardless of nationality, the cause of the incident, or whether it occurs beyond its own territorial waters.

“According to this convention, if a vessel, or its crew, encounters danger beyond our territorial limits, we are obligated to intervene and protect those lives on humanitarian grounds,” Minister Herath said, adding Sri Lanka had acted immediately to prevent loss of life and had taken all urgent and necessary measures as a responsible state.

The Minister noted that the incident highlighted broader regional security vulnerabilities in maritime safety amid escalating tensions in the region. “A regional military situation would also have an impact on our country. The government’s position is that a negotiated solution must be pursued,” he said.

He also disclosed that President Anura Kumara Dissanayake had held a telephone discussion on Tuesday night with the leadership of the United Arab Emirates regarding the evolving regional situation.

Rescue operations were continuing at the time of going to press.

By Saman Indrajith and Shamindra Ferdinando

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Justice Kumudini complains of male domination at senior levels, absence of a woman head of BASL

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Supreme Court Justice Kumudini Wickramasinghe

Judge of the Supreme Court Justice Kumudini Wickramasinghe has recently presented a stark analysis of the legal profession’s gender disparity, noting that in spite of women entering the legal field in substantial numbers, their representation dwindles at senior levels. She has highlighted critical statistics and the fact that only two women currently serve in the Supreme Court, none in the Court of Appeal, and that there has never been a woman President of the Bar Association of Sri Lanka (BASL).

“Inclusive leadership is not satisfied by entry-level participation,” Justice Wickramasinghe said. “It concerns who occupies the apex of institutional authority, who shapes doctrine, who speaks for the profession. These figures are not merely statistics; they are indicators of work yet unfinished.”

Justice Wickramasinghe said so at a seminar organised on the eve of International Women’s Day by the Bar Association of Sri Lanka (BASL), in collaboration with the Sri Lanka Women Lawyers’ Association (SLWLA). She underscored the need to address the systemic barriers preventing women from reaching the apex of the legal profession. Justice Wickramasinghe addressed the gathering as the Chief Guest.

BASL President Rajeev Amarasuriya, in his address, framed inclusivity not as charity or tokenism, but as “structural fairness.” He raised an important question being ‘who bears the responsibility of inclusivity’ and addressed the vital role of leadership in inclusivity. Furthermore, Amarasuriya challenged the profession to address the “gap between what we see coming into the profession and what we see at the top,” and clarified that such disparity did not stem from a lack of competence or commitment but from deep rooted practices and structural issues.

A dynamic panel discussion, moderated by Attorney-at-Law Tanushka Gunawardane, explored the multifaceted nature of inclusive leadership. The panel featured Justice Wickramasinghe, Constitutional Council Member Professor Wasantha Seneviratne (joining online), Senior Instructing Attorney Shiranthi Gunawardhana, and corporate leader Yanina Weerasinghe.

Professor Wasantha Seneviratne distinguished between mere representation and true participation, stating that inclusion becomes meaningful only when women have the “agency and authority to make decisions.” She emphasised that inclusive leadership is both a moral obligation and a pragmatic governance strategy.

Senior Instructing Attorney Shiranthi Gunawardhana shared personal anecdotes from her 50-year career, urging senior lawyers to act as mentors rather than gatekeepers. She stressed the importance of creating space for young female lawyers by offering flexibility and support to help them balance professional and personal responsibilities.

Yanina Weerasinghe, Head of Legal at Brandix, argued that true inclusion is measured by influence, not optics. “Diversity is being present; inclusivity is being influential,” she explained, warning against tokenism and calling for “cerebral opportunities” where women are selected, based on talent, and given a genuine voice in decision-making.

Justice Wickramasinghe addressed the relationship between judicial hierarchy and inclusion, asserting that authority and accessibility can coexist. “A judge can be firm in decisions while remaining approachable,” she said, adding that power exercised with transparency and humility strengthens, rather than weakens, institutional legitimacy.

The seminar also heard from Dilani Yatawaka, Managing Director/CEO of Ideal Motors, who shared her perspective as a female leader in the male-dominated automotive sector. She reinforced the critical role of supportive superiors and societal encouragement to enable women to ascend the career ladder while managing family responsibilities.

BASL Women Lawyers’ Professional and Career Development Committee Chair Indika Nagaratne Koththagoda in her welcome address said that the distinguished gathering was honoured to have Her Ladyship Justice Kumudini Wickramasinghe, Judge of the Supreme Court of Sri Lanka, as the Chief Guest and a key panellist and also welcomed the other panellists Attorneys-at-Law Professor Wasantha Seneviratne, Ms. Shiranthi Gunawardena and Yanina Weerasinghe for agreeing to share their insights on the subject during the ensuing panel discussion to be moderated by Attorney-at-Law Ms. Tanushka Gunawardane.

In her closing remarks, Nalani Manatunga, Co-Chairperson of the BASL Women Lawyers’ Professional and Career Development Committee, challenged the audience to reflect on the true meaning of leadership. “A position gives authority, but leadership gives direction,” she said. “Inclusive leadership is not about occupying space; it’s about creating space. Let our leadership not be measured by the chairs we occupy, but by the doors we leave open.”

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No qualified printer to head Government Printing Department

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A crisis was prevailing at the Government Printing Department due to the absence of a permanent Government Printer, Parliament was told yesterday, raising concerns over confidentiality, quality control and national security.

NDF MP Ravi Karunanayake demanded to know what steps the government had taken to fill the long-standing vacancy at the department, describing the situation as a serious administrative lapse.

“The Government Printing Department is a very important and closed service category institution. However, it has been functioning without a permanent Government Printer for some time,” Karunanayake said.

The MP pointed out that the department handles highly sensitive material, including documents related to defence and national security, as well as other classified publications.

“The non-availability of a permanent Government Printer affects the quality, confidentiality and sustainability of the work there. Has the Government conducted an audit on the possible issues arising from this situation? What immediate action has been taken to resolve this crisis?” he asked.

Responding on behalf of the Government, Prime Minister Dr Harini Amarasuriya said the vacancy had been filled on a temporary basis following a Cabinet decision.

She said an experienced officer from the Sri Lanka Administrative Service had been appointed on contract as Acting Government Printer to ensure operational continuity and maintain security standards in relation to sensitive printing tasks.

The Prime Minister acknowledged that the issue reflected broader systemic weaknesses in public service recruitment and professional development that had persisted for years.

“To bridge these gaps, the Government is initiating specialised training programmes and offering international scholarships for high-performing students to build future technical capacity,” she said.

Chief Government Whip and Health and Mass Media Minister Dr Nalinda Jayatissa said that under existing service minutes, more than two decades of experience were required for an officer to qualify for the top post, and that there were currently no internal candidates eligible for appointment.

He said that the department was facing a leadership crisis and administrative instability due to the lack of a permanent, qualified Government Printer.

By Saman Indrajith

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