News
Steps are taken to accelerate the recovery efforts following Cyclone Ditwah despite Global Economic Challenges
A discussion on accelerating recovery measures and providing relief to those affected by the Cyclone Ditwah was held on March 28 at Temple Trees, with the participation of Prime Minister Dr. Harini Amarasuriya and civil society organizations.
During the meeting, a brief report on the current status of government measures including compensation payments through District Secretariats and information related to safety camps was presented to the Prime Minister by the Chief of Staff to the President and Commissioner General of Essential Services, Prabath Chandrakeerthi.
Special attention was given to the concerns of the estate sector Estate sector Malaiyaha Tamil community affected by the cyclone, particularly those without legal land ownership, in accessing government relief and compensation. Attention was also drawn to the need for a policy decision in coordination with the Ministry of Plantation and Community Infrastructure regarding this matter.
It was further stated by the Secretary to the Ministry of Housing, Construction and Water Supply, Engineer L. Kumudu Lal Bogahawatta , that plans have been made to accelerate the recovery process related to damages caused by the disaster in 2025. These include the construction of 20,000 new houses, the renovation of 115,000 partially damaged houses, and the provision of financial assistance amounting to Rs. 5 million for individuals who already possess safe land to build a house. Additionally, there are plans to construct apartment complexes with public facilities in major urban areas.
Officials further emphasized that the physical, psychological, and social well-being of affected communities especially women, children, and persons with special needs will continue to assess through civil society organizations, special committees, and sub-committees.
The Prime Minister emphasized that the efforts to rebuild damaged housing have focused on constructing homes in locations that are more suitable and equipped with urban public facilities over the past four months, stressing the importance of maintaining continuous communication with communities and ensuring that reconstruction takes place in safer locations that are less vulnerable to future disasters.
The discussion was attended by Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Secretary to the Ministry of Housing, Construction and Water Supply Engineer L. Kumudu Lal Bogahawatta, Additional Secretary to the Ministry of Defence K.C. Dharmathilaka, and representatives from civil society organizations.
[Prime Minister’s Media Division]
News
Sri Lanka, India caught in US-Iran ship crisis
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
News
Namal further remanded
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
News
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
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