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Ranil on what needs to be done

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Former Prime Minister, Ranil Wickremesinghe, spoke to Pasindu Gunaratne, about the current economic crisis facing the country and the measures that should be taken to help move the country forward.

As many in the country have concerns and questions over the current economic crisis confronting the public, the United National Party invited questions from young people on this subject for the former prime minister to answer.

Responding, Wickremesinghe highlighted the need of going to the International Monetary Fund (IMF) for assistance. But he said the IMF alone would not be able to solve the problems of the country.

Stressing that the IMF would provide a foundation that would allow the country to seek the assistance of other foreign nations, he drew from his personal experience as a member of the 1977 Cabinet when discussing measures taken to revive a failing economy. He urged that new thinking on Sri Lanka’s economy was needed if the country was to develop.

The former prime minister also explained that it was essential that a national consensus was reached on the basic principles that would be followed by the country saying that without a common agreement by all political groups, the country would continue to stagnate.

Text of the interview:

Question – One of the issues discussed last week was the government’s decision to devalue the rupee. Accordingly, the Governor of the Central Bank stated that the value of the rupee against the dollar will be determined by the market. Is this a bad decision?

Answer – In fact, the IMF has given some advice in the Directors’ Guide. There are a number of tips that have been given and one alone is not going to work. We have to come to an agreement with the IMF first. All of these other points are relevant only when it comes to implementation. This is only one aspect They want the program implemented in its entirety. We did the same thing before. We always met with the IMF and discussed the amount that would be provided to the country. Only then did we float the currency.

Twice before we have done this, but on this occasion the Central Bank decided to act ahead of time. The problem that has arisen from floating the currency is that there are not enough dollars to match the demand.

When we go to the IMF we know we have relief coming. So the dollar supply increases. That is what creates stability. However, here the demand for dollars has increased substantially. At that point there were no dollars to meet this increased demand and there was no one to guarantee the supply.

The demand for dollars has really increased here. in this case. At that time there was no supply to meet the demand and besides there was nobody to guarantee it. So now we are reacting to the movement of the market. The banks have to find the money now.

Previously we (the Government) provided assurances for the payments, while the banks were charged with finding the rest of the required money. Now the entire responsibility for this has been handed over to the banks alone. That is what is happening now. I hope that the Government is now aware of this and will implement a short-term program that will provide relief to the public who have been affected by this. At least 50% of the burden can be addressed by such a program.

Question – We have seen that the government has recently announced that the number of foreign tourist arrivals has increased. Accordingly, more foreign currency has started flowing into the country. Do you think the country’s foreign earnings will improve through this?

Answer – In fact, most of our country’s foreign exchange earnings come from the Middle East, from our apparel industry, and then from our tourism industry. About two to three million tourists visited Sri Lanka on a yearly basis, but this has not happened since the COVID-19 pandemic hit. Fr fewer tourists come here now. If we look at the numbers, I do not think even 10% of that number have visited Sri Lanka.

Our tourism sector would not be successful if we do not get at least 50% of the previous arrivals. We also have to recognise that many of the tourists visiting us are from Ukraine and Russia. They pay between US $70 – US $80 per room. From previously charging a US $100 we have now reduced it to US $70. So now those arriving from Europe will no longer pay US $100. The will pay only US $70.

So with this reduced income there are many problems which have arisen. Trained staff such as chefs will now go overseas. When you earn US $1000 here, you can earn US $2,500 – US $3,000 overseas. That is in the Maldives, in the Middle East you will be able to earn more. So there really is no big improvement from this despite a bit of money coming into the country. Another problem that we have is that countries like the Maldives did not reduce their room rates like we did. Our tourism industry is also facing many problems. The Government has not acted to settle the debt faced by the industry. Every year interest is incurred by the industry. At present the interest owed by the industry been provided with a moratorium. The interest has not been abolished. No relief was given, this was just an illusion. We cannot just get out of this.

In fact as the tourism industry grows, the price of our hotel rooms are reducing. We also face a problem of the hotels not having enough chefs and other trained staff.

Question – Last week the Government took another decision, do you think this decision to halt the import of 367 non-essential items will help revive the economy?

Answer – No, if it is a market economy, it could be in Sri Lanka, it could be in England or it could be in China, the Government has the responsibility to provide goods and services according to the demands of the market and ensure their supply if there is a shortage.

All the items that we controlled prior to ’77 are now available on the market. What are they now doing with a market economy? We have now removed 300 items from the free market. With these 300 items being removed from the market, many of our services have halted. Our problem is to earn more money. These people are focussed on limiting the boundaries of our free market.

Prior to ’77 they tried to limit such items; so much so that tyres were not imported at the time. I was only able to find two tyres for my vehicle. A friend was able to find only one out of the two necessary for his motorcycle and had to borrow a tyre from someone else. Can we work like that?

We need to find foreign currency for the economy. This is not something we can split and share. We have to take into account our needs. This can be done if we go to the IMF. It is because we did not go that these problems have arisen. The problem that the IMF will have is that we have limited the import of 300 such items.

Question – In fact, before the power crisis, before the oil crisis, you stated the reason for all this. The Government has said that the dollar reserves in the country are declining. They are saying that due to the pandemic our dollar reserves have dwindled and our economy is facing a major crisis. But we have seen online, especially among the youth in countries such as Bangladesh and Nepal, that their dollar reserves are rising. We are the only country that has seen our dollar reserves reduced. You said from the outset that oil and electricity crises were coming. How was this mistake made by us when other countries in the region have seen record foreign currency reserves?

Answer – First of all we must remember that our markets and Bangladesh’s markets both had problems in 2020. But Bangladesh had foreign reserves while we had lost ours. We had to ask for help, especially from the IMF. If we had gone in 2021 we could have got US $2 – US $3 billion. But we did not go and get the money. Bangladesh had money. Many other countries like us went and got money when the problems arose. But Sri Lanka did not do so, so we were marginalised. Other countries had money for 2020 and 2021, while those that did not went to the IMF for assistance.

We have no money and no aid, that is why we are in this situation. We cannot blame COVID alone because everyone was affected by COVID. We did not stop importing fertiliser because of COVID. Who is responsible for that?

Question – Finally, I would like to ask you, at a time when our economy is in deep crisis, what do you see as the key obstacles we have to overcome this economic crisis?

Answer – We should not think short-term, we must think long-term. A country is not built in a day. In ’77 we built the country, and now we need to build the country for the youth, especially those in their 20s, 30s and 40s. We have to build a new foundation. This old system will not always have the money from the Middle East. Selling our services for US $70 will not help the situation. We cannot go ahead with the garment industry alone. We need to look to the future. We have to look to the future and build the economy to join the future. That work needs to be done.

If you don’t think about that there will be many more problems. If we are to address this then there must be a national consensus on the basic principles needed for this. There is no national consensus in our country. One government changes what the other government did. If what we had started had been taken forward by this government we would not have been in this mess. If we do not look to the future and move forward there will be no future.

Question: So young people, we have learned a lot about this economic crisis and how to overcome it. Finally, I would like to tell you that there is a large group of young people who have high hopes that this is our country. I would like to ask you to give them a message.

Answer: Take the lead and move forward.



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Defend civic space upon which peace is built

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by Jehan Perera

International Peace Day was observed on 21 September. It finds Sri Lanka with a genuine achievement to record and a demanding test to meet. The UN’s theme this year was “Invest in Peace: For Everyone, Everywhere, Every Day.” It also honoured the “everyday architects of peace”—people driving local action and building a lasting peace from the ground up. In the 2026 Global Peace Index, Sri Lanka rose 30 places, from 97th to 67th among 163 countries. Over the same period, global peacefulness declined for the twelfth consecutive year to its lowest level since the index began, and South Asia suffered the sharpest regional deterioration. The test is whether the government will protect the civic space in which those architects of peace work.

Sri Lanka’s improvement is real and deserves acknowledgement. In this year’s review, issued a few weeks ago, the UN High Commissioner for Human Rights acknowledged progress in the form of action against corruption, arrests and investigations linked to political killings, enforced disappearances and the 2019 Easter Sunday attacks, and continued official denunciation of racism. A ranking, however, records conditions at a particular moment. It does not guarantee that they will last. Sustainable peace will depend on three factors. These are whether the government addresses the unresolved causes of conflict, whether it strengthens accountability for past and present abuses, and whether it protects the civic space in which peace is built from below. On the first two the record is incomplete. On the third, the draft NGO law threatens to weaken the very organisations that press for the other two.

What holds Sri Lanka back from a higher place are the same things that fed the war at home and also feed international conflict that rages elsewhere in the world. These are racism or ethnic nationalism that is narrow-focused, corruption and lawlessness. Equality, accountability and the rule of law are their remedies. The present government has committed itself to these, and is a significant improvement over governments of the recent past. But these pillars are not held up by governments alone. Peace is made in villages, workplaces and university campuses. It is made by families who insist on the truth about their disappeared, by journalists and lawyers who expose abuse, and by community organisations that bring Tamils, Muslims and Sinhalese into practical cooperation.

Unfinished Work

The UN High Commissioner’s report to the current Human Rights Council session, covering October 2025 to July 2026, shows how much remains to be done. The Prevention of Terrorism Act is still being applied, producing arbitrary arrests and long detention without charge. The report calls for a moratorium pending repeal and for the release of long-term detainees. Military-occupied land has not been released, memorialisation lacks support, and tensions over land and religious sites persist. The Batticaloa district illustrates how such problems endure. In the past three years, two Presidents, Ranil Wickremesinghe and Anura Kumara Dissanayake, have visited and instructed that the dispute over grazing land in Mailaththamadu and Mathavanai be resolved. It is a dispute between Tamil cattle farmers and outside Sinhala cultivators, and it has not been resolved. When two Presidents issue instructions and nothing changes, the fault lies in the machinery of State. An unresolved dispute does not stand still. It hardens into the next grievance.

Accountability shows the same pattern. The report documents torture and deaths in custody, and surveillance and intimidation of activists, journalists and civil society. Serious cases remain stalled for years, among them the killing of seventeen aid workers of Action Contre la Faim in Muttur two decades ago. Sharper still is the case of the Eastern University refugee camp at Vantharamoolai, where in 1990 the army took away 158 persons in a single day. They were never seen again. The camp’s officer-in-charge, Dr T. Jayasingam, later Vice Chancellor of the university, identified the officers responsible. More than three decades on, those officers have not been questioned. These cases are still remembered because families, survivors and independent witnesses have refused to let them be forgotten. Meanwhile several commissions of inquiry have completed their investigations but nothing further has happened.

What South Africa, Argentina and other post-conflict societies have found indispensable are four pillars of what is called “Transitional Justice” which are truth, accountability, reparations and non-recurrence. In Sri Lanka’s circumstances, truth means credible, independent investigation of what happened to the disappeared, and support for memorialisation. Accountability means prosecuting Muttur, Vantharamoolai and comparable cases, and removing credibly accused persons from senior office. Reparations mean compensation for victims and the return of military-held land. Non-recurrence means repealing the Prevention of Terrorism Act, releasing those held under it in the meantime, and resolving local disputes such as Mailaththamadu before delay hardens them. A country that buries its past does not escape it. The past returns in the next generation.

Civil Society

It is against this background that the draft NGO law is most troubling. The proposed legislation contains sweeping provisions for State oversight and control of civil society organisations. Among these are enforcing a licensing requirement on NGOs, which is to be renewed every three years, and severe penalties for not submitting reports on time, or for spending on emergency flood relief (for instance) when the NGOs mandate is peacebuilding (as an example) with possible sanctions including deregistration and having to shut down. Civil society groups have warned that it would confer excessive discretion over their registration and operations. Officials in Sri Lanka have abused such powers in the past. Additional power without effective checks invites further abuse. Sound regulation would have clear criteria for registration, an independent registrar and a right of appeal to the courts. What cannot be justified is a regime in which registration becomes a licence to be withheld from organisations that scrutinise policy, expose abuses or advocate for the rights of citizens.

Democracy is based on checks and balances. Those who press for accountability are part of those checks. The contradiction is plain. A government that has pledged accountability, equality and the rule of law ought not to be preparing to weaken the very organisations that press for their fulfilment. The organisations most exposed are those working on disappearances, land, memorialisation and reconciliation in the North and East, where the State’s record is weakest and the need for independent witnesses greatest. Silencing them would not remove the grievances they document. It would remove the channel through which those grievances are addressed peacefully. The government appears to be relenting, which is welcome, but a pause is not a withdrawal. The bill should be withdrawn and any replacement drafted in genuine consultation with those it would govern.

Investment in peace as called for by the UN in its International Peace Day theme implies commitment over time, with returns that come slowly. Sri Lanka’s 30-place rise on the Global Peace Index is a first dividend and nothing more. It can be built upon only if the government matches its commitments with action: withdrawing or fundamentally redrafting the NGO law, repealing or suspending the Prevention of Terrorism Act, and bringing Muttur, Vantharamoolai and Mailaththamadu to resolution. A higher place in a global index is not a certificate of success. Sri Lanka’s higher ranking is an encouraging start, but it will endure only if the space in which citizens speak, question and organise is protected. Peace is built from below, and a government that is serious about it will treat civil society as a partner rather than a threat.

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Africa is buying: Sri Lanka must start selling

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A call to Sri Lankan exporters and agencies: Can Sri Lanka compete with China and India in Africa?

By Kana V. Kananathan
Former Ambassador

Sri Lanka has spent decades concentrating its exports on traditional markets in Europe, North America and Asia. Yet across the Indian Ocean lies a rapidly expanding market that remains significantly underdeveloped by Sri Lankan exporters: Africa.

The opportunity is not theoretical. Sri Lanka already exports packaging, textiles, rubber products, pharmaceuticals, paper, machinery and electrical goods to African markets. The question is whether these modest beginnings can be transformed into a serious export strategy—and whether Sri Lanka can compete against the enormous commercial presence of China and India.

The answer is yes—but Sri Lanka must compete differently.

Kenya: Gateway to East Africa

Kenya should be the starting point.

Sri Lanka exported approximately US$32.08 million to Kenya in 2025, while importing US$11.41 million. But US$32 million is tiny compared with the opportunity: Kenya imported more than US$24 billion in 2025. Even a 1% share of that market would represent nearly US$240 million in annual exports.

And the commercial base already exists. Sri Lanka’s 2025 exports to Kenya included approximately US$9.99 million in paper and paperboard products, US$9.73 million in knitted fabrics, US$3.64 million in pharmaceuticals, US$1.24 million in rubber products and US$1.20 million in machinery.

Kenya’s import structure is equally revealing. In the third quarter of 2025, industrial supplies represented 34.4% of imports, machinery and capital equipment 19.2%, food and beverages 9.0%, and consumer goods 7.3%. The opportunity for Sri Lanka, therefore, extends well beyond consumer goods—we can become a supplier to African industry.

But competition is fierce. Asia supplied around 70% of Kenya’s imports in 2025, with imports from China rising 16.5% and those from India 11.3%.

Sri Lanka cannot challenge China and India across every product category. Nor should it try. We must target sectors where quality, specialisation, reliability, technical capability, smaller production runs and flexibility matter more than simply offering the lowest price.

Where Can Sri Lanka Compete?

Packaging is an obvious starting point. Cartons, boxes, bags and labels are already among Sri Lanka’s exports to Kenya. Importantly, some Sri Lankan companies operating in Kenya are themselves importing these products from Sri Lanka. The market already exists; the challenge is to scale it.

As Africa’s food-processing, pharmaceutical, apparel and consumer-goods industries expand, demand for sophisticated packaging will grow with them. Sri Lanka already possesses the manufacturing capability and industry experience to capture a larger share.

Industrial rubber products, tyres, gloves and specialised rubber components offer another opportunity where Sri Lanka has established manufacturing expertise.

The apparel supply chain is equally promising. Rather than competing directly with African garment factories, Sri Lanka can supply fabrics, elastics, labels, packaging and specialised textile inputs.

Some Sri Lankan apparel manufacturing and export companies already established in Kenya, Togo, Ghana and Ethiopia are importing several of these inputs from Sri Lanka. The supply chain, therefore, already exists. The next step is to move beyond supplying Sri Lankan-owned factories and become a competitive input supplier to the wider African apparel industry.

Other sectors deserving systematic market development include pharmaceuticals and medical consumables, processed foods, biscuits and confectionery, coconut products, cinnamon and spices, electrical products and cables, industrial chemicals, ceramics, light engineering, agricultural equipment and food-processing machinery.

Sri Lanka should also look beyond physical goods. IT, fintech, banking technology, engineering, healthcare, hospitality management and professional services largely escape the freight disadvantage confronting merchandise exports.

The Tariff Problem Can Become an Opportunity

Market access cannot be discussed without tariffs.The East African Community applies a Common External Tariff with bands of 0%, 10%, 25% and 35%, while certain sensitive products attract still higher protection. Simply filling containers in Colombo with finished consumer goods will therefore not always be commercially competitive.

But that obstacle points towards a bigger opportunity: manufacture in Africa.

Sri Lankan businesses could export intermediate materials while undertaking final assembly, manufacturing, processing or packaging in Kenya. Packaging companies could establish converting plants; electrical manufacturers could assemble locally; pharmaceutical companies could explore manufacturing or packaging partnerships; and food companies could undertake final processing closer to consumers.

Kenya would then become more than an export destination. It could become Sri Lanka’s manufacturing and distribution gateway into East and Central Africa.

With the East African Community now comprising eight partner states and extending geographically from the Indian Ocean towards the Atlantic, establishing a regional presence is increasingly more important than viewing each African country in isolation.

West Africa Cannot Be Ignored

Sri Lanka simultaneously needs a West African strategy.

Ghana offers potential as an English-speaking commercial gateway and host of the AfCFTA Secretariat. Nigeria, with its enormous population and consumer economy, should be approached as a major market in its own right, despite its greater regulatory, currency and operational complexity.

ECOWAS tariff bands of 0%, 5%, 10%, 20% and 35% again make product selection critical. Sri Lanka should concentrate on products with sufficient differentiation and margins to absorb freight, tariffs and distributor costs.

Pharmaceuticals demonstrate both the opportunity and the challenge. Nigeria imported approximately US$766 million in pharmaceuticals in 2025, with India supplying roughly US$394 million and China US$131 million. Ghana imported approximately US$301 million, with India supplying about US$140 million.

Sri Lanka cannot simply offer another generic product and expect to beat India on price. We must identify specialised products, reliable supply arrangements, partnerships and, where commercially justified, local production or packaging.

Stop Promoting Sectors—Identify Products

Sri Lanka now needs an Africa Export Opportunity Study based on individual products, not broad sectors.

The Export Development Board, Foreign Ministry, chambers and private sector should jointly identify 15–20 priority products. For each product, Sri Lanka should calculate the HS code, African annual import demand, principal suppliers, Chinese and Indian market shares, applicable duties, freight from Colombo, regulatory requirements, distributor margins and final landed price.

That will tell us where Sri Lanka genuinely has a competitive advantage.

The Commercial Test

Before spending resources promoting a product, apply one simple test:

African import demand + Sri Lankan production capability + tariff + freight + distributor margin + regulatory cost = final landed competitiveness against China, India and local African production.

Only products that pass this test should receive concentrated export-promotion resources.

This would move Sri Lanka away from exhibitions, delegations and general discussions towards what ultimately matters: specific products, specific buyers, specific distributors and actual export orders.

Give Our Missions Targets

Commercial diplomacy must become results-driven. The Government should set clear annual trade and investment targets for every Sri Lankan mission in Africa.

Missions should be evaluated not merely on diplomatic activity, but on buyers and distributors identified, business introductions made, investments facilitated, market barriers resolved and measurable exports generated.

In a competitive Africa, our missions must become active economic frontlines not merely diplomatic outposts.

A practical strategy could operate through three commercial gateways: Nairobi for East and Central Africa, Accra for selected West African markets and Lagos for Nigeria.

Sri Lanka’s total exports of goods and services reached approximately US$17.25 billion in 2025. Capturing even a small additional share of Africa’s enormous import market could, therefore, make a meaningful contribution to export earnings, investment and foreign-exchange generation.

Africa Will Not Wait

Sri Lankan exporters must stop looking at Africa as a distant or difficult market and start treating it as a strategic growth market.

We cannot compete with China and India on scale, but we can compete on quality, specialisation, flexibility and reliability. Exporters must identify country-specific opportunities, establish strong local distributors, build partnerships with African businesses and use Sri Lankan companies already operating on the continent as gateways into regional supply chains.

Where freight and tariffs weaken competitiveness, businesses must be prepared to move towards local assembly, joint ventures and manufacturing in Africa. Exporters cannot do it alone. They need aggressive, measurable and results-driven commercial diplomacy from Sri Lanka’s missions.

Africa is buying. Its markets are being captured now. Sri Lanka must stop watching from the sidelines. We must enter, compete, build our presence and secure our share.

(Ambassador Kana Kananathan is a businessman, Diplomat, lobbyist and an expert in African affairs, with over four decades of experience on the African continent. A long-time resident of Africa, he served as Sri Lanka’s envoy to Uganda and Kenya, with concurrent accreditation to 22 African Nations, and was the permanent representative to UN Habitat and UN environmental Programme. Over the years, he has been the Elections Monitor across the continent, working closely with African governments, and built enduring partnerships with African leaders. He also served as Economic and Investments Advisor to former President Professor Alpha Condé of the Republic of Guinea)

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Memories and Midnight Magic: Recipe for a perfect 31st Night dance

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The heart of a great 31st Night dance is memory, and memories come rushing back when those 70s, 80s and 90s golden oldies begin to play — those timeless tunes that make revellers, young and old, rush to the floor and dance the night away.

A perfect 31st Night is not just a party. It is a journey. A journey through time.

The music should flow like a love story. Start slow, start soft. Let couples glide into a waltz for romance. Let the floor come alive with a twist, a rock ‘n’ roll, a jive. Let nostalgia build with beautiful sing-along oldies generally associated with a New Year’s Eve dance.

This is the art that many of our entertainers seem to have forgotten.

The final hour, before midnight, is sacred. It should be collective energy at its peak. The entire crowd, on the dance floor, linking arms, swaying together, singing, at the top of their voices, those sing-along favourites.

Yes, I’m referring to those immortal, nostalgic favourites that unite the world: ‘This Land Is Your Land,’ ‘You Are My Sunshine,’ ‘When The Saints Go Marching In,’ ‘Roll Out The Barrel,’ ‘Celebration,’ ‘She’ll Be Coming Round The Mountain,’ ‘Happy Days Are Here Again,’ and so many more.

One wonders if some of our modern entertainers have even heard of these nostalgia anthems that traditionally lead up to the dawning of the New Year! This is not just music; this is ritual.

Then comes THE moment: Lights dim. Music pauses. A hush falls. The countdown begins — 10, 9, 8… — hugs, wishes, tears of joy, and then … ‘Auld Lang Syne.’ Hands crossed, voices united, bidding farewell to the old and welcoming the new. That moment makes or breaks the night.

Here is the truth that many genuine 31st Night revellers feel but hesitate to say — an overdose of baila music at New Year’s Eve events is NOT welcome.

Of course, baila is required. Baila is our Sri Lankan heartbeat! But a 31st Night dance is for everyone.

When it’s ONLY baila, the twist and rock n’ roll lovers, the waltz kings and queens feel left out. And they are the very people who MADE nostalgia! They are the die-hard revellers who have kept the 31st Night spirit alive for decades.

A family mentioned to me that they went along with friends for a 31st Night dance, in the city, to usher in 2026, and were thoroughly disappointed with the setup.

The bands in attendance, they said, failed to generate the excitement generally associated with a 31st Night event.

If given a free hand, the music at certain Colombo venues will be mostly baila, and that is going to disappoint many. Some are already worried that it will be just a baila scene this year, as well.

A memorable 31st Night respects all rhythms … yes, a waltz for romance, a twist and rock n’ roll for that 60s magic, a cha-cha, a slow foxtrot, and then the baila, after the countdown anthem.

That balance is what makes it inclusive, classy, and truly fun-filled.

Organisers, especially in Colombo, should keep this in mind: let it be 70% nostalgia – Western, and 30% baila, with the last hour left for pure baila madness, after the New Year is in!

Organisers must work out the programme for their 31st Night and instruct the entertainers to follow those instructions. The band should not dictate the night; the spirit of nostalgia should.

This New Year, let’s give Colombo what it truly wants — memories, midnight magic, and music for every soul on the floor.

Let’s dance into 2027 with class.

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