In a significant breakthrough for Sri Lanka’s trade and logistics sector, authorities have agreed to halve the number of containers subjected to Customs examination at the Colombo Port—an intervention expected to dramatically reduce congestion and costly delays that have plagued importers and exporters for months.

The decision emerged following high-level discussions between the Ceylon United Business Alliance (CUBA), senior Customs officials, and representatives from the Finance and Industries Ministries.

The business delegation, led by Ms. Tania Abeysundara, included representatives of the Customs House Agents and Traders Association, among them Ghouse Arfin, Jawfer, and Mohamed Niyas. They met with Deputy Minister of Finance Prof. Anil Jayantha and Deputy Minister of Industries Chathuranga Abeysinghe, alongside top Customs officials.

Sri Lanka Customs Director General Seevali Arukgoda, addressing the concerns of the trade, assured that container examination selectivity would be reduced in line with International Monetary Fund (IMF) recommendations.

At present, nearly 800 containers—amounting to around 40 percent of daily throughput—are flagged for physical examination at key yards, including Grayline 1, Grayline 2, and Rank Container Terminal. This high rate has been widely blamed for severe bottlenecks within the Colombo Port and associated examination yards.

However, under the revised framework, the number of containers selected for inspection will be reduced to approximately 400 per day, bringing the examination rate down to 20 percent.

Senior Customs officials, including Additional Director General (Revenue and Services) S. Loganathan, acknowledged that the current levels of inspections had contributed to mounting congestion, extended clearance times, and increased costs for traders.

Industry stakeholders have long argued that excessive physical inspections—often duplicative and risk-averse—undermine Sri Lanka’s competitiveness as a regional maritime hub.

“This is a vital step towards improving trade facilitation and reducing the cost of doing business in Sri Lanka, the Alliance team told The Island Financial Review.

By Ifham Nizam

Sri Lanka’s economic growth is expected to moderate to 4.0% in 2026 and climb to 4.2% in 2027, following two consecutive years of strong 5.0% growth.

This forecast is based on an early stabilization scenario for the Middle East conflict, according to the Asian Development Outlook (ADO) April 2026, Asian Development Bank’s (ADB) flagship economic publication. Sri Lanka’s recovery held firm in 2025 despite the late-year disruption of Cyclone Ditwah. Private consumption surged amid low inflation and easing interest rates, while remittances hit a record high, as did the primary budget surplus. The current account posted a third consecutive surplus, and official reserves climbed to their strongest level in years.

The outlook for 2026 is increasingly shaped by the conflict in the Middle East, even as post-Ditwah reconstruction spending provides some support for growth. Private consumption will remain the main growth driver, though higher inflation will temper household spending power, and private investment is expected to recover only gradually amid heightened uncertainty.

Higher energy costs, potentially weaker remittance inflows, and disruptions to trade and tourism will weigh on household incomes and external buffers and drag on economic growth. Inflation is projected to accelerate sharply to 5.2% in 2026, driven largely by the Middle East conflict.

“Sri Lanka has come a long way since the recent economic crisis, and its economic performance over the last two years is a major achievement,” said ADB Country Director for Sri Lanka Shannon Cowlin. “However, the risks ahead are real and significant. This is not the moment to ease up on reforms. Fiscal discipline must be maintained and resilience must be strengthened against the external shocks that will keep testing this economy. At the same time, scaling up and executing public investment will be essential to sustaining the recovery.”

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.(ADB)

This Avurudu season, Hameedia introduces its latest campaign, “Threads of Culture,” celebrating the traditions that connect generations while embracing a more conscious and forward-thinking approach to fashion.

Rooted in the spirit of Sinhala and Hindu New Year, the campaign highlights the importance of preserving culture while evolving with modern values. This year, Hameedia places a strong emphasis on ethical and sustainable fashion, encouraging customers to move away from fast and imitation fashion towards quality, authenticity, and responsible choices.

As part of this shift, Hameedia presents a refreshed festive collection crafted using lightweight cotton and linen fabrics, designed specifically for Sri Lanka’s climate. The collection focuses on breathability, comfort, and timeless style, offering customers clothing that is both practical and refined for the season.

Commenting on the campaign, Fouzul Hameed, Managing Director of Hameedia, stated, “Avurudu is a time of renewal, reflection, and meaningful connection. With ‘Threads of Culture,’ we wanted to go beyond celebration and inspire a shift in mindset, encouraging Sri Lankans to choose authenticity over imitation, quality over quantity, and responsibility over convenience. As a homegrown brand, we take pride in upholding craftsmanship and ethical practices, and we believe fashion should not only look good but also do good.”

Marking a key milestone in its expansion, Hameedia is also set to open its newest outlet in Galle, further strengthening its presence across the island and making its signature craftsmanship more accessible to customers in the southern region.