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Drought costs 4.3% of Yala crop

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ECONOMYNEXT –The current dry weather has damaged 51,055 acres (around 20,662 ha) of paddy, State Minister for Agriculture, D B Herath told parliament.

The damaged paddy area is around 4.3 percent of the estimated 484,437 hectares of sown extent in the Yala minor harvest season. According to the Department of Agriculture, the sown extent was seven percent higher than last year by the end of June 2023. This would produce around 1.81 million metric tonnes of rough rice.

“In Kurunegala, the damage has spread across 15,352 acres, in Mahawa 9,295 acres, in Udawalawe 14,667 acres, in Hambantota 1,892 acres and 1,230 acres of land in Puttalam,” Herath told parliament adding “we are prepared to pay compensation for all the damages in these areas.”

Sri Lanka has experienced dry weather in August, a phenomenon seen in so-called El Nino years. Farmers who did not cultivate as water was first given ended up with water shortages in irrigation schemes, according to some observers.

According to the Department of Agriculture, the sown extent would produce around 1.81 million metric tonnes of rough rice. Sri Lanka was expecting a rice surplus based on the on the June data.

Based on past trends Sri Lanka tended to have bumper Maha harvest in El Nino years due to extra rain received in the inter-monsoon period in October and November. According to researchers El Nino leads to wetter conditions during May, October, November and December and to drier conditions during January, February, March, July and August.



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Cabinet approves establishment of Activity-Based Learning Centers at Regional Level for Commerce Education

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The importance of establishing learning centers at regional level has been identified in order to achieve multiple objectives, including the development of teachers, utilization as a hub for new technology and resource sharing, enhancement of vocational and higher education opportunities, efficient utilization of limited physical and human resources, integration of new technologies with subject-specific knowledge,
sharing of limited resources to ensure equitable access to education, and development of skills in line with regional potential, thereby contributing to the qualitative development of commerce education.

Accordingly, the project to establish 100 activity-based learning centers for the enhancement of commerce education has been included in the Public Investment Programme as a major investment project in general education, with an estimated total cost of Rs. 289 million, to be implemented during the period 2026–2028.

Having considered the proposal submitted by the Prime Minister, in her capacity as the Minister of Education, Higher Education and Vocational Education, Cabinet approval was granted to establish and operationalize 25 regional centres covering all 25 districts.

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M/s. Resources Development Consultants (Pvt) Ltd appointed to prepare Feasibility Study and detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura

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Approval was granted at the Cabinet Meeting held on 21-10-2025 to carry out a feasibility study and prepare detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura.

The calling of expressions for this purpose has been conducted under the national Competitive Procurement Procedure, and 8 bidders have submitted their Expression of Interest in that respect.

Following the evaluation of technical proposals submitted by the short-listed bidders, and financial proposals of the 4 eligible institutions have been opened. Subsequent to the evaluation of the aforementioned financial proposals, the Consultant Procurement Committee has recommended awarding
the consultancy for the feasibility study and preparation of detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura to M/s. Resources Development Consultants (Pvt) Ltd at a total cost of Rs. 356.22 million (exclusive of taxes).

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Transport, Highways and Urban Development to award the said procurement in line with the above recommendation.

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Import and Export (Control) Regulations No. 01 of 2026, issued under the Imports and Exports (Control) Act, No. 1 of 1969, to be submitted for concurrence of the Parliament

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The Special Import Licence Regulations No. 01 of 2023, published in Extraordinary Gazette No. 2312/77 dated 01-01-2023, prohibit the importation of retreaded tires, including those used for aircraft.

However, the Ministry of Ports and Civil Aviation has made a request that an exemption be granted to permit the importation of retreaded aircraft tires classified under HS Code 4012.13 for Sri Lankan Airlines.

Taking into consideration essential operational and safety requirements, it has been decided to permit the importation of retreaded aircraft tires classified under HS Code 4012.13, subject to the recommendation of the Ministry of Ports and Civil Aviation, provided that such tires comply with the requirements specified by internationally recognized aviation authorities and are imported by Sri Lankan airline operators engaged in international air services under a duly executed supply agreement between the airline and a certified international supplier.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to submit the Import and Export (Control) Regulations No. 01 of 2026, published in Extraordinary Gazette No. 2481/02 dated 23-03-2026 under the provisions of the Imports and Exports (Control) Act, No. 1 of 1969, for the concurrence of the Parliament.

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