News
Govt. issues 538 soft alcohol licenses to boost tourism
(Economynext)The Government has issued 538 soft alcohol licenses under regulations started in 2022 to support the tourism sector, State Minister for Finance Ranjith Siyambalapitiya said.
“Under a gazette notification in 2022 on a request by the tourism industry to promote tourism, the government began issuing soft liquor licenses,” Minister Siyambalapitiya told parliament.
“538 soft liquor licenses were issued after that. Anyone with a tourist permit was able to apply for this license for their restaurant.”
According to a World Health Organization report, since 2004 Sri Lanka’s illegal alcohol sales have gone up by 500 percent, compared to 50 percent legal sales, he said.
Sri Lanka has high taxes on legal alcohol which promote bootlegging.
“The government at no point promotes liquor usage,” Siyambalapitiya said. “The best example of this is that we tax close to 75 percent of the price of a bottle.
“But the government has to follow policies that promote tourism.”
He was responding to a question by Opposition Leader Sajith Premadasa on issuing liquor licenses to vendors in proximity to schools.
“We have to ensure that these permits are issued to vendors in appropriate locations,” Siyambalapitiya said.
“This becomes an issue in non-tourist areas. Based on public complaints we have cancelled three liquor licenses in such vicinities, and we will do so in the future too.”
The lack of access to legal alcohol outlets can also promote moonshine sales, Siyambalapitiya said.
Authorities were conducting a review to find the spread of legal outlets.
“For example in Nuwara Eliya there are 115 outlets which is one for 6,809 persons,” Siyambalapitya said.
“But in Mullaitivu there is one for 990,000 persons.”
A total of 4,570 permits of 25 different categories have been issued, Siyambalapitiya said.
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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