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Sri Lanka launches first Climate Resilience Revolving Fund for MSMEs

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The symbolic handover of the first round of grants to MSME consortia

In a landmark step towards strengthening the resilience of micro, small, and medium-sized enterprises (MSMEs) against climate-induced disasters, Chrysalis, with the support of CARE Germany, officially launched Sri Lanka’s first Climate Resilience Revolving Fund for MSMEs in Colombo recently.

The initiative, co-funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Union, and Co-Impact, and implemented by Chrysalis, is part of the broader Climate and Disaster Risk Financing and Insurance (CDRFI) framework. It aims to safeguard livelihoods, accelerate post-disaster recovery, and embed long-term resilience practices among MSMEs in the Uva and Central Provinces.

MSMEs form the backbone of Sri Lanka’s economy, contributing significantly to employment generation, economic diversification, and community development. Some of these enterprises are women-led or women-powered, making them vital not only for household income but also for advancing gender equality and community resilience. However, they are increasingly exposed to floods, droughts, landslides, and other climate-induced shocks, which can disrupt operations and threaten livelihoods. The newly launched Revolving Fund will provide rapid financial support through MSME consortia in Badulla, Monaragala, Matale, and Nuwara Eliya, enabling quicker recovery, safeguarding women’s economic participation, and ensuring business continuity in the aftermath of disasters.

Hannah Bartels, Programme Coordinator MAP II CARE Germany Representative, emphasised ‘With the leadership of the German Federal Ministry for Economic Cooperation and Development and the commitment of global partners, this initiative in Sri Lanka illustrates how international funding can directly strengthen resilience at the community level’.

Speaking at the launch, Ashika Gunasena, CEO of Chrysalis, said: ‘SMEs are the backbone of Sri Lanka’s economy, but women-owned businesses are hit hardest by floods, droughts, and other climate shocks. Building climate resilience is not just about protecting enterprises, it is about safeguarding women’s livelihoods and strengthening communities’.

The initiative is a multi-actor collaboration involving government ministries, private sector financial institutions, civil society organizations, and development partners. By linking disaster risk financing directly to MSME consortia, the Fund not only supports immediate recovery but also fosters long-term resilience practices that can be scaled nationally.

The launch event also featured discussions on integrating CDRFI into Sri Lanka’s National SME Policy, the development process of the Revolving Fund, and the symbolic handover of the first round of grants to MSME consortia. It provided a platform for policymakers, private sector actors, and development partners to explore scalable solutions for climate risk preparedness.

This pioneering initiative seeks to strengthen MSME resilience, diversify market opportunities, and foster sustainable livelihoods in tourism, agriculture, and industry. The Revolving Fund marks a critical milestone in the journey toward comprehensive CDRFI solutions, ensuring that Sri Lanka’s MSMEs are better prepared for the climate challenges of today and tomorrow.



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Wednesdays declared a government holiday with effect from 18th March

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The Commissioner General of Essential Services, Prabath Chandrakeerthi has announced that, after taking into consideration the current fuel situation in Sri Lanka, the  Government has decided to declare Wednesdays of every week as a holiday for government sector employees, all government schools, universities, and courts with effect from March 18, 2026,  until further notice

The holiday will not apply to essential service sectors including Healthcare, Ports, Water Supply and Customs.

 

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PM declares open Angunukolapelessa Leisure Island

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Prime Minister Dr. Harini Amarasuriya stated that leisure had long been limited to only a privileged segment of society, and that the government’s objective is to create opportunities for all citizens to equally experience and enjoy that leisure.

The Prime Minister made these remarks on  Sunday (15th of March) while opening the multi-purpose development project associated with the Angunakolapelessa Tank, developed under the “Pohosath Gamak” programme of the Ministry of Rural Development, Social Security and Community Empowerment for the public.

In parallel with the multi-purpose development project carried out associating the Angunakolapelessa Leisure Island, a boating facility and the Leisure Island cafeteria were also officially opened.

Addressing the gathering the Prime Minister  stated:

“The multi-purpose development project associated with the Angunakolapelessa Tank has received voluntary support from the community of  more than 700 days.

With the funding from the Ministry of Rural Development, Social Security and Community Empowerment, the Angunakolapelessa Pradeshiya Sabha, together with the divisional councils, public safety committees, youth societies, trade associations, and many others in the community, was able to transform this site into a major development project within a remarkably short period of time.

This project serves as a powerful example of what can be achieved when people unite collectively for a noble purpose. Developing a country is not a task that the government alone can accomplish.

When intellectuals, religious leaders, youth, entrepreneurs, and the public come together with strong and responsible leadership, we can build a nation so resilient that no hostile force will be able to weaken it.

People in rural communities who live demanding and hardworking lives also deserve to enjoy. For a long time,  leisure was limited to only a privileged segment of society. As a government committed to fostering a dignified cultural life for all citizens, it is important to create more spaces like this where people can relax, walk, enjoy themselves, and spend time with peace of mind.

The occasion was graced by the presence of the members of the Maha Sangha, and attended by the Minister of Rural Development, Social Security and Community Empowerment Upali Pannilage, other ministers and parliamentarians, government officials, and local residents.


(Prime Minister’s Media Division)

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Navy’s successful high-seas bust nets over 133kg haul of heroin

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As a key frontline stakeholder in the national mission, ‘A Nation United,’ the Navy continues to conduct maritime operations in the waters surrounding the island, in coordination with other law enforcement agencies.

During a recent successful operation on the high seas south of Sri Lanka, the Navy intercepted a local multi-day fishing trawler and apprehended five suspects (05) in connection with the smuggling of a stock of suspected drugs.

During a special inspection at the Dickowita fisheries harbour today (16 Mar26), the Police Narcotic Bureau (PNB) confirmed the presence of over one hundred and thirty-three (133)
kilograms of heroin.

The Deputy Minister of Defence, Major General Aruna Jayasekara (Retd), accompanied by the Commander of the Navy, Vice Admiral Kanchana Banagoda, was present in Dickowita to inspect the seized items.

Addressing the media, the Deputy Minister stated that the tri-forces, particularly the Navy, along with the Coast Guard, Police, and other law enforcement agencies, are executing the
government’s vision for national security. He noted that the recent naval operation in the southern seas, which seized a large consignment of narcotics and weapons, demonstrates the government’s success in combating criminal networks involved in narcotics, arms and human trafficking.

He added that such successful outcomes result from the Navy’s meticulous planning, surveillance, intelligence analysis, and inter-agency coordination. He affirmed that no leniency will be shown to drug trafficking networks, and conveyed admiration, on behalf of the President, for the distinctive contribution made by the Sri Lanka Navy, in collaboration with other stakeholders,
towards ensuring public safety and protecting the younger generation from the menace of drugs.

Highlighting the scale of the Navy’s impact, he revealed that naval operations in 2025 seized narcotics valued over Rs. 75 billion, and operations so far in 2026 have seized over Rs. 20 billion worth of drugs.

The Deputy Minister warned that traffickers are increasingly using the guise of legitimate fishing activities to smuggle narcotics. Besides, he emphasized that the responsibility lies not only with law enforcement agencies but with all sectors of society to eradicate the networks associated with drug trafficking. He issued a firm directive to traffickers, dealers, and distributors to “quit,” asserting that there is no loophole, whether by sea or air, that the security forces cannot close. He
further urged drug users to abandon this destructive habit.

He announced plans for legal amendments to impose stricter penalties for drug offenses. Noting that law enforcement agencies have operational autonomy, he appealed to the public to report information on drug trafficking to hotlines 1818 and 1997.

He also commended the media for their responsible reporting in educating the public on the drug menace.

The trawler, the suspects, the communication equipment and the stock of narcotics held in this operation were handed over to the PNB for onward investigation and legal proceedings.

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