Editorial
The Customs and revenue bubble
Tuesday 30th December, 2025
Sri Lanka Customs is on cloud nine, boasting that it has set a revenue record. It says it has raised more than Rs. 2,497 million, which is in excess of the targets set by the government for the current year. An increase in state revenue is certainly a very positive development, but how that goal has been achieved should be revealed to the public.
There have been exponential tax increases and they have enabled the government to boost its revenue significantly. The Customs Department has been able to meet its revenue targets thanks to the lifting of restrictions on vehicle imports after a lapse of several years and tax hikes. The Customs has admitted that taxes on imported vehicles have amounted to about Rs. 870 billion in 2025. Thus, one can argue that vehicle imports have created a revenue bubble, which may not last long. An increase in the Customs’ revenue has come at the expense of the rupee, which is depreciating. So, there is no cause for celebration, and the government has to tread cautiously.
Spokesman for the Customs Chandana Punchihewa, addressing the media yesterday, blamed cargo clearance delays on a container backlog created by Cyclone Ditwah. Extreme weather events no doubt cause delays in ports, but in this country port delays occur even during long spells of fine weather. Protracted delays in the Colombo Port, in January 2025, led to the release of 323 red-flagged containers without Customs inspection. What they carried is anybody’s guess.
Excuses are of no use where port delays are concerned. Delays ruin ports, for they drive away major shipping lines. It has been reported that several international shipping lines have opted to bypass the Colombo Port, which is facing escalating congestion due to various factors related mainly to capacity and efficiency—not adverse weather as such. The Customs cannot absolve itself of responsibility for this sorry state of affairs in the Colombo Port, which has also been facing strategic neglect.
As we argued in a previous comment on port congestion, the Ports Authority, the government and the Customs must formulate a strategy to eliminate delays. If the Customs cannot cope with the situation, the Coast Guard personnel can be called in to help clear cargo; they are qualified to handle such tasks. The government ought to take cognisance of formidable challenges Sri Lanka faces from the other ports in the region, especially India’s newly built Vizhinjam port, which is becoming a major attraction for international shippers who are averse to delays. In global logistics, shipping lines place very high value on on-time delivery, reliability and efficient operations.
The government must make a serious effort to enhance the efficiency and capacity of the Colombo Port to retain the transshipment traffic historically routed via Colombo. There is a strong possibility of shipping lines rerouting feeder services away from Colombo to Vizhinjam, adversely impacting Colombo’s network role, as we have said previously, quoting shipping experts.
Vizhinjam has several key advantages over Colombo. It advertises itself as a deep-water port with a 24 m natural draft, which enables it to accommodate ultra-large container vessels without dredging; its proximity to the main east–west shipping route helps vessels to call without significant deviation, reducing voyage time and costs. Automation, modern cranes, faster turnaround times, enhanced operational efficiency and attractiveness to shipping lines are other advantages India’s new port has over Colombo.
Sri Lanka Customs may brag about its ‘revenue record’, but it must not lose sight of the need to enhance its productivity in view of challenges from other ports in the region to Colombo. It should reveal how it is going to meet the revenue targets set by the government when vehicle imports decrease, causing the current revenue bubble to burst.
Editorial
Sailing between Scylla and Charybdis
Friday 17th April, 2026
Chinese Foreign Minister Wang Yi is reported to have told his Iranian counterpart, Abbas Araghchi, in a telephone conversation, that reopening the Strait of Hormuz is a unanimous demand from the international community. He has stressed that Iran’s sovereignty, security, and legitimate rights should be respected as a littoral state of the Strait of Hormuz, but the freedom of navigation and safety through the strait should be ensured. One cannot but agree with the Chinese Foreign Minister.
A prolonged closure of the Hormuz Strait will only aggravate global economic woes and therefore be counterproductive. Tehran has a lot to gain on the diplomatic front; even some staunch allies of the US have taken exception to US-Israeli military aggression against Iran. It ought to take the shifting dynamics of the conflict into consideration and change its strategy accordingly.
The Chinese Foreign Minister has rightly noted that the current situation has reached a critical juncture between war and peace and the window of peace is opening. Iran must seize this opportunity. Araghchi has informed Wang Yi that his country is willing to continue to seek a rational and realistic solution through peaceful negotiations. It is hoped that the fragile ceasefire will be extended, and Pakistan will be able to bring the warring sides to the negotiating table again and help work out a compromise formula.
The US has imposed a naval blockade on Iran, targeting ships that enter or leave the Iranian ports, especially though the Hormuz Strait, through which about 20% of world oil supply passes. It has already turned back several ships that sought to enter Iran. Ironically, the US is doing what it has condemned Iran for—restricting international navigation through the Hormuz Strait. With its naval blockade, Washington is likely to incur more international opprobrium. It still has no way of forcing Iran to allow all ships to sail through the strategic chokepoint freely. However, the US naval blockade is likely to have a crippling impact on Iranian oil exports. With both Iran and the US using the Strait of Hormuz as a strategic lever, the countries that have nothing to do with the conflict have to sail between Scylla and Charybdis in the Gulf region.
Some experts are of the view that the China-Iran railway will help mitigate the impact of the US naval blockade and counter Washington’s efforts to isolate China and Iran, but this option could give rise to unforeseen logical and geopolitical issues.
About one-third of global seaborne trade in fertiliser reportedly passes through the Strait of Hormuz. The Gulf countries are key producers of nitrogen fertilisers. They also manufacture about 20% of phosphate fertilisers and 25% of global Sulphur. Urea prices have increased by 25% in the US, and the American Farm Bureau Federation has written to President Donald Trump, warning that production shocks will threaten national food security. The situation is far worse in the developing world. Sri Lanka is running out of its fertiliser stocks, and farmers are up in arms. Máximo Torero, the Chief Economist of the Food and Agriculture Organization of the United Nations, has warned that the ongoing disruption to the Strait of Hormuz trade corridor has triggered “one of the most severe shocks to global commodity flows in recent years, with significant implications for food security, agricultural production, and global markets”.
Meanwhile, Sri Lanka is playing politics with its national energy conservation strategy amidst a global crisis while all other countries are strictly enforcing regulations in place to curtail fuel consumption. The suspension of the QR-based fuel quota system on account of the traditional New Year celebrations must have led to a huge increase in fuel consumption for non-essential purposes, as evident from the record revenue from the expressways. What should have been done was to increase the fuel quota instead of suspending the rationing system so that the public would be compelled to consume fuel sparingly during the festive season. The West Asian conflict is far from over, and the crisis management strategies must not be compromised.
Editorial
Emergency without emergency
It is said that when the people fear the government, there is tyranny, and when the government fears the people there is liberty. However, in a bid to retain its hold on power, a government that fears the people, tends to resort to draconian measures that are deleterious to civil liberties and democracy and could lead to tyranny. Among them is the misuse of Emergency regulations on some pretext or another. Sri Lanka has spent most of its post-Independence years under a state of Emergency.
The JVP-NPP government keeps on extending emergency regulations even though several months have passed since the landfall of Cyclone Ditwah, which warranted their imposition. It drew severe criticism for an initial delay in declaring a state of Emergency, which it now cannot do without for all intents and purposes. A staunch critic of Emergency and the Prevention of Terrorism Act (PTA), the JVP/NPP came to power, promising to abolish the PTA and use the Emergency regulations responsibly, but it has reneged on that pledge.
On Thursday, Parliament voted to extend the State of Emergency under the Public Security Ordinance. There were 137 ayes and 27 nays. Members of the SJB, the ITAK, the NDF, the SLPP and Jaffna District Independent MP Dr. Ramanathan Archchuna opposed the government motion seeking the extension of Emergency. A vote was held after ITAK MP Shanakiyan Rasamanickam called for division. Worryingly, only 165 MPs, including the Speaker, were present in the 225-member House at the time of voting. Where were the other 60 MPs? Among the absentees were 21 government MPs and 33 Opposition members, according to media reports. At least the Opposition, which called for a division on the motion, should have ensured that all its MPs were present in the House. So much for the commitment of the MPs to their legislative duties and functions. They often haul state employees over the coals for dereliction of duty. First of all, they should put their own house in order.
A state of Emergency is no doubt a legitimate constitutional tool, but it must be used responsibly and sparingly strictly in response to genuine crises. Its extension for political reasons risks undermining democratic institutions, civil liberties and, most of all, public trust in democratic governance.
The deplorable practice of keeping a country under Emergency regulations for extended periods leads to the weakening of democratic culture, public distrust in government, corruption, lack of transparency, the debilitation of civil society and media freedom, an authoritarian drift, and economic and social uncertainty. The misuse of Emergency regulations could create a climate of instability, driving investors away at a time when Sri Lanka is emerging from its worst-ever economic crisis and desperately seeking foreign direct investment to build its forex reserves.
Political leaders currently in the Opposition wax eloquent in Parliament on the ill-effects of a prolonged state of Emergency. But their parties cannot absolve themselves of the blame for the culture of Emergency; the UNP, the SLFP and the JVP are prominent among them. There have been numerous instances where Emergency regulations were invoked in this country. In 1953, a UNP government imposed an emergency rule to restore order during a countrywide hartal. The SLFP did so in 1958 to suppress communal riots. Thereafter, the UNP used Emergency regulations to suppress a Tamil civil disobedience campaign. The SLFP and its leftist allies started the practice of extending Emergency regulations to consolidate its power after crushing the JVP’s first uprising in 1971. The situation took a turn for the worse under the UNP governments after 1977, and the country was under a state of Emergency during the Eelam war, which ended in 2009. The main Tamil political parties backed the LTTE both in and outside Parliament. In the post-war period, an anti-Muslim riot, the Easter Sunday terror attacks, the beginning of the current economic crisis, a mass uprising and natural disasters also led to the imposition of Emergency regulations.
Emergency has been more abused than used in this country. The incumbent government is now emulating the SLFP, the UNP and the coalitions led by them where all bad practices are concerned, while pontificating on the virtues of good governance.
Editorial
Govt. drops fig leaf
Saturday 11th April, 2026
The JVP-NPP government has dropped the fig leaf of good governance and defended Energy Minister Kumara Jayakody allegedly involved in a coal procurement scam, which has cost the state coffers billions of rupees and caused a huge drop in the national power supply. It went so far as to defeat a no-faith motion against him in Parliament yesterday. In 2023, the JVP/NPP vehemently condemned the then SLPP-UNP government for defending Minister Keheliya Rambukwella allegedly involved in a pharmaceutical procurement scandal. It has just done what it vilified its predecessor for.
The SLPP-UNP government at least allowed legal action to be taken against Rambukwella, who was arrested, remanded and prosecuted, but the incumbent administration has ensured that Jayakody remains above the law.
The no-faith motion was a smart move by the Opposition. It caused the government to make a mockery of its commitment to upholding the rule of law and accountability. President Anura Kumara Dissanayake himself defended his friend, Jayakody, in Parliament on Tuesday, sending a clear signal to the NPP parliamentary group; they had to vote en bloc against the no-faith motion on Friday. It is now clear that the JVP-NPP government has no qualms about defending tainted politicians.
The coal scam will not go away simply because the no-faith motion against Jayakody has been defeated. Governments abuse their parliamentary majorities to defend their members and protect their interests. Now, the Opposition will take the coal issue to the streets and flog it hard to gain political mileage. It held a demonstration near Parliament yesterday. It has got hold of something to beat the government with.
There is no way the government can prove its claim that there has been no wrongdoing on its part where the low-grade coal imports are concerned. The National Audit Office itself has pointed out serious procurement irregularities related to coal imports. Power tariffs will have to be increased again to meet the additional cost of operating oil-fired power plants to make up for the generation shortfall at Norochcholai. It has been reported that Sri Lanka’s household electricity tariffs are among the highest in South Asia, and further power tariff hikes will make the situation far worse, and Sri Lanka will have its work cut out to attract foreign investors who factor in power prices before parking their money in any investment destination. Ordinary Sri Lankans are struggling to make ends meet, and their patience is wearing thin, and this will make the task of mobilising popular support easier for the Opposition. It was people’s economic hardships and public protests that made the JVP’s meteoric rise to power possible in 2024.
Governments with supermajorities succumb to the arrogance of power and ruin things for themselves. The best way out of the current coal imbroglio would have been for the JVP-NPP government to ask Minister Jayakody to step down and let the national anti-graft commission and the police institute legal action against him. Such a course of action would have helped the government convince the public that it was serious about fulfilling its pledge to eliminate bribery and corruption and send a clear message to the corrupt elements in its ranks that they would not be protected.
The JVP/NPP is now without any moral right to be critical of former Presidents who defended their cronies involved in corrupt deals. A fish is said to rot from the head down.
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