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Use of INR in Tourism and Trade aids Sri Lanka’s Economic Recovery and Growth

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The High Commission of India, on 02 March, organized a discussion on the use of the Indian Rupee (INR) for economic transactions between India and Sri Lanka. Representatives from the Bank of Ceylon, State Bank of India, and the Indian Bank, shared their experiences and informed the audience that they had started carrying out INR-denominated trade transactions, through respective Vostro/Nostro accounts, after the creation of enabling framework by the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) in 2022.

The participating banks also outlined the benefits of settlements denominated in INR, which includes shorter timelines, lower exchange costs, and easier availability of trade credits, etc. The beneficial impact of this initiative, on the tourism and hospitality industry, was also highlighted, including its role in helping increase collections which could be utilized by other sectors.

A team from RBI joined the discussion in the online format and indicated the possibility of settlement of current account transactions in goods, as well as services, in INR, apart from the option of undertaking permitted capital account transactions. The RBI team referred to the close cooperation with CBSL and RBI’s commitment to further facilitate this process.

State Minister of Finance, Shehan Semasinghe appreciated the close economic relationship between the two countries and the financial and humanitarian support extended by India over the past year, including the strong financing assurances provided by India, in context of the IMF support programme for Sri Lanka. Governor of the CBSL, Dr. P. Nandalal Weerasinghe, mentioned the strong desire among Indian and Sri Lankan business communities for enabling trade settlements in INR. He called for expanding this facility, over a period of time, to utilize it for the full range of capital and current account transactions. Governor of the CBSL also appreciated the wide-ranging participation from stakeholders in Sri Lanka and India which included more than 300 attendees in the physical format, apart from those that joined online.

High Commissioner of India to Sri Lanka, Gopal Baglay, highlighted the positive impact that the initiative will have in the joint efforts for building a stronger and closer economic partnership between the two countries, through trade and investment led measures. He also mentioned the ongoing cooperation between India and Sri Lanka in the area of digital payments and the potential it possesses for enhancing the economic relationship between the two countries.

Participants from Sri Lanka included officials from the CBSL, Government of Sri Lanka, representatives from business and industry, including the tourism sector, media personnel, bank representatives, economists and journalists. Participants from India that connected in the online format, included representatives from RBI, Government of India, trade and industry associations and export promotion councils.



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Interment of singer Latha Walpola at Borella on Wednesday [31st]

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Family sources have confirmed that the interment of singer Latha Walpola will be performed at the General Cemetery Borella on Wednesday (31 December).

 

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Western Naval Command conducts beach cleanup to mark Navy’s 75th anniversary

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In an environmental initiative commemorating the 75th anniversary of the Sri Lanka Navy, the Western Naval Command organized a cleanup programme at Galle Face Beach on Saturday (27 Dec 25).

The programme focused on the removal of substantial solid waste littering the beachfront, including accumulated plastic and polythene debris. All collected wastey was systematically disposed of utilizing methods designed to safeguard the sensitive coastal ecosystem.

Demonstrating a strong commitment to the cause, the cleanup effort saw the participation of the Commander Western Naval Area and a group of over 200 naval personnel.

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Environmentalists warn Sri Lanka’s ecological safeguards are failing

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Sri Lanka’s environmental protection framework is rapidly eroding, with weak law enforcement, politically driven development and the routine sidelining of environmental safeguards pushing the country towards an ecological crisis, leading environmentalists have warned.

Dilena Pathragoda, Managing Director of the Centre for Environmental Justice (CEJ), has said the growing environmental damage across the island is not the result of regulatory gaps, but of persistent failure to enforce existing laws.

“Sri Lanka does not suffer from a lack of environmental regulations — it suffers from a lack of political will to enforce them,” Pathragoda told The Sunday Island. “Environmental destruction is taking place openly, often with official knowledge, and almost always without accountability.”

Dr. Pathragoda has said environmental impact assessments are increasingly treated as procedural formalities rather than binding safeguards, allowing ecologically sensitive areas to be cleared or altered with minimal oversight.

“When environmental approvals are rushed, diluted or ignored altogether, the consequences are predictable — habitat loss, biodiversity decline and escalating conflict between humans and nature,” Pathragoda said.

Environmental activist Janaka Withanage warned that unregulated development and land-use changes are dismantling natural ecosystems that have sustained rural communities for generations.

“We are destroying natural buffers that protect people from floods, droughts and soil erosion,” Withanage said. “Once wetlands, forests and river catchments are damaged, the impacts are felt far beyond the project site.”

Withanage said communities are increasingly left vulnerable as environmental degradation accelerates, while those responsible rarely face legal consequences.

“What we see is selective enforcement,” he said. “Small-scale offenders are targeted, while large-scale violations linked to powerful interests continue unchecked.”

Both environmentalists warned that climate variability is amplifying the damage caused by poor planning, placing additional strain on ecosystems already weakened by deforestation, sand mining and infrastructure expansion.

Pathragoda stressed that environmental protection must be treated as a national priority rather than a development obstacle.

“Environmental laws exist to protect people, livelihoods and the economy,” he said. “Ignoring them will only increase disaster risk and long-term economic losses.”

Withanage echoed the call for urgent reform, warning that continued neglect would result in irreversible damage.

“If this trajectory continues, future generations will inherit an island far more vulnerable and far less resilient,” he said.

Environmental groups say Sri Lanka’s standing as a biodiversity hotspot — and its resilience to climate-driven disasters — will ultimately depend on whether environmental governance is restored before critical thresholds are crossed.

By Ifham Nizam ✍️

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