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CB Governor stresses need to assist crisis-hit construction industry

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Governor of the Central Bank Dr. Nandalal Weerasinghe on Friday (14) emphasized the importance of promoting a sustainable and cost-effective construction industry in the country, highlighting key challenges and opportunities in the sector.

Speaking at ‘Construction Expo 2025’, Dr. Weerasinghe underscored the need for Sri Lanka to align with global trends in sustainable construction, integrating cost-effective energy solutions and eco-friendly building practices.

“I must say my views here are not necessarily as Governor of the Central Bank of Sri Lanka, but as a person looking at this construction industry and how this can be developed and what the issues are. Sustainability in construction is essential, not just for new projects but also for existing buildings,” he noted.

Dr. Weerasinghe acknowledged that the construction sector has been one of the hardest-hit industries due to multiple economic pressures in recent years including the decline in public investments, high material costs and the industry being dependent on government projects.

The CBSL Governor, who acknowledged that the government faced fiscal constraints, limiting infrastructure spending and delaying payments to contractors, said that however, the outstanding arrears had now been settled.

“Government did not have space to spend money for public investment, especially construction that had a significant impact on the industry in the last couple of years, plus the government inability to pay the arrears for a long period. That was an issue we all recognize that has been one of the adverse impacts the industry had in the past”, he expressed.

“Also the cost of materials went up significantly, partly because of foreign exchange shortages. As a result, the shortage had shot up the prices of construction materials, as well as depreciation of the currency, high interest rates, finance costs, and other factors. We all recognize that it had an adverse impact on the industry. It’s one of the worst affected industries because of all these factors.”



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Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of  Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.

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US dodges question on AKD’s claim SL denied permission for military aircraft to land

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President

By Shamindra Ferdinando

A spokesperson for the US Embassy in Colombo declared that the United States and Sri Lanka maintain a long-standing defence partnership, grounded in transparency, mutual respect, and shared interests.

The official said so in response to The Island query regarding President Anura Kumara Dissanayake’s recent bombshell disclosure, in Parliament, that his government declined to allow the US Air Force to use the Mattala Rajapaksa International Airport, following the eruption of the latest West Asia war.

We sought views of the US on President Dissanayake’s claim against the backdrop of Sri Lanka being a party to the Acquisition and Cross-Servicing Agreement (ACSA) since 2007. Sri Lanka extended the ACSA in 2017, for another 10-year period, and its extension comes up next year.

The President revealed that the US had requested permission to use Mattala, between 04 and 08 March.

Claiming that the request had been made on 26 February, two days before the war began, President Dissanayake said that the US had sought to land two aircraft, carrying eight anti-ship missiles, but that the request had been turned down to maintain Sri Lanka’s neutrality. The President revealed that the aircraft were to come from a US base in Djibouti.

The US embassy pokesperson explained that questions related to operational movements, including ‘Operation Epic Fury’, should be directed to the Department of War (DOW) in Washington.

Camp Lemonnier is the primary base of operations for US Africa Command in the Horn of Africa. China, too, has its only overseas military base in Djibouti in the vicinity.

Military sources said whatever various interested parties said about US-Sri Lanka relations, the former provided significant intelligence support during last phase of the conflict that enabled the Navy to hunt down floating LTTE arsenals in international waters. Of the eight LTTE vessels sunk, the US backed four hits with specific intelligence, sources said.

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No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor

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CBSL Governor

Sri Lanka’s worker remittances had not seen a decrease despite the ongoing conflict in West Asia, Central Bank (CBSL) Governor, Dr. Nandalal Weerasinghe said yesterday.

“Based on currently available data, they have not seen a decline in remittances. In fact, according to that we have observed, is a slight increase in remittances in the past few days, ” the Governor said at a media conference held at the Central Bank head office in Colombo.

Governor Weerasinghe also mentioned that he had not seen any reports about Sri Lankans returning to the country from the Middle East due to the ongoing conflict.

The Central Bank Governor, however, acknowledged that there had been a decrease in tourist arrivals. He confirmed that tourist arrivals had decreased by around 17 percent due to the current volatile situation in the Middle East.

Meanwhile, the Central Bank of Sri Lanka has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%, following its latest Monetary Policy Board meeting.

By Hiran H Senewiratne

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