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Sri Lanka in dilemma over import restrictions removal – Economics don
The government has taken a number of steps to pass the International Monetary Fund (IMF)’s first review of its loan, Prof. Priyanga Dunusinghe, Department of Economics at the Colombo University says.
“The IMF made several recommendations. One of them is increasing the tax revenue of the government. It also wanted the government to make the Central Bank independent and ensure that the state-owned enterprises adhere to cost reflective pricing. The IMF also wanted a strong safety net. Some progress has been made on these fronts,” he said.
Prof. Dunusinghe said the government had already faced tough resistance to those moves.
“Not all goals set by the IMF have been met, but it’s obvious that the government is serious about meeting the targets,” he said.
Prof. Dunusinghe added that Sri Lankans must be proud that the government had repaid the loan taken from Bangladesh in 2022.
However, the decision to remove all import restrictions, apart from those on private vehicles, from October might be premature, he said. There are still restrictions on importing over 600 items, he said.
“We must do a thorough study first to see if we are in a position to do so. I know there is a lot of pressure on the government to lift import restrictions. There is a lot of pressure from the EU. They have opened their markets to us through GSP+, but we have closed our doors to their goods. The IMF is also not a big fan of import restrictions. I personally don’t think we are ready to let go of import restrictions so early,” he said.
“However, we can’t keep import restrictions going on for a long time as well. Sri Lankan products too are being sold to other countries and we need to show reciprocity,” he said.
“Some businesses might import large quantities of items to buffer up stocks. The government must ensure that the rupee is not greatly depreciated. We can control the import of goods through tariffs. We have signed agreements with the World Trade Organization (WTO) that we won’t go beyond certain tariff thresholds. However, there is room for us to operate. We can get rid of import bans, but we can still discourage imports,” he said.
Prof. Dunusinghe also said that politicisation of key institutions was a serious problem for the country as those with political affiliations were not keen on delivering bad news to their political masters.
“Sri Lanka is also talking about giving tax concessions to attract investors. We have tried this since 1977, without much success. We have not addressed what really deters investors, such as policy inconsistencies, corruption, and lack of infrastructure. We just give tax concessions, which are often used by crooks,” he said.
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Heat Index at Caution Level in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar and Vavuniya districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
at 3.30 p.m. on 22 March 2026, valid for 23 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 and Vavuniya 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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Fuel price hikes trigger transport disruptions and calls for fare increases
The latest fuel price increases have sparked widespread concern among transport operators and raised questions about the government’s supportive measures. Cabinet Spokesman and Minister Dr Nalinda Jayathissa told a media briefing yesterday that the government was incurring a monthly loss of Rs. 20 billion by maintaining subsidies on fuel. According to the Minister, the state loses Rs. 100 per litre of diesel and Rs. 20 per litre of petrol under the current pricing system, a burden that the Treasury continues to absorb as part of a “supportive mechanism.”
The Ceylon Petroleum Corporation (CPC) revised fuel prices from midnight on March 21, raising the price of a litre of Lanka Auto Diesel by Rs. 79 to Rs. 382, Super Diesel by Rs. 90 to Rs. 443, Octane 95 petrol by Rs. 90 to Rs. 455, and Octane 92 petrol by Rs. 81 to Rs. 398. Lanka Kerosene was increased by Rs. 60,bringing the price to Rs. 255 per litre. Other suppliers, including Sinopec and Lanka IOC, also implemented similar hikes, with Sinopec’s Super Diesel rising sharply by Rs. 219 to Rs. 572 per litre.
The surge in fuel prices has had an immediate impact on public transport. The Chairman of the Lanka Private Bus Owners’ Association, Gamunu Wijerathne, told The Island that 90% of private buses were off the road yesterday (22). He called for a 15% increase in bus fares, raising the minimum fare from Rs. 27 to Rs. 35, warning that services could be suspended if fare adjustments are not approved.
Three-wheeler operators have also pressed for immediate fare revisions. L. Rohana Perera, General Secretary of the National Joint Three-Wheeler and Industrialists’ Association, said the rising fuel costs have made it difficult for drivers to continue operating. The Association has proposed a Rs. 20 increase for the first kilometre fare for all meter-operated three-wheelers and plans to present its concerns to the Presidential Secretariat.
Fuel price monitoring has also intensified amid concerns over potential smuggling. A senior police officer told The Island that intelligence units have been deployed near fuel stations to prevent hoarding. The police suspect that certain fuel station employees and owners could be facilitating stockpiling.
Political leaders have warned that the hikes will ripple across the economy. SJB MP S.M. Marikkar said transport cost increases will drive up the prices of essential goods such as rice and fish, leaving consumers struggling under rising costs.
Import and export container transportation charges will be increased by 20% from midnight yesterday (22) due to the recent fuel price hike, according to the Container Transport Vehicle Owners’ Association.
The latest increases follow two rounds of price hikes since March 9, driven by surging global oil prices amid the Middle East conflict. Since then, Lanka Petrol 92 Octane has risen by Rs. 105 to Rs. 398, Petrol 95 Octane by Rs. 115 to Rs. 455, Auto Diesel by Rs. 101 to Rs. 382, and Super Diesel by Rs. 114 to Rs. 443 representing an overall increase of around 35% across key fuel categories.
by Norman Palihawadane and Pradeep Prasanna Samarakoon
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Prof. Peiris honoured by International Institute of Rehabilitation
At the award presentation ceremony of the International Rehabilitation Institute last week, Professor G.L. Peiris, as Chief Guest, in his keynote address, dealt with the special relevance of rehabilitation at this time. The traditional criminal law makes provision for punishment after a crime has been committed, and punishment usually takes the form of a prison sentence. It is even more important, however, to explore practical means of prevention and also to have recourse to a custodial sentence as a last resort rather than as the typical response.
The modern approach is that punishment is seen not as retributive but as a means of rehabilitating the offender in society. Prison sentences, bringing a first offender into the prison environment and association with habitual offenders, carries the risk of recidivism, the available statistics indicating the likelihood of return to prison on repeated occasions.
He placed emphasis on the importance of informed social attitudes to ensure that an offender does not carry a permanent stigma, reducing his opportunities for employment and acceptance in society. The importance of religious instruction in early childhood, and the close connection between temple and village, was stressed.
Professor Peiris was honoured with an award of appreciation by academic colleagues.
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