The deadline for accepting Expressions of Interest (EOIs) to develop and operate the Mattala Rajapaksa International Airport (MRIA) has been extended by one month to 9 July, after authorities failed to receive any formal proposals despite more than 30 interested parties participating in a pre-proposal meeting.Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku told The Sunday Morning that the deadline, initially set for 8 June, had been extended to give interested investors more time to submit their proposals.“We have extended the acceptance window until July to give interested parties an additional month to submit their proposals. While we have not received formal proposals yet, we recently held a pre-proposal meeting where more than 30 interested parties participated,” Kodithuwakku said.The MRIA, located in Hambantota, opened in March 2013 as Sri Lanka’s second international airport. Built to ease congestion at the Bandaranaike International Airport (BIA) and stimulate economic development in the Southern Province, the facility has struggled with low utilisation for much of its operational history.The Government has emphasised that the airport’s statutory and regulatory functions will remain under State control, with the EOI process focused solely on attracting partners for commercial and terminal operations.“Aviation operations will continue to be handled by Airport and Aviation Services (Sri Lanka) Ltd. (AASL). We have not changed the statutory service provider. The Government and AASL will maintain full regulatory control, and we have only invited outside parties to handle operations and commercial activities,” the Deputy Minister explained.Kodithuwakku said that the investment opportunities on offer covered both the existing airport infrastructure and the vast tracts of underutilised land surrounding the facility.“We are looking at multiple categories for commercial development. The first scope involves operating the currently developed property, which includes both the passenger terminal and the cargo terminal. There are also investment opportunities for the remaining lands. This includes establishing maintenance, repair, and overhaul facilities as well as flying schools. Additionally, on the landside outside the aerodrome, there are numerous opportunities for developing hotels, recreational activities, and logistics warehouses,” he noted.According to the Deputy Minister, the Government sees the development of the MRIA as a key component of its long-term economic strategy, particularly regarding tourism and aviation services.Addressing concerns about national security and airspace management, Kodithuwakku stressed that any private operator would function within an existing regulatory framework overseen by State institutions.“We act as the statutory service provider through AASL, and our overarching regulator is the Civil Aviation Authority (CAA). The CAA will nominate AASL as the statutory service provider, ensuring we have a complete and robust monitoring mechanism in place. The incoming operator will utilise the existing certification of our national aviation body. Since the operator is only coming in for terminal operations, there is absolutely no possibility of airspace violations or security compromises,” he said.&nbsp;The ministry expects to move to the next stage of the procurement process shortly after the revised deadline expires.“We firmly believe we can shortlist the candidates and call for Requests for Proposal (RFPs) within two months after the current phase concludes. We are actively working to finalise this entire process within the current year. We have already provided clear guidelines in the initial documents based on our national policy framework, and we will provide even more streamlined guidelines when issuing the final RFPs,” Kodithuwakku said.The airport accumulated net losses of Rs. 39.3 billion during the six years leading up to the end of 2024. Audit reports show that operating expenditure in 2024 amounted to Rs. 3.6 billion, while operating revenue stood at only Rs. 242.2 million. The airport also continues to carry annual interest costs of approximately Rs. 2.05 billion on the $ 209 million loan obtained from the Export-Import Bank of China for its construction.&nbsp;

Mattala Airport: EOI deadline extended as MRIA fails to attract bids

<ul><li>Govt. defends disaster recovery initiative after COPF raises concerns over legal status</li></ul> Leader of the House, Minister Bimal Rathnayake on Friday (12) said that legislation to formally establish the Rebuilding Sri Lanka Fund was currently being drafted, while rejecting allegations that the initiative was operating illegally.Making a statement in Parliament, Rathnayake sought to address what he described as a “misconception” surrounding the fund following concerns raised by the Committee on Public Finance (COPF) in past weeks, referencing the National Audit Office (NAO).He maintained that the fund was operating legally despite not being established through a dedicated act of Parliament yet.According to Rathnayake, the account currently functions under the Deputy Secretary to the Treasury and is being administered through the Treasury until the legislative process is completed.He noted that governments had previously maintained similar accounts to receive donations for disaster relief efforts, including following the tsunami in 2004 and the Easter Sunday terror attacks in 2019, and argued that such arrangements were common practice until formal legal frameworks were put in place.Rathnayake also defended the use of the name Rebuilding Sri Lanka, saying it had been adopted to make the initiative easily identifiable to the public and potential donors.“People wanted to contribute towards disaster recovery following the floods. If we had simply referred to it as an account belonging to the Deputy Secretary of the Treasury, the public would not have understood its purpose,” he said.He further stressed that all donations received through the initiative constituted public funds and therefore fell under the Consolidated Fund, meaning no expenditure could be made without parliamentary approval.Rathnayake said that the Government had already allocated Rs. 500 billion for disaster-related expenditure and was currently utilising those funds in accordance with existing regulations.Calling on the Opposition to support the initiative, he accused critics of creating unnecessary confusion among potential donors.He also rejected comparisons with previous administrations, stating that the current Government was committed to ensuring transparency and accountability in managing public funds.“The focus should remain on the good intentions behind this initiative rather than administrative technicalities that are already being addressed through the legislative process,” he said.His remarks came a week after officials from the NAO informed the COPF that no statutory fund currently existed under the name Rebuilding Sri Lanka, despite the initiative having received more than Rs. 6 billion in donations for post-Cyclone Ditwah recovery efforts.The matter was discussed during a recent COPF meeting convened to review the NAO’s 2026 Annual Programme.During the discussions, NAO officials informed the committee that while Cabinet had approved the establishment of the fund in 2025 under the proposed public financial management framework, the process had not been completed yet.Officials said donor contributions had instead been deposited into accounts maintained by the Deputy Secretary to the Treasury and certain accounts held at the Central Bank.According to figures published on the initiative’s website, Rebuilding Sri Lanka had received Rs. 6.16 billion and $ 11.34 million in donations as of 9 April.However, committee members noted that the website did not disclose how the funds had been allocated or identify projects financed through the initiative.NAO officials further informed the committee that despite the significant inflow of donations, no money had been disbursed from the account to date.&nbsp;

Government drafting Rebuilding SL Act 

<ul><li>Proposed additional tariffs could range from 10–12.5%, biz chambers warn</li></ul>Sri Lanka is currently engaged in discussions with the United States regarding newly proposed labour-related tariffs, according to the Ministry of Trade, Commerce, Food Security, and Cooperative Development.The United States Trade Representative (USTR) has completed a Section 301 review covering 60 economies, including Sri Lanka, highlighting gaps in legal frameworks governing imports made wholly or partly with forced labour. The findings indicate that 54 economies, including Sri Lanka, currently lack adequate prohibitions in this area.When contacted by The Sunday Morning, Ministry of Trade, Commerce, Food Security, and Cooperative Development Secretary K.A. Vimalenthirarajah said that no such tariff had been imposed yet and that it was not possible to predict when a final decision would be made.“We are discussing not only this matter, but also Regional Trade Agreements. We are engaged with the US regarding this issue, as well as the non-reciprocal tariff concerns,” he said.Meanwhile, the Ceylon Chamber of Commerce (CCC), in a statement, said that the development came at a time when Sri Lanka was continuing discussions with the US following the suspension of previously announced reciprocal tariffs and was seeking to secure a more favourable trading arrangement.According to the chamber, the imposition of an additional tariff on Sri Lankan exports could undermine the competitiveness of key export sectors, particularly when compared with countries facing lower proposed rates of around 10%.The statement noted: “At a time when Sri Lanka is working to accelerate export growth, attract investment, and create employment opportunities, any increase in trade barriers presents a significant challenge. At present, key goods exports such as apparel and tea are down by 7% and 6%, respectively, during the first four months of 2026.”The CCC highlighted that Sri Lanka had built a strong reputation as a responsible sourcing destination, with many industries adhering to high labour, environmental, and governance standards. The chamber also pointed to progress made in strengthening regulatory frameworks and promoting ethical business practices.“Proposed measures under consideration include additional tariffs in the range of 10–12.5%, with Sri Lanka potentially falling within the 12.5% category at the proposal stage,” the statement said.Speaking further on the matter, National Chamber of Exporters of Sri Lanka Secretary General/CEO Shiham Marikar said that discussions on the matter had been taking place with the Department of Commerce since the announcement was first made by the US.He explained that the proposed tariff was centred on compliance requirements relating to forced labour.“When you look at Sri Lankan exporters, most of our exports to the US come from the apparel sector and many of these exporters are certified as ethical trading companies. Within Sri Lanka, there are organisations that can demonstrate compliance through internationally recognised certifications proving that there is no forced labour and that they operate with ethical trading practices and good governance,” he said.“However, what the US is saying is that it is looking at the complete value chain, including the imported inputs used in the goods we export. They want to ensure that the factories supplying those inputs are also compliant.”According to Marikar, monitoring the entire export production chain remains challenging, particularly because only a limited number of countries have established legislative or regulatory frameworks to ensure such compliance.He noted that countries such as Canada and Mexico already had such frameworks in place, while the European Union was currently working towards introducing similar legislation.Marikar warned that any additional tariff would have a negative impact on Sri Lanka, particularly given that the US remains the largest market for the country’s apparel exports.“We are working closely with stakeholders to explore how we can negotiate with our trade partners in the US and demonstrate that we are moving towards introducing a framework or legislation to safeguard compliance relating to forced labour,” he said.&nbsp;

Trade with US: SL in talks over proposed labour-linked tariffs

Disaster relief efforts following the devastating Cyclone Ditwah are still ongoing, with ground-level officials stating that only about 40% of those affected by the cyclone have received relief funds so far.In December 2025, Cyclone Ditwah struck Sri Lanka, triggering the worst flooding and landslides in recent memory. In response to the Government’s request, the United Nations (UN) and its humanitarian partners launched the Humanitarian Priorities Plan (HPP) on 11 December 2025, a coordinated effort to direct international assistance to the most urgent needs identified through joint assessments with the Government.According to a statement released by the President’s Media Division (PMD) on Thursday (11), the HPP concluded at a ceremony held in Colombo that morning.During the ceremony, UN Resident Coordinator Marc-André Franche declared that the relief programme had been successfully implemented owing to the strong political leadership and the swift response demonstrated in managing the disaster situation.When contacted by The Sunday Morning, All Ceylon Free Grama Niladhari Officers’ Union (ACFGNOU) General Secretary Jagath Chandralal said that while the UN’s programme had concluded, disaster relief duties were still ongoing.“They are of a slow-paced nature. There isn’t a very active process of making payments,” he remarked, adding that several problems had long surfaced alongside various deficiencies in the circulars released regarding Cyclone Ditwah relief funds.Chandralal specifically noted that the assessments for fund distribution were based solely on the grama niladhari’s report, which many officers disliked. He explained: “Right now, even if there is slight damage to the walls of a house, there is a maximum compensation of Rs. 500,000. If that is given, then later on, given the current situation, it will be claimed that the Government’s money was misused. Therefore, the officers fear they will face problems in the future.”Due to this fear, several grama niladhari officers are reluctant to make an assessment alone. As such, they are requesting that assessments be done through the proper methodology.According to Chandralal, although the officers had been engaged in duties from the beginning till now, many divisional secretariat offices – even in areas that faced major disaster such as Badulla and Nuwara Eliya – have yet to pay them a single cent, showing a noticeable lack of appreciation.“Those officers are now very discouraged while performing their duties. As an officer who worked during the tsunami disaster – which at the time had more damage and impact than this – I know that they have reached a state where they can’t work actively. Back then, many officers even reached the point of self-harm; however, they were quickly provided cover and protection, as well as motivation for the process to be carried out. This time, there is no such motivation for their efforts.”Chandralal expressed that the Government’s incentive to provide houses in Badulla to re-home those who had lost their own in the disaster had also been halted due to legal issues of land ownership.A press release by the UN on Thursday stated: “At its peak, over 2.2 million people across all 25 districts were affected, including an estimated 522,000 children. Over 640 people lost their lives and 173 remained missing as of January 2026.”Accordingly, critical assistance had been delivered to 575,000 of the most vulnerable people (87% of the targeted population of over 650,000 people) across all 25 districts, with assistance concentrated in the hardest-hit areas of Badulla, Nuwara Eliya, Kandy, and Kegalle. The release noted that, to assist in relief efforts, the response raised $ 28.5 million in donor contributions against a total requirement of $ 35.3 million.

Cyclone Ditwah: Only 40% of victims have received relief: ACFGNOU

<ul><li>Australia donates ATVs, drones to Coast Guard&nbsp;</li><li>SLAF uses Australia-donated patrol aircraft to aid in maritime law enforcement&nbsp;</li></ul> The Australian Border Force and Sri Lanka Coast Guard (SLCG) last week launched the third phase of the Disi Rela public awareness and community engagement programme, marking the third consecutive year of the joint maritime security initiative.Disi Rela aims to strengthen maritime surveillance, operational capabilities, and public awareness across Sri Lanka’s coastal regions.&nbsp;This year, Disi Rela 2026 expands its community engagement and public awareness activities to Sri Lanka’s Eastern Province, following successful activities conducted in the Western and Southern Provinces in previous years.&nbsp;It is the latest in a series of maritime security and law enforcement partnerships which both Indian Ocean neighbours have been building over the last decade.The partnership aims to strengthen maritime security, combat transnational maritime crime, and promote safer seas across the region. Through intelligence sharing, operational cooperation, advanced equipment support, and public awareness initiatives, both countries continue to work together to address threats such as people smuggling, drug trafficking, illegal fishing, and other unlawful maritime activities.&nbsp;Continuing its support to capacity building of its Sri Lankan counterparts, the Australian Government donated five All-Terrain Vehicles (ATVs) under Disi Rela 2026 to support coastal surveillance and rapid response operations.&nbsp;It also supplied the SLCG with a number of unmanned aerial systems – drones for better situational awareness and coastal surveillance duties. The new assets were handed over to the Coast Guard by the Australian High Commissioner to Sri Lanka Matthew Duckworth.&nbsp;&nbsp;Reflecting upon the continued partnership and shared commitment of both nations to safeguard Sri Lanka’s maritime boundaries and coastal communities, SLCG Director General Rear Admiral Rohan Joseph, speaking at the handover ceremony held last week in Colombo, said: “Disi Rela 2026 demonstrates the enduring cooperation between the SLCG and the Australian Border Force in strengthening maritime security across our region. As the initiative expands into the Eastern Province, community awareness and public participation continue to play a vital role in helping us protect our seas and prevent unlawful maritime activity.”Royal Australian Navy Maritime Border Command and Joint Agency Task Force Operation Sovereign Borders Commander Rear Admiral Brett Sonter, AM said the initiative reflected the strong and ongoing partnership between Australia and Sri Lanka.&nbsp;“For the third consecutive year, Disi Rela demonstrates the importance both Australia and Sri Lanka place on maritime security and regional cooperation. Through continued capability building, operational support, and community engagement, we are working together to strengthen maritime safety and security across the region,” Rear Admiral Sonter said.&nbsp;During the handover ceremony, Superintendent Blaise Taylor of the Australian Border Force told The Sunday Morning that the partnership and shared effort between Australia and Sri Lanka had deterred risky people smuggling attempts by sea from Sri Lanka over the last three years and that no reported crossings had occurred during the period.&nbsp;Responding to a question by The Sunday Morning, Sri Lanka Air Force (SLAF) Director General of Air Operations Air Vice Marshal Dhammika Dias stated that the SLAF had been using the Australian-donated Beechcraft 350 Maritime Patrol Aircraft on surveillance missions at sea and provided intelligence which the Navy, Police, and Coast Guard had acted on to arrest maritime crime.The SLCG encourages reporting suspicious maritime activity through the dedicated 24/7 hotline number, 106. Calls can be made anonymously.

Maritime law enforcement: Australia-SL strengthen Disi Rela initiative 

<ul><li>Two committees established to oversee implementation, policy decisions</li></ul>&nbsp;The Government’s proposed demerit point system for traffic offenders is set to be rolled out nationwide as a pilot project in September, with authorities currently working on the necessary digital infrastructure and administrative framework required for its implementation.DIG in charge of Traffic and Road Safety W.P.J. Senadheera told The Sunday Morning that groundwork for the demerit point system was already underway, with two committees established to oversee the process.He noted that while the initial phase was scheduled to commence by 31 August, the full implementation process would continue until 31 March 2027.According to DIG Senadheera, two committees have already been appointed: an oversight committee and a working committee tasked with implementation.“The oversight committee makes high-level decisions and consists of senior officials, including the Secretary and the Inspector General of Police. Below that, the head of the Department of Motor Traffic (DMT) and I co-chair the working committee, which will carry out the process,” he explained.&nbsp;DIG Senadheera said that the project’s Terms of Reference (TOR) included provisions for officer training, device procurement, and other operational requirements necessary for the system’s implementation.“Therefore, when the system is introduced, that entire package will already be in place,” he said.Speaking in Parliament recently, Minister of Transport, Highways, and Urban Development Bimal Rathnayake underscored the importance of the demerit point system in improving driver discipline and reducing road fatalities. He noted that 2,750 people had died in road accidents last year, including approximately 1,000 motorcyclists and 1,000 pedestrians.Media Secretary to the Deputy Minister of Transport and Highways M.R.M. Rushdy told The Sunday Morning that the pilot project would be implemented in selected areas nationwide, rather than being limited to a specific area or category of drivers. He added that the demerit point system would continuously monitor and track drivers’ conduct.“An application is being designed by the Ministry of Digital Economy. Users will also be provided with an interface through which they can view their details with limited access. I do not have the specifics yet, as it is still in the development stage,” he said, noting that the system remained at the approval stage and could undergo changes as the pilot project progressed.DIG Senadheera said that the project was being implemented in collaboration with the Ministry of Transport, Sri Lanka Police, the DMT, and the Ministry of Digital Economy, adding that the system architecture had already been established.The demerit point system, which has been under consideration for several years, is expected to operate by assigning drivers a maximum number of points, which will be deducted whenever a traffic offence is committed. Minister Rathnayake recently informed Parliament that drivers would begin with 24 points, which would be decreased for violations of the Motor Traffic Act.

Traffic violations: Demerit point system set for pilot in Sept.

Six families in the Basnakanda area of Makandura have been evacuated due to a landslide threat, local authorities said. The evacuation followed heavy rainfall that uprooted several large trees on a nearby hill. Officials said there is a risk of falling rocks affecting six houses in the area. Further action will be taken based on an assessment by the NBRO.

Six families evacuated over landslide risk in Makandura

President Anura Kumara Dissanayake met with China Harbour Engineering Company Chairman Bai Yinzhan and company representatives in Colombo today (13). According to the President’s Media Division, the CHEC Chairman said the company remains confident about investing in Sri Lanka and welcomed incentives offered for the Port City Colombo Special Economic Zone. The President said foreign direct investment remains a key priority for economic growth and reaffirmed the Government’s commitment to supporting investors. Discussions also focused on developing Port City Colombo as an international investment hub.

CHEC reaffirms confidence in investing in Sri Lanka

Meta (META.O), CEO Mark Zuckerberg has told employees that the social media giant has made mistakes in ​its AI transformation of its workforce, according to an internal memo seen ‌by Reuters. Zuckerberg is pumping hundreds of billions of dollars into AI as he seeks to reshape his company's inner workings around the technology, reflecting a broader pattern among major U.S. companies this year, particularly ​in the tech sector. In the memo, Zuckerberg describes the rapid advances in AI ​and the challenges brought on by the boom in the technology. "Given ⁠the complexity of these changes, we've made mistakes and will almost certainly make more," ​Zuckerberg said, adding that he is also "focused on providing as much stability as possible" in ​terms of organization changes going forward. "I don't want to overpromise because the world is changing in ways that are out of our control," he said, reiterating that Meta does not expect more company-wide layoffs this ​year. He said Meta will try to find new roles for employees reassigned to train ​AI models, after the Facebook owner carried out a massive restructuring in May, laying off 10% of its ‌workforce ⁠globally and transferring 7,000 employees to new initiatives related to AI workflows. "By creating important new roles for people, this also allowed us to shrink the size of teams knowing that if we make mistakes in some places, then we could transfer some people back," ​Zuckerberg said. Meta declined to ​comment on the memo ⁠when contacted by Reuters. The company plans to increase investment in team-building initiatives, Zuckerberg said, including higher budgets for offsites and corporate events, ​and is organizing a large-scale hackathon in July to foster cross-team ​collaboration and ⁠development on its latest models. Zuckerberg said Meta has taken note of concerns over the widening of manager oversight responsibilities and plans to scale back the practice. Meta's new Applied AI Engineering ⁠unit reportedly ​had a flat structure with up to 50:1 ​ratio of individual contributors to managers. In April, Meta raised its annual capital spending forecast to between $125 billion and $145 billion. Source : Reuters

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