The National Water Supply and Drainage Board (NWSDB) has announced a 12-hour water cut in Homagama today, from 8:00 a.m. to 8:00 p.m., due to prevailing dry weather conditions. Officials said the duration was reduced from an initially planned 24-hour suspension to 18 hours, and then further to 12 hours to ease inconvenience to consumers. NWSDB Chairman Chandana Bandara stated that a special programme is in place to supply water via bowsers in case of further disruptions in the Colombo District.

12-hour water cut in Homagama today

In his Easter message, President Anura Kumara Dissanayake emphasised the importance of unity, hope, and compassion as Christians in Sri Lanka and around the world celebrate Easter Sunday. Highlighting the significance of the resurrection of Christ, he noted that the occasion symbolizes renewal, resilience, and the triumph of light over darkness. The President also pointed to ongoing global conflicts, expressing hope that the spirit of Easter would guide people toward peace and coexistence. He urged Sri Lankans to embrace values such as love, patience, and forgiveness, and to move forward in unity, setting aside divisions to build a stronger sense of brotherhood and goodwill.

President calls for unity in Easter message

The Department of Meteorology Sri Lanka forecasts showers or thundershowers in several parts of Sri Lanka after 2.00 p.m. today (05). Rainfall of around 50 mm is likely in parts of the Central, Sabaragamuwa and Uva provinces, as well as in Polonnaruwa district.Misty conditions are expected during the morning in several areas, including Jaffna and Kurunegala. Authorities have urged the public to take precautions against lightning and temporary strong winds.Meanwhile, the sun will be directly overhead parts of Sri Lanka between April 5 and April 15, with areas such as Dodanduwa, Akuressa and Ussangoda experiencing this phenomenon around 12:13 p.m. today.

Fairly heavy rainfall expected in parts of the island today

<ul><li>ME conflict takes toll on tourism, 19.7% drop compared to 2025</li><li>SL turns to Asian markets to compensate</li><li>March arrivals plunge with disruption in ME transit routes&nbsp;</li></ul> Sri Lanka is haemorrhaging approximately $ 70 million monthly due to the conflict in the Middle East, the Sri Lanka Tourism Development Authority (SLTDA) stated on Friday (3).&nbsp;To mitigate the impact on the tourism industry from Middle East tensions following the Israel-US war on Iran, Sri Lankan authorities are scrambling to recalibrate tourism strategies by shifting focus towards Asian markets, where travel is less dependent on Middle Eastern transit hubs, it is learnt.&nbsp;SLTDA Director General Malkanthi Rajapaksha told The Sunday Morning: “We were initially planning to carry out promotions in Europe, but now we are planning to increase promotions in India, Bangladesh, the Maldives, and other Asian markets to attract short-distance travellers.”&nbsp;“Sri Lanka had a target of over three million tourist arrivals for this year. However, the current situation threatens to derail those expectations. We are now losing an estimated amount of around $ 70 million per month due to this situation,” Rajapaksha said.&nbsp;Tourist arrivals in Sri Lanka declined sharply in March, with official figures from the SLTDA indicating a 19.7% drop compared to March 2025, raising concerns over the sector’s trajectory and its expectations for the year.Total arrivals in March this year dropped to 183,979 compared to 229,298 in the same month last year, according to SLTDA data.Rajapaksha said the crisis had severely impacted Sri Lanka’s access to long-haul international markets, particularly from Europe.&nbsp;“This is primarily because of the Middle Eastern conflict affecting major transit hubs such as Dubai and Doha. With them disrupted, we are losing around 20% of tourist arrivals. Unfortunately, this situation might continue until the conflict concludes,” she said.&nbsp;She noted that while cancellations were taking place, a significant number of travellers were postponing their trips instead.&nbsp;“It is not just cancellations; there are flight rerouting issues, rescheduling, and delays. Some travellers are postponing their visits to later in the year, even to December. There are many factors involved in this drop. That is why we estimate it at around 20%; otherwise, it could have been closer to 50%,” Rajapaksha said.&nbsp;She also highlighted broader psychological impacts affecting global travel demand, despite logistical disruptions. “There is no mental readiness or morale to travel. I think people around the world prefer to stay in their home countries due to the uncertainties of war,” she said.&nbsp;According to Rajapaksha, despite the decline in long-distance travel, Sri Lanka continues to see consistent interest from short-haul markets, including India, Japan, and New Zealand.&nbsp;Speaking on the economic impact, she said that the downturn had affected the entire tourism value chain, particularly Small and Medium-sized Enterprises (SMEs).&nbsp;“SME sector businesses such as guest houses, homestays, and other small enterprises are losing their income,” she said.&nbsp;Hotels and service providers outside the southern coastal belt, particularly in Kandy, Nuwara Eliya, and Badulla, had been further affected, having already been impacted by Cyclone Ditwah, she noted.&nbsp;She added that the SLTDA was exploring measures to support struggling SMEs, including initiatives to sustain domestic tourism.&nbsp;

$ 70 m tourism revenue loss monthly: SLTDA

Sri Lanka will not seek additional financial assistance from the International Monetary Fund (IMF) despite recent disaster-related pressures, according to senior Finance Ministry officials, who maintain that the country’s recovery programme remains on track within its existing financial framework.&nbsp;Ministry of Finance Department of Fiscal Policy Director General Dr. Kapila Senanayake said that the Government had no immediate plans to request further funding, expressing confidence in its ability to manage ongoing challenges under the current arrangement.&nbsp;“We have already received the latest tranche in December 2025 and at this stage there are no plans to request additional funding. We believe we can manage within the existing framework, although we will continue to monitor developments closely,” he said.&nbsp;Sri Lanka is currently engaged in discussions with the IMF as part of the ongoing review process under the Extended Fund Facility (EFF) programme. Officials indicated that the Fifth and Sixth Reviews were being conducted in tandem, reflecting both the progress achieved and the need to assess current economic conditions.&nbsp;“The IMF team has expressed satisfaction with our performance leading up to the Fifth Review, as well as with the current trajectory,” Dr. Senanayake said.&nbsp;On fiscal policy, the Government has opted to maintain its existing targets for 2026, including adherence to primary expenditure ceilings. Authorities emphasised that built-in flexibility mechanisms within the IMF programme provided sufficient room to absorb external shocks without requiring major policy deviations.“We are continuing with the existing primary expenditure ceilings and there is no deviation from those targets. The programme already includes flexibility provisions, so we do not see any immediate issues. However, it is still too early to comment in detail, as the IMF will issue an official statement following the review,” he noted.A key pillar of Sri Lanka’s economic stabilisation has been its comprehensive debt restructuring process. Earlier this year, the Government announced that it had reached agreements with approximately 99% of its external creditors.&nbsp;Discussions are now ongoing with the remaining creditors, particularly in relation to the restructuring of International Sovereign Bonds (ISBs), which include complex instruments linked to Gross Domestic Product (GDP) performance.“Negotiations are continuing, and we expect to reach a Memorandum of Understanding with the remaining parties soon. There are only a few outstanding matters to resolve, but discussions are still ongoing, so it would not be appropriate to comment further at this stage,” Dr. Senanayake said.Structural reforms continue to play a central role in the IMF-supported programme, with particular emphasis on strengthening public financial management and financial sector stability. The implementation of the Public Financial Management Act has been a focal point of recent engagements, alongside ongoing work on the capital recapitalisation plan for the banking sector.&nbsp;“We have already implemented key aspects of the reforms, although certain regulations still need to be issued. Timelines are in place, and further details will be made public in due course. Progress on these fronts has been satisfactory, but as these discussions are still ongoing, more comprehensive information will be released after the IMF mission concludes,” he said.&nbsp;As Sri Lanka transitions from crisis response to economic stabilisation, rebuilding foreign reserves remains a critical priority. Gross Official Reserves (GOR) stood at approximately $ 6.8 billion at the beginning of the year, although final targets for year-end reserve levels are still under discussion as part of broader macroeconomic planning.&nbsp;“We do have reserve targets and these will be published along with the updated macroeconomic framework. Discussions are still ongoing and no final conclusions have been reached yet. Once the process is complete, all relevant figures and projections will be released,” Dr. Senanayake stated.&nbsp;

IMF negotiations: No plans to request more IMF funding: Finance Min.

<ul><li>Low-pressure areas prioritised</li><li>Plan to extend reserves for a month, pending rain</li></ul> The Government is implementing short-term contingency measures to manage depleting water supplies, amid uncertainties over declining reservoir levels and the potential for seawater intrusion into major rivers.&nbsp;National Water Supply and Drainage Board (NWSDB) Chairman Chandana Bandara said that with the Kalatuwawa Reservoir currently holding only about 20 days’ worth of water at existing production levels, the board had begun to curtail daily output to extend available supplies.&nbsp;“Up to now, we have been producing 90,000 cubic metres per day. Our plan now is to reduce it to 60,000 cubic metres per day. Starting on Friday (3), we are reducing production by 15,000 cubic metres and within the next 3–4 days, we will continue to reduce production,” he said, adding that water cuts would be imposed in selected critical areas rather than implementing islandwide interruptions.&nbsp;Bandara said that the reduction in production could extend water availability to over 30 days, while authorities await anticipated rainfall within the next two to three weeks, as forecast by the Department of Meteorology.&nbsp;Addressing concerns over saltwater intrusion, Bandara said that the situation remained under control, with barriers in place.&nbsp;“A salinity barrier has been constructed in the Kelani River near the Ambatale Water Treatment Plant. The Nilwala River also has a salinity barrier. The Kalu Ganga is also under control. At present, there is no significant threat of salinity intrusion, and it is manageable,” he noted.&nbsp;According to him, the NWSDB had taken necessary steps to address low water pressure in areas such as Maharagama, Piliyandala, Kesbewa, and Pannipitiya in the Western Province.&nbsp;“We are trying to increase water pressure in those areas by controlling supply to other areas. We are interrupting the current 24-hour continuous supply in some areas to pressurise low-pressure zones,” Bandara said.To further support these measures, water bowsers belonging to both the NWSDB and certain Local Government authorities have been deployed.He further clarified that all leave had been cancelled only for operational and maintenance staff to ensure that operations remained functional and effective.&nbsp;Meanwhile, Director General of Irrigation Dr. (Eng.) K. Weligepolage acknowledged the occurrence of seawater intrusion in the Kelani River, describing it as a “seasonal phenomenon” that typically began during the early months of the year when water levels declined.“We are releasing water from upstream reservoirs of the Kelani River to push back salinity and are doing our best to provide fresh water to consumers,” Dr. Weligepolage said, adding that the situation remained manageable at present.&nbsp;According to him, seawater intrusion in the Kalu Ganga is at a “moderate” level, with some downstream areas affected but still manageable, while the situation in the Nilwala River remains stable due to the existing salinity barrier.&nbsp;Dr. Weligepolage also warned that if salinity levels were to rise beyond manageable limits, it could affect water quality and lead to increased purification costs.&nbsp;Despite the concerns, the Director General assured that adequate water remained available in reservoirs for the ongoing agricultural season, with levels at around 75%.&nbsp;“With the available water levels and expected rainfall in mid-May, we believe we can manage. However, reservoir levels are declining rapidly due to high demand and evaporation caused by intense temperatures,” he said.&nbsp;Meanwhile, a discussion was held on Thursday (2), under the patronage of President Anura Kumara Dissanayake, on prevailing weather and climate conditions, including the potential El Niño phenomenon and water management strategies to be implemented with the commencement of the Yala cultivation season.During the meeting, matters relating to expected rainfall and current reservoir levels were discussed based on statistical data, with special attention given to necessary water management measures, taking into account the continuous maintenance of hydroelectric power generation, the fulfilment of national water requirements, and the release of water required for the Yala season.&nbsp;

Water supply cut to stretch reserves 

<ul><li>Union claims ground-level access limited, impractical&nbsp;</li></ul> The Government has rejected claims of a fuel shortage disrupting the transportation of agricultural produce, asserting that sufficient allocations are already in place, even as farmers contend that the promised system remains largely ineffective and administratively burdensome.Minister of Trade, Commerce, Food Security, and Cooperative Development Wasantha Samarasinghe on Friday (3) dismissed reports that vegetables and other perishables were being wasted at key economic centres due to fuel constraints, stressing that no such verified information had been received through official channels.He maintained that a structured mechanism had already been implemented to address fuel requirements in the agriculture sector. The Minister further stated that additional fuel allocations had already been approved and distributed through administrative channels.&nbsp;“We have already put a programme in place to address these issues. Extra fuel has been provided and divisional secretaries have been authorised to issue up to 400 litres per month for lorries, as well as the necessary quantities for farmers’ transport requirements. The main vegetable collection centres – Dambulla, Thambuttegama, Keppetipola, and Nuwara Eliya – are being closely monitored. We did receive a concern from Keppetipola earlier, but that was promptly addressed and no further issues have been reported since,” he stated.&nbsp;Ministry of Agriculture, Livestock, Land, and Irrigation Secretary D.P. Wickremasinghe echoed the Minister’s position, confirming that a formal circular had been issued enabling the release of additional fuel for both cultivation and transportation purposes.&nbsp;“They are able to obtain additional fuel through their respective divisional secretaries, as we have already issued a circular to district secretaries. Farmers, as well as traders involved in transporting agricultural produce, can request extra allocations based on their needs,” he said.&nbsp;Wickremasinghe noted that the system operated on a demand-based framework, with permits issued according to transport requirements.“For instance, transporting produce from Matale to Colombo would require a different allocation depending on the scale of operations. These requests are assessed and special permits are issued accordingly. We have already facilitated fuel provisions for key activities such as harvesting and ploughing, and this has now been extended to transportation as well,” he explained.&nbsp;Wickremasinghe further emphasised that no official complaints had been recorded indicating wastage of vegetables due to transport disruptions.&nbsp;In contrast, National Farmers’ Union President Anuradha Tennakoon argued that the measures outlined by the Government were yet to translate into practical relief on the ground, particularly during peak harvesting periods. He criticised the reliance on digital systems, describing them as inaccessible and ineffective for many stakeholders in the sector.&nbsp;“The system that has been announced has still not been properly activated. During this season, transporters should be receiving larger fuel allocations along with special permits, but that has not materialised so far, even though provisions were discussed,” he said.&nbsp;Tennakoon also pointed to structural inefficiencies in the implementation process: “Not everyone is able to register through online platforms. It is a lengthy and complicated process. Instead of resolving the real issues, authorities are shifting responsibility onto digital systems. Earlier, responsibility was passed to officials; now it is being passed to online applications. In practice, nothing has changed.”&nbsp;“For example, transporting vegetables from Nuwara Eliya to an economic centre requires around 60–70 litres of diesel for a single journey. A full round trip can consume close to 100 litres per day for a large lorry. That is a significant burden. Similarly, a rice transport lorry travelling from Colombo to Anuradhapura, carrying about 20 tonnes, would require fuel worth nearly Rs. 100,000 per day. Maintaining a continuous supply of essential goods like rice cannot be disrupted under these conditions,” he added.&nbsp;Tennakoon also raised concerns over administrative developments at major economic centres, alleging ongoing attempts to restructure their management through private entities.“Circulars have been issued in relation to centres such as Dambulla and Thambuttegama, particularly Dambulla. However, we have already filed four cases before the Supreme Court challenging the transfer of staff to what appears to be a private company. The individuals listed as company directors are reportedly members of their own private staff. Although there appears to have been a temporary step back, there is a real concern that moves towards privatisation of these economic centres could resume at any time,” he said.

Agriculture: Govt. rejects claims of transport crisis 

<ul><li>Committee cites inconsistencies, outdated job metrics, investor uncertainty&nbsp;</li></ul> The Committee on Public Finance (COPF) has withheld approval for a key gazette notification aimed at regulating tax incentives under the Strategic Development Projects (SDP) Act, citing significant structural concerns.The decision had been taken during a high-level hearing on Tuesday (31 March), where COPF Chairman Dr. Harsha de Silva had described the proposed regulations as a terrible miscalculation that could hinder high-tech sector growth and create an artificial bias against manufacturing.The discussion had centred on Gazette Notification No.2472/66, dated 8 February, presented by the Department of Fiscal Policy. The gazette marks the first attempt to introduce a rules-based framework for granting tax incentives to large-scale investments following the 2025 amendments to the SDP Act.Previously, the Minister of Finance exercised discretionary authority over such incentives. The revised framework was intended to enhance transparency and predictability for investors. However, the COPF found that the proposed criteria itself were fundamentally flawed.A key point of contention had been the disparity in tax holidays across sectors. Under the proposed structure, Category A (Tourism and Leisure) investments between $ 50 million and $ 150 million qualify for a six-year Corporate Income Tax (CIT) holiday, while Category B (Manufacturing) investments between $ 50 million and $ 100 million receive only a five-year holiday.“If I bring $ 60 million for tourism, I get six years; if I bring $ 60 million for manufacturing, I get five years,” de Silva had noted, questioning the rationale behind favouring tourism over manufacturing, particularly when the country aimed to build a manufacturing-led economy.Ministry officials had defended the classification, saying that it was based on historical investment patterns with the Board of Investment (BOI), but were reportedly unable to provide a clear strategic justification for the disparity.The committee had also raised concerns over minimum local employment requirements tied to eligibility. Under the gazette, manufacturing projects must generate at least 250 jobs, compared to 100 for tourism and 50 for technology or agriculture.De Silva had described these benchmarks as arcane and misaligned with global economic trends, noting that high-value industries such as semiconductors, robotics, and advanced manufacturing were increasingly automated and relied on smaller, highly skilled workforces.He had also warned that high-value firms could be excluded despite contributing significantly to economic output.Further criticism had been directed at inconsistencies between SDP incentives and those offered under the Port City regulatory framework. The committee had noted that an ICT company investing $ 60 million could face differing tax regimes, depending on whether it operated within the Port City or under the BOI on the mainland.This inconsistency, members had argued, created uncertainty and undermined investor confidence.Before reconsidering the gazette, the COPF has directed the Ministry of Finance and the BOI to conduct a comparative analysis of incentive regimes in competing regional economies.“We need to know what Vietnam, India, and Malaysia are offering,” de Silva had said, stressing that Sri Lanka had to remain competitive in attracting Foreign Direct Investment (FDI).The committee had also urged the BOI to take a more proactive role in investment promotion, rather than relying solely on the Ministry of Finance.The Chairman emphasised that future incentive structures should prioritise productivity, technological value, and efficient land use, rather than focusing primarily on job creation thresholds.The SDP Act No.14 of 2008, as amended by Act No.26 of 2025, is a legal framework designed to attract large-scale investments of national importance. It grants significant tax holidays (up to 10 years as of 2026) and exemptions from VAT, Customs Duty, and other levies to qualified projects in infrastructure, tourism, and technology.&nbsp;

Strategic development projects: COPF blocks SDP tax incentive gazette

<ul><li>PPP model to power next phase of digital payments</li><li>Banks to absorb cost of waived MDR</li></ul> The Government is set to introduce a zero Merchant Discount Rate (MDR) facility for QR-based payments on Monday (6) to accelerate the adoption of digital transactions across the country.&nbsp;The launch, scheduled to take place at the President’s Office, is expected to reduce the cost burden associated with digital payment processing for both merchants and consumers.&nbsp;Ministry of Digital Economy Secretary Waruna Sri Dhanapala said that the Government was pursuing a model in which core digital systems would be developed by the State, while private sector players such as fintech firms and startups would build applications on top of that foundation.&nbsp;“Public-Private Partnerships (PPPs) are central to our approach. We believe this model will enable the digital economy at all levels. The zero MDR facility will be launched on 6 April by the President with the participation of State and private banks as well as LankaPay,” he said.&nbsp;Dhanapala said that the initiative formed part of the Government’s broader push to expand the digital economy and promote cashless transactions. By eliminating MDR charges on QR payments, authorities hope to encourage small and medium-sized businesses, as well as everyday consumers, to shift away from cash-based systems.The programme builds on the rollout of the GovPay platform, particularly its use in streamlining traffic fine payments.The launch will also include promotional incentives aimed at boosting participation among vendors and consumers. These include raffle draws and other engagement activities designed to encourage the use of QR-based payment systems.&nbsp;Dhanapala further stated that the banking sector had collectively agreed to absorb the cost of the waived MDR, ensuring that merchants would not bear additional financial pressure while creating a strong incentive for adoption.&nbsp;The Cabinet gave its nod to the programme last week, according to Cabinet Spokesperson, Minister Nalinda Jayatissa.&nbsp;At present, more than 20 financial institutions and 30 mobile applications support LankaQR facilities. However, active usage remains relatively low.&nbsp;During the third quarter of 2025, approximately 274,000 transactions were recorded via LankaQR, with a total value of around Rs. 1.18 billion. This translates to an average of approximately 90,000 transactions per month, amounting to about Rs. 390 million.&nbsp;Observations indicate that the average value of a QR-based transaction remains below Rs. 5,000.Jayatissa, during the Cabinet media briefing, said that the proposal aimed to promote QR code-based digital payments by ensuring that no additional charges were levied on either the sender or the receiver for transactions valued below Rs. 5,000.&nbsp;

12-hour water cut in Homagama today

President calls for unity in Easter message

President calls for unity in E ...

Fairly heavy rainfall expected in parts of the island today

Fairly heavy rainfall expected ...

$ 70 m tourism revenue loss monthly: SLTDA

$ 70 m tourism revenue loss mo ...

IMF negotiations: No plans to request more IMF funding: Finance Min.

IMF negotiations: No plans to ...

Water supply cut to stretch reserves

Water supply cut to stretch re ...

Agriculture: Govt. rejects claims of transport crisis

Agriculture: Govt. rejects cla ...

Strategic development projects: COPF blocks SDP tax incentive gazette

Strategic development projects ...

State digitalisation: Zero MDR for QR-based payments from Monday

State digitalisation: Zero MDR ...

President calls for unity in Easter message

President calls for unity in E ...

Fairly heavy rainfall expected in parts of the island today

Fairly heavy rainfall expected ...

$ 70 m tourism revenue loss monthly: SLTDA

$ 70 m tourism revenue loss mo ...

IMF negotiations: No plans to request more IMF funding: Finance Min.

IMF negotiations: No plans to ...

Water supply cut to stretch reserves

Water supply cut to stretch re ...

Agriculture: Govt. rejects claims of transport crisis

Agriculture: Govt. rejects cla ...

Strategic development projects: COPF blocks SDP tax incentive gazette

Strategic development projects ...

State digitalisation: Zero MDR for QR-based payments from Monday

State digitalisation: Zero MDR ...

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President calls for unity in Easter message

President calls for unity in E ...

Fairly heavy rainfall expected in parts of the island today

Fairly heavy rainfall expected ...

Bringing the news paper to your fingertips

$ 70 m tourism revenue loss monthly: SLTDA

$ 70 m tourism revenue loss mo ...

IMF negotiations: No plans to request more IMF funding: Finance Min.

IMF negotiations: No plans to ...

Water supply cut to stretch reserves

Water supply cut to stretch re ...

Agriculture: Govt. rejects claims of transport crisis

Agriculture: Govt. rejects cla ...