Colombo Gazette

11/07/2025

The UK government unveiled a package of reforms to simplify imports from developing countries like Sri Lanka.

Upgrades to the Developing Countries Trading Scheme (DCTS) make it easier for businesses to trade with the UK and help lower prices on the UK high street.

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries including Sri Lanka while helping UK businesses and consumers access high-quality, affordable goods. This announcement builds on the UK’s Trade Strategy published last month.

New measures include simplifying rules of origin enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free — even when using components from across Asia and Africa.

The announcement follows engagement with UK businesses and international partners, major importers and trade associations. This included the Sri Lankan government and the Joint Apparel Association Forum (JAAF).

The most significant positive change for Sri Lanka is that the rules of origin for the garments sector specifically will be liberalised. The changes will ensure that DCTS countries can now source their materials from a wider range of nations and will give manufacturers from countries such as Sri Lanka the opportunity to take advantage of 0% tariffs on garments. These changes are expected to be in place by early 2026.

The British High Commissioner to Sri Lanka Andrew Patrick said:

“This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement. We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS. The UK remains committed to working towards creating shared prosperity
for both our countries.”

Responding to the announcement Secretary General of the Joint Apparel Association Forum (JAAF) Yohan Lawrence said: “We warmly welcome the UK’s Trade Strategy. JAAF has worked very closely with the UK Government to work on solutions to improve utilisation of the Scheme. We are delighted that, for garments, it will now be possible to source more raw material regionally and continue to qualify for duty free export to the UK. This will be a game-changer for our trade with the UK under the DCTS. We believe that the changes will also deliver significant improvements against the objectives of the Scheme. At around USD 675m in value, the UK is the second largest market for Sri Lanka Apparel, accounting for close to 15% of apparel exports, while the industry supports a million livelihoods across the country. This announcement will help secure employment opportunities and ensure sustainable growth in Sri Lanka by allowing us to compete on equal terms with our major competitors, and we expect exports to increase significantly when the new rules come into effect.”

Launched in 2023, following the UK’s exit from the EU, DCTS is the UK’s flagship trade preference scheme, covering 65 countries (including Sri Lanka) and offers reduced or zero tariffs on thousands of products. It is one of the most generous schemes of its kind in the world. The recent changes further improve this offer. This will open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies.

In addition to the DCTS changes, the UK will continue to provide targeted support to help exporters in Sri Lanka to access the UK market and meet import standards particularly focused on agri-foods and apparel sectors. This is through programmes being delivered by the International Trade Centre (ITC) in partnership with the Sri Lanka Export Development Board:

• The UK Trade Partnerships programme will continue to support on-going work on strengthening and rolling out Sri Lanka’s national organic standards, alongside completing certification audits of existing beneficiaries, and delivering training on digital marketing.

• Following the work on establishing the SheTrades Commonwealth+ hub in Sri Lanka earlier this year, the UK will continue to support in building policy capacity to mainstream gender into trade policy

11/07/2025

Softlogic Life Insurance PLC has successfully completed the acquisition of 100% of the shares of Allianz Life Insurance Lanka Limited (Life Business), following the receipt of regulatory approval from the Insurance Regulatory Commission of Sri Lanka (IRCSL).

The transaction marks a significant milestone, following the initial announcement on 26th March 2025.

Softlogic Life recorded Gross Written Premiums (GWP) of Rs. 31,574 billion as at Dec 2024 with a market share of 17.2% and continued the robust tone with growth of 25% in the 1st quarter of 2025. As Sri Lanka’s second-largest life insurer, protecting over 1.3 million lives, this strategic acquisition enables the company to expand its footprint, strengthen its market position, whilst delivering unparalleled value to its policyholders.

Following the completion of the acquisition, Allianz Life Insurance Lanka Limited will become a fully owned subsidiary of Softlogic Life Insurance PLC and will soon change its name and operate as SL Insurance Lanka Ltd, a subsidiary of Softlogic Life Insurance PLC.

Commenting on the acquisition, Softlogic Life Chairman Ashok Pathirage said, “This acquisition reflects our long-term vision to build a resilient, future-ready insurance business that delivers unmatched value to Sri Lankans. As we welcome this new subsidiary into our portfolio, we reaffirm our commitment to driving industry leadership through innovation, operational excellence, and an unwavering focus on customer wellbeing”.

Softlogic Life has consistently led the Sri Lankan insurance industry’s transformation, pioneering the use of artificial intelligence, data analytics, and automation to enhance customer experiences, streamline operations, improve distribution, and improve risk management. From AI-powered underwriting and predictive health analytics to one-day claim settlements and fully digitized onboarding, the company has embedded innovation across its value chain. Backed by a strong capital base, disciplined financial management, and a track record of unparalleled growth, Softlogic Life combines technological agility with financial resilience, positioning it as the most future-ready life insurer in the country.

Softlogic Life Managing Director Iftikar Ahamed said, “We are excited to embark on this new chapter, bringing together the strengths of our teams to build a more customer-centric insurance provider for Sri Lanka. As we welcome the policyholders and team from Allianz Life Insurance Lanka Limited, we look forward to combining the dynamic brand of Softlogic Life and towards scaling the pinnacle of insurance in Sri Lanka.”

Allianz Life Insurance Lanka Ltd has been a part of Allianz Lanka since 2008, contributing significantly to the Allianz Group’s presence in the local life insurance sector. Allianz Insurance Lanka Ltd., the General Insurance business of the Allianz in Sri Lanka remains a fully-owned subsidiary of Allianz SE, one of the world’s leading insurers and asset managers, headquartered in Munich, Germany.

Commenting on the acquisition, Prashant Grover, CEO and Country Manager of Allianz Insurance Lanka Limited, stated "We extend our best wishes to Softlogic Life on the successful acquisition of our life business. Allianz Insurance Lanka Limited, the General Insurance arm of Allianz Lanka remains fully committed to the Sri Lankan market. With over 20 years of experience in the country, Allianz Lanka continues to build on its legacy of trust, innovation, and resilience in delivering world-class insurance solutions to our customers."

11/07/2025

Russia reiterated support for Sri Lanka in BRICS, an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.

Minister of Foreign Affairs, Foreign Employment, and Tourism Hon. Vijitha Herath met with Russian Foreign Minister Sergey Lavrov on the sidelines of ministerial events under the auspices of ASEAN in Kuala Lumpur.

During the conversation, the parties discussed pressing issues on Lankan–Russian relations and collaboration on international platforms.

Russian Foreign Minister Lavrov expressed his gratitude for Sri Lanka’s communication sent in October of last year, which articulated Sri Lanka’s interest in closer alignment with BRICS. Russia welcomes this step and stands ready to support a consensus on the matter unequivocally.

Further, Minister Lavrov noted that Sri Lanka has long been a trusted partner of Russia in South Asia. He acknowledged the deep and positive historical trajectory of bilateral relations and expressed a commitment to advance the relationship further as a model for future collaboration.

Minister Vijitha Herath thanked the Russian Federation for its longstanding friendship and consistent support for Sri Lanka, especially during critical times of need. He appreciated Russia’s historical ties with Sri Lanka and affirmed Sri Lanka’s commitment to deepening cooperation across multiple sectors.

11/07/2025

10/07/2025

Former President Ranil Wickremesinghe called Mahathir Mohamad, the leader who built modern Malaysia, on the occasion of his 100th birthday and extended his best wishes.

A brief telephone conversation was also held between former Prime Minister of Malaysia Mahathir Mohamad and Ranil Wickremesinghe.

The former President and Prime Minister have known each other for several decades.

Prime Minister Mahathir Mohamad, who came to power in the early 1980s, played a great role in bringing Malaysia to the advanced state it is today.

10/07/2025

A driver of the ride-hailing service PickMe, has been arrested for harassing a passenger in Colombo.

Lawyer, Nadhiha Abbas, said that she attended the inquiry at the Maligawatha Police Station this week where accused driver was also present.

"I submitted all the evidence and documents I had gathered against him. The Police recorded everything in detail, and my documentary evidence was officially marked as productions in the case. As the inquiry progressed, the driver began to realize the gravity of the situation. He repeatedly apologized, citing his mother's diabetes and personal struggles. What shocked and deeply disturbed me was when he said, “If I had known you were a lawyer, I wouldn’t have done this to you.” That statement further fueled my determination — because this fight is not just about me as a lawyer — it’s about the safety, dignity, and rights of all women. Do we need to pass the Law College exam and wear the attorney's gown just to be respected as women?" she said in a Facebook post.

Abbas said the Police asked her whether she was willing to settle but she was not ready for any compromise.

After reviewing all the evidence, the Police decided to proceed with criminal prosecution and the driver was subsequently arrested and was to be produced before court under Section 345 of the Penal Code.

"This is a step forward, not just in my case, but in the broader fight for accountability and women's safety," she added.

Abbas posted on social media earlier this month saying she was pursuing both a criminal case against the individual offender and a civil claim against PickMe for vicarious liability.

She said the incident occurred on 3rd July 2025 when she booked a PickMe ride from the FS visa office in Colombo to the Pettah Bus Stand to return to Puttalam.

The booking was confirmed, and the app provided the driver’s details: name – Mohamed Fahim, vehicle number – JH 5752.

However, another driver had arrived and called her from a private number instead of from the app and verbally abused her when she called back after initially not answering the several calls he made.

Nadhiha Abbas said that she took another taxi but was followed by the PickMe driver who abused her on the road.

The passenger said she asked her taxi driver to take her to the Police station where she lodged a complaint. (Colombo Gazette)

10/07/2025

The announcement of a 30% reciprocal tariff by the U.S., scheduled to take effect from 1st August 2025, has raised significant concern within Sri Lanka’s apparel industry, the Joint Apparel Association Forum (JAAF) said.

As one of the country’s largest export earners, the sector relies heavily on access to the U.S. market, and such a steep increase threatens to erode competitiveness, particularly when compared to regional peers.

JAAF notes that Vietnam has already concluded its negotiations and now faces a 20% tariff, while Bangladesh, though at 35%, has already begun negotiations with the U.S. to secure a reduction. India’s position remains under discussion, but early signals suggest it may receive a more favorable rate than Sri Lanka. In all likelihood Cambodia, another competitor with a tariff rate marginally higher than Sri Lanka will also be negotiating for a reduction.

“If the 30% tariff stands, we risk seeing a migration of U.S. buyers to lower-tariff countries,” JAAF warned. “We strongly urge the Government to continue active engagement with the U.S. Trade Representative (USTR) to secure a better deal for Sri Lanka.”

The reduction from 44 to 30% is a recognition of the good faith with which Sri Lanka has been having its dialogue with USTR and JAAF is encouraged by the Government’s comments today indicating that negotiations with USTR will continue with a sense of urgency ahead of the 1st August deadline when the 30% will become effective.

JAAF further stressed that a diplomatic resolution is vital to safeguarding jobs, sustaining market share, and reinforcing Sri Lanka’s position as a trusted partner in global apparel supply chains.

10/07/2025

Sri Lanka expects to continue negotiations with the US after President Donald Trump’s decision to reduce tariffs on the island nation is seen as a "good start” by Colombo which had primarily negotiated to preserve its competitive advantage, Treasury Secretary Harshana Suriyapperuma said Thursday (July 10).

US President Donald Trump imposed a 30 per cent levy on goods from Sri Lanka after the July 9 deadline passed without a deal in place. The new tariff is lower than the earlier 44 per cent imposed on Sri Lanka, and also below the 35 per cent and 36 per cent levied on countries like Bangladesh and Cambodia respectively which compete to ship a similar basket of goods.

Sri Lanka will continue to engage with the US on tariff issues, Suriyapperuma said at a press conference. Central Bank Governor Nandalal Weerasinghe added that maintaining a relatively competitive position against other countries was the first aim of negotiations, an objective the country has achieved.

Sri Lanka negotiated in good faith to expand trade and imports, which the US has recognized, Weerasinghe said, adding his government will also monitor and take into account for future negotiations how other countries are achieving benefits from their talks.

Trump unveiled a new round of levies on countries, including Sri Lanka, for the tariffs which are set to hit in August. Officials from the island nation were hoping for a positive outcome after multiple rounds of discussions with Washington.

The latest levies will add some pressure on economic recovery for the nation that defaulted on its debt in 2022. The International Monetary Fund recently warned that trade risks can hit Sri Lanka’s growth by as much as 1.5 per cent.

Sri Lanka’s economy is heavily reliant on the US market for exports, with US$3 billion worth of goods, mostly garments, shipped last year. In the first five months of 2025, goods exports to the US were US$1.18 billion, up 5.6 per cent from a year earlier. (Bloomberg)

10/07/2025

The United Kingdom is prepared to offer technical assistance to investigate the Chemmani mass grave, UK Foreign Secretary David Lammy said.

David Lammy said the British Government had raised concerns over the mass grave with the Sri Lankan Government.

Responding to a question raised by UK MP Uma Kumaran before the UK Foreign Affairs Committee, David Lammy said that he has very grave concerns regarding the mass grave.

He said the concerns were raised with the Sri Lankan Government in June.

Over 35 human bones have been discovered at the Chemmani mass grave so far.

Justice Minister Harshana Nanayakkara had told Parliament last month that investigations are ongoing over some mass graves in the North.

However, he said there are no complaints regarding some graves and no basis for an investigation to be carried out.

09/07/2025

The Joint Chambers of Commerce urged the Government of Sri Lanka to engage in meaningful consultation with all recognized industry chambers before making decisions that directly impact trade, exports, and the wider economy.

The call comes in response to renewed lobbying efforts by certain shipping agents and intermediaries seeking to reintroduce anti-competitive terminal handling charges (THC) through misleading claims to policymakers.

At the recent AGM of the Sri Lanka Association of NVOCC Agents (SLANA), calls were made to reinstate THC, citing alleged adverse impacts on the Port of Colombo. However, the Joint Chambers strongly reject this assertion, clarifying that there is no legal or operational void to "reinstate." Port terminal handling charges are already paid by shipping lines under existing market contracts, and any further charges imposed on exporters or importers would constitute a reversion to pre-2014 cartel-like practices that hurt competitiveness and transparency.

Sean Van Dort, Chairman of the Sri Lanka Shippers’ Council, condemned the move, stating:
"This is yet another attempt by powerful intermediaries in the shipping and logistics sector to reintroduce anti-competitive fees through the backdoor. Exporters and importers already pay all-inclusive freight based on market terms. There is no free service being provided. What we are seeing is a push to extract surcharges from non-contracting parties, which is against global trade norms and local regulation."

He added that since the 2014 regulation, introduced with support from the International Chamber of Commerce (ICC) and based on INCOTERMS best practices, the Port of Colombo has seen volume growth and an increase in licensed agents—contrary to claims that the regulations have harmed the sector.

Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), also expressed concern:
"The apparel industry cannot afford renewed cost pressures or uncertainty due to policy shifts driven by narrow interests. Sri Lanka’s export sector is already under strain, and the Government must ensure that any regulatory changes are made with full industry consultation. Fragmented lobbying only undermines our national competitiveness."

The Joint Chambers warned that unbundling freight charges to reintroduce THC would raise costs for manufacturers, disrupt supply chains, and ultimately burden consumers through hidden costs. They reiterated that Sri Lanka’s competitiveness hinges on transparent and predictable trade policy.

The Chambers further cautioned that such attempts, often timed around transitions in political leadership or changes in ministerial portfolios, aim to exploit gaps in regulatory oversight. They urged the Ministry of Ports, Shipping and Aviation, and the Merchant Shipping Secretariat, to act with integrity and consult all stakeholders—not just intermediaries with vested interests.

As the country focuses on rebuilding exports and attracting investment, the Joint Chambers reaffirm their commitment to protecting the interests of Sri Lankan businesses, exporters, and consumers alike, and called on the Government to uphold regulatory clarity and market fairness.

08/07/2025

South Asia’s biggest K-1 fight league, Karma Fight League, will host its fifth event on July 25 at Cinnamon Life, South Asia’s largest entertainment hub.

The event will take place at the Lumina Ballroom, featuring fighters from Sri Lanka, India, Nepal, and Australia, with both male and female bouts on the card. KFL will also introduce the KFL Extreme Championship, featuring the best young fighters in Sri Lanka.

Cinnamon Life will serve as both the venue and hospitality partner for the event, marking the start of a strategic partnership with KFL.

“We are thrilled to be part of this groundbreaking event. Just as KFL is set to redefine the landscape of combat sports in Sri Lanka with a bold and innovative vision, Cinnamon Life, at City of Dreams has reimagined the hospitality experience—setting a new benchmark not only in Colombo, but across the country. We take pride in showcasing the essence of authentic Sri Lankan hospitality and this collaboration is the perfect reflection of that spirit. It promises to be an unforgettable, high-energy experience and we are very excited,” said Sanjiv Hulugalle, CEO and General Manager of Cinnamon Life at City of Dreams.

The partnership reflects the growing demand for large-scale sporting events in Colombo and supports the rise of sports tourism in Sri Lanka.

It also highlights how combat sports are becoming part of the city’s broader lifestyle and entertainment economy.

For KFL, this event marks a step forward as the league continues to grow across the region.

Tickets are now available online, with high demand anticipated ahead of the event.

08/07/2025

Maitland & Knox Heritage Hotels, the homegrown luxury boutique chain behind Galle Fort Hotel, Thotalagala, and The Warden’s House, has officially rebranded as Island Life – Sri Lanka.

This is among the biggest rebranding exercises carried out by a Sri Lankan group in recent years. This new name and identity refl ects a new, experience-led approach to homegrown hospitality. The specialised boutique hotel chain now pegs itself as “the custodians of the perfect Sri Lankan experience”.

The new brand logo of Island Life - Sri Lanka captures the soul of the island—where a wave echoes coastal calm and a peak evokes the wild highlands. Together, they refl ect the rhythm of serenity and adventure, inviting guests to experience Sri Lanka’s story through every stay.

With Island Life - Sri Lanka, the group begins a new chapter rooted in storytelling, sustainability, and soul. At its core is a promise: to offer guests more than just a stay—an opportunity to feel Sri Lanka, move with its rhythm, embrace its culture, and connect with its people. Guided by a philosophy of fulfi llment through action, every stay is thoughtfully designed to go beyond comfort — shaped in curated experiences, personalisation, and authentic connection. From cultural encounters and locally inspired design to meaningful moments through art, heritage and service, we ensure each guest feels fully immersed in the essence of the island.

Island Life - Sri Lanka now includes three iconic properties

● Thotalagala (Haputale): A restored 19th-century tea planter’s bungalow nestled in Sri Lanka’s central highlands, offering heritage charm, quiet luxury, and meaningful interactions. Thotalagala features 7 suites complementing gourmet experiences, guided walks, an Insta-viral infi nity pool and Sri Lanka’s best high tea.

● Galle Fort Hotel (Galle): The iconic heritage property located in the heart of the UNESCO-listed Galle Fort, featuring 11 rooms, a stunning collection of artefacts and housing the Ropewalk bar, voted by Conde Nast Traveller among Sri Lanka’s best bars.

● The Warden’s House (Galge, Yala Block 5): The group’s newest offering, a boutique four-room luxe safari lodge with a private waterfront by the Menik River offering experiential, all-inclusive stays, where guests engage with nature, wildlife, and local culture—from safaris in Yala to visiting the famous sacred kataragma temple, to dodol and curd-making with villagers by the Menik River.

As part of the new chapter, Island Life – Sri Lanka welcomes two new destinations into its fold: Hiriketiya and Kandy.

With its new identity, Island Life introduces a concept-driven approach to boutique hospitality:

Sanctuary: Carefully designed spaces for rest, healing, and refl ection—featuring heritage architecture, local art, and sensory experiences.

● Adventure: Curated activities that blend exploration with education—from birdwatching and cycling to conservation walks and cooking classes.

● Memories: Personalised moments that last—shared meals, meaningful stories, and handmade keepsakes that refl ect each journey.

● Indulgence: Culinary experiences that celebrate Sri Lankan fl avours, from elegant dining to rustic, village-style feasts.

● Responsibility: A fi rm focus on community upliftment, environmental stewardship, and sustainability woven through every experience.

Guests staying at Island Life - Sri Lanka properties can now enjoy thoughtfully designed branded merchandise such as hiking socks and scarves at Thotalagala, fl ipfl ops and a totebag at Galle Fort Hotel and a safari hat and water bottle at The Warden’s House—each tailored to the spirit of the property, serving as tangible reminders of the experience long after the stay ends.

Most importantly, Island Life – Sri Lanka brings together diverse regions of the island under one brand—allowing guests to explore multiple destinations through a single, seamless journey, all with the consistency of curated luxury at every stop.

Amrit Rajaratnam, Founder and Managing Director of Island Life - Sri Lanka, comments, “With Island Life as our new identity, we are witnessing the biggest rebranding and transformation phases that a Sri Lankan homegrown boutique chain has seen in recent times. We are thrilled to now evolve into a lifestyle brand that prioritises experiences and curation. While our iconic properties like Galle Fort Hotel, Thotalagala and The Warden’s House will continue to be at the core of the Island Life experience, our philosophy will now shift towards itineraries that are more immersive and experiential. And this will only get stronger with the announcement of our two new destinations - Hiriketiya and Kandy.”

Shayan Kannangara, Chief Operating Officer of Island Life - Sri Lanka, adds, “Travellers to Sri Lanka can now essentially book a tour through Sri Lanka’s different regions under one parent group, Island Life, and easily shuttle between properties to enjoy a consistent experience, thereby making planning a Sri Lanka itinerary much easier. From Galle’s beaches and architecture to Yala’s game drives and fi nally Haputhale’s plantation bungalow culture, the itinerary is immersive.”