The Department of Meteorology issued an ‘Amber’ advisory for severe lightning in several provinces today (02). The warning is in effect until 11.30 p.m. covering Northern, North-Central, Central, Sabaragamuwa, Eastern and Uva provinces. Thundershowers with severe lightning are likely after 1.00 p.m., with temporary strong winds. The public is advised to take precautions to minimise damage from lightning.

Amber alert issued for severe lightning

Farmers raised concerns over an increase in fertilizer transport charges for the Yala season. They noted the fee has risen from Rs. 50 to Rs. 300 for transporting fertilizer from Colombo to Agrarian Services Centres. Reports also indicate a charge of Rs. 9,550 per fertilizer bag at distribution centres. Deputy Agriculture Minister Nimal Karunaratne stated that sufficient fertilizer supplies cannot be provided at present. Farmers in districts including Ampara, Polonnaruwa and Anuradhapura reported shortages during ongoing Yala cultivation.

Fertilizer transport charges rise as farmers raise concerns

Investigations have been widened into the alleged misappropriation of US$2.5 million from the Ministry of Finance. Health and Mass Media Minister Dr. Nalinda Jayatissa stated that both a CID probe and an internal Finance Ministry inquiry are underway. He noted that authorities are examining whether any public officials were involved. The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) is also conducting investigations. Legal action will follow once investigations are completed, the Minister stated.

Probe widened into US$2.5M Finance Ministry cyber heist

The National Joint Three-Wheeler Drivers and Industrial Workers’ Association (NJTWDIWA) called for an increase in three-wheeler fares. Secretary L. Rohana Perera stated that the request follows the Rs. 12 increase in petrol prices. The association also called for a higher fuel quota for three-wheeler operators.

Three-wheeler operators call for fare hike

Bus operators confirmed that fares will not be revised despite the recent fuel price increase. Lanka Private Bus Owners’ Association Chairman Gemunu Wijeratne stated operators are absorbing the cost as there is no legal provision for an immediate fare hike. He noted that short-distance services incur losses of about Rs. 500 per day, while long-distance services face around Rs. 1,500 in daily losses. The annual fare revision is scheduled for 1 July, he stated.

No bus fare increase despite fuel price hike

Deputy Minister of Defence Major General (Retd) Aruna Jayasekara visited the Sri Lanka Coast Guard Headquarters in Mirissa and the Lifesaving Training School in Balapitiya on 30 April. He was received by Director General Rear Admiral Rohan Joseph and observed a lifesaving demonstration. During the visit, he reviewed operations, maritime security, drone surveillance, and support for coastal communities. Discussions focused on improving lifesaving capabilities, harbour security, marine protection, ferry regulation, and anti-narcotics efforts. Senior Defence Ministry and Coast Guard officials attended the visit.

Deputy Defence Minister visits Coast Guard Headquarters

<ul><li>US response pending on $ 625,000 misdirected in alleged email fraud</li><li>Funds misdirected through email spoofing involving 3rd-party intermediary</li></ul>Approximately $ 625,000 from the Department of Posts, intended for payment to the United States Postal Service (USPS), had allegedly been diverted through a coordinated phishing attack involving a third-party intermediary, according to Postmaster General Ruwan Sathkumara.Cabinet Spokesperson Nalinda Jayatissa first revealed the matter during the weekly Cabinet media briefing on 28 April, hot on the heels of the controversial $ 2.5 million loss of a loan repayment to an Australian creditor by the Treasury, which is currently under scrutiny by the parliamentary oversight mechanism and law enforcement.&nbsp;&nbsp;Speaking to The Sunday Morning, Sathkumara revealed that the illicit transfers had occurred in three distinct phases over a two-year period.“There is one instance involving around $ 900 that occurred in 2024,” he said, explaining that the perpetrators had then significantly escalated their operations the following year.&nbsp;“After that, a large amount, over $ 400,000, was sent in February 2025,” he noted, adding that nearly $ 190,000 had subsequently been sent in October 2025.Although Sri Lanka has requested assistance, efforts to recover the stolen assets are now tied to international cooperation and diplomatic channels.&nbsp;Sri Lankan authorities are seeking assistance from the United States to secure the flagged funds and have requested more information; however, US authorities have yet to respond, the Postmaster General said on Friday (1).“We will definitely need the support of the relevant country for that. That is why we are providing our statement to the Criminal Investigation Department (CID),” Sathkumara said.&nbsp;He noted that while contact had been initiated via embassy channels, a formal breakthrough was still pending. “We are trying to get confirmation from the USPS, but there has been no response from their side yet.”Preliminary findings suggest that the breach had occurred within the communication channels used between Sri Lanka’s Department of Posts and its American counterpart. According to the Postmaster General, it is suspected that a malicious third party had successfully intervened in the digital correspondence, masquerading as an official entity to misdirect the financial transaction.&nbsp;Sathkumara explained that the fraud had been facilitated by a middleman who had managed to infiltrate the final stages of the communication process.“It is suspected that it was a phishing-style incident involving a third party,” Sathkumara said.&nbsp;He further clarified the mechanics of the deception, noting that the communication had appeared legitimate to the staff involved.“In this instance, much of this occurred because of communication with a third party via email. It was made to appear as though the communication was coming from the USPS. If it had been checked properly, this could have been avoided,” he added.The financial impact involves two distinct payments. While one payment is currently under a hold status, the other is believed to have been successfully siphoned by the fraudsters.&nbsp;According to the Postmaster General, a sum of over $ 400,000 remains the subject of intense verification efforts.&nbsp;Significant discrepancies in the recipient data have raised alarms within the department, as the beneficiary name, account number, and bank listed were all different from the official USPS credentials. “Since there is such a suspicion, we are investigating further as to how it happened,” Sathkumara said.&nbsp;The CID has launched a comprehensive probe into the sophisticated cyber fraud that resulted in this loss. The investigation remains in its active stages as authorities work to record statements and trace the digital footprint of the perpetrators.&nbsp;Sathkumara noted that the sensitive nature of the ongoing inquiry prevented the full disclosure of all technical details at this stage. “CID officials are currently recording reports for the investigation, so it is difficult for me to provide many details at this moment,” he said.In response to the breach, the Department of Posts is reviewing its internal financial protocols and communication systems. The Postmaster General emphasised the importance of adhering to the established circulars provided by the Universal Postal Union and the International Post Corporation (IPC).&nbsp;Moving forward, the department intends to implement more rigorous verification measures to ensure that all financial transfers follow secure, authorised routes rather than relying on email-based instructions. Sathkumara indicated that the department was discussing the adoption of a more secure system with relevant stakeholders to prevent the recurrence of such an incident.

$ 625,000 cyber fraud: Fraud occurred in 3 phases during 2024/’25: Postmaster 

<ul><li>Multi-year plan to dismantle levy structure, sensitive sectors get extra time to adapt</li></ul> The Ministry of Industry has detailed the structure, timelines, and safeguards of a reform under which Sri Lanka is set to fully phase out the long-standing Commodity Export Subsidy Scheme (CESS) levy by 2029, as part of a multi-year tariff reform programme backed by international lenders, including the World Bank, following Cabinet approval.CESS, a para-tariff imposed in addition to normal Customs duties, was originally introduced to protect selected local industries and generate revenue.&nbsp;The joint Cabinet paper on the reform was presented to the President in his capacity as Minister of Finance, Planning, and Economic Development by Minister of Industry and Entrepreneurship Development Sunil Handunnetti.According to the paper prepared by the Ministry of Industry, seen by The Sunday Morning, the Government plans to gradually remove the remaining CESS charges applicable to 2,634 Harmonised System (HS) product categories. The move forms part of a broader effort to simplify Sri Lanka’s complex import tax regime, improve trade competitiveness, and increase transparency.&nbsp;The policy paper notes that these additional costs have increased production expenses for Sri Lankan industries, particularly export-oriented sectors, reducing their ability to compete internationally. It states that multiple layers of para-tariffs have created a structure lacking transparency and predictability.&nbsp;Immediate action in 2026 will target goods with minimal domestic impact or those critical to export sectors.&nbsp;CESS on 265 fabric-related HS codes was fully removed by 1 April and replaced with Value-Added Tax (VAT), a move aimed at levelling the playing field for the apparel industry.&nbsp;Goods with marginal CESS rates below 5%, covering 46 HS codes, will also see complete removal in the first year. In addition, 693 categories of intermediate goods will receive an immediate 50% reduction, lowering raw material costs for manufacturers.&nbsp;The second phase, spanning 2027–2028, will focus on completing reductions for standard intermediate goods. The remaining 50% of the levy on these items will be removed in two equal stages: 25% in 2027 and the final 25% in 2028. This is said to allow businesses time to adjust pricing structures and supply chains as import costs gradually decline.&nbsp;A separate, more gradual approach has been adopted for sensitive industries, with the phase-out backloaded to provide extended protection. For 107 HS codes linked to sectors such as tiles, cement, and tyres, no reductions will be implemented in 2026.&nbsp;Cuts will begin in 2027 with a 25% reduction, followed by a further 25% in 2028, while the remaining 50% will only be removed in 2029. This extended timeline is intended to give these industries the maximum possible window to improve productivity and competitiveness.The reform will reach full completion in 2029, with the final removal of levies on 1,523 remaining goods, largely consisting of final consumption items, marking the end of the CESS regime.&nbsp;The first phase of the CESS phase-out began in March 2023 through Gazette Notification No.2325/06, following a Budget policy announcement. The 2026 Budget has reaffirmed the decision to eliminate para-tariffs on a phased basis.&nbsp;Speaking to The Sunday Morning, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe stressed that the existing para-tariff regime had constrained Sri Lanka’s export growth. “As a small country, we cannot grow exports without creating trade connections with other countries,” he said, noting that exports had remained stagnant at approximately $ 12 billion.Abeysinghe noted that while para-tariffs had been introduced to protect local industries, long-term outcomes had been limited. “Some industries in our country have enjoyed these para-tariffs for over 10 years; however, their productivity has not increased,” he said, adding that these taxes had driven up consumption costs and the prices of industrial raw materials.He also highlighted the impact on the construction sector, stating that cumulative para-tariffs had pushed construction costs in Sri Lanka 100–130% higher than in other countries, affecting housing affordability.&nbsp;While the broader removal began in April, the Ministry of Industry has intervened to protect sensitive local sectors. Abeysinghe said that the removal of CESS for 107 HS codes, including tiles, cement, and tyres, had effectively been delayed until 2028 to provide time for adjustment.In order to address concerns over a potential influx of cheap imports, the Government plans to strengthen safeguards, including anti-dumping laws, enforcement of national quality standards, and enhanced Customs oversight to prevent under-valuation.Meanwhile, the Exporters’ Association of Sri Lanka (EASL) has expressed strong support for the removal of CESS and other para-tariffs, arguing that the reform would enhance Sri Lanka’s global trade competitiveness while modernising its trade regime.&nbsp;EASL Chairman and Joint Apparel Association Forum Sri Lanka (JAAFSL) Secretary General Yohan Lawrence said that the association supported the removal of all para-tariffs, noting that the move demonstrated Sri Lanka’s willingness to engage more actively in international trade and facilitate Free Trade Agreements.Lawrence said the removal of para-tariffs would boost export competitiveness by lowering input costs, improving supply chain efficiency and industrial productivity, eliminating distortions in the tariff structure, and modernising Sri Lanka’s trade regime.&nbsp;He added that the reforms would align the country’s trade framework with World Trade Organization norms, strengthen trade negotiations, support commitments under the International Monetary Fund (IMF) programme, and contribute to long-term economic resilience by creating a predictable, rules-based environment for investors and exporters.&nbsp;Addressing concerns about the impact on domestic industries, Lawrence said that CESS, which had been in place for decades, now primarily served to protect a limited number of large enterprises while increasing costs for consumers.– By Methmalie Dissanayake

Removal of CESS: Detailed plan to remove para-tariff by 2029

<ul><li>Singapore-based supplier invokes force majeure over disrupted maritime routes</li><li>CPC renegotiates delivery timelines to avoid legal fallout</li></ul> The Ceylon Petroleum Corporation (CPC) has deferred four diesel cargoes scheduled for March under tender DK/14/2026 following delivery failures by a Singapore-based supplier, which cited global supply chain disruptions.The supplier had formally notified the CPC of its inability to honour the agreed delivery schedule, invoking force majeure provisions and pointing to instability in key transit hubs, including Khor Fakkan Port.&nbsp;Despite these claims, however, the CPC stated that it did not accept the force majeure position outright, opting instead to renegotiate delivery timelines to preserve contractual continuity.&nbsp;Speaking to The Sunday Morning, CPC Managing Director Dr. Mayura Neththikumarage outlined the legal and operational constraints underpinning this decision.“We never accepted any force majeure claims. A few suppliers cited force majeure, but we informed them that we could not accept it. Consequently, they requested a deferred timeline. No shipments were cancelled, but there were minor deferments. If we had rejected the deferred timeline, force majeure would have legally applied,” Dr. Neththikumarage said.&nbsp;“Internationally, the ongoing war is a recognised fact. If locations like Khor Fakkan are attacked, force majeure is undeniably applicable under frameworks such as the Hague-Visby Rules. We would not be able to contest that in international arbitration. Therefore, our legally valid mechanism was to instruct them to deliver the shipments once Khor Fakkan becomes accessible,” he added.According to him, under tender DK/14/2026, pricing is not fixed at contract execution but is instead determined at the point of delivery, based on a five-day averaging mechanism linked to international benchmark indices. This exposes procurement costs to volatility in global oil markets, particularly during periods of geopolitical instability.&nbsp;Dr. Neththikumarage explained that during the peak of recent conflicts, global premiums on refined petroleum products surged sharply before moderating. The CPC relies on the Platts Index for diesel procurement, ensuring alignment with internationally published price assessments.&nbsp;“At the time of the war, there was a considerably higher price, but it has since come down. For example, the global premium had previously gone up to between $ 50–60 per barrel, but it has now dropped. For the diesel shipments, there is a specific Platts Index. The index had reached $ 291.82, but we managed to secure deals between $ 281–288 when the prevailing world price was $ 290. Both parties have no control over the index price, as it is a published standard,” he said.“Diesel prices have experienced a decline recently. Under normal circumstances, we receive 35,000–37,000 MT per vessel. The finalised domestic cost depends entirely on the arrival date, which is calculated using a five-day average. In early April, the landed cost was nearing Rs. 300 per litre, but it later dropped below Rs. 200. We are unable to cancel shipments based on force majeure claims, but we have the authority to alter the delivery dates to navigate the inconsistencies of the global supply chain,” he added.Despite the deferment of the four March shipments, the CPC official maintained that national diesel supply remained stable, with sufficient inventory to meet current demand. Consumption patterns have eased following the conclusion of the Sinhala and Tamil New Year period, which typically sees elevated industrial and transport activity.&nbsp;“There is absolutely no shortage of diesel in the country at present. The national requirement was relatively high prior to the New Year period, but demand has since decreased because many industries ceased operations last week. Furthermore, if the country receives adequate rainfall, the demand for thermal power generation will decrease even further. Our supply management relies on agile planning. While it is impossible to predict the exact developments of a global war, we have ensured that our fuel supply remains firmly under control until at least September.”

Amber alert issued for severe lightning

Fertilizer transport charges rise as farmers raise concerns

Fertilizer transport charges r ...

Probe widened into US$2.5M Finance Ministry cyber heist

Probe widened into US$2.5M Fin ...

Three-wheeler operators call for fare hike

Three-wheeler operators call f ...

No bus fare increase despite fuel price hike

No bus fare increase despite f ...

Deputy Defence Minister visits Coast Guard Headquarters

Deputy Defence Minister visits ...

$ 625,000 cyber fraud: Fraud occurred in 3 phases during 2024/’25: Pos ...

$ 625,000 cyber fraud: Fraud o ...

Removal of CESS: Detailed plan to remove para-tariff by 2029

Removal of CESS: Detailed plan ...

Diesel supply: CPC defers four diesel shipments

Diesel supply: CPC defers four ...

Fertilizer transport charges rise as farmers raise concerns

Fertilizer transport charges r ...

Probe widened into US$2.5M Finance Ministry cyber heist

Probe widened into US$2.5M Fin ...

Three-wheeler operators call for fare hike

Three-wheeler operators call f ...

No bus fare increase despite fuel price hike

No bus fare increase despite f ...

Deputy Defence Minister visits Coast Guard Headquarters

Deputy Defence Minister visits ...

$ 625,000 cyber fraud: Fraud occurred in 3 phases during 2024/’25: Pos ...

$ 625,000 cyber fraud: Fraud o ...

Removal of CESS: Detailed plan to remove para-tariff by 2029

Removal of CESS: Detailed plan ...

Diesel supply: CPC defers four diesel shipments

Diesel supply: CPC defers four ...

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Fertilizer transport charges rise as farmers raise concerns

Fertilizer transport charges r ...

Probe widened into US$2.5M Finance Ministry cyber heist

Probe widened into US$2.5M Fin ...

Bringing the news paper to your fingertips

Three-wheeler operators call for fare hike

Three-wheeler operators call f ...

No bus fare increase despite fuel price hike

No bus fare increase despite f ...

Deputy Defence Minister visits Coast Guard Headquarters

Deputy Defence Minister visits ...

$ 625,000 cyber fraud: Fraud occurred in 3 phases during 2024/’25: Pos ...

$ 625,000 cyber fraud: Fraud o ...