Sri Lanka approves railway electrification project for high-density corridors

Wednesday June 24, 2026 3:00 pm ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to electrify three high-density railway corridors as part of a long-term modernization strategy to move away from diesel-powered operations, Cabinet Spokesperson Nalinda Jayatissa said. The identified routes include the main line from Maradana to Ragama, the Kelani Valley line from Maradana to Makumbura, and the coastal line from Maradana to Panadura. The initiative also includes upgrading station infrastructure at Gampaha, Veyangoda, Mirigama, and Polgahawela. “Currently, the majority of railway operations in Sri Lanka are diesel-powered, and there is a need to upgrade many railway lines, signaling systems and related infrastructure to improve operational efficiency and service reliability,” the cabinet paper noted. The government aims to build a modern and sustainable transport system by focusing on new railway lines, double tracking, and improved signaling. Corridors with high passenger density were specifically chosen for electrification. “Accordingly, corridors with high passenger density have been identified for electrification of railway lines with the aim of improving transport capacity, reducing travel times and supporting an environmentally friendly and sustainable public transport service,” the cabinet paper said. These development activities are expected to be implemented with the support of international development institutions as part of the country’s broader transport modernization strategy. The cabinet approved the proposal submitted by the Minister of Transport, Highways and Urban Development to take the necessary steps to construct and electrify the selected lines. (Colombo/Jun24/2026) Someone passes a note to President Anura Kumara Dissanayake as he speaks in parliament Thursday June 25, 2026 6:11 pm Thursday June 25, 2026 6:11 pm ECONOMYNEXT – Sri Lanka’s President Anura Kumara Dissanayake said investigations are underway for money worth around US$ 1 billion that was sent out of the country illicitly since 2023 as advance for imports. The money was paid via Telegraphic Transfers (TT), but no corresponding goods arrived to the country in return, the president told Parliament on Thursday (26). “Who can take around Rs. 300 billion out of the country? No ordinary person or businessman can move such vast sums of money. However, they have taken it out,” he said. “There is money earned from drugs, corruption, and organized crime. We have started investigations into this.” Investigations have allegedly revealed that certain bank branches and bank managers are involved in these transactions. The same illegal activities have continued in other banks as well with those managers moving to other banks, Dissanayake said. Trade analysts have cited over-invoicing, fictitious shipments with no physical goods returned, and multiple invoicing with false descriptions as methods used to move money out of the country under the guise of imports. The latest revelation by the President comes after a raft of scams including a 13.2 billion rupee fraud involving the listed private lender National Development Bank as well as a US$ 2.5 million scam siphoned from the finance ministry. (Colombo/June 25/2026) Continue Reading Thursday June 25, 2026 5:31 pm Thursday June 25, 2026 5:31 pm ECONOMYNEXT – Sri Lanka Customs exceeded its monthly target for a sixth consecutive month, achieving the June target before the end of the month, official data showed. Customs’ May revenue target was set at 184.9 billion rupees. However, the revenue collecting body had already collected 194.1 billion rupees in the first 23 days of the month, exceeding the target, official data showed. Customs has set a revenue target of 2,207 billion rupees for this year, 13.5 percent less than last year as it originally expected a significant decline in car imports. Data showed it achieved 60.8 percent of this year’s target of 1,342.6 billion rupees even before the end of six months. Last year, Customs collected a record 2,551 billion rupees in revenue, exceeding an upwardly revised target of 2,241 billion rupees for the year and achieving 64.2 percent higher revenue than the previous year’s revenue of 1,553 million rupees. Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction. Following the 2022 economic crisis, imports fell sharply as the country imposed restrictions to conserve foreign exchange. However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen. Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also contributed to boosting state revenue. The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/June 25/2026) Continue Reading Thursday June 25, 2026 5:00 pm Thursday June 25, 2026 5:00 pm ECONOMYNEXT – Sri Lanka’s rupee closed at 337.25/35 to the US dollar in the spot market on Thursday, from 337.00/75 the previous day, while bond yields were broadly steady, dealers said. The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 333.00 buying, 342.00 selling; the euro was 375.7198 selling, 389.6368 buying; and the pound was 437.5636 buying, 451.6092 selling. A bond maturing on 15.09.2027 closed at 10.40/50 percent. A bond maturing on 15.03.2028 closed at 10.50/65 percent. A bond maturing on 15.12.2029 closed flat at 10.90/11.00 percent. A bond maturing on 01.08.2030 closed flat at 11.20/25 percent. A bond maturing on 15.01.2033 closed at 11.58/63 percent. A bond maturing on 15.03.2035 closed at 11.80/95 percent. (Colombo/Jun25/2026) Continue Reading Thursday June 25, 2026 4:12 pm Thursday June 25, 2026 4:12 pm ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Thursday, with the All Share Price Index moving 0.89 percent, CSE data showed. The ASPI rose 198.46 points to close at 22,407. The S&P SL20 closed up 0.99 percent, or 61.10 points, at 6,242. Turnover was 2.7 billion rupees. Top positive contributors to the ASPI were Dialog Axiata (up 1.40 rupees at 47), John Keells Holdings and Hayleys. Top negative contributors were Bukit Darah, Lion and CFLB. Crossings were recorded in Singer (Sri Lanka) (260,000 shares), CIC Holdings (750,000 shares), Aitken Spence (130,000 shares), Commercial Bank of Ceylon (119,680 shares), Tokyo Cement Company (Lanka) (360,000 non-voting shares and 265,000 ordinary voting shares), and Hatton National Bank (100,000 non-voting shares). Continue Reading Thursday June 25, 2026 3:29 pm Thursday June 25, 2026 3:29 pm ECONOMYNEXT – LYNEAR Wealth Management and Saskia Fernando Gallery are partnering to support international recognition of Sri Lanka’s contemporary art by fostering engagement between collectors, investors, artists, and cultural institutions. The partnership unites LYNEAR Wealth’s expertise in wealth management and capital stewardship with Saskia Fernando Gallery’s role in championing Sri Lankan contemporary art and connecting local artists with global audiences. “As interest in South Asian art continues to grow globally, we see a unique opportunity to bring together collectors, investors, artists, and cultural institutions in a way that supports the creative industry and elevates Sri Lankan contemporary art on the global stage,” Nabiha Mohamed, Strategy and Growth at LYNEAR Wealth, said. “Through this collaboration, we aim to connect our clients with Sri Lankan and South Asian modern and contemporary art, guided by the curatorial expertise and market knowledge of Saskia Fernando Gallery, while supporting the continued growth and international recognition of the industry.” “For a creative ecosystem to thrive and compete globally, it requires the backing of structured, sophisticated capital,” Saskia Fernando, Founder of Saskia Fernando Gallery, said. “This collaboration ensures that our artists receive the institutional support they need. At the same time, investors are guided by curators and market experts who understand the historical weight and market trajectory of each acquisition.” (Colombo/Jun25/2026) Continue Reading Thursday June 25, 2026 2:15 pm Thursday June 25, 2026 2:15 pm ECONOMYNEXT – International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help. “We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament. Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings. The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts. Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis. Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team. The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy. In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered. 412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka. (Colombo/June25/2026) Continue Reading