Tamil Nadu to launch duty-free retail at Nagapattinam Port

Tamil Nadu is set to introduce duty-free retail facilities at the international passenger terminal at THE Nagapattinam Port, marking a major upgrade to strengthen maritime passenger services between India and Sri Lanka.

The initiative aims to bring the port’s passenger experience closer to international airport and maritime terminal standards as ferry traffic on the India–Sri Lanka route continues to grow.

Developed by the Tamil Nadu Maritime Board (TNMB), the terminal serves the passenger ferry connection between Nagapattinam and Kankesanthurai. Since operations began in August 2024, the service has become an important travel corridor for tourists, pilgrims, business travelers and members of the Indian and Sri Lankan diaspora. Authorities said the route has already transported more than 25,000 passengers, reflecting increasing demand for cross-border maritime connectivity.

The proposed duty-free outlets will allow eligible international travelers to purchase selected goods exempt from applicable customs duties and taxes, in accordance with regulations prescribed by the Indian government.

Officials noted that growing passenger volumes have created opportunities to introduce premium retail experiences and value-added services within the terminal. The development and operation of the duty-free retail facilities will be handled by a private operator under an outsourcing model.

Implementation is expected to begin in July, with the stores targeted to become operational within the next six months. The move is expected to further improve passenger convenience while supporting tourism and maritime trade links between India and Sri Lanka.

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Vatican appoints Most Rev. Anton Ranjith as Bishop of Jaffna

The Vatican has appointed the Most Rev. Anton Ranjith Pillainayagam, the Auxiliary Bishop of the Archdiocese of Colombo and Apostolic Administrator of the Diocese of Batticaloa, as the new Bishop of the Diocese of Jaffna.

The appointment has been made following the resignation of Bishop of Jaffna Rev. Dr. Justin Bernard Gnanapragasam.

The resignation of Bishop Justin Bernard Gnanapragasam has been accepted by Pope Leo XIV, according to a statement issued by the Apostolic Nunciature in Sri Lanka.

Until the new Bishop takes possession of the Office of the Diocese of Jaffna, Rev. Dr. Justin Bernard Gnanapragasam will function as the Apostolic Administrator, the statement added.

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Thousands of devotees observe Poson Poya across Sri Lanka

Thousands of Buddhist devotees gathered at temples and sacred sites across Sri Lanka today (29) to observe Poson Full Moon Poya, commemorating the arrival of Arahat Mahinda Thero, who introduced Buddhism to the country in the 3rd century BCE.

Religious observances, including almsgiving, devotional ceremonies and observance of Sil, were held at temples across the country, with large crowds converging on the sacred cities of Anuradhapura and Mihintale from the early hours of the day.

According to Buddhist tradition, Arahat Mahinda Thero arrived at Mihintale on a Poson Full Moon day accompanied by a group of missionaries, marking the introduction of Buddhism to Sri Lanka.

Meanwhile, the annual Deranabhiwandana Poson religious and cultural program was held throughout the day at the Ruwanweli Maha Seya in Anuradhapura, drawing devotees from across the country. The programme began at 5.45 a.m. with the observance of Sil and featured a series of religious activities.

The midday Buddha Puja was attended by devotees, including founder of the Derana Media Network and Member of Parliament Dilith Jayaweera.

The day’s religious programme concluded with a blessings ceremony and traditional oil lamp offering led by Ven. Deegala Piyadassi Thero, invoking blessings for the people of Sri Lanka.

EOI process: 40 bidders eye MRIA

Around 35 to 40 parties have indicated interest in the Government’s plan to secure a joint venture partner for Mattala Rajapaksa International Airport (MRIA), with the exact number to be known once formal proposals are submitted, The Daily Morning learns.

Speaking to The Daily Morning yesterday (28), Deputy Civil Aviation Minister Janitha Ruwan Kodithuwakku said the level of interest shown by prospective parties was significantly higher than during the previous Expressions of Interest (EOI) process conducted under the former Government.

“There were around 35 to 40 parties that attended the pre-brief meetings in recent months. During the last EOI process under the previous Government, only one or two parties showed interest. This time, around 40 have indicated that they are interested, although we will know the exact number once the proposals are received. The deadline for the submissions has not yet ended,” he said.

Kodithuwakku also said the Airport had undergone a significant transformation over the past year, making it far more attractive to potential investors.”When we assumed office, the MRIA had almost turned into a jungle. Elephant fences had been damaged, wildlife was moving within the airport premises and flight operations could not be carried out safely. During the past year, we completed the required renovations, established a wildlife office and obtained certification confirming that the airport is free from wildlife risks. It has now been converted into a fully operational airport,” he said.

Earlier this year, the Government invited EOIs from interested parties as part of plans to identify a joint venture partner to operate MRIA and steer the airport towards profitability. Speaking previously to The Daily Morning, Kodithuwakku said that the Airport had failed to generate the expected returns since its establishment and continued to incur annual losses of around Rs. 3 billion, roughly equivalent to its operating costs. He said that after restoring the Airport to a condition suitable for safe operations, the Government’s focus had shifted towards making the facility commercially viable. Although MRIA has the capacity to handle around one million passengers annually, he said that its highest passenger throughput was recorded only in 2025, when approximately 150,000 passengers travelled through the airport.

MRIA, located in Hambantota, has long been the subject of debate due to its low utilisation and high maintenance costs despite being built to ease congestion at Bandaranaike International Airport and promote regional development.

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Sri Lanka-China relations “Beyond Commerce”

A high-level delegation from China’s Peking University has underscored the depth and diversity of Sri Lanka-China relations following a series of discussions with government officials, business leaders, legal experts, members of the armed forces and think tanks in Colombo, highlighting economic cooperation, cultural affinity and knowledge exchange as key pillars of the bilateral partnership.

The delegation, led by Prof. Wang Weijia, Director of the Research Centre for Global Governance and International Communication and Dean of the Institute of International Communication at Peking University, held extensive consultations on opportunities for strengthening cooperation between the two countries.

Meeting the Presidential Special Envoy on Foreign Investments and Western Province Governor Hanif Yusoof, the delegation discussed Sri Lanka’s trade and investment outlook, with logistics, energy and tourism identified as priority sectors for foreign investment. Yusoof noted that Chinese enterprises have made substantial contributions to Sri Lanka’s infrastructure, telecommunications and energy sectors and stressed the importance of leveraging the island’s strategic location to build regional supply chains and expand export-oriented manufacturing.

Secretary to the Treasury and Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma described Sri Lanka-China relations as rooted in centuries-old historical, cultural and emotional ties that go far beyond commercial transactions. He cited Port City Colombo as a symbol of the enduring partnership and a platform capable of enhancing Sri Lanka’s long-term economic growth and global connectivity.

Acting Board of Investment Chairman Dr. Sulakshana Jayawardena highlighted the broader benefits of Chinese-backed investments, noting that projects such as Port City Colombo not only attract foreign capital but also create employment opportunities and facilitate technology transfer. He identified high-tech manufacturing, pharmaceuticals and textiles as promising areas for deeper cooperation.

Dr. Jayawardena also emphasized the importance of strengthening collaboration in research and education, expressing hope that institutions such as Peking University could serve as bridges for academic exchanges and help Sri Lanka benefit from China’s experience in special economic zone management, industrial development and workforce training.

Throughout the visit, Prof. Wang presented Peking University’s strengths in area studies and international communication and reaffirmed the university’s commitment to supporting research aligned with Sri Lanka’s development priorities. He also stressed the importance of enhancing scholarly and cultural exchanges to deepen mutual understanding and further strengthen the longstanding friendship between the two nations.

The discussions highlighted that Sri Lanka-China relations encompass not only trade and investment, but also social, cultural and educational cooperation, reflecting a multifaceted partnership aimed at promoting sustainable development and stronger people-to-people ties.

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US Assistant Secretary of State Meets AKD

U.S. Assistant Secretary of State for South and Central Asian Affairs S. Paul Kapur called on Sri Lanka President Anura Kumara Dissanayake in Colombo.

In a X statement following the meeting, Kapur said that the discussions centered on advancing maritime security cooperation, unlocking trade and investment opportunities.

Kapur emphasized the growing partnership between the two nations, highlighting shared efforts to enhance cooperation in the strategically vital Indo-Pacific region.

Colombo HC upholds prison sentence imposed on Gnanasara Thero

Colombo High Court Judge Manjula Thilakaratne today rejected the appeal filed by Bodu Bala Sena General Secretary Ven. Galagodaaththe Gnanasara Thera and upheld the nine-month rigorous imprisonment sentence imposed by the Colombo Magistrate’s Court.

The appeal sought to overturn his conviction and secure an acquittal in connection with charges of making statements allegedly insulting the Islamic faith at a media briefing held in Kirulapone in 2016, which were deemed to have been prejudicial to communal harmony.

Following trial proceedings, the Colombo Magistrate’s Court had earlier found him guilty and sentenced him to nine months of rigorous imprisonment.

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US Assistant State Secretary Paul Kapur in Sri Lanka

US Assistant Secretary of State for South and Central Asian Affairs S. Paul Kapur arrived today in Colombo on a three-day visit from June 21 to June 24.

While in Sri Lanka, Assistant Secretary Kapur will meet with senior government leaders, private sector executives, and representatives of U.S. companies to discuss expanding bilateral trade and investment, strengthening security cooperation, and advancing shared priorities in the region.

The visit reflects President Trump’s commitment to strengthening partnerships that advance American prosperity and security, while deepening cooperation with Sri Lanka as a key Indian Ocean partner.

India pushes upgrade of FTA with Sri Lanka

India has signalled its readiness to fast-track an upgrade of the 26-year-old India-Sri Lanka Free Trade Agreement (ISFTA) in a move that could significantly expand Sri Lanka’s export, investment, and services opportunities at a time when the island is seeking new growth drivers amid its economic recovery.

The Daily FT learns that the neighbouring economic powerhouse has conveyed its openness to accelerating discussions on an enhanced agreement and is awaiting the outcome of a newly appointed Sri Lankan task force reviewing the matter.

Sources familiar with the discussions said an upgraded pact would be more beneficial to Sri Lanka than India, pointing to the significant growth in Sri Lankan exports to India, from around $ 50 million in 2000 to over $ 1 billion in 2025 following the implementation of the ISFTA.

The ISFTA, signed in 1998 and operational since March 2000, was Sri Lanka’s first bilateral FTA and provides duty-free access for over 4,000 product lines to the Indian market. However, it is limited to trade in goods, with both countries having long explored a deeper economic partnership including services, investments, and technology cooperation.

According to sources, India’s key priorities in any upgraded agreement are the removal of non-tariff barriers and the strengthening of rules of origin.

India is also keen to include trade in services as a core component of a revised framework, although it is not seeking the opening of any specific sectors in Sri Lanka.

Discussions have included revisiting existing value-addition requirements and adopting more product-specific rules of origin similar to those found in India’s agreements with major trading partners like the US and Canada.

It was also noted that an upgraded agreement could boost Sri Lanka’s ambition of becoming an export and logistics hub linking India with the Middle East and Africa. The proposal also aligns with broader regional connectivity initiatives, including discussions on a Sri Lanka-India-Japan economic corridor.

A study on the proposed export-oriented industrial corridor has estimated that such an initiative could lift Sri Lanka’s economic growth by as much as 9.3% by 2030.

During the past six years, India has signed nine FTAs with large, developed, and consuming economies. Of these, three were singled this year including the India-EU FTA, India-US Interim Trade Framework, and India-New Zealand FTA.

The latest push comes against the backdrop of decades of efforts to deepen bilateral economic integration with Sri Lanka. A proposed Comprehensive Economic Partnership Agreement (CEPA), finalised in 2008, sought to expand the ISFTA into services, investment, and technology transfer, but failed to materialise due to domestic opposition and concerns among Sri Lankan industry groups. Subsequent efforts to negotiate an Economic and Technological Cooperation Agreement (ETCA) similarly stalled amid political resistance.

Analysts contend that while Asian economies are increasingly pursuing deeper regional integration and supply chain partnerships, Sri Lanka has lagged in advancing major trade agreements.

They argue that a carefully negotiated upgrade of the ISFTA could provide the country with greater market access, attract export-oriented investments, and position it more effectively within emerging regional value chains, provided concerns over competitiveness and implementation are adequately addressed.

US Pacific Air Forces Commander visits Sri Lanka

The Commander of US Pacific Air Forces (PACAF) is in Sri Lanka and will meet with senior Sri Lankan government and defense leaders, including leadership from the Ministry of Defense and the Sri Lanka Air Force, the US embassy in Colombo said.

“Discussions will focus on expanded cooperation across air and maritime domain awareness, cybersecurity, disaster response, and regional security.”

General Kevin Schneider oversees all US Air Force personnel and assets.

The three-day visit “reflects the growing strength of the U.S.-Sri Lanka defense partnership” the embassy said.

His visit is the “latest milestone in an expanding bilateral relationship built on joint exercises, military exchanges, and consistent senior-level dialogue. The United States recognizes Sri Lanka as an essential partner in the collective effort to preserve peace, security, and prosperity across the region.”