Industry & Sector News
View all(82)⚡ PUCSL Approves 1-Hour Daily Power Cuts Amid Lakvijaya Power Plant Outage
• Overview & Capacity Shortfall: The Public Utilities Commission of Sri Lanka (PUCSL) has granted approval for daily 1-hour staggered power cuts for three consecutive days (19 to 21 October). The temporary demand-management plan addresses a generation shortfall following an island-wide blackout on Saturday (17 Oct) that rendered the Lakvijaya Power Station unavailable. • Schedule & Group Rotations: Power interruptions are scheduled across four designated groups between 4:30 p.m. and 9:00 p.m.: • 19 Oct: Group 1 (4:30–5:00 p.m.), Group 2 (5:30–6:00 p.m.), Group 3 (6:30–7:00 p.m.), Group 4 (7:30–8:00 p.m.). • 20 Oct: Rotation starts with Group 4, followed by Groups 1, 2, and 3 across the same time windows. • 21 Oct: Rotation starts with Group 3, followed by Groups 4, 1, and 2. • Implementation: The National System Operator (NSO) and Electricity Distribution Lanka Ltd. (EDL) will enforce outages only if active demand exceeds available generation. Restorations may vary by up to 30 minutes based on real-time grid demand, total capacity, and weather conditions.
📈 Sri Lankan Worker Rises to $1,600 Salary as Leading Assembler in Russia
• Overview: Highlighting foreign employment and skill development, a 20-year-old Sri Lankan worker, Sachini, transitioned from a manual worker to a leading assembler in Russia under the Alabuga Start international program. • Career & Earnings Breakdown: • Initial Role: Commenced as a manual worker on a construction/production site. • Current Role: Promoted to leading assembler, managing a team of 6 workers and serving as a mentor for new Asian recruits. • Monthly Earnings: Reached a monthly salary of $1,600 (approx. LKR 468,000). • Program Details & Key Drivers: • Alabuga Start: Targeted at young women (aged 18–22) from Asia and Africa, offering vocational training across hospitality, catering, production, logistics, and construction. • Key Benefits: Includes📈 Sri Lankan Youth Achieves Career Milestone via Russian Work-Study Initiative • Overview & Background: Address South Asia’s labor disparity—where 42.4% of young women were out of employment or education in 2023—via international vocational pathways. Sri Lanka's Sachini (20) relocated to Russia under the Alabuga Start program to secure financial independence. • Career & Earnings Breakdown: • Initial Role: Started as a manual worker at a construction project site without prior English or Russian proficiency. • Progression: Promoted to leading assembler following rapid Russian language acquisition and technical adaptability. • Remuneration: Reached a monthly salary of US$ 1,600. • Leadership: Currently manages and mentors a 6-member team, helping adapt incoming Asian candidates. • Program Specifics: The Alabuga Start scheme targets women aged 18–22 across Asia and Africa, providing vocational training in logistics, construction, catering, and service/hospitality, alongside language instruction, subsidized housing, and airfare.
💊 Sri Lanka Plans 10-Year Local Pharma Expansion
Sri Lanka aims to significantly lower reliance on imported drugs by boosting domestic manufacturing and generating forex through exports over the next decade, according to Health and Mass Media Minister Dr. Nalinda Jayatissa. • Strategic Focus: Strengthening national domestic capacity in the pharmaceuticals sector to save foreign currency reserves and diversify export revenue streams. • Key Objectives: Reduce dependency on imported essential medicines while elevating local manufacturing units to international standards. • Sector Impact: Supports healthcare security, domestic manufacturing value addition, and skilled employment in high-tech industrial manufacturing.
📈 Active Credit Cards Resume Growth in July and August
• Key Expansion Figures: Active credit cards rose by 11,408 in July and 17,663 in August following a brief slowdown in June. Total active credit cards reached 2.30 Mn (2,297,783) by end-August. • YTD & Historical Comparisons: Card count expanded 6.1% (+131,597) in the first 8 months of 2026. This follows an growth of 7.8% (+157,730) in 2025 and 4.8% (+91,371) in 2024, after a contraction of 1.8% (-39,991) in 2023. • Driver Breakdown: Growth was propelled by broader economic recovery, declining interest rates, and bank partnerships with supermarkets/retailers. Lower penalty rates also encouraged previously inactive users to resume card usage. • Policy Impact & Outlook: A 100 bps policy rate hike by the Central Bank in late May temporarily slowed June expansion. Analysts expect potential moderation in credit spending and card growth due to tighter monetary policy, higher penalty rates, and ongoing fuel rationing.
📈 Sri Lanka Tourism Earnings Rise in Sept, But YTD Revenue Down 9.2%
Sri Lanka’s tourism sector recorded its second consecutive month of YoY earnings growth in September 2026, despite a slight decline in visitor arrivals. However, cumulative year-to-date (YTD) revenues remain under pressure. • September Performance • Revenue: US$ 185.6 Mn (up 1.5% YoY) • Arrivals: Down 0.3% YoY • Trend: Follows August’s 2.1% YoY revenue growth (US$ 264.4 Mn) • YTD Overview (Jan–Sept 2026) • Cumulative Revenue: US$ 2.24 Bn (down 9.2% YoY vs. US$ 2.47 Bn in 2025) • Total Arrivals: 1.69 Mn+ (down 1.8% YoY) • Key Industry Drivers & Outlook • Sector hit by geopolitical tension and Middle East uncertainty. • Reaching the revised 2026 annual target of US$ 4.2 Bn (and 2.7 Mn arrivals) will require generating ~US$ 1.96 Bn in Q4 (~US$ 653 Mn/month). • Data reflects revised SLTDA expenditure estimates lowered in August 2025 (US$ 148/day vs. US$ 171/day previously).
⚡ Islandwide Power Outage Triggered by Generator Failure; Investigation Underway
• Overview: An automatic generator disconnection on Saturday (17) at 11:43 a.m. caused a total collapse of Sri Lanka's national power grid within 30 seconds. System restoration commenced shortly after, with main hydropower units reconnected by 12:11 p.m. Essential services (hospitals, airports, water plants) were restored by 3:00 p.m., and all grid substations were reconnected by 5:00 p.m. • Grid Capacity & Supply Outlook: • The Norochcholai coal power plant will remain offline for several days, stripping 810 MW of capacity from the grid. • The National System Operator (NSO) expects to manage supply pressures with minimal disruption by utilizing maximum hydropower generation (supported by rainfall) alongside current lower demand. • Current Status: An internal investigation has been launched by the NSO to determine why an automatic generator trip led to a complete system-wide failure.
BRISL Hosts Undergraduate Seminar on Belt and Road Initiative in Colombo 📈
Belt and Road Initiative Sri Lanka (BRISL) kicks off a two-day undergraduate seminar titled “Sri Lanka and the Belt and Road Initiative: Building Synergies for Sustainable Development” today (19) at Amari Colombo. • Program Overview: - Brings together 25 merit-based undergraduates from the Universities of Colombo, Sri Jayewardenepura, and Kelaniya specializing in Economics, Business Economics, International Relations, and International Studies. - Focuses on deepening insights into China's Belt and Road Initiative (BRI) and its impact on Sri Lanka’s economic development, trade, investment, infrastructure, connectivity, and international cooperation. • Key Discussion Areas: - Academic and diplomatic sessions covering BRI historical dimensions, development financing, debt restructuring, and Sri Lanka's strategic autonomy in the Indian Ocean. - Presentations including BRISL Director Maya Majueran on “High-Quality BRI and Sri Lanka: Unlocking New Pathways for Sustainable Development.” • Practical Exposure: - On-site educational visits to Huawei Technologies Lanka (ICT/BPM), Port City Colombo, and Colombo International Container Terminals (CICT). - Exposure to digital tech, major infrastructure, and port operations driving Sri Lanka's strategic role as a regional trade and logistics hub. • Conclusion: Concludes tomorrow (20) with a certificate presentation and dinner attended by representatives of the Embassy of the People’s Republic of China in Sri Lanka.
📈 HIP Delivers 167,569 Vehicles Across 2025–2026
Hambantota International Port (HIP) handled 167,569 vehicles from March 2025 through September 2026, driven by close collaboration with the Vehicle Importers’ Association of Lanka (VIAL) to mitigate supply chain disruptions. • Overall Figures & Breakdown • March–December 2025: 86,389 vehicles delivered (30,809 brand new; 55,580 used). • 2026 (thru September): 81,180 vehicles delivered (25,018 brand new; 56,162 used). • Total Distribution: 55,827 brand new vehicles and 111,742 used vehicles overall. • Operational & Industry Impact • Support Measures: Hambantota International Port Group (HIPG) granted demurrage waivers and concessions during vehicle import restrictions to lower financial burdens for importers. • Disruption Relief: Implemented a storage cap mechanism to manage costs during transhipment disruptions in the Gulf region. • Economic Context: VIAL represents 450+ members across Sri Lanka, including MSMEs in the automotive import & logistics sector. The operational support strengthens supply chain resilience and facilitates smoother maritime trade for the national economy.
Sri Lanka Tea Production Drops 9% YoY in September 2026 📉
• Overall Monthly Figures: Sri Lanka’s total tea output fell 9% YoY to 20.2 Mnkg in September 2026 (vs. 22.1 Mnkg in September 2025), based on provisional Sri Lanka Tea Board data. • Elevation Breakdowns: • High Grown: Slumped to 3.49 Mnkg, hitting its lowest level since 1992 (3.5 Mnkg) due to excessive rainfall and unfavorable weather. • Mid Grown: Dropped 25% YoY to 3.091 Mnkg, marking its lowest level since 2023. • Low Grown: Rose 4.8% YoY to 13.6 Mnkg. • Cumulative 2026 Performance (Jan–Sep): Total output reached 192.6 Mnkg, down 3% YoY from 199 Mnkg. Combined High Grown and Mid Grown production dropped by ~4 Mnkg, while Low Grown output declined by ~2 Mnkg YoY.
Beyond Arrivals: Can Tourism Power Sri Lanka’s Next Growth Phase? 📈
The Australian High Commission in Sri Lanka hosted its ConnectED Thought Leadership Series in Colombo, exploring how tourism & hospitality can drive broader economic growth beyond mere visitor numbers. • Strategic Focus: Discussions centered on aligning education, skills development, and workforce readiness with evolving industry demands to build a sustainable workforce for the sector's next phase. • Key Panelists: Featured leadership insights from Jetwing Travels, Tangerine Beach Hotels PLC / Tangerine Tours, and William Angliss Institute Australia. • Practical Exposure: Students from the Colombo Academy of Hospitality Management (CAHM) demonstrated industry readiness by independently managing culinary presentation and guest service for the high-profile reception.
🍻 Oktoberfest Returns to City of Dreams Sri Lanka
• Event Overview: City of Dreams Sri Lanka will host Oktoberfest at The Podium from October 21–24, 2026, boosting local tourism & hospitality activity in Colombo. • Pricing & Inclusions: Tickets are priced at LKR 9,800 nett per person, offering a traditional Bavarian buffet (featuring Schweinshaxe, Weisswurst, Leberkäse, and Apfelstrudel) along with live musical entertainment. • Partnerships & Entertainment: Powered by Commercial Bank, the 4-night event features resident band Slipping Chairs alongside daily guest acts including Cold Sweat, Black, Pop Culture, and Magic Box Mix Up.
📈 Global EV Sales Fall 2% in September, Ending 6-Month Growth Streak
Global demand for electric vehicles dropped 2% in September, snapping a six-month streak of consecutive monthly growth. The downturn was driven by significant contractions in North America and China, which overshadowed record-breaking sales performance in Europe. • Overall Figures: Global volume fell to 2.15 million units in September. Despite the monthly contraction, total year-to-date (YTD) sales expanded 3% to reach 15.5 million units. • Sector & Regional Breakdowns: • Europe: Recorded its strongest month on record with nearly 600,000 units sold (+10% vs. previous record high in June), supported by robust consumer demand and favorable policy initiatives. • North America: Plunged 44% in its steepest monthly drop this year, following the expiration of US federal tax credits at the end of September 2025. • China: Decreased 18% month-on-month to 1.11 million units amid ongoing weakness in its domestic market, compelling domestic automakers to increasingly prioritize export channels. • Market Outlook: Comparative figures for North America are projected to stabilize starting Q4 as the market laps the post-tax-credit slump. The shifting global dynamics reflect broader transitions in sustainable transport, a domain increasingly relevant to Sri Lanka’s domestic energy strategy and vehicle electrification goals.