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Court of Appeal Restores Order in Tuk-Tuk Licence Dispute

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Sri Lanka prides itself on being governed by law, not by press conferences. That principle was reaffirmed on 19th February 2026, when the Court of Appeal intervened in the escalating controversy over whether foreign tourists may lawfully drive tuk-tuks in Sri Lanka using International Driving Permits together with covering permits issued under Sri Lankan law.

In C.A. (Writ) 1154/25, Hon. Justice Dhammika Ganepola and Hon. Justice Adithya Patabendige granted Interim Orders preserving the existing legal framework and restoring the position that prevailed before media reports on or about 20th November 2025 suggested that foreign visitors could no longer drive tuk-tuks on the strength of International Driving Permits.

Sri Lanka is a Contracting State to the 1949 Geneva Convention on Road Traffic. The Convention is founded on reciprocity: member states recognise each other’s International Driving Permits to ensure uniform and predictable cross-border mobility. To give domestic effect to these obligations, Sri Lanka enacted regulations through Gazette No. 11,603 of 1958 under the Motor Car (Convention) Ordinance – regulations that remain valid and in force.

Under that statutory framework, a foreign visitor holding a valid International Driving Permit may lawfully drive in Sri Lanka upon obtaining a local covering permit issued either by the Department of Motor Traffic or by the Automobile Association of Ceylon, which is expressly designated by law for that purpose.

This is not an administrative concession. It is the governing legal scheme.

For decades, tourists have driven tuk-tuks under this regime without controversy. Businesses, such as the Petitioner in this case, have structured operations around it. Hundreds of Sri Lankan families depend on it for livelihood. The framework reflects not only domestic regulation but Sri Lanka’s commitment to international comity –  the mutual respect of rights arising under treaty obligations.

When the matter came before Court, the Bench held that a serious question of public law arises as to whether the impugned decision was made within statutory authority or contrary to the governing legal framework. The Court further held that permitting the directive to operate pending final determination would adversely affect existing permits and business operations, whereas interim relief would merely preserve the status quo ante.

Accordingly, Interim Orders were granted.

The legality of the purported directive will now be tested in Court. Until that determination is made, the law as it stands continues to govern.

Mr. Avindra Rodrigo, President’s Counsel, with Ashiq Hassim and Nishika Fonseka appeared for the Petitioner. Mr. Sanjay Rajaratnam, President’s Counsel, with Edward Jayasinghe appeared for the Automobile Association of Ceylon. Ms. Avanthi Weerakoon, State Counsel, appeared on behalf of the State Respondents, including the Commissioner General of Motor Traffic and the Inspector General of Police.

Economy

Sri Lanka named most affordable retirement destination for 2026

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Travel + Leisure has ranked Sri Lanka as the most affordable country to retire in 2026.

The ranking cited a report by International Living, evaluating monthly budgets and expatriate experiences.

The publication noted that expats in Sri Lanka could live comfortably on a $2,200 monthly budget, covering villa rent, utilities, food, and entertainment.

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Economy

Sri Lanka records US$ 751.1 million in workers remittances in January 2026

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Foreign worker remittances to Sri Lanka reached US$ 751.1 million in January 2026, marking a 31.1% rise from US$ 573.0 million in January 2025, the Central Bank of Sri Lanka (CBSL) said.

The robust start to 2026 comes after a record US$ 8.076 billion in total remittance inflows for 2025.

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Economy

Nuwara Eliya Ranks Second on Agoda’s List of Must-Visit Hill Stations in Asia

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Sri Lanka’s popular hill resort town Nuwara Eliya has been ranked second among Asia’s must-visit hill stations by digital travel platform Agoda, further strengthening the country’s appeal as a scenic travel destination.

Sri Lanka travel guide

Agoda featured Nuwara Eliya in a new travel list promoting highland destinations across Asia that offer cooler climates, natural beauty and peaceful surroundings for travellers seeking a break from busy city life.

Known as “Little England,” Nuwara Eliya attracts both local and foreign visitors with its tea plantations, colonial-era architecture, cool weather and scenic landscapes. Tourists frequently visit the area for its lakes, misty hills and opportunities for relaxation as well as outdoor activities.

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