Economy

Court of Appeal Restores Order in Tuk-Tuk Licence Dispute

Published

5 months ago

February 23, 2026

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’s exports top US $ 9bn in first half

Published

2 days ago

July 23, 2026

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Sri Lanka’s export sector continued its strong upward trajectory during the first half of 2026, with the country’s total exports surpassing the significant US$9 billion milestone.

According to the latest figures, Sri Lanka’s combined merchandise and services exports reached an estimated US$9,012.24 million during the January to June 2026 period, recording an 8% increase compared to the corresponding period in 2025.

Further analysis showed that cumulative merchandise export earnings for the first six months of the year amounted to US$7,073.31 million, representing an 8.95% year-on-year increase. The performance highlights steady growth across key export sectors and underscores the continued competitiveness of Sri Lankan products in international markets.

Meanwhile, the services export sector maintained its positive growth trend, generating an estimated US$1,938.94 million during the January-June 2026 period. This marked a 4.49% increase compared to the same period last year and further reinforced the sector’s growing contribution to Sri Lanka’s overall export earnings and external sector performance.

Provisional data released by Sri Lanka Customs, together with estimated export values for Gems and Jewellery as well as Petroleum Products, indicated that merchandise exports reached US$1,314.10 million in June 2026 alone. This represented a robust 15.09% increase compared to June 2025, demonstrating growing demand for Sri Lankan exports despite evolving global market conditions.

Economy

Cabinet approves purchase of 600 deluxe buses for SLTB

Published

5 days ago

July 21, 2026

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The Cabinet of Ministers has approved a proposal to procure 600 new Deluxe‑model, air‑conditioned buses for the Sri Lanka Transport Board (SLTB), replacing an earlier plan to purchase standard‑model vehicles.

The project, part of the government’s 2026 investment programme, carries a budgetary allocation of Rs. 14,400 million. Initially, the funds were earmarked for 49–54‑seater standard buses.

However, under the Road Safety Plan 2025–2026, authorities identified the need for safer and more comfortable vehicles for intercity and long‑distance services.

Accordingly, specifications prepared for passenger transport recommended the deployment of Deluxe‑model buses for these routes.

Acting on that guidance, the Minister of Transport, Highways and Urban Development presented the revised proposal, which has now received Cabinet approval.

Economy

29 unused oil tanks in Trincomalee open for local, foreign investors

Published

5 days ago

July 21, 2026

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In a bid for the commercialisation of the Trincomalee Oil Tank Farm, Trinco Petroleum Terminal Ltd (TPTL) is planning to go for international bidding for the development of 29 tanks out of 61 tanks in its possession.

A joint venture company, Trinco Petroleum Terminal Ltd (TPTL), was created in 2021. In it, the Ceylon Petroleum Corporation holds 51 per cent and Lanka IOC (a subsidiary of Indian Oil Corporation) holds 49 per cent. The agreement covers 61 tanks out of 99 for joint development. When Indian Prime Minister Modi visited Sri Lanka last year, a tripartite agreement was signed among India, Sri Lanka and the United Arab Emirates (UAE) to develop a multipurpose pipeline connecting the two countries for two-way energy supplies.

In the wake of the West Asian or Middle East crisis, Sri Lanka and India have recognised the need for the expeditious implementation of the Trincomalee petroleum hub project for energy security, but no specific timeline has been carved out yet.

An informed source said that the company would announce a Request for Proposals (RFP) within a month for the development of these tanks. The Cabinet Appointed Negotiation Committee (CANC) has approved the project for inviting bids for investors to develop the project. Once the project is evaluated by the company, it will be referred back to the CANC to make the final decision.

Trincomalee has been identified as a nodal point of cooperation between India and Sri Lanka in the field of energy security. The 1987 Indo–Sri Lanka Accord marked the first formal reference to Indian involvement in the development of the Trincomalee oil tank farm.