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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 literacy hits record 97.4%, gender gap closes for first time

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Sri Lanka has achieved a historic education milestone, with literacy rising to 97.4% in 2024, up from 95.7% in 2012.

For the first time since 1881, the literacy gender gap has closed, with males at 97.9% and females at 97.0%.

Digital literacy has reached 67.6%, while computer literacy stands at 34.7%, highlighting Sri Lanka’s growing digital transformation.

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Economy

$ 900 m in four months: Port City Colombo signals new investment era

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From November 2025 to March, Port City Colombo secured approximately $ 900 million in investments, an almost unprecedented surge for a project that had seen gradual traction in its early years amid broader macroeconomic challenges. The timing is not accidental.

After a prolonged period marked by the Easter Sunday attacks, the global shock of the COVID-19 pandemic, and Sri Lanka’s economic collapse, the project remained largely in a holding pattern.

 International marketing efforts began to gain momentum from late 2025 onwards, as conditions began to stabilise.

“The macro story had to align first,” Aluwihare explained. “You cannot market a country when the fundamentals are unstable. Now, we are seeing recovery, policy alignment, and growing confidence, and we are finally seeing the results.”

From real estate to a ring-fenced financial ecosystem

Port City Colombo’s most significant transformation has been conceptual rather than physical. Originally envisioned as a waterfront real estate development, it has evolved into a fully ring-fenced services export Special Economic Zone (SEZ), enabled by the Colombo Port City Economic Commission Act.

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Economy

Sri Lanka’s Official Reserves fall 3.5%in March – CBSL

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Sri Lanka’s Official Reserve Assets have decreased by 3.5% to USD 7,019 million in March 2026, according to the latest data of the Central Bank of Sri Lanka.

The CBSL states that the decrease is from USD 7,270 million reported in February 2026.

The CBSL further states that the figure for March includes the swap arrangement with the People’s Bank of China.

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