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Economy

Government to Invest Rs.15 Billion in BIA T1 Upgrade Without Foreign Loans

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The Sri Lankan government has launched a Rs. 15 billion project to fully modernize Terminal 1 at Bandaranaike International Airport (BIA), Katunayake, without relying on foreign loans. The initiative aims to address growing passenger congestion and support the country’s expanding tourism sector.

Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku stated that the project will be funded entirely through local government resources while the construction of Terminal 2 continues. Planned upgrades include expanding the departure hall, improving security and immigration processing, redesigning the arrivals area and modernizing baggage handling systems.

Upon completion, Terminal 1’s annual passenger handling capacity is expected to increase from 6 million to 15 million passengers, significantly enhancing Sri Lanka’s position as a regional aviation hub.

Economy

Sri Lanka’s largest 100 MW solar project reaches 20% completion

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Construction of the Siyambalanduwa solar power plant has reached 20% completion, Project Director Chamika Perera confirmed, noting plans to install 200,000 panels with a single‑axis tracking system built to international standards. Spread across 500 acres and launched in September, the Rs. 45 billion project will add 100 MW to Sri Lanka’s national grid.

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Economy

Sri Lanka to launch export plan targeting $36bn by 2030

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Sri Lanka is set to launch its strategic export roadmap for the next five years with the primary objective to achieve an export revenue target of 36 billion dollars by 2030, the country’s export development board said.

The National Export Development Plan (NEDP) 2026–2030 was developed by the Sri Lanka Export Development Board (EDB) with technical assistance from the Asian Development Bank (ADB).

“The national plan is structured around two main pillars, the first of which is the Horizontals, which provide the essential foundational support required to drive growth across all priority sectors,” EDB said. 

These include trade facilitation, trade finance and investment ecosystem development, trade promotion and market access, supply chain management and consolidation centre operations, and quality infrastructure, standards, and ESG compliance. 

Skills development, innovation, and entrepreneurship are also under this pillar.

As the second pillar, 8 priority sectors, or Verticals, have been identified, targeting enhanced export diversification and value addition.

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Economy

Sri Lanka ranked second most peaceful nation in South Asia

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Sri Lanka has been ranked 67th in this year’s Global Peace Index conducted by the Institute for Economics and Peace.

Sri Lanka with an overall score of 1.91 in 2026 is only behind Bhutan in the South Asian region, according to the yearly study that ranks 163 independent states and territories based on their level of peacefulness.

Bhutan is ranked 16th most peaceful nation in the world. Meanwhile, Sri Lanka was ranked 97th in the world in 2025.

The Global Peace Index measures a range of factors, including personal safety, internal and international conflict, militarization, political stability, crime, terrorism and more.

According to the 2026 report, South Asia recorded the worst deterioration in peacefulness on the 2026 GPI, with the average overall score deteriorating by 2.3 per cent. The region is ranked seventh of the eight GPI regions.

Five of the seven countries in the South Asian region deteriorated, with only two recording improvements. The deterioration was driven overwhelmingly by the ongoing conflict domain, which recorded the largest change at 7.1 per cent, reflecting escalating internal conflicts and cross-border tensions across the subcontinent.

The safety and security domain was relatively stable, while the militarisation domain recorded a small average deterioration.

Bhutan which is ranked 16th globally on the 2026 GPI was ranked 69th globally in 2008. Bhutan recorded a marginal deterioration of 0.4 per cent over the past year.

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