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Cabinet approves electrification of key railway corridors in Sri Lanka

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The Cabinet of Ministers has approved a proposal to electrify key railway corridors in Sri Lanka as part of a long‑term transport modernization strategy.

Corridors with high commuter density have been prioritized for electrification, with support expected from international development institutions.

Currently, most railway operations rely on diesel power, and officials have highlighted the need to upgrade tracks, signaling systems, and related infrastructure to improve efficiency and reliability.

The government’s new programme focuses on constructing additional lines, building double tracks, modernizing signals, and introducing electrification to create a modern rail transport system.

According to the government, the initiative aims to expand passenger capacity, reduce travel times, and contribute to an environmentally friendly and sustainable public transport service.

The Cabinet approved the proposal presented by the Minister of Transport to begin electrification in the following routes:

Main Line — Maradana to Ragama, including station upgrades at Gampaha, Veyangoda, Mirigama, and Polgahawela.

Kelani Valley Line — Maradana to Makumbura.

Coastal Line — Maradana to Panadura

Economy

Sri Lanka Exports Rise 6% Despite Global Challenges

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Export Development Board (EDB) says that despite the global economic difficulties arising from the military conflicts in the Middle East, the country’s exports have shown a six percent growth during the first four months of this year compared to 2025.

The Chairman of the Export Development Board Mangala Wijesinghe said that, given this trend, there is a strong possibility of exceeding last year’s revenue targets, which already represented the highest export revenue in the country’s history.

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Economy

Sri Lanka Plans 20 New Tourist Zones as Visitor Numbers Surge

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Sri Lanka is set to expand its tourism footprint with plans to officially gazette 20 new tourist zones before November, in a move aimed at accelerating visitor arrivals and strengthening the country’s appeal as a global travel destination.

Chairman of the Sri Lanka Tourism Development Authority, Buddhika Hewawasam, confirmed that the process to designate the new tourism zones is already underway and will be completed before November. 

The latest move comes amid a steady rebound in Sri Lanka’s tourism sector, with figures indicating strong growth in arrivals so far this year. 

According to available data, a total of 1,076,487 tourists have visited the country during the period under review.

India has emerged as the leading source market for Sri Lanka’s tourism industry, contributing the highest number of visitors. 

A total of 272,099 Indian tourists have arrived in the country, so far.

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Economy

Sri Lanka Economy Grows 5.1% in Q1 2026

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Sri Lanka recorded a strong economic performance in the first quarter of 2026, with Gross Domestic Product (GDP) growing by 5.1 percent.

According to the Department of Census and Statistics, Sri Lanka’s GDP at constant prices rose to Rs. 3,652,503 million in the first quarter of 2026, compared to Rs. 3,476,664 million recorded during the same period in 2025.

At current prices, GDP reached Rs. 9,164,652 million, reflecting an 11 percent increase compared to the previous year, further underscoring the expanding scale of the economy.

The growth was driven by contributions from all three major sectors of the economy, with industry emerging as the strongest performer. Industrial activities expanded by 7.2 percent, supported by robust gains in construction and mining, as well as steady improvements in manufacturing. Construction activity, in particular, saw significant

The services sector, which remains the largest contributor to Sri Lanka’s economy, recorded a 3.4 percent expansion, with notable growth in financial services, insurance, information technology, and tourism-related activities. Increased economic activity and improved domestic demand played a key role in supporting the sector’s performance.

Agriculture, although showing more modest gains, also returned to positive territory with a 1.1 percent expansion, reversing a contraction recorded during the same period last year. Growth in certain crop segments helped offset declines in fisheries and some plantation crops.

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