Asian Development Bank unveiled a $50 billion Pan‑Asia Power Grid plan to 2035 to integrate 20 GW of renewables and 22,000 circuit‑km of transmission lines.
The multilateral said the platform would catalyse cross‑border power trade and lower system costs by linking surplus hydro, solar and wind zones to demand centres. A dedicated Regional Connectivity Fund backed by Australia, Canada, Germany, the United Kingdom and the European Union targeted early‑stage de‑risking to crowd in private capital.
Officials highlighted that the island nation was assessing a sub‑sea interconnection with its closest continental neighbour to improve reliability and cut fuel import exposure. Similar grid links in South Asia have reduced reserve margins and balancing costs by several percentage points versus isolated systems.
Sri Lanka and the Maldives signed seven cooperation accords during a State visit to Colombo.
The island nation and the neighbouring archipelago formalised pacts on tourism, counter‑terrorism cooperation, defence education, teacher training, youth and sports, archival collaboration and a university health link. A business forum was convened alongside, and each side allocated land for the other’s diplomatic mission premises to deepen institutional ties.
Trade officials noted that the visitor economy and fisheries processing were priority areas identified for joint projects, with energy and maritime security dialogue also expanded. Reciprocal steps on connectivity, including stronger air links and ferry options, were discussed to support two‑centre itineraries.
A VAT Amendment Bill proposed lowering the registration threshold to Rs. 36 million, bringing cross‑border digital services into scope and raising the rate on financial services to 20.5%.
The draft also introduced penalties up to Rs. 1 million, mandated secured point‑of‑sale systems, and allowed simplified returns scheduling to reduce compliance frictions. Non‑resident online platforms supplying consumers would be required to register for indirect tax from July, while business‑to‑business supplies could use documentary relief.
Tax practitioners said more small and medium enterprises, especially in wholesale and retail, would enter the net under the new annual and per‑period thresholds. The Treasury expects improved audit trails and valuation discipline to widen the base rather than rely on headline rate increases.
Colombo Consumer Price Index inflation rose to 5.4% year‑on‑year in April with a 2.99% month‑on‑month jump.
Non‑food prices accelerated, led by transport and administered energy, while food turned positive after two months of near‑zero readings. The central bank noted the outturn stayed within the 5% ± 2% objective range but warned that conflict‑related commodity volatility could lift near‑term prints compared to the 1.6% recorded in February.
Core inflation edged up to 2.8%, suggesting underlying demand pressures remained contained relative to last year’s averages. Analysts said policy makers would weigh headline spikes against still‑benign momentum indicators before adjusting the rate path.
Customs collections in April reached Rs. 236.5 billion, overshooting the monthly target by 30.5%.
Cumulative receipts for the first four months climbed to Rs. 919.3 billion, up 49.8% from a year earlier and equal to 41.7% of the full‑year goal. Officials credited tighter valuation, stronger enforcement and steadier container flows since November disruptions for the out‑performance.
The agency’s prior‑year take was a record Rs. 2,551 billion after a 64.2% uplift, with this year’s plan set lower due to expectations of muted vehicle clearances. Digitalisation of processes is being expanded to sustain compliance gains.
The Bar Association raised concern over presidential comments at a May Day rally referring to an upcoming court decision.
The lawyers’ body said the tenor of the remarks risked eroding confidence in judicial independence and pointed to constitutional provisions requiring adjudication without outside direction. Opposition legislators separately sought a debate, arguing that all arms of governance must avoid any appearance of pre‑judging outcomes.
The association reiterated its position that threats to courts, whether overt or indirect, would be contested to safeguard the separation of powers. It urged restraint in public messaging around pending matters.
The central bank issued a directive to strengthen account reconciliation after a reported fraud exceeding Rs. 13 billion at a licensed lender.
The circular cited delays, inadequate Board oversight and weak monitoring as factors that can undermine the accuracy of financial reporting, and prescribed tighter timelines, exception tracking and independent review. Governance committees were told to obtain periodic dashboards on high‑risk suspense and nostro balances.
Auditors and risk functions were asked to coordinate escalation protocols where break items persist beyond set windows. Observers said the move signalled a push for systemic fixes in addition to institution‑specific probes.
A new ADB–Japan initiative named ACCEL was launched to support SME liquidity and long‑term energy resilience.
The platform blends quick‑disbursing lines, guarantees and policy loans to keep smaller firms afloat amid fuel‑linked cost spikes, while scaling investments in efficiency and renewables to diversify supply. Trust funds administered by the lender will back preparation and knowledge work, with coordination envisaged with JICA and JBIC.
Officials said the two‑track approach aims to cushion immediate shocks and accelerate structural change, complementing ongoing trade finance operations. Countries can opt in based on demand and reform readiness.
The country sent its largest ever business group to the SelectUSA investment summit with 14 delegates.
Participants focused on healthcare, manufacturing and digital services, meeting regional agencies and potential partners at the Department of Commerce‑led forum. The embassy said the push sought to deepen linkages and attract joint ventures that could grow bilateral trade and services exports.
SelectUSA promotes inbound capital and has become a platform for smaller markets to access U.S. state ecosystems. Organisers noted rising interest from South Asia in supply‑chain relocation opportunities.
An AUD 2 million grant was signed to restore climate‑resilient vegetable livelihoods in Nuwara Eliya and Badulla.
The one‑year programme will support more than 2,400 smallholders directly through seed systems, nurseries, small machinery and market linkages following damage from November’s cyclone. Women farmers and persons with disabilities are priority beneficiaries, and six accessible nurseries will be established as local enterprises.
The project combines recovery with adaptation by promoting Climate‑Smart Good Agricultural Practices and reducing reliance on imported inputs. Implementing partners said improved seedling quality can stabilise supplies of beans, carrots and leeks to urban markets.
