In a pivotal moment for Sri Lanka’s economic resurgence, the “City of Dreams Sri Lanka” integrated resort is poised to transform the nation’s tourism landscape. Opening tomorrow, August 2nd, this ambitious project is heralded as the largest component of a new economic approach, signifying a departure from past narrow-minded thinking that hindered progress.
Sri Lanka, having recently declared bankruptcy and now undertaking economic reforms with the IMF, has placed significant trust in tourism as a pathway to recovery. However, the country has lacked the high-end entry points to attract the top tier of tourists with significant purchasing power. “City of Dreams Sri Lanka” aims to fill this void, not merely as another hotel, but as a monumental venture.
According to economic analysts, this investment places Sri Lanka on the cusp of a profound transformation. This aspirational development, sprawling across Colombo’s Beira Lake and extending towards the coastline, is envisioned to elevate the island nation into a regional tourism powerhouse, surpassing even the likes of Singapore and Malaysia in its offerings.
The integrated economic project, operating within the country’s legal framework, will encompass luxury hotels, casinos, shopping malls, entertainment centers, conference facilities, and towering luxury apartment complexes. Upon completion, this modern tourist city is projected to generate a substantial portion of the nation’s annual dollar income. Experts predict it will become a premier tourist destination, rivaling “Marina Bay Sands” in Singapore and “Cotai Strip” in Macau, thereby creating a competitive potential that can power Sri Lanka’s economy.
Jobs and Local Opportunities
One of the immediate benefits of “City of Dreams Sri Lanka” is significant job creation. Thousands of direct and indirect employment opportunities are emerging, from construction workers and engineers to hospitality staff and tour guides. This surge in demand and tourist traffic will also create economic opportunities for a vast array of local businesses, from traditional artisans preserving their crafts to food suppliers. Furthermore, the project incorporates vocational training and skill development initiatives, preparing Sri Lankan youth for careers in hospitality, management, and creative industries.
Infrastructure and Global Image
Large-scale developments inevitably lead to infrastructure improvements. Roads, utilities, internet connectivity, and public transportation systems are being enhanced around this tourism hub, primarily benefiting the country’s citizens.
Crucially, this development will also reshape Sri Lanka’s global image. The country has been perceived as a dark abyss, overshadowed by economic and political turmoil. “City of Dreams Sri Lanka” will help to rectify this perception, rebranding the nation as a modern, stable, and investment-ready land. This shift will be vital for long-term economic recovery.
While acknowledging the need to embrace a broader understanding of a market economy, the government must also be open to constructive criticism. The painful memory of past multi-billion-dollar mega-projects, like the Mattala Airport, which burdened taxpayers without offering relief and exacerbated the national debt, still lingers. Given the historical lack of a diversified industrial base, there’s a valid concern that such ambitious projects could have adverse economic effects if not subject to expert administration.
Social commentators also express concerns about the risk of further marginalizing the rest of Sri Lanka as Colombo dominates high-value investments. To mitigate this, experts emphasize the need for a deep understanding and agreement between the state and private entrepreneurs.
Regarding the anticipated opposition to gambling-related ventures like casinos, a more nuanced understanding from society is crucial. If tourism is the chosen primary approach to uplift the country, then it is everyone’s responsibility to build the necessary infrastructure within the country’s legal framework. As citizens, we believe we should embrace the honor of being pioneers in this endeavor.
Kalutara Samagi Jana Balawegaya (SJB) Member of Parliament, Ajith P. Perera, stated that the invitation extended to MP Dayasiri Jayasekara to assume the position of Deputy Leader of the SJB was made in jest.
He made this revelation while participating in a program on a private television channel.
An event scheduled for tomorrow (18th) at Ballys Casino Colombo, which was set to feature a host of popular Indian actors and actresses, has been postponed.
Bally’s Casino Colombo announced the postponement.
They had previously stated that the event would feature many Indian cinema superstars, including Bose Venkat, Bagavathi Perumal, and Aadukalam Murugadoss.
Reports indicate that discussions have begun within the Samagi Jana Balawegaya (SJB) regarding a change in party leadership. Sources suggest significant dissatisfaction with certain actions of the current leader, Sajith Premadasa.
The immediate trigger for this crisis appears to be the widespread opposition to the party’s strategy in securing power in the Colombo Municipal Council. Additionally, a faction within the party believes that a coalition approach in the last presidential election would have prevented their defeat.
Consequently, this group has expressed their unwillingness to continue under the current leadership and is actively discussing the appointment of a new leader.
Meanwhile, in a separate development, a group of electoral organizers and ten senior SJB Members of Parliament recently met personally with party leader Sajith Premadasa, strongly urging him to replace officials and leaders who have been with the party since its inception, before considering changes to electoral organizers. They advocated for the appointment of individuals who are appealing to the public in these positions.
These representatives emphasized that it is unfair to solely blame electoral organizers for the party’s continuous defeats in two presidential elections, three general elections, and a local government election. They warned that further electoral losses are inevitable if the party’s official board is not swiftly reformed. This strong statement to the party leadership came as the SJB was reportedly preparing to remove some electoral organizers, holding them responsible for the party’s defeats.
They further highlighted that winning the last presidential election would have allowed the party to secure a significantly larger number of seats in the general election. They also pointed out that a broader alliance with the United National Party and other political parties in that presidential election would have led to a major victory.
Furthermore, they stated that if Mr. Gotabaya Rajapaksa had accepted the country’s leadership as Leader of the Opposition in the initial stages, he could have built a reputation through the work done. They cited Mr. Ranil Wickremesinghe’s success in garnering 2 million votes in the last presidential election, attributed to the reputation he established after taking over the country. The electoral organizers and party seniors stated that when the Leader of the Opposition was invited to take over the country, some of the party’s economic “experts” discouraged him from accepting the offer at that time. They strongly advocated for the immediate replacement of leaders and officials who have been with the party since its inception, and for the appointment of young representatives with creative ideas to those positions.
In a related matter, reports suggest various irregularities occurred in the disbursement of financial aid by the Central Cultural Fund during Mr. Sajith Premadasa’s tenure as a minister.
At the 223rd meeting of the Central Cultural Fund’s Governing Board on May 17, 2025, a decision was made to appoint a committee to investigate the alleged irregularities. Accordingly, the Prime Minister has submitted a proposal to the Cabinet and obtained approval for the appointment of a three-member committee, chaired by retired High Court Judge G.M.W. Pradeep Jayathilake, for this purpose.
COLOMBO – Immigration and Emigration Controller Harsha Ilukpitiya has pleaded guilty before the Supreme Court to charges of contempt of court. The charges stem from his failure to comply with a court order regarding the issuance of electronic visas.
The Supreme Court has announced that sentencing will take place on the 24th of this month.
Ilukpitiya was remanded on contempt of court charges for failing to re-implement the old visa issuance method after an interim injunction was issued. This injunction had prevented the implementation of a cabinet decision made during the previous government to hand over electronic visa issuance to two private companies.
An application for bail on behalf of Ilukpitiya, who was in remand custody, was made in April but was rejected by the Supreme Court.
The countries of the Middle East play a vital role in the global economy and are often referred to as the engine of the global economy, as the region lies at the heart of the world’s energy system. It holds nearly half of the world’s proven oil reserves and about one-third of its natural gas reserves. Nations such as Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates are key to meeting global energy demand.
Key maritime routes, especially the Strait of Hormuz—through which one-fifth of the world’s oil supply passes—highlight the region’s strategic importance in both geopolitical and economic terms. Oil price stability is closely tied to the political and logistical conditions in this area. Any disruption in the region sends shockwaves through the global economy, affecting everything from fuel prices in Europe to manufacturing output in Asia.
The Middle East has historically been perceived as the world’s primary supplier of fossil fuels, often reduced to the moniker of the “global fuel station.” However, this view no longer captures the full breadth of the region’s multifaceted economic significance. Today, the Middle East represents a critical node in the global economy—one that connects continents, facilitates trade, channels financial capital, drives innovation, and influences geopolitical dynamics. In an era marked by geopolitical realignments, climate transition, and technological disruption, the Middle East is not only maintaining its relevance—it is evolving into a diversified economic powerhouse.
Strategic Trade Corridors and Global Commerce
The Middle East occupies a pivotal geographic location, bridging Asia, Europe, and Africa. Its strategic importance is underscored by major maritime trade routes such as the Suez Canal, the Strait of Hormuz, and the Bab el-Mandeb Strait. These waterways handle trillions of dollars in goods annually, forming the logistical backbone of global commerce.
Financial Power and Global Investment
Beyond energy and trade, the Middle East wields substantial financial influence through its sovereign wealth funds (SWFs). Entities such as Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority (QIA), and the Abu Dhabi Investment Authority (ADIA) collectively manage trillions of dollars in assets. These funds play a decisive role in shaping global investment trends, with allocations in infrastructure, technology, real estate, green energy, and even global sports leagues.
Simultaneously, countries like the United Arab Emirates are positioning themselves as international financial hubs by leveraging liberal investment laws, world-class digital infrastructure, and free economic zones. These reforms have attracted significant foreign direct investment (FDI), transforming the Gulf into an emerging center of capital allocation and financial innovation.
Labor Mobility and Remittance Flows
The Gulf Cooperation Council (GCC) countries are home to millions of migrant workers from South Asia, Southeast Asia, and Africa. These labor migrants are essential to the functioning of Middle Eastern economies, particularly in sectors like construction, healthcare, and domestic services. At the same time, they send billions of dollars in remittances back to their home countries—such as India, Pakistan, Bangladesh, Sri Lanka, Nepal, and the Philippines—supporting household consumption, foreign exchange reserves, and poverty alleviation.
This labor ecosystem has created a two-way economic dependence: while the Middle East benefits from an affordable, flexible workforce, several developing economies depend on this income for macroeconomic stability. Any disruption in labor markets—due to regional conflicts or economic downturns—can send economic shockwaves well beyond the Gulf.
Innovation and Technological Leadership
Although traditionally associated with hydrocarbons, the Middle East is increasingly making its mark in global innovation. Israel, often dubbed the “Startup Nation,” is a global leader in fields such as cybersecurity, biotechnology, agricultural technology, and water resource management. These innovations are exported across continents, addressing challenges from food security in Africa to climate resilience in Asia.
Meanwhile, countries like the UAE and Saudi Arabia are investing heavily in digital transformation, artificial intelligence, smart city infrastructure, and clean energy. These initiatives—anchored by programs like Saudi Vision 2030—aim to diversify economic output and elevate the region’s role in the global knowledge economy.
Tourism, Culture, and Soft Power
As part of their economic diversification agendas, many Middle Eastern nations are turning to tourism and cultural diplomacy. Saudi Arabia has launched heritage tourism projects and relaxed visa restrictions under Vision 2030. The UAE has hosted global mega-events like Expo 2020 in Dubai. Qatar, after hosting the FIFA World Cup 2022, continues to invest in sports and entertainment as part of its broader nation-branding strategy.
These initiatives not only generate economic revenue but also contribute to the region’s soft power, influencing perceptions, attracting investment, and integrating the Middle East more deeply into global service industries and aviation networks.
Geopolitical Weight and Global Market Influence
The Middle East’s geopolitical dynamics continue to exert a profound influence on global economic stability. Conflicts involving Israel, Iran, Yemen, and Syria, as well as broader regional tensions, directly impact global oil prices, investor confidence, and diplomatic alignments. The region’s central role in OPEC+ also grants it the ability to influence energy supply and pricing, which in turn affects inflation, monetary policy, and industrial output globally.
Major powers—including the United States, China, Russia, and the European Union—maintain significant strategic interests in the Middle East, whether through military presence, energy dependencies, or diplomatic engagement. The region’s stability is therefore not just a regional concern, but a global imperative.
Regional Conflicts and Global Economic Repercussions
Current tensions between Iran and Israel underscore the extent to which regional conflicts can destabilize the global economy. Iran controls critical infrastructure, including its proximity to the Strait of Hormuz, through which nearly one-fifth of global oil flows. Israel, in contrast, represents a hub of technological and defense innovation.
Should these tensions escalate further, the global economy would likely face: • Oil price surges, straining public finances and raising inflation. • Disruption of trade routes, leading to higher shipping and insurance costs. • Volatility in financial markets, as investors shift toward safe-haven assets. • Threats to labor remittances, particularly from Gulf-based Asian workers. • Decline in investor confidence and setbacks in post-COVID recovery across emerging markets.
Asian economies are particularly vulnerable due to their dependence on Middle Eastern energy and remittances. Referring to the Middle East merely as the “world’s fuel station” is a significant understatement. The region is a complex, multi-dimensional driver of the global economy. It underpins energy security, facilitates vital trade flows, powers financial markets, sustains labor migration, and leads technological innovation.
As the global economy navigates structural transitions—such as climate change, digital transformation, supply chain realignment, and shifting geopolitical alliances—the Middle East will remain a vital region. Its ability to adapt and diversify will not only shape the region’s future but also influence the trajectory of the global economy for decades to come.
Writer | Visvalingam Muralithas
Visvalingam Muralithas is a researcher in the legislative sector, specializing in policy analysis and economic research. He is currently pursuing a PhD in Economics at the University of Colombo, with a research focus on governance, development, and sustainable growth. He holds a Bachelor of Arts in Economics (Honours) from the University of Jaffna and a Master’s degree in Economics from the University of Colombo. His academic background is further strengthened by postgraduate diplomas in Education from the Open University of Sri Lanka and in Monitoring and Evaluation from the University of Sri Jayewardenepura. In addition to his research work, Muralithas has contributed to academia by teaching economics at the University of Colombo and the Institute of Bankers of Sri Lanka (IBSL), and has also gained industry experience as an investment advisor at a stock brokerage firm affiliated with the Colombo Stock Exchange
In a significant move aimed at bolstering transparency and combating corruption, the government has begun collecting asset and liability declarations from all public servants across the island. This initiative is being implemented by the Anti-Corruption Act No. 9 of 2003.
Under this new framework, public servants are now mandated to submit detailed information not only about their assets and liabilities but also those of their spouses and children. This means that declarations must include comprehensive data on property and bank accounts belonging to government employees, their spouses, and their children.
Furthermore, the new regulations require the declaration of assets and liabilities of all dependents of government employees, regardless of age. Authorities have also emphasized that the annual declaration must include asset and liability information for any other individuals who are dependent on a public servant or reside with them in their home (excluding those on a rental basis).
A significant political crisis has emerged in the Hewaheta Pradeshiya Sabha following the Samagi Jana Balawegaya (SJB)’s alleged failure to uphold a crucial agreement with the Sri Lanka Podujana Peramuna (SLPP) regarding the chairmanship of the council. This broken promise has severely fractured the understanding between the two parties, which was instrumental in forming the council.
Namal Rajapaksa, National Organizer of the SLPP and a Member of Parliament, has already lodged a formal complaint with Sajith Premadasa, the leader of the SJB, regarding this matter.
Despite an alleged promise by the SJB to allocate the Hewaheta Pradeshiya Sabha chairmanship to an SLPP member, reports indicate that during the final vote, only three SLPP councillors supported their own candidate. Consequently, the SJB candidate was elected as the Chairman of the council.
SLPP supporters are vehemently accusing a certain organizer of spending an exorbitant amount of money to secure the council for the SJB.
Adding to the tension, it is understood that the party leadership is currently procrastinating on providing a swift resolution to this issue, instead stating they will conduct an investigation.
Sri Lanka currently has no ambassador in Iran, a key player in the volatile Middle Eastern conflict, according to reports received by Infosrilanka.lk. This diplomatic void comes after the former Ambassador to Iran, N.M. Zaheed of the Foreign Service was recalled to Sri Lanka just four months after his appointment last August.
Further inquiries by Infosrilanka.lk, prompted by unanswered calls to the Sri Lankan Embassy in Iran, revealed that no diplomatic officials are currently serving in the country. N.M. Zaheed, appointed as Sri Lanka’s Ambassador to Tehran last August, confirmed to BBC Sinhala that the Ambassadorial post at the Sri Lankan Embassy in Iran is currently vacant.
“I was appointed as the new Ambassador to Iran and went there in September last year. Before completing four months there, the Ministry of Foreign Affairs informed me to return to Sri Lanka. So, I came back. Now, there’s no one, no ambassador, no deputy ambassador, or anyone connected to the Foreign Service,” Zaheed stated.
He added, “Currently, only about four clerical staff are working at the embassy in Sri Lanka. Besides them, two Iranian nationals are also employed, one as a translator and another as a receptionist, with two others serving as drivers.”
On June 17, Foreign Minister Vijitha Herath informed Parliament that the Sri Lankan Embassy in Tehran, Iran, had been relocated. The Minister stated that due to the prevailing situation in Iran, embassy officials have been moved to another location. However, he emphasized that all telephone numbers are being kept active to maintain essential diplomatic services.
Minister Herath further clarified that the relocation was a precautionary measure to ensure the safety of Sri Lankan Embassy staff in Tehran, given the ongoing attacks in the capital. He also noted that approximately 35 Sri Lankans are currently residing in Iran, and residents of Tehran are facing high risks.
The Attorney General’s Department has filed indictments in the High Court against 607 individuals, including leading politicians and high-ranking government officials, over the past five months (January to May) of this year.
Among those facing charges are former ministers Mahindananda Aluthgamage, Namal Rajapaksa, Nalin Fernando, Keheliya Rambukwella, and Ravi Karunanayake. Yoshitha Rajapaksa, renowned cricketer Sachithra Senanayake, and several influential drug traffickers are also reported to be among the accused.
