IMF Review: The IMF cut Sri Lanka’s 2026 growth forecast to 3% and lowered end-2026 reserve projections to $8.645bn, citing higher fuel costs, weaker tourism receipts and balance-of-payments pressure from the Middle East conflict and Cyclone Ditwah, while allowing temporary fiscal easing and approving an SDR 508m disbursement. Public Finance & Tax: Cabinet approved drafting a Bill to amend the Customs Ordinance, following customs restructuring recommendations; separately, the Inland Revenue (Amendment) Act No. 11 of 2026 raises capital gains tax rates (to 15% for individuals/partnerships and up to 30% for trusts and similar entities) and strengthens compliance and enforcement. Trade Rules: CBSL issued updated rules requiring exporters to repatriate and convert residual export earnings into rupees within set timelines, tightening controls on foreign currency handling. Governance for Disability Access: Sri Lanka began a national audit on accessibility and sanitation in government institutions for persons with disabilities, with budget allocation of Rs. 1bn for improvements. Local Development: Cabinet approved Rs. 150m for 26 public sanitation projects under the Clean Sri Lanka Program. Tourism Watch: May tourist arrivals hit a record 145,745 (+10% YoY), though early June arrivals softened. Regional Diplomacy/Industry: Sri Lanka is sending a delegation to the China–South Asia Expo in Kunming to boost South-South trade, and will inaugurate the country’s first boat launching ramp to support marine manufacturing.