Sri Lanka’s financial sector has come under intense scrutiny following revelations of a massive fraud at National Development Bank PLC, with Parliament’s watchdog raising serious concerns about governance failures and regulatory blind spots.

The Committee on Public Finance (CoPF), chaired by Harsha de Silva, has flagged what it described as “significant lapses in corporate governance” at National Development Bank PLC, alongside delayed disclosures and supervisory shortcomings by the Central Bank of Sri Lanka.

The controversy centers on an alleged Rs. 13.2 billion fraud that reportedly went undetected for over 18 months. Early warning signs—particularly a sharp rise in CEFT-related receivables—were not acted upon in time, raising critical questions about internal risk management systems and board-level oversight.

The issue was taken up during a recent CoPF session attended by Central Bank Governor Nandalal Weerasinghe and senior monetary officials. The Committee emphasized the urgency of the situation, calling for immediate corrective action and warning that continued parliamentary scrutiny would follow.

In response, the Central Bank confirmed that a preliminary investigation is underway, with assurances that findings will be reported promptly. However, the Committee made clear that both banks and regulators must act swiftly in cases of suspected financial misconduct, given the potential threat to financial system stability.

Investigations have revealed that the fraud involved internal collusion, with employees allegedly exploiting weekend CEFT transaction windows. One key suspect, reportedly an assistant manager, is accused of using colleagues’ login credentials to carry out unauthorized transactions. Authorities have also linked part of the operation to cryptocurrency channels, adding a layer of complexity to recovery efforts.

Law enforcement has already remanded multiple suspects, with courts rejecting bail applications due to concerns over witness interference. The ongoing probe, led by the Criminal Investigation Department, is expected to uncover further details about the scale and mechanics of the fraud.

Financially, the fallout has been severe. The bank has fully provisioned for the loss, resulting in an estimated Rs. 4 billion loss in the first quarter of 2026 and a broader net impact of around Rs. 7 billion. While capital levels remain above regulatory minimums, buffers have weakened, prompting tighter oversight from the Central Bank, including a suspension of dividend payments.

The incident has also shaken market confidence. Fitch Ratings downgraded the bank’s rating and assigned a negative outlook, citing weakened profitability, strained capital buffers, and deficiencies in internal controls.

Ultimately, the scandal underscores deeper systemic concerns. Without stronger governance frameworks and proactive regulatory supervision, such incidents risk eroding public trust in Sri Lanka’s financial institutions an outcome the authorities appear determined to prevent.

The Government’s phased withdrawal of the Commodity Export Subsidy Scheme (CESS) tax is being positioned as a pro-growth reform but beneath the surface, it reveals a delicate balancing act between export ambition and domestic economic stability.

Led by trade policymakers including Ishani J. Abeyratne, the initiative focuses on reducing taxes on intermediary goods materials and components essential for manufacturing. These goods form the backbone of both export-oriented and locally focused industries, making their cost a critical determinant of overall economic efficiency.

By eliminating CESS taxes on the majority of these goods within the first year, the Government hopes to deliver immediate relief to producers. Lower costs could enhance profit margins, encourage reinvestment, and make Sri Lankan exports more competitive in international markets.

The broader strategy reflects a shift toward export-led growth. With a target of reaching $36 billion in exports by 2030, policymakers see tax reform as a necessary step to remove structural inefficiencies that have long burdened local industries.

However, the transition is not without risks. Domestic manufacturers who produce intermediary goods may find themselves undercut by imported alternatives that become cheaper once CESS taxes are removed. This could lead to reduced demand for locally made inputs, threatening smaller industries that lack the scale to compete internationally.

To address these concerns, the Government has categorized goods using the United Nations’ Broad Economic Categories (BEC) framework, distinguishing between consumption, intermediary, and finished goods. Sensitive sectors will receive temporary protection, with certain CESS taxes deferred until 2027.

For the average citizen, the impact is more complex. While reduced production costs could lower prices of finished goods, the effect depends on whether businesses pass savings on to consumers. At the same time, any decline in local industries could have employment consequences, particularly in manufacturing sectors.

Another key question is fiscal sustainability. The removal of CESS taxes reduces a stream of government revenue, placing greater pressure on economic growth to compensate for the loss.

In essence, the policy represents a calculated gamble. If it succeeds, Sri Lanka could strengthen its position in global trade and stimulate industrial growth. If it falters, the country may face a scenario where local industries weaken faster than exports expand—leaving both workers and the broader economy exposed.

Beneath the headline figures of demographic change, new census data reveals a quieter but equally pressing crisis unfolding across Sri Lanka: growing social vulnerability, particularly among elderly women and single-person households.

The findings from the Department of Census and Statistics highlight a significant shift away from traditional family structures. One in ten households now consists of a single individual, totaling more than 640,000 homes. Strikingly, over half of these are occupied by people aged 60 and above, with women making up more than 70 percent of this group.

This trend is closely linked to what officials describe as a “widowhood gap.” Among women aged 65 and older, 44.2 percent are widowed, compared to just 10.5 percent of men. The disparity leaves a large segment of elderly women living alone, often without sufficient financial or social support.

Such patterns raise concerns about the country’s readiness to handle an expanding elderly population. Social safety nets, traditionally built around family-based care, may struggle to adapt to a reality where more seniors live independently.

At the same time, broader economic participation remains uneven. Although Sri Lanka boasts high literacy rates and near gender parity in education, these achievements have not translated into equal workforce involvement. More than half of women of working age remain economically inactive, primarily due to unpaid domestic and caregiving responsibilities.

Regional disparities add another layer of complexity. While the national unemployment rate stands at 6 percent, some districts experience significantly higher levels of joblessness, highlighting uneven economic opportunities across the country.

On the positive side, the census points to rapid modernization in living standards. Access to electricity is nearly universal at 98 percent, and digital adoption is accelerating. Laptop ownership has risen sharply, and reliance on mobile technology continues to grow, signaling a shift toward a more connected society.

Energy usage patterns also reflect gradual change. Liquefied petroleum gas is now used by over 40 percent of households for cooking, although a majority still depend on firewood, indicating persistent rural-urban divides.

Geographically, population density remains concentrated in the Western Province, which accounts for over a quarter of the population, with Gampaha emerging as the most populous district.

Despite these advancements, the underlying message of the census is clear: economic progress and social development are not evenly distributed. Vulnerable groups’ especially elderly women living alone face increasing risks in a society undergoing rapid demographic and structural transformation.

Addressing these challenges will require more than economic growth. It will demand targeted social policies, stronger community support systems, and a rethinking of how care is provided in an aging nation.

A special discussion on the 2026 Action Plan of the ‘Clean Sri Lanka’ programme and progress made in the past year was held this morning (17) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.

According to the President’s Media Division (PMD), the meeting focused on how upcoming projects can be structured to be more accessible and responsive to the public.

The President stressed the importance of expanding the initiative beyond a purely government-driven programme, urging that it be strengthened through projects more closely connected with the public.

Progress achieved in the previous year was also reviewed, with officials outlining plans to engage relevant stakeholders to meet targets set for the coming year.

Among those present were Secretary to the President Dr. Nandika Sanath Kumanayake, Convenor of the Clean Sri Lanka Secretariat and Senior Additional Secretary to the President Russell Aponsu, Additional Secretary S.P.C. Sugeeshwara, members of the Clean Sri Lanka Task Force, and senior officials of the Secretariat.

India’s Parliament is preparing to vote on a series of major bills aimed at expanding legislative representation and advancing a quota for women lawmakers, amid strong opposition criticism.

The government of Prime Minister Narendra Modi has proposed measures to fast-track the implementation of a 33% reservation for women in Parliament and state assemblies, which was initially scheduled for the 2029 general elections.

The proposed legislation includes a constitutional amendment to increase the number of seats in the Lok Sabha, as well as a delimitation bill to redraw electoral boundaries based on updated population data.

Opposition parties have raised concerns over linking the women’s quota to constituency delimitation, arguing that it could be used to influence electoral outcomes ahead of future elections.

The bills were debated during an extended parliamentary session, with sharp divisions emerging between the government and the opposition over the proposed reforms.

Minister Vijitha Herath today rejected allegations of fraud in the importation of coal, while acknowledging that a recent shipment was of substandard quality.

He made these remarks at a special media briefing held at the Government Information Department on (17), attended by several ministers, following the resignation of Energy Minister Kumara Jayakody.

Jayakody and Ministry Secretary Prof. Udayanga Hemapala stepped down from their positions to allow an impartial investigation by a Special Presidential Commission appointed to probe issues related to coal procurement.

President Anura Kumara Dissanayake has instructed the Commission to complete its അന്വേഷണം within six months and submit a report.

Minister Herath urged the public to provide any information related to alleged irregularities to the Commission, assuring transparency in the process.

“No fraud was committed in the import of coal. As a government, we state this responsibly. However, we accept that the quality of the imported coal was low, and we have openly informed the public,” he said.

He explained that all required tests had been conducted through relevant laboratories, but deficiencies in electricity generation were observed when the coal was used.

Herath further stated that no investigation so far has established any corruption or direct involvement of the minister or other officials. He emphasised that procurement was carried out through independent committees, including the National Procurement Commission, in accordance with established procedures.

Referring to discussions at the Committee on Public Enterprises (COPE), he noted that an audit had been conducted, and the report did not indicate any fraud or corruption by the minister, though it highlighted certain losses.

“The Audit Report clearly confirms that the minister was not involved in any fraud,” he said.

The Ceylon Petroleum Corporation (CPC) has announced that the QR code fuel quota system for petrol vehicles will be reinstated from midnight today (18), following its temporary suspension during the festive season.

CPC Chairman D. J. Rajakaruna stated that the existing fuel quota allocations for petrol vehicles will remain unchanged.

The system had been suspended from midnight on April 11 to facilitate increased demand during the Sinhala and Tamil New Year period.

From midnight today, fuel will once again be issued to vehicles strictly under the QR code quota system, in line with the ‘odd-even’ number plate method.

Notorious underworld figure known as ‘Karandeniya Raju’ has been brought back to Sri Lanka from India by a special team of the Criminal Investigation Department (CID), authorities confirmed.

Raju, who is wanted in connection with more than 15 criminal offences including murder, was recently arrested in India by local security authorities before being handed over to Sri Lankan officials.

He has also been identified as the brother of organised crime suspect ‘Karandeniya Sudda’.

Showers or thundershowers will occur at several places in Western, Sabaragamuwa and Southern provinces and in Nuwara-Eliya district after 1.00 pm.

Mainly dry weather will prevail over the other parts of the island.

Misty conditions can be expected at some places in Western, Central, Sabaragamuwa and Uva provinces and in Galle and Matara districts during the early hours of the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Atmospheric conditions for evening thundershowers are expected to become favorable in most parts of the island from the 20th of April onwards.

Iran’s Foreign Minister Abbas Araghchi has announced that the strategically vital Strait of Hormuz is now open for commercial vessels, but cautioned that ships must strictly follow designated safe routes.

The waterway had effectively been blocked by Tehran following attacks by the United States and Israel on 28 February, disrupting one of the world’s most critical oil and gas transit corridors. Although a temporary ceasefire between Iran and the US is in place until 22 April, tensions remain high.

US President Donald Trump stated that a naval blockade of Iranian ports would continue until a formal peace agreement is reached, despite calling recent developments “a great and brilliant day for the world.”

Maritime authorities remain cautious. Industry groups say they are still assessing whether it is safe for ships to pass through the strait, with tracking data showing only minimal vessel movement so far.

Araghchi’s announcement came on the first full day of a 10-day ceasefire between Israel and Lebanon. He noted that commercial vessels could transit through the strait along routes coordinated by Iran’s Ports and Maritime Organisation.

However, Iranian state media later clarified that only civilian vessels would be allowed through designated lanes, while military ships remain banned. These routes were reportedly outlined by the Islamic Revolutionary Guard Corps (IRGC) and avoid identified high-risk zones.

The announcement has sparked mixed reactions within Iran. Some outlets criticized the statement as unclear, warning that passage could again be restricted if the US blockade continues. Iranian Parliament Speaker Mohammad Bagher Ghalibaf echoed this concern, stating that the strait would not remain open under ongoing pressure from US forces.

Meanwhile, diplomatic efforts are ongoing. Trump indicated that negotiations with Iran would continue over the weekend, though disagreements persist—particularly over Iran’s enriched uranium stockpile, which Tehran insists will not be transferred under any circumstances.

The situation carries major global implications. Roughly 20% of the world’s oil and liquefied natural gas typically flows through the Strait of Hormuz. The recent disruption has driven fuel prices higher, although oil prices dropped following Iran’s reopening announcement.

Despite this, uncertainty lingers. Arsenio Dominguez of the International Maritime Organization emphasized the need for clearer guarantees of safety and compliance with international law. Some ships may already be moving through the region, though verification remains difficult.

Security analysts also remain skeptical. Experts warn that risks such as naval mines and military escalation continue to pose serious threats to shipping in the coming weeks.

In response, UK Prime Minister Keir Starmer announced that the United Kingdom and France plan to lead a multinational, defensive mission to safeguard commercial shipping routes once hostilities subside.

While the reopening offers a potential easing of global economic pressure, the fragile ceasefire and ongoing military tensions mean the situation remains highly volatile.