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Colombo Council Budget Defeat Won’t Topple Administration, Experts Say

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December 23, Colombo (LNW): Despite the recent setback at Colombo Municipal Council, the ruling administration is legally secure for at least the next two years, according to electoral reform expert Manjula Gajanayake.

Gajanayake, executive director of the Institute for Democratic Reforms and Electoral Studies, explained that local government leaders in Sri Lanka enjoy legal protection against removal within the first two years of their term, even if their budget proposals are rejected.

“There is simply no provision that allows a municipal council or its mayor to be ousted within this period solely because of a budget defeat,” he stated, emphasising that the rules governing local authorities differ from those of Parliament.

The National People’s Power (NPP) administration saw its budget for the Colombo Municipal Council turned down on 22 December, following a coordinated vote against the estimates by opposition councillors.

Under the Local Authorities (Special Provisions) Act No. 21 of 2012, councils whose budgets fail can resubmit revised proposals within a fortnight. Should these be rejected again, the mayor is authorised to implement the original budget using executive powers.

“This framework ensures uninterrupted governance for a full two years, shielding councils from sudden political shifts,” Gajanayake noted. “Even repeated budget losses do not jeopardise the administration during this protected window.”

He added that a mayor or chairperson can only be removed through resignation, death, disciplinary action by their political party, or formal misconduct proceedings initiated via the governor — not through votes on budgets during the initial two years.

While the rejection of the budget carries no immediate legal consequences, Gajanayake warned it could have political ramifications, potentially limiting the ruling party’s capacity to pass measures and manage council affairs smoothly.

“The impact is primarily political rather than institutional,” he concluded, highlighting the difference between administrative stability and political pressure.

Sri Lanka Launches Major Funding Initiative to Turn Research into Market-Ready Innovations

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December 23, Colombo (LNW): Yesterday (22), the Presidential Secretariat hosted a ceremony marking the presentation of certificates and the signing of Memoranda of Understanding (MoUs) for nine innovative projects selected under the National Initiative for the Commercialisation of Research and Development (NIRDC).

The projects were chosen from proposals submitted during the first quarter of this year.

Collectively, the projects will receive over LKR 227 million in funding, with certificates handed out by Secretary to the President, Dr. Nandika Sanath Kumanayake, and the President’s Senior Advisor on Science and Technology, Professor Gomika Udugamasooriya.

Financial backing for the initiative will be provided by the Bank of Ceylon, with the funding agreement signed between Dr. Kumanayake and the Bank’s CEO, Mr. Y.A. Jayathilaka. Funds will be released in stages, contingent on the progress of each project as measured against agreed Key Performance Indicators (KPIs).

The nine projects recognised at the event include:

1. Vx Safenet – A child-friendly digital wellbeing platform leveraging telecommunication networks; represented by Mr. Theekshana Kumara of Visuamatix (Pvt) Ltd.
2. Volfpack Energy Supercapacitor Project – Employing advanced materials like Fractal Graphene and Activated Carbon Supercapacitors, led by Mr. Sanjeewa Karunaratne.
3. Cold Brewed Cinnamon Extraction – Producing nutrient-rich cinnamon extracts free of chemicals and additives, by Mr. Muditha Jayathilaka of Pure Cinnamon Exports (Pvt) Ltd.
4. Rapid Coconut Oil Purity Testing Device – A portable, high-tech device developed at the University of Colombo’s Aloka Laboratory, represented by Professor G.K.D.S. Jayaneththi.
5. Samanala Farm Project – Highlighting innovative Sri Lankan tea cultivation, with Mrs. Pabasara Manthunga receiving the certificate.
6. Sinhala AI Chatbot – A voice-enabled AI system designed to enhance government services and accessibility for visually impaired users, led by Dr. Randil Pushpananda.
7. Planet’s Pick Holdings – Creating naturally healthy Kitul-based beverages and fat-free milk alternatives, represented by Mr. Kapila Wijesekera.
8. TDR Knitting Project – Empowering women in rural regions through export-focused knitting technology, led by Mrs. Lakmali Wanasinghe.
9. “Magic-grow” Soil Microbial Activator – Boosting agricultural yields using locally sourced microorganisms, with Mr. Wasala Siriwardana as the project lead.

Dr. Kumanayake emphasised that bringing research from the lab to the marketplace will add a fresh dimension to Sri Lanka’s economy, offering both economic and developmental benefits. Minister of Science and Technology, Krishantha Abeysinghe, noted that fourteen institutions under his Ministry are ready to support research commercialisation, with universities, agricultural, irrigation, and health institutions prioritised in this effort.

Highlighting the country’s evolving approach to innovation, Minister of Health and Mass Media, Dr. Nalinda Jayatissa, stated that research must focus on practical solutions to pressing societal challenges, including non-communicable diseases. He stressed that the government’s vision, articulated in the “A Thriving Nation – A Beautiful Life” initiative, requires coordinated and evidence-based research efforts across all sectors.

Professor Udugamasooriya added that the government’s production-driven economic strategy relies heavily on value-added goods and services, which in turn depend on effective research and development. NIRDC is designed to bridge the gap between completed research and market-ready products, addressing challenges such as funding shortfalls and operational obstacles, and connecting researchers with potential investors—an approach unprecedented in Sri Lanka.

During this first funding round, NIRDC received proposals totalling approximately LKR 2.2 billion. A rigorous, multi-stage evaluation process, involving technical, administrative, financial, and commercial viability assessments by around 200 independent experts, was used to select the nine successful projects.

The vote of thanks was delivered by Mr. Muditha D. Senarath Yapa, Director General of NIRDC.

The event was attended by a distinguished gathering, including government ministers, the Central Bank Governor, senior advisors to the President, heads of research institutions, university vice-chancellors, banking executives, and scholars.

Sri Lanka to Expand Sanitary Napkin Programme for Schoolgirls Nationwide

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December 23, Colombo (LNW): From 2026, the government will extend its national initiative providing sanitary napkins to schoolgirls across Sri Lanka, reaching more than one million students from Grade 6 upwards, Prime Minister and Minister of Education Dr Harini Amarasuriya announced.

The decision was revealed during a consultation on school hygiene held at the Education Ministry yesterday (22), with Deputy Minister Dr Madura Seneviratne also attending.

Originally launched in 2024 to assist girls in rural, estate, and economically disadvantaged areas, the programme will now be implemented in all schools nationwide. The government has allocated Rs. 1.44 billion for the scheme, which will provide each eligible student with an annual voucher valued at Rs. 1,440 to purchase sanitary napkins. Vouchers will be distributed to schools via the Provincial Education Offices.

To ensure safety and hygiene, only products supplied by institutions certified by the Sri Lanka Standards Institution (SLSI) will be approved under the programme.

During the discussion, Dr Amarasuriya emphasised the importance of allowing students to select sanitary products that meet their individual needs. Officials were instructed to develop voucher and distribution systems that consider regional differences and encourage environmentally responsible disposal practices in schools.

Education Ministry Secretary Nalaka Kaluwewa and other senior officials were present at the event.

High-Level Chinese Delegation Arrives in Sri Lanka to Strengthen Bilateral Ties

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December 23, Colombo (LNW): A senior Chinese delegation, led by Wang Junzheng, a member of the 20th Central Committee of the Communist Party of China and Secretary of the CPC Committee of the Xizang Autonomous Region, arrived in Sri Lanka earlier today (23).

The group, consisting of 11 officials, touched down at approximately 9.45 a.m. on a SriLankan Airlines flight, according to local reporters. The delegation was formally welcomed at the airport by the Chinese Ambassador to Sri Lanka and Minister of Ports and Civil Aviation Anura Karunathilaka.

In an official post on X (formerly Twitter), the Chinese Embassy in Colombo highlighted that the visit is intended to strengthen friendship between China and Sri Lanka, foster mutual understanding, and expand areas of practical cooperation, including trade, infrastructure, and cultural exchanges.

India Unveils $450 Million Support Package for Sri Lanka’s Reconstruction Efforts

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December 23, Colombo (LNW): India’s External Affairs Minister S. Jaishankar has announced a substantial financial assistance package worth US$ 450 million to support Sri Lanka’s ongoing reconstruction and recovery initiatives.

The package includes US$ 350 million in concessionary credit, aimed at funding development post-Ditwah catastrophe, along with a US$ 100 million grant to provide direct support for urgent needs.

Indian officials indicated that the assistance is designed to help strengthen infrastructure, restore essential services and ease economic pressures as Sri Lanka continues its recovery process.

Sooriyakanda Constable Granted Bail in Dispute Involving NPP MP

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December 23, Colombo (LNW): A police constable attached to the Sooriyakanda Police Station, who was taken into custody following a reported altercation involving National People’s Power (NPP) parliamentarian Shantha Pathma Kumara, has been released on bail, police confirmed.

The officer was produced before the Embilipitiya Magistrate’s Court yesterday and released on two sureties of Rs. 200,000 each. The matter has been scheduled to be taken up again on January 26, 2026.

Police said the incident stems from complaints filed by both parties on the night of 20 December. The constable initially reported that he had been assaulted near the Kalugala Temple by the MP and several others, and claimed that his motorcycle had been forcibly removed during the confrontation.

Later that night, MP Shantha Pathma Kumara submitted a separate complaint, alleging that the officer had blocked the road by positioning a motorcycle in front of his cab and had attempted to attack him.

Following the incident, the constable was admitted to hospital for treatment. Medical notes recorded the presence of alcohol on his breath, according to police. While urine tests reportedly showed no evidence of narcotic substances, blood samples have been sent to the Government Analyst’s Department to determine whether alcohol was consumed.

Subsequently, the constable was arrested in connection with the incident on multiple charges, including wrongful obstruction, as investigations into the conflicting accounts continue.

Majority of Disaster Relief Payments Released as Authorities Move to Complete Balance

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December 23, Colombo (LNW): The National Disaster Relief Services Centre has confirmed that a significant portion of the Rs. 25,000 assistance package allocated to families affected by recent disasters has already been distributed.

Assistant Secretary Jayathissa Munasinghe said that around 77 per cent of the approved payments have been made so far, with the remaining balance expected to be settled within the coming days. He noted that the disbursement process is now in its final phase.

According to official figures, relief funds have been released to 342,952 eligible households, while payments to a further 113,294 homes are still pending. To date, a total of Rs. 8,573 million has been paid out under the programme.

Munasinghe has urged Divisional and District Secretaries to give priority to completing the outstanding transfers and ensure that all eligible recipients receive their allowance by the end of the week, allowing affected families to move forward with recovery efforts without further delay.

Examinations Department Issues Special Notice to A-Level Candidates Affected by Disasters

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December 23, Colombo (LNW): The Department of Examinations has called on candidates sitting for postponed subjects of this year’s G.C.E. Advanced Level examination to promptly report any changes to their place of residence resulting from recent disasters.

Commissioner General of Examinations, Indika Kumari, said students are required to inform either their school principal or the Department of Examinations if they have relocated. She added that the department has made dedicated contact lines available to facilitate this process and ensure affected candidates are properly assisted.

She explained that students who are unable to attend the examination centre originally allocated to them due to relocation must notify the authorities in advance. Based on the information provided, alternative arrangements will be made to assign an examination centre closer to their current location or within their new district, particularly for those displaced by adverse conditions. The same arrangements will apply to private candidates.

The Commissioner General also advised students to immediately seek guidance if essential documents, such as admission cards or National Identity Cards, have been lost or damaged. In such situations, candidates will be permitted to sit the examination by submitting two certified photographs. For school candidates, the photographs must be endorsed by both the relevant Zonal Education Officer and the school principal to confirm their identity.

Gold Breaks $4,400 Barrier as Investors Flock to Safe Havens

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December 23, World (LNW): Gold has surged to an unprecedented level, climbing beyond $4,400 (£3,275) an ounce for the first time as investors increasingly seek protection from economic and political uncertainty.

Market analysts attribute the rally largely to growing expectations that the US Federal Reserve will continue cutting interest rates next year. Lower borrowing costs tend to reduce the appeal of assets such as bonds, prompting investors to turn to commodities like gold as both a store of value and a portfolio diversifier.

At the start of the year, gold was trading at around $2,600 an ounce. Since then, a combination of geopolitical instability, renewed trade tensions linked to policies associated with President Donald Trump, and speculation over looser monetary policy has fuelled demand for traditional safe-haven assets. After breaching the $4,400 mark on Monday, spot gold briefly touched a peak of $4,426.66.

According to Adrian Ash, director of research at bullion marketplace BullionVault, gold has gained more than 68 per cent so far this year, marking its strongest annual rise since 1979. He said prolonged uncertainty surrounding interest rates, global conflicts and trade disputes has steadily pushed prices higher, with political pressures in the US acting as a major catalyst.

Expectations that the US will cut interest rates twice in 2026 have further strengthened the case for gold. At the same time, central banks around the world have continued to increase their physical gold reserves, seeking to hedge against financial volatility, reduce dependence on the US dollar and diversify reserve assets. Analysts at Goldman Sachs believe this trend is likely to extend into next year.

Financial planner Anita Wright of Ribble Wealth Management noted that gold often reacts quickly when confidence in economic policy and financial markets begins to falter. She added that the metal’s steady climb reflects concerns over inflation and broader economic instability. A weaker US dollar has also played a role by making gold more affordable for overseas buyers.

Other precious metals have also enjoyed an exceptional year. Silver rose to a fresh record of $69.44 an ounce on Monday and has more than doubled in value so far in 2025, while platinum has reached its highest level in 17 years. Analysts point out that, unlike gold, these metals benefit from strong industrial demand alongside investment interest.

Elsewhere in the commodities market, oil prices edged higher after the United States imposed tighter restrictions on sanctioned tankers linked to Venezuela. Brent crude rose $1.31 to $61.78 a barrel, while US crude gained $1.25 to reach $57.77. Despite the uptick, both benchmarks remain on course to finish the year below their levels at the beginning of 2025.

Indian Foreign Minister Holds High-Level Talks During Brief Sri Lanka Visit

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December 23, Colombo (LNW): India’s Minister of External Affairs, Dr S. Jaishankar, who arrived in Sri Lanka last night (22), is due to hold discussions with President Anura Kumara Dissanayake this morning as part of a short but high-profile official visit.

During his stay, Dr Jaishankar is also expected to meet Prime Minister Dr Harini Amarasooriya as well as Minister of Foreign Affairs, Overseas Employment and Tourism Vijitha Herath, with talks likely to focus on bilateral cooperation and regional priorities.

The Indian Foreign Minister arrived on the evening of December 22 aboard a special Indian Air Force aircraft, travelling as a Special Envoy of Indian Prime Minister Narendra Modi. Sri Lankan officials noted that the visit reflects India’s continued emphasis on its Neighbourhood First policy.

The timing of the visit is also linked to Operation Sagar Bandhu, India’s regional initiative aimed at assisting countries affected by Cyclone Ditwah, which caused widespread damage across parts of the region. Discussions are expected to include ongoing support and coordination related to disaster response and recovery.

According to the Ministry of External Affairs, Dr Jaishankar is scheduled to conclude his engagements and depart Sri Lanka later today.