September 09, Colombo (LNW): Parliament was informed today (09) by Speaker Dr Jagath Wickramaratne that the Supreme Court has found no constitutional barriers to the proposed legislation aiming to repeal the entitlements previously afforded to former Presidents of Sri Lanka.
According to the announcement made during today’s session, the apex court concluded that the draft law does not conflict with any clauses of the current Constitution.
As a result, the legislative process can move forward without the need for a special majority or a public referendum. The Speaker confirmed that the bill may be passed through a simple majority vote in Parliament.
The proposed repeal has been the subject of considerable public and political attention, as it signals a shift in the country’s approach to post-presidential privileges.
Supreme Court Greenlights Bill to Revoke Presidential Entitlements
Heavy falls about 100 mm expected: Public urged to exercise caution (Sep 09)
September 09, Colombo (LNW): Showers or thundershowers will occur in most parts of the island after 1.00 p.m.
Heavy falls about 100 mm are likely at some places. A few showers may occur in Western province and in Galle and Matara districts.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers may occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be westerly to south-westerly in the sea areas off the coasts extending from Colombo to Pottuvil via Galle and Hambantota. Wind speed will be (30-40) kmph and can be increase up to 50 kmph at times.
Winds will be south-westerly or variable in direction and wind speed will be (20-30) kmph in the other sea areas around the island.
State of Sea:
The sea areas off the coast extending from Colombo to Pottuvil via Galle and Hambantota may be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers
Sri Lanka’s Logistics Boom Stalled: De-Consolidation Ban Bites
By: Staff Writer
September 08, Colombo (LNW): Sri Lanka’s emergence as a logistics hub for South Asia is faltering after Customs authorities clamped down on de-consolidation, a trade practice that once brought the island considerable economic activity.
For years, Sri Lanka functioned as a vital regional center where consolidated shipments from global e-commerce platforms were broken down, with Sri Lankan goods separated locally and Indian-bound parcels dispatched onward to cities such as New Delhi, Chennai, and Trivandrum.
The new Customs regulations have effectively halted this operation, forcing online retailers and logistics firms to change their supply chain strategies and depriving Sri Lanka of a competitive edge in regional trade.
The change stems from a recent Customs decision to end the bulk clearance system by weight and instead impose duties on individual items using the HS-code classification. Officials argue this move enhances accuracy in tax collection and prevents the abuse of loopholes that allowed commercial shipments to be declared as personal imports.
While this measure may bring more discipline to customs processes, the unintended consequence has been a dramatic collapse in the de-consolidation business. Shipments that once arrived daily for redistribution are now routed elsewhere, leaving Sri Lanka sidelined as a logistics player.
Opposition legislator Ravi Karunanayake, who has experience in the logistics sector, has voiced strong criticism of the new regime. Speaking before the Committee on Public Finance, he explained that Sri Lanka had developed a unique advantage as a consolidation and de-consolidation hub, but that “if there is vision for a logistics operation, it has completely stopped.”
He further warned that the revenues previously generated from handling these consignments would now be lost entirely, as global operators divert their cargo through more business-friendly centers such as Singapore, Hong Kong, or Bangkok.
“Now the goods are going to another country and are coming as de-consolidated cargo. So those revenues we will lose completely,” he cautioned, urging policymakers to study how regional competitors maintain trade efficiency.
The losses are not merely theoretical. Sri Lanka’s position as a shipping hub has already been under strain, with business chambers warning that manufacturers face delays in importing raw materials due to customs backlogs.
Parcels now require individual classification, resulting in bottlenecks and operational inefficiencies that have left thousands of shipments stranded at Customs warehouses.
Local business associations estimate that the country is losing between Rs. 35 million and Rs. 50 million each day due to misclassification, inefficiency, and the diversion of legitimate business away from Colombo.
E-commerce platforms such as AliExpress have already scaled back low-cost shipping options to Sri Lanka, leaving local consumers facing exorbitant costs sometimes as high as Rs. 18,000 just to import a simple replacement keycap while neighboring Bangladesh continues to enjoy free shipping thanks to its more liberal trade regime.
Supporters of the new customs policy argue that the reform is necessary to plug tax loopholes and protect local industries, particularly apparel manufacturers who had long complained about competition from duty-free online imports.
They emphasize that the previous weight-based clearance system was open to abuse, with widespread under-declaration of commercial imports.
By introducing HS-code-based item classification, Customs officials believe they have introduced greater transparency and reduced opportunities for collusion or corruption. From their perspective, only goods destined for Sri Lankan customers are affected, with no restrictions on transshipment or transit cargo.
Yet the costs appear to outweigh the benefits in the eyes of many stakeholders. Sri Lanka, ranked 73rd out of 139 countries in the World Bank’s 2023 Logistics Performance Index, has long been told it must improve clearance efficiency to remain competitive.
Instead of moving forward, the country risks sliding further down the ranks, undermining its strategic geographic advantage in the Indian Ocean. The logistical setbacks now threaten both consumer confidence in e-commerce and the country’s aspirations of becoming a regional shipping hub.
The government has appointed a committee to explore reforms, including the possibility of introducing a de-minimis threshold for low-value imports, but without a practical mechanism to handle consolidated cargo, industry observers doubt whether the de-consolidation trade will return.
Unless Sri Lanka can strike a balance between tax enforcement and trade facilitation, it risks losing out to regional competitors who have already mastered this equilibrium.
The de-consolidation saga underscores a broader dilemma confronting Sri Lanka: whether to prioritize protectionist policies in favor of domestic industries or to embrace trade liberalization to unlock the island’s logistics potential.
For now, the clampdown has left the nation caught in the middle. Consumers are burdened, businesses are throttled, and the dream of positioning Colombo as South Asia’s logistics hub appears to be slipping away.
CEB Profits Rise, Yet Consumers Face Fresh Tariff Hike
By: Staff Writer
September 08, Colombo (LNW): Despite trade union unrest and a controversial restructuring process, the Ceylon Electricity Board (CEB) has quietly submitted yet another proposal for a tariff hike to the Public Utilities Commission of Sri Lanka (PUCSL). The request, made last week, seeks a 6.8% increase in electricity charges, even as the state utility records a return to profitability.
A senior PUCSL official confirmed receipt of the proposal but declined to reveal details until its formal release later this week. However, CEB insiders admitted the proposed hike is already on the table, though not yet approved.
The irony is glaring. After bleeding losses of Rs. 18.47 billion in the first quarter of 2025, the CEB swung back into the black, posting a Rs. 5.31 billion profit by the quarter ending June. The turnaround followed the June tariff revision, which increased rates by 15% despite CEB initially demanding 18.3%. Yet, when compared with Rs. 34.53 billion profit recorded in the same quarter last year, the latest earnings represent an 85% plunge, raising questions about long-term financial sustainability.
Industry experts note that tariff adjustments have now become a double-edged sword. While they are necessary to meet the International Monetary Fund’s (IMF) requirement for cost-reflective pricing, they come at the expense of consumers already battered by a rising cost of living. The January 2025 tariff cut of around 20% largely a political decision created an artificial loss in the first quarter, but PUCSL has already ruled that deficit out of the June–December 2025 pricing formula. Instead, any shortfalls or surpluses from the first half of 2025 will be carried forward into the 2026 calculations.
Adding to the controversy, the PUCSL rejected a disputed Rs. 8.2 billion negative revenue adjustment highlighted by the Auditor General. According to CEB’s own forecast, electricity sales for the second half of 2025 are expected to hit 9,329 GWh, generating a colossal Rs. 230.7 billion in revenue of which domestic users will shoulder the heaviest burden, accounting for Rs. 210.7 billion.
The latest tariff revision in June has already pushed up household bills. Smaller domestic users consuming fewer than 30 units saw their per-unit charge rise by 8% and fixed charges increase by Rs. 5. Higher consumption brackets faced even steeper hikes, while industrial, hotel, and general-purpose categories also recorded sharp increases.
Now, with another 6.8% hike under consideration, consumer advocates warn that electricity affordability will become a serious economic flashpoint. While CEB insists tariff hikes are necessary for financial recovery, the optics of demanding higher prices amid reported profits are bound to ignite public anger.
Analysts caution that the tariff formula though transparent on paper risks turning into a blunt instrument that prioritizes IMF compliance over consumer welfare. If CEB continues to chase profitability through back-to-back hikes, the very citizens who bailed the utility out during its crisis will be left footing an ever-growing bill.
The looming tariff revision, therefore, is not just a technical adjustment; it is a political and economic litmus test for how Sri Lanka balances fiscal discipline with social equity.
New Crime Act Puts Sri Lanka under Global Spotlight
By: Staff Writer
September 08, Colombo (LNW): Sri Lanka’s newly enacted Proceeds of Crime Act No. 5 of 2025 (POCA) is beginning to draw significant international attention, with the World Bank now stepping in to explore avenues of technical assistance for its enforcement.
The law, passed earlier this year, has been hailed as a turning point in the country’s decades-long struggle against corruption, illicit financial flows, and stolen assets. But its success will largely depend on the institutional capacity of enforcement agencies and on how effectively foreign expertise can be integrated into domestic structures.
The legislation provides sweeping powers to trace, freeze, confiscate, manage, and dispose of proceeds of crime, covering both conventional crime and high-level corruption.
With the Act in place, Sri Lanka becomes one of the few South Asian nations with a modern, comprehensive legal framework designed not just to prosecute offenders but also to recover stolen public wealth.
According to Transparency International, Sri Lanka loses an estimated USD 2–3 billion annually to corruption and illicit financial flows. POCA is expected to plug some of these leaks by institutionalising asset recovery.
The World Bank’s interest in supporting Sri Lanka emerged following discussions between Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Chairman Justice Neil Iddawala and senior World Bank officials in Vienna last week.
Emile van der Does de Willebois, a leading figure in financial market integrity, along with experts from the World Bank’s Stolen Asset Recovery Initiative (StAR), expressed readiness to assist in technical areas ranging from electronic asset-tracing tools to investigator training.
The Foreign Ministry noted that Sri Lanka has previously benefitted from the World Bank–UN StAR partnership.
Assistance included drafting terms of reference for the long-delayed electronic asset declaration system for public officials and providing technical expertise for the Proceeds of Crime Policy, which laid the groundwork for the 2025 Act.
However, progress in actual implementation has been sluggish. For instance, the electronic declaration system remains non-operational despite years of planning, raising doubts about whether new commitments will be followed through effectively.
Investigators point out that while the legal framework is strong, Sri Lanka’s enforcement agencies remain chronically under-resourced.
The CIABOC currently has fewer than 300 officers to investigate a backlog of thousands of cases, making asset tracing across borders a formidable challenge. Without advanced data systems, inter-agency coordination, and judicial support,
POCA risks being reduced to another paper tiger. This is where World Bank technical support could prove decisive if accompanied by genuine political will.
The discussions in Vienna also highlighted the need for institutional reforms to sustain long-term asset recovery mechanisms. Experts stress that corruption networks are increasingly global, often moving funds through complex offshore structures.
Effective enforcement will therefore require strong cross-border cooperation and modern forensic accounting tools, areas where Sri Lanka lags far behind.
By placing Sri Lanka’s asset recovery drive on the agenda of the United Nations Convention Against Corruption (UNCAC) forum, Justice Iddawala signaled the country’s intention to showcase POCA as a reform milestone.
But critics warn that unless tangible results are produced such as the recovery of high-profile stolen assets—the Act risks being dismissed as another symbolic gesture.
The road ahead is clear: Sri Lanka must combine legislative power with technical expertise and institutional reform. The World Bank’s willingness to engage is an opportunity, but the real test will be whether Sri Lanka can translate promises into results.
Sri Lanka Railways to Introduce Three-Car Diesel Trains for Rural Routes
By: Staff Writer
September 08, Colombo (LNW): Sri Lanka Railways is set to enhance its rural transportation network by introducing new three-car diesel trains designed to operate on less-travelled tracks. This initiative aims to address the challenges posed by low passenger demand on certain routes, where traditional larger trains are underutilized.
Minister Nalinda Jayatissa announced that the Cabinet has approved the assembly of these new railcars locally. Each train will feature a diesel engine in every compartment, allowing for greater operational flexibility. The trains will be controlled by an advanced electronic system, ensuring efficient management and coordination. With a capacity to carry between 200 to 240 passengers, these trains are tailored to meet the specific needs of rural communities.
The decision to assemble the railcars domestically is expected to stimulate the local economy, create job opportunities, and reduce costs associated with importing foreign-made trains. This move aligns with the government’s broader strategy to promote self-reliance and bolster local industries.
In the past, Sri Lanka Railways experimented with rail buses—single-compartment vehicles capable of running on tracks. However, these units faced practical challenges, particularly in adhering to existing timetables. The new three-car trains are designed to integrate seamlessly into the current schedule, offering a more reliable and efficient alternative.
To ensure the success of this project, the government is actively seeking expressions of interest from both local and international companies capable of handling the design, manufacturing, and assembly of the railcars. This open bidding process aims to identify the most qualified partners and ensure the project’s timely and cost-effective completion.
The introduction of these three-car diesel trains represents a significant step forward in Sri Lanka’s efforts to modernize its railway infrastructure. By focusing on rural areas, the government aims to improve accessibility, reduce congestion on mainline services, and provide a more comfortable and efficient travel experience for passengers in underserved regions.
As the project progresses, further details regarding the selection of contractors and the implementation timeline are expected to be announced. Stakeholders and the public will be kept informed to ensure transparency and community involvement throughout the development process.
Sri Lanka Rejects International Probes, Reaffirms Commitment to Domestic Accountability Mechanism
September 08, Colombo (LNW): Sri Lanka has firmly opposed any external initiatives to investigate alleged human rights violations linked to the country’s long-standing conflict with the Liberation Tigers of Tamil Eelam (LTTE), reaffirming its stance in favour of a home-grown approach to justice and reconciliation.
Foreign Minister Vijitha Herath, addressing the 60th session of the United Nations Human Rights Council (UNHRC) in Geneva today (08), stated that the current administration would not accept foreign-led inquiries or mechanisms. Delivering remarks on behalf of the Sri Lankan government, he underlined the country’s sovereignty and its commitment to pursuing accountability through domestic channels only.
Minister Herath was responding to a report tabled earlier in the day by the United Nations High Commissioner for Human Rights, Volker Türk, which scrutinised Sri Lanka’s progress on human rights issues. The report renewed calls for an international judicial process and urged the establishment of an independent body to examine alleged war-time atrocities and violations of international humanitarian law.
In his address, Minister Herath called on the international community to recognise the steps already taken by the present administration, led by the National People’s Power (NPP), to foster peace, inclusivity, and long-term national development. He also appealed to the Human Rights Council to grant Sri Lanka more time to deliver on its pledges, particularly those concerning accountability and institutional reform.
Since taking office, the NPP-led government has introduced measures aimed at promoting reconciliation and safeguarding civil liberties, according to the Minister. However, he emphasised that the path to meaningful reform must be navigated on Sri Lanka’s own terms, free from external imposition.
The High Commissioner’s report, however, took a critical view of the progress made so far. It noted that repeated assurances from successive Sri Lankan governments regarding justice and the rule of law have yet to translate into substantive outcomes. The report urged the current administration to demonstrate genuine political will and deliver tangible results.
Among its key recommendations, the UN report called for a special independent judicial mechanism, constitutional reforms, and the repeal of the Prevention of Terrorism Act (PTA). It also advocated for the release of individuals detained under the PTA, the return of military-occupied land in the northern and eastern provinces, and comprehensive security sector reform.
The report is the culmination of the High Commissioner’s recent visit to Sri Lanka, during which he held discussions with government officials, civil society representatives, religious leaders, and members of political parties. His findings highlight ongoing concerns about structural barriers to justice, as well as the need for broader legal and institutional changes.
The Human Rights Council session in Geneva, which began today, is expected to continue until October 08, during which time Sri Lanka’s human rights record will remain under close international scrutiny.
Driver Negligence Blamed for Tragic Ella–Wellawaya Bus Crash
September 08, Colombo (LNW): Authorities have confirmed that the devastating bus accident which took place last week along the Ella–Wellawaya main road was caused by driver negligence.
The crash, which occurred on September 04 near the 24th milepost, has claimed the lives of 15 individuals and left 17 others injured.
According to Deputy Inspector General (DIG) of Traffic, Indika Hapugoda, the vehicle veered off the road and plunged into a ravine after the driver lost control on a winding stretch of the mountainous route.
The bus was carrying a group of municipal workers from Tangalle and their family members, who were returning home after a recreational outing.
Speaking at a briefing, DIG Hapugoda confirmed that early investigations point to recklessness behind the wheel as the primary cause of the crash. The bus was reportedly driven by a 25-year-old man, who, based on preliminary evidence, failed to properly navigate the road, leading to the fatal descent into the precipice.
In response to the incident, a dedicated investigation team has been formed under the supervision of senior police officials from the Badulla and Bandarawela divisions. Motor traffic inspectors have already conducted a detailed assessment of the accident site, and further inquiries are currently underway to determine whether additional factors—such as mechanical failure or overloading—may have contributed to the tragedy.
The crash has reignited concerns about road safety in the country, particularly in hilly regions where steep inclines and sharp turns demand experienced and cautious driving. The Ella–Wellawaya route, known for its scenic views, has also been the site of several past accidents, prompting renewed calls for stricter regulation of long-distance passenger transport.
DIG Hapugoda also took the opportunity to highlight the broader picture of road safety in Sri Lanka. Between January 01 and September 04 this year, a staggering 1,757 fatal road accidents have been recorded nationwide, resulting in the loss of 1,870 lives.
New Scholarship Scheme to Support Children of Sri Lankan Migrant Workers Facing Tragedy
September 08, Colombo (LNW): A new scholarship initiative aimed at securing the education of children whose parents have suffered misfortune while employed overseas is set to be launched under the auspices of the President’s Fund in Sri Lanka.
The programme is designed to support children whose parents, while working abroad, have either passed away, sustained permanent disabilities, or remain unaccounted for due to adverse circumstances.
The initiative, guided by the principle of ensuring inclusive access to education for all, will be a collaborative effort involving the President’s Fund, the Ministry of Foreign Affairs, the Ministry of Foreign Employment and Tourism, and the Sri Lanka Bureau of Foreign Employment.
The programme was outlined during a high-level meeting at the Presidential Secretariat, where key officials, including the Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, and Senior Additional Secretary to the President Roshan Gamage, convened to discuss ways to broaden the Fund’s reach and effectiveness.
Officials stressed that the goal is to remove educational barriers for children impacted by the loss or incapacitation of a parent working abroad—a demographic often overlooked in conventional support structures. With many Sri Lankan families relying heavily on income from foreign employment, unexpected tragedies can leave children vulnerable and at risk of dropping out of school.
Eligibility for the scholarships will be determined solely by the nationality of the affected individual, who must be a Sri Lankan citizen. The financial assistance is expected to cover school-related expenses, helping to maintain stability in the lives of these children during difficult times.
A formal framework outlining the application process and selection criteria is expected to be released shortly, ensuring transparency and consistency in how the aid is distributed.
Ex-MP Nimal Lanza Released on Bail Following Long-Standing Assault Allegations
September 08, Colombo (LNW): Former MP Nimal Lanza has been released on bail following a recent arrest linked to a violent incident that reportedly took place nearly two decades ago.
The decision was handed down by the Negombo High Court, allowing the former lawmaker to remain at liberty while legal proceedings continue.
Lanza was taken into custody on August 29 after he voluntarily appeared before Kochchikade Police. His arrest came in connection with charges stemming from an incident said to have occurred during a protest in 2006.
The Attorney General’s Department has formally filed charges against Lanza, marking a significant development in a case that had remained dormant in the public eye for years. The renewed legal action appears to have been prompted by fresh scrutiny into unresolved complaints related to politically charged events from the mid-2000s.
Following his surrender to the authorities, the former parliamentarian was remanded in custody and held under judicial order until September 12. However, the High Court has now decided to grant bail.