Home Blog Page 164

Deputy Defence Minister Visits Abhimansala Centres, Reaffirms Commitment to Differently-Abled War Heroes

0

Deputy Defence Minister Major General Aruna Jayasekara (Retd) visited Abhimansala-3 in Pangolla, Kurunegala, and Abhimansala-1 in Anuradhapura on August 29 and 30, reaffirming the Government’s commitment to the welfare of differently-abled War Heroes.

Established by the Sri Lanka Army, the Abhimansala Centres provide lifelong healing and rehabilitation for soldiers injured in service to the nation. The facilities offer medical consultations, prosthetic and orthotic support, physiotherapy, and mental health counseling, ensuring holistic care and dignity for residents.

During the visits, the Deputy Minister personally engaged with War Heroes, listening to their experiences and assuring them of the Ministry’s continued support. His compassionate approach reflected the Government’s recognition of their immense sacrifices in safeguarding national peace and security.

He also held discussions with officials overseeing rehabilitation operations, reviewing current services and stressing the importance of continuous improvements to elevate standards of care.

The visits, joined by Women and Child Affairs Deputy Minister Dr. Namal Sudarshana, MPs Prof. Sena Nanayakkara and Nimal Palihena, underscored the Ministry of Defence’s vision of sustained care and rehabilitation—honouring War Heroes with dignity, compassion, and enduring support.

Govt Launches ‘Dream Destination’ Project to Modernise 100 Railway Stations

0

The first phase of the national programme “Dream Destination”, aimed at renovating 100 railway stations across the country, was launched yesterday (Sep 2) at the Talpe Railway Station under the patronage of Transport and Highways Deputy Minister Dr. Prasanna Gunasena.

The initiative, carried out through a partnership between the Government, the private sector, and the public, seeks to rebrand Sri Lanka’s railway stations with a modern identity that meets international standards. Oversight of the project will be shared by the Transport, Highways, Ports and Civil Aviation Ministry, the Clean Sri Lanka programme, and private sector contributors.

Deputy Minister Gunasena described the revitalisation of the railway service as “awakening a sleeping giant,” underscoring the Government’s commitment to transforming public transport into a high-quality service. He added that improvements in transport infrastructure would also provide a significant boost to tourism, noting his confidence that Sri Lanka would achieve rapid development within the next two years as a nation “built on hard work.”

The event was attended by Fisheries and Aquatic Resources Deputy Minister Rathna Gamage, COPE Committee Chairman MP Dr. Nishantha Samaraweera, Railways General Manager Ravindra Padmapriya, Clean Sri Lanka officials, private sector representatives, and local government leaders.

Sri Lanka Briefs Colombo Diplomats on Human Rights Progress Ahead of UNHRC Session

0

Foreign Affairs Minister Vijitha Herath yesterday briefed Colombo-based diplomats on the progress made by the Government in the field of human rights and reaffirmed Sri Lanka’s commitment to working closely with UN agencies.

Speaking at the Foreign Ministry premises ahead of the 60th session of the UN Human Rights Council (UNHRC) in Geneva on September 8, Minister Herath outlined key initiatives taken by the new administration to foster reconciliation. These include the return of a large extent of land to citizens and measures to strengthen democratic institutions.

He stressed that since assuming office, the Government has not received reports of human rights violations and highlighted that the recent Local Government Elections were conducted in line with election law.

The Minister also noted that the Government, which holds a two-thirds majority in Parliament, represents all communities and includes the highest number of female parliamentarians in Sri Lanka’s history.

Foreign Ministry spokesperson Thushara Rodrigo told the Daily News that diplomats were briefed on efforts to strengthen mechanisms linked to the Office of Missing Persons (OMP) and the Office for National Unity and Reconciliation (ONUR).

Minister Herath further underscored that the Prevention of Terrorism Act (PTA) will soon be replaced, while amendments are planned to the Online Safety Act. He emphasized that Sri Lanka remains committed to technical collaboration with UN agencies, while safeguarding national interests.

Gold Surges Past US$3,500 to Record High Amid Fed Rate Cut Bets, Dollar Weakness

0

Gold prices soared to an all-time high on Tuesday (Sep 2), driven by expectations of a U.S. Federal Reserve rate cut and a weaker dollar, which boosted demand for the precious metal.

Spot gold climbed 0.3 per cent to US$3,487.55 per ounce as of 6.33am GMT (2.33pm Singapore time), after touching a record US$3,508.50 earlier in the session. U.S. gold futures for December delivery rose 1.2 per cent to US$3,557.80. So far in 2025, bullion has rallied 32 per cent.

“A weaker economic backdrop and expectations of U.S. rate cuts are boosting precious metals,” said Kyle Rodda, analyst at Capital.com. He added that a “confidence crisis in dollar assets” stemming from President Donald Trump’s criticism of the Fed has further lifted gold.

Trump has repeatedly attacked Fed Chair Jerome Powell for not cutting rates and recently criticized a costly renovation of the central bank’s Washington headquarters. He also defended his decision to fire Fed Governor Lisa Cook over alleged mortgage fraud, sparking debate over the central bank’s independence.

Markets are pricing in a 90 per cent chance of a 25-basis-point Fed rate cut on Sept 17, according to the CME FedWatch tool. Gold, which yields no interest, tends to benefit in low-rate environments.

Analysts say gold’s 2025 rally—fueled by central bank buying, geopolitical uncertainty, and global moves away from the U.S. dollar—could extend further. “Gold’s rally could extend to US$3,600 and even beyond by year-end if the Fed follows through with multiple rate cuts and if a Russia-Ukraine peace deal remains elusive,” said Tim Waterer, chief market analyst at KCM Trade.

Spot silver traded flat at US$40.64 per ounce, near its highest since 2011. Platinum rose 1 per cent to US$1,412.95, while palladium slipped 0.7 per cent to US$1,129.52.

PM Harini Amarasuriya Calls for Digital and Innovative Solutions in Agriculture at ISAE 2025

0

Prime Minister Dr. Harini Amarasuriya emphasized the need to enhance the quality of Sri Lanka’s agricultural sector through the adoption of digital and innovative technologies.

She made these remarks at the International Symposium on Agriculture and Environment 2025 (ISAE), organized by the Faculty of Agriculture, University of Ruhuna, and held on 2nd September 2025 at the Galle Face Hotel, Colombo, according to the Prime Minister’s Media Division.

The symposium, themed “Driving Innovations in Agricultural Technologies for Climate Action and Sustainability”, brought together academics, researchers, industry professionals, and policymakers to explore opportunities and challenges in global agriculture, sustainability, and the use of emerging technologies.

Highlighting the importance of youth participation, the Prime Minister said:

“The Young Graduates Forum, running alongside this symposium, is particularly inspiring. Our future depends on youth who are innovative, knowledgeable, and socially conscious. Investing in their education, skills, and leadership is investing in a climate-resilient future for Sri Lanka and beyond.”

She further stressed that agriculture is not just about food production but also about sustaining communities, the economy, and the planet. By embracing innovation, supporting vulnerable populations, and aligning policy with sustainability, Sri Lanka can turn the challenges of climate change into opportunities for growth and resilience, she added.

The event was attended by Member of Parliament Prof. L. M. Abeywickrama, Senior Prof. Buddhi Marambe, Agstar PLC Deputy Chairman Indika Gunawardhana, University of Ruhuna Vice Chancellor Senior Prof. P. A. Jayantha, Dean of the Faculty of Agriculture Senior Prof. G. Y. Jayasinghe, Dr. Awanthi Mahanama, Dr. Anushka Bandara, and students of the University of Ruhuna.

WEATHER FORECAST FOR 03 SEPTEMBER 2025

0

A few showers may occur in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy, and Nuwara-Eliya districts.

Showers or thundershowers may occur at a few places in Ampara and Batticaloa districts after 2.00 p.m.
Mainly fair weather will prevail elsewhere of the island.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in North-central and North-western provinces and in Hambantota district.

The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion. The nearest places of Sri Lanka over which the sun is overhead today (03) are Marawila, Dampelessa, Mawathagama, Ukuwela and Kalmunei about 12.09 noon.

Political Uncertainty Clouds Sri Lanka’s Economic Gains

0

By:Staff Writer

September 02, Colombo (LNW): Sri Lanka’s external sector showed surprising resilience in the first seven months of 2025, but economists warn that mounting political instability could undermine these gains and threaten economic stability.

According to the Central Bank of Sri Lanka (CBSL), the current account posted a $1.7 billion surplus between January and July 2025, a 36.5% increase from the same period last year. The improvement was driven by stronger exports, rising workers’ remittances, and steady tourism earnings. Yet, the underlying picture reveals vulnerabilities, particularly in trade and currency movements, raising concerns about sustainability in the face of fragile governance.

Merchandise trade continued to weigh heavily on the balance. Although the deficit narrowed slightly in July to $580 million compared to $603 million a year earlier, the cumulative deficit widened to $3.8 billion in the first seven months, up from $3.1 billion in 2024. Imports surged 11.8% year-on-year to $11.64 billion, outpacing the 7.1% growth in exports, which reached $7.8 billion.

The spike in imports was largely visible in June and July, with vehicle imports alone accounting for $668 million in the seven-month period. Rising import prices further worsened terms of trade, while the rupee depreciated 3.3% against the US dollar by end-August 2025. These pressures leave Sri Lanka exposed, especially as global commodity prices remain volatile.

Services and tourism provided a buffer, with net inflows in services reaching $2.4 billion, up 3.3% from last year. Tourist arrivals rose 6.6% in July to over 200,000, generating $318 million in earnings. Cumulative tourism revenue stood at $2 billion by July, slightly higher than 2024 levels. Workers’ remittances offered another lifeline, hitting $697 million in July—the highest since December 2020.

Capital market activity, however, sent mixed signals. While foreign investors maintained net inflows into government securities, the Colombo Stock Exchange saw net outflows in both primary and secondary markets, underscoring investor caution. Official reserves held steady at $6.1 billion at end-July, supported partly by the swap arrangement with China’s central bank.

Analysts caution that despite encouraging current account numbers, the economy remains vulnerable to political instability. Growing uncertainty over fiscal reforms, governance disputes, and delays in debt restructuring could shake investor confidence. The widening trade deficit, rupee depreciation, and reliance on remittances and tourism inflows further highlight structural weaknesses.

With elections looming and policy direction unclear, Sri Lanka risks losing the fragile economic stability it has built. Unless decisive reforms are pursued, the country’s external sector resilience may prove short-lived, exposing the economy to fresh turbulence.

Vehicle imports strain Sri Lanka’s foreign reserves despite stronger inflows

0

By:Staff Writer

September 02, Colombo (LNW): Sri Lanka’s ambitious target of surpassing US$7 billion in foreign exchange reserves by end-2025 faces renewed challenges, as import outflows continue to climb faster than anticipated despite healthy inflows from remittances and tourism.

According to official data, personal vehicle imports surged to US$506.1 million up to July 2025, compared with just US$34.8 million a year earlier. In addition, US$162.2 million was spent on commercial vehicles during the same period. Together, vehicles alone accounted for over US$668 million, raising concerns about unsustainable pressure on foreign exchange reserves.

Sri Lanka recorded total inflows of US$2.6 billion in July, exceeding imports by US$729 million. However, sustained high-value imports risk offsetting these gains. Personal vehicles are classified as consumer goods, often financed through credit repaid over several years, while commercial vehicles are treated as investment goods. This distinction underscores a structural issue: consumer-driven imports lock in foreign exchange outflows without corresponding productive returns.

Investment goods imports as a whole grew 22.5 percent to US$2.22 billion up to July, with building materials alone at US$569.2 million. Although this reflects renewed economic activity, parallels to 2021—when loose credit and directed lending drove building material imports to US$1.24 billion by December—raise red flags about repeating past vulnerabilities.

Meanwhile, the oil import bill dropped to US$2.25 billion up to July, compared with US$2.54 billion last year, aided by lower global oil prices and increased renewable energy generation. While this has temporarily eased pressure, analysts warn that other categories of imports—especially vehicles are offsetting these gains.

Private sector credit growth, particularly in June, was partly driven by car financing, following central bank rate cuts. Economists caution that such policy shifts may trigger reserve drawdowns to cover debt repayments and imports, undermining external stability. If inflationary policy resumes, even robust inflows from remittances (expected to cross US$6 billion in 2025) and tourism (forecast above US$4 billion) may not be enough to sustain balance.

To achieve the US$7 billion reserve target, Sri Lanka would need to maintain consistent monthly net inflows of over US$500–600 million in the remaining months of 2025. However, with rising import demand and credit-driven consumption, this looks increasingly difficult.

Analysts stress that unless imports, particularly non-essential ones like personal vehicles—are carefully managed, Sri Lanka risks missing its target. The balance between encouraging growth through investment and preventing consumer-driven outflows will be central to the country’s economic stability in the months ahead.

Delays in Justice: Systemic Causes Beyond Case Backlogs

0

By: Staff Writer

September 02, Colombo (LNW): The Judicial Service Commission’s (JSC) recent order directing all courts to clear their case backlogs by December 31 has placed the spotlight on a body that is often little known outside legal circles but plays a decisive role in how justice is administered in Sri Lanka. While the directive has stirred both urgency and debate across the judiciary, it also highlights the broader powers, responsibilities, and constitutional standing of the Commission in safeguarding judicial independence and ensuring efficient administration of justice.

The Current Directive: A Bold Push to End Delays

The JSC’s latest intervention is unprecedented in scale. Judges across District Courts, Magistrates’ Courts, High Courts, and even Additional District Courts have been told to prioritize the disposal of long-pending cases. Monthly progress reports are now mandatory, and the Commission has warned that accountability for success or failure rests squarely with presiding judges. Periodic inspections are to follow, and strict disciplinary action is being promised against staff who fail in their duties.

This move comes amid widespread concern that Sri Lanka’s court system, burdened with decades-old cases, risks eroding public confidence. According to the Commission’s own past reports, civil cases more than 30 years old have lingered in some jurisdictions.The December deadline, therefore, is both an administrative challenge and a symbolic effort to reassure the public that justice delayed will not remain justice denied.

What Exactly is the Judicial Service Commission?

Established under Chapter XV of the Constitution, the Judicial Service Commission is one of the country’s most powerful independent institutions. Its core mandate is to safeguard judicial independence by managing the careers and discipline of judges in the lower courts. The Commission is composed of the Chief Justice (as Chairman) and the two most senior Supreme Court judges, all appointed with the approval of the Constitutional Council.

The Commission’s responsibilities include:

– Appointments, promotions, transfers, and disciplinary control of District Judges, Magistrates, and Presidents of Labour Tribunals
– Appointment and supervision of Quazis, who handle Muslim family law matters.
– Oversight of court staff, including registrars, interpreters, and clerical officers.
– Administration of judicial affairs, ensuring that the machinery of justice operates efficiently across the island.

In practice, this makes the JSC the nerve centre of Sri Lanka’s judicial administration, bridging constitutional independence with operational control.

Guardians of Independence

A crucial aspect of the JSC’s existence is its insulation from political interference. Before the 19th Amendment to the Constitution (2015), the President had sweeping powers over judicial appointments. The amendment introduced checks through the Constitutional Council, ensuring that senior judges and JSC members cannot be appointed or removed without wider parliamentary and civil society approval.

Members of the JSC enjoy constitutional immunity for acts performed in good faith, while interference with its functioning is itself a punishable offence. This framework was deliberately designed to protect judges from executive overreach and guarantee public trust in the system.

The JSC’s Role in Case Management

While the JSC is not a court and does not adjudicate disputes, it exercises supervisory control over how courts are run. Its annual reports reveal a long-standing concern with backlogs. As far back as 2012, the Commission instructed District Courts to identify and conclude cases over three decades old.

The establishment of Civil Appellate High Courts, targeted recruitment of judges, and the introduction of digital systems were part of its strategy to reduce delays.Today’s directive to clear all backlogs by year-end is thus a continuation and intensification of that earlier mission. By using its administrative powers, the Commission seeks to transform structural inefficiency into a nationwide campaign of expedited justice.

Training, Oversight, and Discipline

Beyond appointments and transfers, the JSC also invests in the quality of the judiciary. Through the Judges’ Institute, it organizes training, workshops, and even overseas study programs to strengthen legal capacity.The Commission monitors judicial conduct closely, with established procedures to investigate complaints against judges and impose disciplinary action where necessary. The same scrutiny extends to court staff, ensuring that inefficiency or misconduct at any level is addressed.This dual role,nurturing professional growth while enforcing accountability,positions the JSC as both guardian and regulator of Sri Lanka’s judicial integrity.

Why This Matters to the Public

To many citizens, the judiciary is often perceived as slow, distant, and burdened with bureaucracy. Cases dragging on for years sometimes decades have created frustration and mistrust. The JSC’s current move to demand backlog clearance is a reminder that the judiciary recognizes these concerns.

At the same time, the directive raises questions: Can judges realistically dispose of decades of accumulated cases in just a few months? Will speed come at the cost of thoroughness? And what systemic reforms beyond deadlines are needed to prevent backlogs from re-emerging?

Legal experts argue that while administrative orders are necessary, deeper structural reforms such as digitization, procedural simplification, and alternative dispute resolution are vital for lasting change. Still, the JSC’s action signals a determination to confront the issue head-on, using the powers constitutionally vested in it.

A Balancing Act

The Judicial Service Commission walks a fine line between efficiency and independence. On one hand, it must ensure that the courts deliver timely justice to the people. On the other, it must preserve the autonomy of judges to decide cases free of external pressure. Its current directive, then, is not just an administrative exercise but also a test of whether judicial governance can be both assertive and fair.

Looking Ahead

As the December 31 deadline looms, the nation will be watching whether the JSC’s bold order yields measurable results. Success could reinforce public confidence in the judiciary, proving that a centuries-old backlog can finally be broken. Failure, however, could expose deeper cracks in the justice system, demanding more comprehensive reforms.

What is clear is that the Judicial Service Commission is far more than a bureaucratic body. It is the constitutional guardian of judicial independence, the administrative manager of courts, and now, the architect of a campaign to restore public faith in the rule of law. The coming months will reveal whether it can deliver on this ambitious promise.

CEB Restructuring: Reform, Contradictions, and the Road Ahead”

0

By:Staff Writer

September 02, Colombo (LNW): The National People’s Power (NPP) government has moved forward with the restructuring of the Ceylon Electricity Board (CEB), issuing new regulations for a Voluntary Retirement Scheme (VRS) aimed at employees unwilling to transfer to the newly created successor companies.

While the step is presented as part of long-awaited reforms, it has also drawn questions about the government’s changing stance given that some of its leading members once strongly opposed similar plans under the previous administration.

From Protest to Implementation

The restructuring follows the Sri Lanka Electricity Act No. 36 of 2024, which sets out a framework to unbundle the CEB. Earlier drafts under Ranil Wickremesinghe’s government proposed dividing the utility into as many as eight to twelve separate entities. That figure has now been reduced to four successor companies.

The move was one of several reforms linked to International Monetary Fund (IMF) recommendations for improving financial sustainability in the energy sector. Yet, during Wickremesinghe’s tenure, NPP factions particularly its JVP leadership vocally protested against the unbundling, warning it could open the door to privatization and job losses.

Today, with the same policy continuing under their own administration, the shift in position has drawn attention. The government’s justification is that restructuring is now being pursued with greater safeguards for workers and stronger public oversight.

Voluntary Retirement Scheme: Key Features

The newly gazetted VRS, issued on 26 August 2025 by Energy Minister Kumara Jayakody, lays out detailed compensation packages:

Permanent staff with over 10 years of service: Two months’ salary per completed year of service

1.5 months’ salary for each year of future service foregone Payments range from a minimum of Rs. 900,000 to a maximum of Rs. 5 million

Permanent staff with less than 10 years: Five months’ salary per year served, without additional payments for foregone service

Contractual/non-permanent staff: Two months’ salary per year served, with a minimum equal to one year’s salary. Employees under disciplinary action or with unsettled dues are ineligible, while those opting for the scheme cannot seek employment with the successor companies in future.



Pros and Cons of the Reform

Potential Benefits:

Unbundling may improve efficiency, transparency, and accountability in electricity generation, transmission, and distribution.

The VRS provides a structured, relatively generous exit package compared to past schemes in state enterprises, ensuring employees unwilling to adapt have an option.

Restructuring could reduce financial losses at the CEB and align operations with IMF requirements, strengthening investor confidence.

Concerns and Risks:

Critics warn that breaking up the CEB could fragment coordination, complicating service delivery in a sector already under strain.

The exclusion of interim allowances in VRS calculations and the ban on re-employment may discourage some employees from applying.

The political inconsistency opposing the same policy in opposition but implementing it in government—raises doubts about long-term commitment to coherent energy policy.

There is public apprehension that restructuring may pave the way, directly or indirectly, to partial privatization.

The Bigger Picture

For the NPP, the CEB reforms are part of broader institutional changes framed as modernization and anti-corruption. However, the political irony is difficult to ignore: the very leaders who once staged protests against unbundling are now responsible for carrying it out.

The government argues that current conditions—particularly Sri Lanka’s debt situation and IMF obligations leave little alternative but to proceed with reforms. Yet balancing fiscal discipline, worker protection, and reliable electricity services will be the real test.