Leader of the House and Minister of Transport, Highways and Civil Aviation, Bimal Rathnayake, told Parliament yesterday that inefficiency within Sri Lanka Railways has been a major factor contributing to the country’s decline.

Responding to a question raised by MP Hector Appuhamy, the Minister admitted that Sri Lanka had collapsed politically, economically, culturally, and administratively, and that the breakdown of the Railway Department played a role in this downfall.

“I have repeatedly said that the Railways Department suffers from severe inefficiency and an inability to provide a proper public service. While some officials work with great dedication, there is also a large number of staff who are unwilling to work, alongside politically appointed and inefficient employees brought in by former transport ministers,” Rathnayake said.

He pointed out that years of neglect in essential recruitment, especially for technical officers, had worsened the crisis. His first Cabinet paper as Transport Minister, submitted in December 2024, sought approval to fill technical vacancies in the department. However, he noted that senior officials delayed the recruitment process for nearly a year despite Cabinet approval.

The Minister said a new General Manager has now been appointed and that ministry officials, engineers, and trade unions are working together more constructively.

“There is no magic wand to immediately eliminate inefficiencies inherited from previous administrations. But we are systematically addressing them, and within one year, we expect the Railway Department to improve by about 50 percent from its current state,” Rathnayake assured.

The Presidential Special Investigation Committee, appointed to investigate past fraud, corruption, and malpractices at Airport and Aviation Services (Sri Lanka) (Private) Limited and SriLankan Airlines, has called for complaints, views, and proposals from the public.

This Committee was established in line with Cabinet Decision No. 25/1145/801/018 of July 1, 2025, following a Cabinet Memorandum submitted by President Anura Kumara Dissanayake on June 30, 2025. Its mandate is to inquire into historical irregularities and misconduct within the two state-owned institutions.

The Committee has invited submissions from employees, staff members, and the public on matters relating to both organisations. Complaints, views, and proposals may be forwarded on or before September 5, 2025, via email to [email protected] or through WhatsApp at 070-3307700.

Following submissions, appointments will be arranged for in-person discussions with the Committee.

By: Staff Writer

August 21, Colombo (LNW): The Board of Investment of Sri Lanka (BOI) has unveiled an ambitious plan to create the country’s first-ever investment zone exclusively for Japanese investors—an initiative aimed at deepening bilateral economic ties and leveraging unique Japanese industrial practices.

BOI Chairman Arjuna Herath first floated the idea during the Sri Lanka–Japan Investors’ Meeting and Conference at the World Trade Center in Colombo, inviting small, medium, and large Japanese firms to participate in a dedicated industrial park.

He noted that Japanese industrial culture and methods differ significantly from those of other nations, justifying the need for a tailored zone that can best accommodate Japan’s operational strengths.

Herath emphasized Sri Lanka’s long-standing appreciation for Japanese investments and highlighted the government’s efforts to create a highly conducive investment environment. Japanese attendees reportedly responded favorably, expressing interest across sectors such as manufacturing, technology, and services.

Importantly, this would mark the first such single-nation–focused investment zone in Sri Lanka—a significant milestone that positions Japan as a uniquely valued investment partner.

This new development complements Sri Lanka’s existing network of Special Investment Zones (including Export Processing Zones and Industrial Parks) administered by the BOI. Currently, there are 15 such zones spread across the country, including Katunayake, Biyagama, Koggala, Mirigama, Horana, Kandy and Seethawaka among others.

For example, the Katunayake EPZ, established in 1978 near the international airport, is the country’s largest, covering 332 acres and serving over 31,000 workers. It recently received acclaim from fDi Intelligence, earning a special honorable mention in the 2022 Free Zones Awards for its reinvestment strategy—where four large tenant firms pledged an additional US$ 26.5 million in investment and nearly 1,000 new jobs.

Overall, the BOI recorded a 38 % year-on-year increase in FDI receivable, rising from US$ 780 million in 2021 to US$ 1,076 million in 2022. Export figures (merchandise plus services) also rose by 7 % to US$ 9.385 billion, and employment under BOI zones grew by 3 %, adding 14,332 positions. Manufacturing, telecommunications, and port development led sectoral FDI growth, with port development surging an impressive 329 %.

Building on this performance, the government and BOI are moving forward on plans to establish five new investment zones across the North, East, Northwest, and Southern provinces—targeting areas like Kilinochchi, Paranthan, Trincomalee, Kankesanthurai, and Bingiriya Phase 2.

In summary, Sri Lanka’s BOI is championing a multifaceted strategy: boosting FDI with compelling results, expanding geographic reach through new zones, and now pioneering the country’s first nationality-specific industrial park for Japanese investors. This layered approach signals a bold new chapter in attracting targeted, high-quality foreign investments.

August 21, Colombo (LNW): The Committee on Public Finance (CoPF) has granted approval for the 2026 budget estimates of the National Audit Office, paving the way for the proposal to be tabled in Parliament, subject to the Committee’s recommendations.

The review and endorsement took place during a session held yesterday (19), in accordance with Section 34 of the Audit Act No. 19 of 2018.

With the Committee’s regular Chair, Dr Harsha de Silva, currently abroad, the proceedings were presided over by MP Rauff Hakeem, who assumed the role of Acting Chair for the session.

Senior representatives from the National Audit Office, including Acting Auditor General G.H.D. Dharmapala, were in attendance, along with officials from the Department of National Budget. Their discussions centred around ongoing institutional challenges faced by the Audit Office, which is responsible for overseeing financial accountability across nearly 2,000 entities—including ministries, departments, state-owned enterprises, and foreign-funded projects.

Key issues highlighted during the session included a critical shortage of qualified staff, particularly at the level of Chartered Accountants. Officials pointed out that only around 35 professionals with this qualification are currently employed at the National Audit Office, and that competitive private sector salaries have made it difficult to attract and retain highly trained personnel.

The Committee also explored ways to improve operational capacity through the decentralisation of services. Members expressed interest in establishing provincial-level branches of the National Audit Office, which could help distribute workloads more efficiently across regions.

A significant portion of the discussion focused on the potential benefits of adopting advanced technological tools, including artificial intelligence, to streamline audit processes. Committee members were in broad agreement that modernising the office’s systems could improve productivity and oversight, even with limited human resources.

The meeting was attended by several members of the Committee on Public Finance, including Deputy Minister Chathuranga Abeysinghe and Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, Ajith Agalakada, Dr Kaushalya Ariyarathne, Nimal Palihena, Chithral Fernando (Attorney-at-Law), Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi, and Lakmali Hemachandra (Attorney-at-Law).

The approved budget estimates, along with the Committee’s observations, are expected to be presented in Parliament in the coming weeks.