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Former Immigration Controller Harsha Ilukpitiya Jailed for Contempt Over Visa Scandal

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September 23, Colombo (LNW): Harsha Ilukpitiya, the former head of Sri Lanka’s Department of Immigration and Emigration, has been handed a two-year prison sentence by the Supreme Court, following a high-profile contempt of court case linked to a contentious visa arrangement.

The ruling was delivered earlier today by a panel of three Supreme Court justices—Yasantha Kodagoda, Janak de Silva, and Arjuna Obeyesekere—who found Ilukpitiya guilty of wilfully disregarding a previous court directive in connection with the controversial visa agreement that has drawn significant public and legal scrutiny.

The matter stems from a September 2024 order in which the Supreme Court directed Ilukpitiya to take specific actions related to the disputed visa contract.

His failure to comply led to the initiation of contempt proceedings, culminating in a decision last year (25 September 2024) to remand him pending the final outcome of the case.

Sri Lanka Urges Peaceful Dialogue at Beijing Defence Forum

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By: Staff Writer

September 23, Colombo (LNW): Sri Lanka has reaffirmed its commitment to peace, dialogue, and cooperation in international relations, emphasizing the importance of keeping the Indian Ocean free from conflict while acting as a bridge between East and West.

Addressing the 12th Beijing Xiangshan Forum, Defence Secretary Air Vice Marshal (Retd.) Sampath Thuyacontha said Sri Lanka’s strategic location placed unique responsibilities on the island nation. “Sri Lanka stands ready to serve as a bridge of peace and cooperation, enabling connectivity, trade, and cultural dialogue between East and West,” he told the gathering of defence officials from across the Asia-Pacific.

Thuyacontha highlighted Sri Lanka’s longstanding ties with China, noting that the relationship spanned more than seven decades and was “built on trust, mutual respect, and partnership.” He acknowledged Beijing’s role in protecting Sri Lanka’s sovereignty, extending military training opportunities, and supporting the island’s infrastructure development.

On broader regional security, he stressed that disagreements between nations were unavoidable but should never escalate into confrontation. “Dialogue and consultation remain the only sustainable path forward,” he said, underlining Sri Lanka’s preference for diplomacy over rivalry.

Thuyacontha also called for regional initiatives, including China’s Belt and Road Initiative (BRI) and the Association of Southeast Asian Nations’ (ASEAN) Outlook on the Indo-Pacific, to work in harmony rather than in competition. “We must solve our problems among ourselves, guided by equality and mutual respect,” he stated. “This is the spirit we take from the Beijing Xiangshan Forum towards a future where peace prevails over conflict.”

Recognizing the complexity of regional security, he urged nations to take into account the legitimate security concerns of all parties. He advocated peaceful settlement of disputes, an open and inclusive regional order, and steady progress toward deeper economic integration.

Thuyacontha further echoed sentiments expressed by Chinese President Xi Jinping, observing that genuine peace is achieved “not merely through the absence of conflict but through dialogue, understanding, and constructive engagement.”

The Beijing Xiangshan Forum, co-hosted by the China Association of Military Science and the China Institute of International Strategic Studies, convened in Beijing from September 17 to 19. The event brought together senior defence officials and experts from across the Asia-Pacific to deliberate on security challenges and ways to promote cooperation.

For Sri Lanka, participation in such platforms reinforces its foreign policy stance—anchored on neutrality, peaceful coexistence, and engagement with all major powers. With its central location in the Indian Ocean, Colombo seeks to leverage its geostrategic position not as a flashpoint of rivalry, but as a hub for dialogue and constructive regional engagement.

Fear and Inefficiency Grip Sri Lanka’s Bloated Public Sector

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By: Staff Writer

September 23, Colombo (LNW): Sri Lanka’s public sector, long criticized for its inefficiency, excess size, and politicized recruitment, finds itself at a crossroads.

A recent World Bank review has highlighted the urgent need for gradual but well-planned rightsizing, noting that the country employs far more public servants than comparable economies, even as compensation remains uncompetitive.

Yet the more immediate problem lies not only in numbers but in a growing climate of fear among top officials, who are increasingly reluctant to take policy decisions under the government’s sweeping anti-corruption drive.

According to the World Bank’s Sri Lanka Public Finance Review, the country’s public sector headcount peaked at 1.27 million civil servants in 2020 before declining marginally to 1.21 million in 2023 due to a hiring freeze.

State-owned enterprises and government-funded institutions employ an additional 212,000, bringing the total size of the workforce to levels far higher than regional peers. Notably, the security sector remains disproportionately large, with armed forces personnel per capita triple the South Asian average.

Despite its size, productivity is abysmally low. Real wages have eroded by over 30% in the last three years, and allowances rather than performance-based pay dominate compensation.

Highly skilled workers now earn between 8% and 22% less than their private sector counterparts, undermining morale and encouraging brain drain.

Meanwhile, wage costs, though reduced from 7.2% of GDP in 2020 to 5.0% in 2023, still weigh heavily on strained public finances.

The World Bank recommends a gradual workforce reduction through attrition, ensuring frontline education and health services remain protected while eliminating overstaffing in other sectors.

It also calls for modern payroll management systems, transparent pay commissions, and functional reviews to restructure bloated cadres.

However, translating these prescriptions into action requires political courage and administrative leadership qualities in short supply today.

A deeper malaise now haunts the public administration. The new government’s aggressive anti-corruption campaign, initially welcomed as a step toward accountability, has evolved into what critics call a tool to suppress dissent and intimidate officials.

Senior bureaucrats, wary of being targeted or falsely implicated, increasingly avoid taking bold policy decisions. This “fear psychosis” has paralyzed decision-making, delaying critical reforms in finance, energy, and state enterprise restructuring.

Even moderate officials, who were not part of past corrupt networks, are hesitant to act lest they draw political scrutiny.

The result is a vicious cycle: an oversized, underpaid, and demoralized workforce trapped in a culture of inertia, overseen by senior administrators unwilling to make the decisions necessary for reform.

While the World Bank’s roadmap offers a practical framework for rationalizing the workforce, its success hinges on restoring confidence among civil servants. Without safeguarding professional independence and insulating officials from political vendettas, even the best-designed reforms will stagnate.

Sri Lanka’s public sector dilemma is thus twofold quantitative inefficiency and qualitative paralysis. Rightsizing the workforce may ease the fiscal burden, but unless the climate of fear is lifted, efficiency will remain elusive.

At a time when the country urgently needs competent policy execution to attract investment, boost growth, and rebuild public trust, a demoralized bureaucracy is the last thing it can afford.

NPP Govt Policy Drift Clouds Recovery amidst Sri Lanka’s global Ratings lifted

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By: Staff Writer

September 23, Colombo (LNW): Sri Lanka’s economy has received a symbolic boost with all three major global ratings agencies lifting the country’s sovereign credit rating out of default. Yet, behind the headline upgrades lies a sobering reality: heavy debt, fragile revenues, and policy uncertainty under the year-old National People’s Power (NPP) government continue to cloud the outlook for sustainable recovery.

S&P Global Ratings last week raised Sri Lanka’s long- and short-term foreign currency ratings to ‘CCC+/C’ from ‘SD/SD’, citing progress in debt restructuring. Fitch Ratings had earlier upgraded the sovereign to ‘CCC+’ from ‘RD’ in December 2024, while Moody’s elevated its grade to Caa1 from Ca around the same time. Collectively, the moves mark the end of Sri Lanka’s technical default status following its 2022 financial collapse.

However, all three agencies stopped well short of optimism. S&P warned that Sri Lanka’s debt dynamics remain “exceptionally vulnerable” despite restructuring gains. Fitch flagged that interest costs, expected to absorb over half of government revenue in 2025, “leave little fiscal space for development spending.” Moody’s, while acknowledging the stabilisation of foreign reserves, cautioned that “weak governance and policy execution risks weigh heavily on investor confidence.”

The numbers underline these concerns. Net government debt is projected at 101% of GDP in 2025, falling only modestly to 93% by 2028. Interest payments will consume about 51% of government revenue this year, compared with a peer median of just 16%. Government revenue has climbed from a crisis-era low of 8.3% of GDP in 2021–22 to around 15% now, but the base remains narrow. Reserves have improved to $6.1 billion by August 2025, while GDP grew 4.9% in the second quarter Sri Lanka’s first solid growth after two years of contraction.

Yet this fragile recovery is being undermined by policy drift. In its first year in office, the NPP government has struggled to outline a clear strategy to lift growth, boost foreign inflows, or attract meaningful foreign direct investment (FDI). Investor sentiment remains cautious, with many international businesses citing regulatory uncertainty, slow reforms, and an absence of incentives as key deterrents. Exports have stagnated, remittance growth has plateaued, and new FDI commitments remain negligible.

Ratings agencies have all highlighted governance and policy execution as a central risk. “The sustainability of Sri Lanka’s recovery depends heavily on consistent adherence to IMF-backed fiscal and structural reforms,” Fitch noted. S&P went further, warning that political uncertainty could delay reforms “crucial to securing long-term financing and investor participation.”

The IMF’s Extended Fund Facility has provided a lifeline, helping rebuild reserves and stabilise the rupee, but implementation gaps threaten momentum. Without a coherent industrial and trade policy, Sri Lanka risks being locked into low growth, high-debt equilibrium. Analysts stress that the government’s focus should shift quickly toward expanding export capacity, attracting sustainable FDI in technology and services, and improving governance to restore credibility.

For now, Sri Lanka’s exit from default is a step forward, but the upgrades remain firmly in speculative territory—a reminder that the country’s path back to creditworthiness will be long and uncertain. Unless the NPP government can deliver tangible reforms that raise GDP, diversify foreign inflows, and build investor confidence, the recovery risks stalling before it gathers pace.

Major Drug Haul Uncovered in Tangalle as Police Probe Possible Triple Homicide

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September 23, Colombo (LNW): Sri Lankan law enforcement has uncovered one of the largest narcotics consignments in the country’s history, following a dramatic turn of events in Tangalle. The discovery was made amidst a developing investigation linked to the suspicious deaths of three individuals in the coastal town.

The illicit cache, which carries an estimated black market value close to Rs. 10 billion, was found hidden in three lorries abandoned in the areas of Seenimodara and Kadurupokuna. Weighing over 705 kilogrammes, the haul includes a staggering 284 kilogrammes of heroin and more than 420 kilogrammes of crystal methamphetamine—commonly referred to as ‘ice’. The scale of the seizure places it among the most significant narcotics operations ever intercepted on Sri Lankan soil.

The breakthrough came after two bodies were discovered at a residence in Seenimodara yesterday (22) morning, under circumstances that authorities have since described as suspicious. A third individual, believed to be connected to the same location, died shortly after being admitted to hospital.

These deaths prompted immediate action from the Tangalle Divisional Crimes Investigation Unit, supported by officers from the local headquarters. As the investigation intensified, officers were led to the parked lorries, where the concealed drugs were found.

Police are now conducting a full-scale inquiry, focusing on the source of the drugs, the operational structure of the trafficking network, and the chain of custody leading to the three deaths. Forensic teams have been deployed to examine the crime scenes, and efforts are underway to identify all individuals involved.

Law enforcement officials have indicated that further arrests may follow, and are calling on the public to provide any information that could assist with the ongoing investigation.

National Audit Amendment Becomes Law, Expands Powers of Auditor General

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September 23, Colombo (LNW): Speaker Dr Jagath Wickramaratne has formally endorsed the National Audit (Amendment) Bill, enacting it as Act No. 19 of 2025.

Initially tabled before Parliament on July 08, the Bill underwent deliberation and revisions before receiving legislative approval on September 11.

The newly enacted law introduces several notable provisions aimed at strengthening institutional mechanisms for detecting and addressing financial misconduct within the public sector.

Among the most consequential updates is the expanded authority granted to the Auditor General. Under the new legislation, the Auditor General is now empowered to directly initiate complaints with law enforcement bodies in cases where audits reveal evidence of corruption, misappropriation, or other forms of financial malpractice.

Singapore Shipping Firm Rejects Billion-Dollar Payout Over Sri Lanka Maritime Disaster

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September 23, Colombo (LNW): A Singapore-based shipping company has publicly refused to comply with a Sri Lankan Supreme Court ruling ordering it to pay US$1 billion in environmental damages, following one of the most catastrophic maritime pollution incidents in the island nation’s history.

In a statement made during a recent interview, Shmuel Yoskovitz, the Chief Executive Officer of X-Press Feeders, strongly opposed the court’s decision, arguing that adhering to the judgement could have far-reaching repercussions for the global shipping industry.

He warned that complying with the ruling could “set a dangerous precedent” for international maritime operators, potentially exposing them to disproportionate liability in future incidents.

The dispute stems from the sinking of the MV X-Press Pearl, a cargo vessel owned by X-Press Feeders, which caught fire and sank off the coast of Colombo in June 2021. The blaze, which lasted for nearly two weeks, was reportedly triggered by a leak of nitric acid among its hazardous cargo.

At the time, the vessel was transporting 81 containers carrying dangerous materials, including corrosive substances, lead ingots, and hundreds of tonnes of plastic pellets.

The ship’s operators had allegedly been denied entry by multiple ports, including in Qatar and India, where they had sought permission to offload the leaking container before arriving in Sri Lankan waters. The refusal left the vessel adrift with its hazardous contents until the situation deteriorated, culminating in a major fire and eventual sinking just off Sri Lanka’s western coastline.

The environmental consequences were swift and severe. Massive quantities of plastic micro-pellets—commonly known as nurdles—were released into the sea, blanketing an 80-kilometre stretch of coastline. Marine ecosystems suffered significant disruption, and the country’s fishing industry was brought to a halt, with fishing bans imposed across large swathes of the coast for several months.

The clean-up effort has since become one of the most costly and logistically complex environmental operations Sri Lanka has ever undertaken.

In July this year, Sri Lanka’s highest court ordered X-Press Feeders to pay an initial sum of US$1 billion in compensation, with the first instalment of US$250 million due by Tuesday. The ruling was intended as part of a broader effort to ensure corporate accountability and environmental justice.

However, the shipping firm has now made it clear that it does not intend to honour the court’s decision. The company has not yet detailed what legal steps, if any, it will take to challenge the ruling, but its stance sets the stage for a possible international legal and diplomatic confrontation.

Veteran Sri Lankan Actor Nalin Pradeep Passes Away at 56

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September 23, Colombo (LNW): Renowned Sri Lankan tele-drama actor Nalin Pradeep passed away early this morning at the age of 56 whilst undergoing treatment at the Apeksha Hospital in Maharagama, according to family sources.

A widely respected figure in Sri Lanka’s performing arts community, Nalin Pradeep carved out a distinguished career across theatre, cinema, and television, whilst also making his mark in the political arena.

Born on March 20, 1969 as Udawela Lekumlage Nalin Pradeep Udawela, he became a household name through a combination of artistic talent, social engagement, and a deep connection with audiences from all walks of life.

His entry into the world of cinema came in 1998 with Julietge Bhumikawa, a film directed by the late Jackson Anthony. From there, he built a successful career in film, appearing in a string of acclaimed productions such as Tharaka Mal, Parawarthana, and Asai Man Piyabanna.

His nuanced performances and ability to inhabit complex characters won him widespread appreciation from critics and viewers alike.

Equally prominent in the theatre world, Nalin Pradeep earned accolades for his roles in a range of stage productions that left an enduring impression on Sri Lanka’s cultural landscape. Among the most memorable were Kelani Palama, Juriya, Mee Harak, Mandela Mandela, Sewaneli Eda Minissu, New Hunuwataye Kathawa, and Suddek Oba Amathai—works that not only entertained but often held a mirror to society’s deepest issues.

On television, his presence was equally powerful. He brought life to a variety of roles in well-loved series such as Aparna, Batti, Akuru Maki Na, Diya Ginisilu, Api Apa Athara, Ehipillamak Yata, and Chakrandi, becoming a familiar and trusted figure in households across the nation.

CEB Employees’ Leave Suspended Indefinitely Amid Declaration of Essential Services

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September 23, Colombo (LNW): All forms of leave granted to staff members of the Ceylon Electricity Board (CEB) have been suspended with immediate effect, following a directive issued by the utility’s General Manager.

This measure comes in the wake of a government decision to designate electricity-related services as essential to the functioning of the country.

The suspension follows a proclamation by President Anura Kumara Dissanayake, who on Sunday (21), issued an Extraordinary Gazette formally declaring all operations tied to the generation, transmission, and distribution of electricity as essential public services.

This legal directive extends to services provided not only by the CEB, but also by any government agency, local authority, state-owned enterprise, or co-operative society involved in the electricity supply chain.

The President’s decision was reportedly driven by concerns that ongoing or potential disruptions in the electricity sector could seriously hinder public life and national stability. The Gazette notification specifically cited the likelihood of interruptions or obstacles to these services, necessitating urgent preventive action.

By declaring electricity provision an essential service, the government now holds the authority to impose stricter regulations on the sector, including constraints on industrial action and worker absences.

Showers to continue in many districts: Fairly strong winds expected (Sep 23)

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September 23, Colombo (LNW): Showers will occur at times in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts, the Department of Meteorology said in its daily weather forecast today (23).

A few showers may occur in North-western province.

Showers or thundershowers are likely at a few places in Uva province and in Ampara and Batticaloa districts after 2.00 p.m.

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

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

Marine Weather:

Condition of Rain:
Showers are likely at a few places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.

Winds:
Winds will be south-westerly and wind speed will be (30-40) kmph.

Wind speed can increase up to (50-60) kmph at times in the sea areas off the coast extending from Galle to Pottuvil via Matara and Hambantota and from Chilaw to Kankasanthurai via Mannar.

Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee.

State of Sea:
The sea areas off the coast extending from Galle to Pottuvil via Matara and Hambantota and from Chilaw to Kankasanthurai via Mannar will be rough at times.

The sea areas off the coast extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee may be fairly rough at times.

The wave height may increase about (2.5 – 3.0) m in the sea areas off the coast extending from Negombo to Pottuvil via, Galle, Matara and Hambantota (this is not for land area).

Naval and fishing communities are requested to be vigilant in this regard.