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Colombo District Court Issues Injunction Against Controversial Book Alleging Misconduct by Diyawadana Nilame

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The Colombo District Court has issued an injunction against the publication and distribution of the book “Kapati Upasakaya” (The Deceitful Devotee), which makes serious allegations against Mr. Pradeep Nilanga Dela, the incumbent Diyawadana Nilame (Chief Custodian) of the Sacred Temple of the Tooth Relic in Kandy.

The book, authored by Dr. K. A. Dharanitha, a senior lecturer at the University of Kelaniya, has been challenged in court by Mr. Dela, who claims the contents are completely false and defamatory. He filed a lawsuit requesting the court to prevent the book from being printed, distributed, or published until the case is concluded.

Presiding over the case, Colombo District Judge Sadun Withana, on July 17, issued an interim injunction and restraining order, granting the request based on the merits of the complaint submitted by Mr. Dela.

According to Mr. Dela’s petition, “Kapati Upasakaya” accuses him of corruption, misappropriation of temple funds, antiquities theft, and other criminal activities, all of which he vehemently denies. He emphasized that all accusations made in the book are untrue and that previous legal proceedings on similar claims have already resulted in his exoneration.

The book allegedly mentions:

  • Illegal sale of lands belonging to the Temple of the Tooth
  • Disappearance of a golden Buddha statue
  • Misplacement of 38 kg of gold from the Sabaragamuwa Saman Devalaya
  • Abduction of baby elephants from the Pinnawala Elephant Orphanage
  • Creation of a Mini Cooper’s buffer and handles using stolen gold

Dela asserts that none of these allegations hold legal ground and confirms that no laws were broken concerning temple property, which, under the Temple and Devalagam Ordinance, cannot be sold or transferred.

He further stated that the publication appears to be politically motivated, as he is preparing to recontest the upcoming election for the position of Diyawadana Nilame, scheduled for September. He believes the defamatory narrative is an attempt to tarnish his reputation and undermine his candidacy.

Additionally, an injunction has also been obtained against Nishshanka Mayadunne, also known as Nishshanka of Galkanda Puravantalaya, for conducting media discussions based on the book’s allegedly false contents. That case too remains under court examination.

Dela emphasized that the false and malicious claims published in Kapati Upasakaya have caused significant damage to his personal integrity, honor, and dignity. The court’s injunction stands as a legal safeguard until the matter is fully adjudicated.

Govt Orders Forensic Audit on BYD Imports Amid Rising Controversy

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The Sri Lankan government has launched a full-scale forensic audit into the controversial importation of electric vehicles by a local agent of Chinese automaker BYD, following allegations of under-invoicing and misrepresentation in Customs declarations.

The probe will scrutinize all relevant documents and import records submitted by the company over several months, even as previously cleared vehicles of the same model continue to raise questions.

A senior Treasury official confirmed that the forensic audit will be carried out by a special team in collaboration with the Department of Customs. The scope of the audit includes not only the latest batch of detained vehicles but also all earlier imports of the same model that were cleared and sold to buyers across the country.

In a parallel move, the government has sought the expertise of the University of Moratuwa’s engineering faculty to carry out a technical investigation to verify whether the disputed vehicles match the declared specifications and classifications provided during the clearance process.

The controversy erupted when a consignment of BYD electric vehicles, imported under the classification of “motor cars,” was held at Colombo Port after Customs suspected a possible misclassification. Preliminary investigations suggested that the vehicles might actually fall under a different classification, potentially attracting higher import duties.

Adding another layer to the saga, Customs and Finance Ministry officials are now examining whether the importer had followed the same practice with previous consignments and whether duties were accurately paid. Dozens of units of the same model have already been cleared and sold in the domestic market.

Analysts say this raises a critical legal and policy question: Can the government apply retrospective tax claims or reclassifications on vehicles that were previously cleared and sold under existing approvals?

Legal experts note that retrospective tax application is a grey area under Sri Lankan customs law and could lead to significant public backlash or legal challenges, especially from buyers who had no role in the import process.

Moreover, the case has cast a spotlight on a common practice in the global automotive trade—where manufacturers, especially from China, tailor vehicle specifications to suit importer demands.

If it is established that the vehicles were specially configured for the Sri Lankan market, it may undermine allegations of deception and instead point to potential policy or procedural loopholes in classification.

However, the government remains cautious. “We are not accusing any manufacturer at this stage. But if specifications were altered to fit a lower tax bracket, that could have serious consequences under anti-avoidance laws,” a senior Customs official said.

The incident has also triggered widespread media and public debate, with critics accusing authorities of failing to exercise due diligence during the earlier clearance of similar vehicles.

Officials stress that any punitive action will be based strictly on evidence from the audit and technical investigation, with recommendations to improve classification processes and strengthen post-clearance audit mechanisms.

Meanwhile, buyers of the cleared vehicles wait anxiously, fearing possible consequences if the government attempts retroactive revaluation or seizure.

Govt Acts to Shield SMEs from Collapse as Loan Defaults Rise

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Sri Lanka has launched a fresh support mechanism to rescue struggling small and medium enterprises (SMEs), amid mounting pressure from parate executions and loan defaults that threaten to cripple the sector—the backbone of the island’s economy.

In response to increasing financial distress faced by SMEs due to high interest rates, declining demand, and cash flow constraints, the Ministry of Industries and Enterprise Development unveiled a strategic programme to offer grassroots-level assistance to affected businesses.

The new initiative involves the transformation of existing Development Officers (DOs) and Enterprise Development Training Officers (EDTOs) into a dynamic cadre of ‘Relationship Officers’ under the Small Enterprise Development Division (SEDD). These officers will act as field-level business advisors capable of delivering hands-on support to revive and restructure SME operations.

The first phase of the programme, launched on July 29 at the Sri Lanka Foundation Institute, covers 53 officers from the Western Province. These officers will undergo a capacity-building programme designed around experiential learning principles—‘Learn by Doing’. The focus is on equipping them with essential skills, entrepreneurial mindsets, and strategic know-how to support financially distressed SMEs.

The initiative is a joint effort between the Ministry and the Sri Lanka Institute of Marketing (SLIM), which has pledged Rs. 100 million towards the programme. SLIM has already allocated Rs. 40 million for the pilot phase, with its academic faculty providing services on a voluntary basis.

This effort comes at a critical time. According to Central Bank data, over 30% of the SME loan portfolio in Sri Lanka is currently classified as non-performing. Banks, under mounting pressure to clean up balance sheets, have resumed parate executions—legal actions that allow financial institutions to auction mortgaged properties without court proceedings.

 This has caused widespread alarm across the SME sector, especially among small manufacturers, traders, and service providers who were battered by the pandemic and the 2022 economic crisis.

The Central Bank of Sri Lanka (CBSL) has acknowledged the rising SME debt distress and has taken steps to ease the burden.

These include encouraging banks to offer restructuring and rescheduling facilities, as well as pushing for more inclusive credit evaluation models that consider alternative data for loan appraisals.

A credit guarantee scheme and partial risk-sharing facility are also under consideration to incentivize lending to high-risk but viable SME ventures.

However, industry associations argue that these measures must be accompanied by a moratorium on parate executions and more aggressive debt restructuring mechanisms. “The SME sector is not just a loan portfolio; it’s the engine of employment, innovation, and regional development,” a senior official at the National Chamber of Commerce stated.

The government’s deployment of Relationship Officers marks a shift towards proactive and decentralised enterprise development. By bridging the information and advisory gap between policymakers and entrepreneurs on the ground, the move aims to prevent further erosion of the SME base, which accounts for over 75% of all businesses and nearly 45% of employment in Sri Lanka.

With financial institutions tightening credit and legal actions on the rise, the success of this hands-on advisory network could determine the survival and revival of thousands of small businesses in the coming months.

Lifeline for Sri Lanka’s Struggling Fisherfolk: New Insurance Scheme Launched

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:Sri Lanka’s inland and lagoon fishermen—who make up one of the country’s most vulnerable yet vital livelihoods—are now eligible for a much-needed safety net through a newly introduced insurance scheme by the Agricultural and Agrarian Insurance Board. This initiative aims to offer relief to thousands of fishing families who continue to battle economic hardship, unpredictable weather patterns, and a lack of state support.

According to official data, over 120,000 individuals are engaged in lagoon and inland fishing across Sri Lanka, depending solely on this traditional vocation to feed their families and sustain their lives. Despite their contribution to the local economy and food security, these communities have long operated on the margins, with little to no formal protection or welfare.

The newly announced insurance scheme offers Rs. 1.2 million in compensation in the event of sudden death due to accidents while fishing or during adverse weather events. Fishermen will need to pay a modest annual premium of Rs. 2,000 to benefit from the cover. In addition to fatal accidents, the policy also includes compensation for total or partial disability, and even serious injuries that may occur during or outside of active fishing periods.

This move comes at a time when many fisherfolk are reeling under economic pressure. Rising costs of fishing gear, lack of infrastructure, limited market access, and erratic weather have all made their survival increasingly difficult. Most fishermen operate small, non-motorized boats and often risk their lives navigating shallow inland waters, particularly during the monsoon seasons.

In the past, successive governments have attempted to support the fishing community through kerosene subsidies, concessional loan schemes, and the provision of fishing gear and equipment. However, much of this assistance has been ad hoc and often delayed due to bureaucratic inefficiencies and poor coordination among agencies. The discontinuation of the kerosene oil subsidy—once a crucial lifeline for small-scale fishermen—has further pushed them into financial distress, especially in rural and remote areas.

The new insurance scheme is being hailed as a step in the right direction, offering some level of security to these fishermen and their families. However, experts stress that comprehensive and sustained support—including fuel subsidies, access to modern equipment, and proper market linkages—are still essential if Sri Lanka’s inland fishing sector is to be revived and safeguarded.

While the insurance initiative provides a ray of hope, the broader plight of the inland fishing community underscores the urgent need for a national policy framework that guarantees social protection, livelihood sustainability, and long-term development for this neglected sector.

PickMe Rides High with 50% Revenue Surge in Q1 FY2025/26

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Digital Mobility Solutions Lanka PLC, the parent company of Sri Lanka’s leading ride-hailing and delivery platform PickMe, has posted stellar financial results for the first quarter of the financial year 2025/26, showcasing strong growth across all key performance indicators.

The company recorded a consolidated revenue of Rs. 1.8 billion for Q1, marking a remarkable 50% increase compared to Rs. 1.2 billion in the same period last year. This surge in earnings was fuelled by a 43% year-on-year increase in platform volume, driven by a record number of monthly active users leveraging PickMe’s diverse mobility and delivery solutions.

Gross Transaction Value (GTV)—which represents the cumulative value of all trips and deliveries conducted via the platform—grew by 36%, climbing to Rs. 16.6 billion from Rs. 12.3 billion a year earlier. This increase in GTV reflects higher user engagement and increased transaction frequency on the platform.

PickMe’s relentless focus on operational efficiency paid off handsomely, as operating profit more than doubled—rising 106% to Rs. 602 million, compared to Rs. 292 million in Q1 of the previous year. This growth was attributed to higher volumes, greater economies of scale, and strategic cost-control measures, particularly within its IT infrastructure.

On a quarter-over-quarter basis, operating profit also saw a healthy 13% growth, indicating sustained momentum built on robust volume expansion and refined cost structures. Net profit soared to Rs. 437 million, a substantial 96% increase over the Rs. 223 million reported in the same period last year. Sequentially, net profit grew 16%, further underlining PickMe’s consistent performance.

In addition to financial performance, the company focused on strengthening its operational capabilities. Strategic investments were made to expand and stabilise the driver base, ensuring platform reliability and service continuity. As a result, both monthly active users and independent third-party drivers hit all-time highs during the quarter, reaffirming PickMe’s strong market presence and scalable growth potential.

Commenting on the results, PickMe Chairman Ajit Gunewardene stated, “Our Q1 results reflect the power of our platform and the soundness of our strategic direction. Strong user engagement and a growing network of independent drivers position us for continued, sustainable growth.”

Founder and CEO Jiffry Zulfer echoed the sentiment, noting, “The 106% jump in operating profit highlights our commitment to disciplined cost management and technological efficiency. Our focus on IT infrastructure optimisation continues to yield significant operational benefits.”

 With a strong start to the financia

Draft Bill to Repeal Special Entitlements for Former Presidents Gazetted

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The Presidents’ Entitlements (Repeal) Draft Bill, which seeks to revoke special privileges granted to former Presidents and their widows, was officially gazetted on July 31, 2025.

The Draft Bill, ordered to be published by Justice and National Integration Minister Harshana Nanayakkara, proposes to repeal the Presidents’ Entitlements Act, No. 4 of 1986 in its entirety.

According to the gazette notification, the Bill aims to abolish all special benefits previously provided under Sections 2 and 3 of the Act. These include residences, monthly allowances, secretarial support, official transport, and similar facilities afforded to former Presidents and their widows.

Furthermore, the Bill proposes to cease the monthly pension currently paid to the widow of a former President, as outlined under Section 4 of the repealed legislation.

The Cabinet of Ministers granted approval last week to proceed with the gazetting and tabling of the Bill in Parliament, following a proposal submitted by Minister Nanayakkara.

The Draft Bill also clarifies that all entitlements and payments provided prior to the date of commencement of the new law shall be discontinued from the date it comes into effect.

President Anura Kumara Dissanayake Pledges End to Corrupt Politics, Vows Equal Justice for All

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President Anura Kumara Dissanayake reaffirmed his commitment to transforming Sri Lanka’s political landscape, declaring that his administration has introduced a new political culture, replacing a system long plagued by corruption and waste.

Speaking to the Sri Lankan community in the Maldives at an event held on Wednesday (30) at the Maldives National University Auditorium, the President said the current Government has also taken decisive steps to revive the country’s stagnant economy.

“We are building a State where everyone is equal before the law. An era was created where State property and public funds were wasted on a grand scale. We will make Sri Lanka a country where people are not only afraid to take bribes but even to think about taking one,” the President declared.

He emphasised that the rule of law is now being enforced across all sectors, ensuring equal accountability irrespective of status or power.

Organised by the Sri Lankan High Commission in the Maldives, the event brought together Sri Lankan professionals, students, and workers residing in the Maldives.

President Dissanayake said the two central priorities of his Government — political reform and economic renewal — reflect the will of the people expressed at the last Presidential Election.

“We are committed to fulfilling the trust placed in us by the people of Sri Lanka. Let us work together to build a better country for future generations — one they can inherit with hope and pride, not hardship and despair,” he urged.

He also expressed gratitude to Sri Lankans in the Maldives who contributed to the electoral victory of the National People’s Power (NPP) at both the Presidential and General Elections.

During the event, the President engaged directly with the audience, responding to questions about the current situation in Sri Lanka and concerns of Sri Lankan expatriates living in the Maldives.

100,000 Students Missing Out on Education, PM Harini Amarasuriya Warns

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Prime Minister and Education Minister Dr. Harini Amarasuriya has raised alarm over rising school dropouts and absenteeism, revealing that around 20,000 students dropped out of school last year, while a further 80,000 failed to attend regularly.

Speaking at a consultative meeting with education officials in the Central Province held at the Kandy District Secretariat Auditorium on July 31, the Prime Minister cited recent findings from an Education Ministry analysis.

“Each year, around 300,000 children enter Grade One. Of them, approximately 20,000 stop schooling partway through. Although statistically less than 1%, in real terms the number is significant and cannot be ignored,” she said.

Dr. Amarasuriya stressed the need for qualitative research to understand the underlying reasons behind these figures.

“We must identify who these children are and where they have gone. This may be the root cause of many social crises we are witnessing today.”

She also highlighted that about 80,000 children exhibit irregular attendance, with some attending school less than half the time.

“That means nearly 100,000 children — about one-third of those enrolled — are not receiving the education they are entitled to,” she noted.

The Prime Minister said dropout rates are higher among boys, calling for targeted interventions to determine whether these children are pursuing alternative education or abandoning it entirely.

Addressing higher and vocational education, Dr. Amarasuriya noted that while 40,000 students enter State universities annually, another 150,000 pursue vocational training. However, there is no clear data on the fate of the remaining school leavers, many of whom fall outside formal systems.

She also expressed concern about youth employability, particularly among young women, stating:

“Despite strong academic performance, many girls struggle to find employment. Women’s participation in the labour force is about 50% lower than men’s, mainly due to a lack of opportunities.”

While acknowledging that broader societal factors contribute to this disparity, Dr. Amarasuriya maintained that education plays a central role in addressing it.

She further questioned the effectiveness of Sri Lanka’s free education system, asking whether it truly delivers quality and meaningful learning outcomes.

“What we need is not just educated individuals, but citizens capable of resolving crises and engaging meaningfully with society,” she concluded.

The event was attended by Central Province Governor Prof. Sarath AbeykoonState Minister Gamagedara DissanayakeMPs Thushari Jayasinghe, Thanura Dissanayake and Ishak FarookEducation Secretary Nalaka KaluwewaCentral Province Chief Secretary Ajith Premasinghe, and Kandy District Secretary Indika Udawatta.

Chief Justice Surasena Vows to Fast-Track Judicial Digitization

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Sri Lanka’s newly appointed 49th Chief Justice, Preethi Padman Surasena, has pledged to accelerate the digital transformation of the country’s judicial system, describing it as vital to delivering efficient and modern justice.

In his first official address at a ceremonial sitting of the Supreme Court held to mark his formal assumption of office, Chief Justice Surasena stressed the urgent need for the judiciary to embrace technology in order to meet public expectations and align with international standards.

I will fast-track the digitization of the Court system throughout the country. That is what the BASL wants; that is what the Minister wants; that is what the Government wants; that is what the litigants want. If you want different results, start making different choices,” he declared.

Chief Justice Surasena emphasized the judiciary’s responsibility to offer a high-quality service to the public, warning that delays in modernizing the system would impair the profession’s ability to serve justice efficiently. He said the legal community must uphold professional standards, as public trust in the system depends on it.

Calling for immediate and collective action, he noted that government funding and stakeholder support are already in place, but progress has been stalled due to lack of initiative.

The Chief Justice highlighted several benefits of automation, including increased efficiency, cost reduction for litigants, and improved time management.

Earlier in the ceremony, Attorney General Parinda Ranasinghe (Jnr) PC and Bar Association of Sri Lanka (BASL) President Rajeev Amarasuriya welcomed the new Chief Justice and commended his longstanding service to the judiciary.

WEATHER FORECAST FOR 01 AUGUST 2025

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Showers or thundershowers will occur at several places in North-Central, Uva, Eastern, Central and Sabaragamuwa provinces and in Kurunegala, Vavuniya, Mullaittivu and Hambantota districts after 1.00 p.m. Fairly heavy falls about 75 mm are likely at some places in these areas.

A few showers may occur in Western province and in Galle, Matara and Puttalam districts.

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