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Top prisons official grilled in expanding probe into alleged unlawful inmate releases

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June 09, Colombo (LNW): An ongoing investigation into the suspected misuse of presidential pardons has taken a dramatic turn, with the Commissioner General of Prisons, Thushara Upuldeniya, subjected to over ten hours of questioning by the Criminal Investigation Department (CID) on Saturday.

This follows a prior session the night before, during which he was interrogated for five hours.

The inquiry stems from a complaint lodged by the Presidential Secretariat, which alleges that the privilege of presidential clemency was misapplied to secure the release of inmates who had not officially been granted such pardons.

The complaint has triggered a high-level probe into possible procedural violations and abuse of authority within the prison system.

Central to the unfolding controversy is an incident involving the release of an inmate from Anuradhapura Prison on Vesak Poya Day. The prisoner, W.H. Athula Tilakaratne, was reportedly freed on the grounds that he had received a presidential pardon in line with Vesak observances.

However, this claim was swiftly refuted by the Presidential Secretariat, which clarified that no such clemency had been granted in his case.

In connection with this release, a senior superintendent from the Anuradhapura Prison was taken into custody by CID officers on Saturday afternoon. The 52-year-old official, a resident of Kalutara South, is expected to be produced before the Anuradhapura Magistrate’s Court today as investigations continue to unfold. Authorities believe his actions may have been instrumental in facilitating the unlawful release.

Public Security Minister Ananda Wijepala confirmed that the incident has led to a wider investigation into past cases where convicts may have been released without proper authorisation.

He stressed that any officials found complicit in circumventing legal procedures would face the full force of the law.

Key Reshuffle in Police: CIABOC gets new Investigations Director

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June 09, Colombo (LNW): Fifteen officers from the Sri Lanka Police, including several in senior ranks, have been reassigned to new posts with immediate effect.

The transfers and appointments, sanctioned by the National Police Commission, are part of ongoing efforts to streamline operations and enhance efficiency across multiple divisions.

Amongst the most prominent changes, Senior Superintendent of Police Mohan Lal Siriwardena has assumed the role of Director of Investigations at the Commission to Investigate Allegations of Bribery or Corruption.

His prior experience leading the Financial Crimes Division within the Criminal Investigation Department (CID) is expected to lend significant weight to his new post, particularly as the country steps up its focus on tackling high-level financial misconduct.

Several shifts have also occurred within the CID, indicating a strategic bolstering of investigative capacity. Superintendent of Police A.S.K. Bandara has been reassigned from the Ampara Division to the CID, whilst Assistant Superintendents of Police W.T. Anuranga and B.L.A. Prasanna have been moved from Mount Lavinia and Elpitiya Divisions respectively. Prasanna’s post in Elpitiya has now been filled by ASP M.D.P. Deepthi Kumara, reflecting a direct swap between the two officers.

Numerous Chief Inspectors and Inspectors have also been repositioned, impacting police leadership in regions such as Balangoda, Badulla, Delft, Udawalawe, Gampola, and Batticaloa. These include the transfer of CI J.D.D.C. Jayakody from the role of Officer-in-Charge (OIC) in Balangoda to the Badulla Division, whilst CI W.D.K.C. Navaratne has been posted to Balangoda in return.

Further notable changes include CI R.P.C.U. Rajapaksa’s move to lead the Udawalawe Police, CI B.P.L. Fernando’s shift from Gampola HQ to the eastern city of Batticaloa, and CI K.M.D.N.D. Kannangara’s return to Gampola HQ after serving in Delft. Other transfers affect areas ranging from Ankumbura and Matale to Nawakurunduwatte and Gampaha, illustrating the breadth of the realignment.

At the Inspector level, M.H.N. Tharaka has been reassigned from Bemmulla to Poovarasankulam, whilst S.M.N.N. Siripathi will take over responsibilities at Bemmulla Police Station.

Railways roll out special services for Poson pilgrims journeying to sacred sites

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June 09, Colombo (LNW): In anticipation of the annual Poson Poya pilgrimage, Sri Lanka Railways has introduced a series of dedicated train services aimed at easing the travel burden for thousands of devotees making their way to the historic city of Anuradhapura and the sacred site of Mihintale.

The enhanced rail operations began earlier today and are set to continue until June 12.

To meet the seasonal demand, 20 special trains have been scheduled to run from Colombo Fort to Anuradhapura. In a gesture of goodwill and support for religious observance, 36 complimentary services will also operate between Anuradhapura and Mihintale—offering a vital transport link for those undertaking the spiritual journey.

Railway authorities have assured that sufficient return journeys from Anuradhapura to Colombo will be made available throughout the Poson period, ensuring that pilgrims can travel with minimal inconvenience.

The Department of Railways has encouraged the public to make full use of these temporary services, reminding passengers to prioritise safety, especially in crowded stations and carriages.

Government veterinarians stage nationwide protest amid growing frustration over professional recognition

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June 09, Colombo (LNW): Public sector veterinary surgeons across Sri Lanka commenced a token strike early this (09) morning, expressing their growing dissatisfaction over what they describe as systematic obstruction of their professional development by senior bureaucrats.

The industrial action, which began at 6 a.m., marks a coordinated effort by the State Veterinary Surgeons’ Association to bring longstanding grievances into the public eye.

Speaking at a briefing in Colombo, the Association’s Chairman, Dr Upul Ranjith Kumara, outlined the motivations behind the strike. Central to their concerns is the alleged interference by the Secretary to the Ministry of Agriculture, whom the Association accuses of deliberately thwarting efforts to create an independent service structure for government veterinary surgeons.

Such a structure, they argue, is vital to ensuring career progression, equitable recognition, and operational autonomy within the public service.

Dr Kumara emphasised that this protest, while currently symbolic in nature, is a clear warning of escalating action if the authorities fail to address their concerns promptly.

He warned that services at state-run veterinary offices nationwide would be impacted, resulting in delays and interruptions to regular veterinary care and animal health initiatives.

Thousands of ex-military personnel to be drafted into Police force in sweeping security initiative

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June 09, Colombo (LNW): The Sri Lankan government has unveiled a proposal to enlist 10,000 former military personnel into the police force.

The initiative targets individuals under the age of 45 who have formally concluded their military service through legal retirement.

The announcement came from the Minister of Public Security, Ananda Wijepala, during the inauguration of the new Superintendent of Police Office in Thambuttegama.

Addressing attendees at the ceremony, the Minister highlighted the government’s intention to table a Cabinet paper detailing the proposed recruitment framework.

The document is expected to be submitted for approval at the forthcoming Cabinet meeting today (09).

According to Minister Wijepala, the scheme envisions a fixed-term appointment of five years for the selected individuals. The measure is being introduced as part of a broader national effort to reinforce public order, optimise existing resources, and address gaps in policing, particularly in areas where manpower shortages have been felt.

The proposal is also seen as a strategic move to make use of the discipline, training, and operational experience of former military personnel, while providing them with a new avenue of public service.

Once approved, the plan could significantly ease the pressure on active police units across the country.

In a related concern raised at the same event, Wijepala drew attention to the escalating issue of youth vulnerability to narcotics. He revealed that nearly 7,900 children have already been identified as being at risk of drug abuse, underscoring the urgent need for both preventive action and increased law enforcement visibility in communities.

Showery conditions expected to enhance in southwestern part of island from tomorrow

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June 09, Colombo (LNW): Showery condition is expected to enhance in the southwestern part of the island from tomorrow (10), with strong wind gust over the island and in the sea areas around the island, the Department of Meteorology said in its daily weather forecast today (09).

General public is requested to be attentive to future forecasts issued by the Department of Meteorology in this regard.

Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Showers or thundershowers may occur at a few places in the Northern and Uva provinces during the afternoon or night.

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

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 will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle. Showers or thundershowers will occur at a few places in the sea areas off the coast extending from Mannar to Mullaitivu via Kankasanthurai during the evening or night.

Winds:
Winds will be south-westerly.
wind speed will be (30-40) kmph and can increase up to (50-60) kmph at times in the sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota.
Wind speed will be (25-35) kmph in the other sea areas around the island.
Wind speed can increase up to (45-50) kmph in the sea areas extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu.

State of Sea:
The sea areas off the coast extending from Chilaw to Kankasanthurai via Puttalam and Mannar and from Galle to Pottuvil via Hambantota will be rough at times. The sea areas extending from Chilaw to Galle via Colombo and from Kankasanthurai to Trincomalee via Mullaittivu will 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 Hambantota to Pottuvil.
Naval and fishing communities are requested to be vigilant in this regard.
Temporarily strong wind gust and very rough seas can be expected during thundershowers.

Sri Lanka’s Trade Gap Widens amid Soaring Debt Payments

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By: Staff Writer

June 08, Colombo (LNW): Sri Lanka’s external finances are under growing pressure, with rising interest payments and a sharply widening trade deficit straining the economy. Treasury officials revealed that Rs. 1.5 trillion had been spent on principal and interest payments during the first four months of 2025—consuming over 20% of the country’s annual borrowing limit.

With Rs. 796 billion paid as interest and Rs. 352 billion on principal repayments, the country’s debt servicing remains a formidable burden. Alarmingly, Rs. 705 billion of the interest was paid on domestic borrowings alone.

This mounting debt is compounded by a weakening trade balance. In April 2025, Sri Lanka’s trade deficit surged to US $717 million, marking a steep rise from $396 million recorded in March—a more than 80% month-on-month increase. Year-on-year, the deficit was also significantly wider than the $558 million reported in April 2024.

The growth in imports outpaced exports, driving the widening gap. While April exports rose by 10.4% YoY to $968 million, they fell sharply from March’s $1.24 billion. Meanwhile, imports grew 17.5% YoY to $1.68 billion in April, maintaining a similar level to March’s $1.63 billion, which had also risen 8.6% YoY.

According to the Central Bank, for the first four months of 2025, the cumulative trade deficit widened to $2.25 billion. Export earnings during this period increased 6.4% YoY to $4.3 billion, driven mainly by gains in textiles and garments (11.6%), spices (66.3%), food, beverages and tobacco (25.0%), and chemical products (42.6%).

However, import expenditure ballooned by 12.7% YoY to $6.57 billion. This surge was led by a dramatic rise in personal vehicle imports (707.9%), followed by transport equipment (142.2%), oils and fats (136.4%), machinery and equipment (26.5%), and sugar and confectionery (51.5%).

In terms of borrowings, Rs. 654 billion was sourced domestically while Rs. 128 billion came from foreign sources, totalling 20.5% of the Rs. 3,800 billion approved borrowing limit for 2025. Treasury bond issuance on a net basis reached Rs. 760 billion, while Rs. 107 billion worth of Treasury bills were retired.

As of end-April, Sri Lanka’s domestic debt stock stood at Rs. 19.3 trillion, with foreign debt at Rs. 11.2 trillion as of end-March. Additionally, Treasury guarantees amounting to Rs. 1,515 billion were issued by April’s end, including Rs. 910 billion for foreign obligations.

Officials also indicated a downward revision of the 2025 GDP projection—from Rs. 33 trillion to Rs. 32 trillion—which could reduce revenue and expenditure targets by Rs. 150 billion. This outlook raises further concerns over fiscal stability in the months ahead.

Textile Giant Teejay Lanka Eyes New Markets amid U.S. Tariff Pressure

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By: Staff Writer

June 08, Colombo (LNW): Sri Lanka’s apparel industry is bracing for a significant downturn following the United States’ imposition of a steep 44% tariff on Sri Lankan garment exports — one of the highest rates applied to any country.

With the U.S. being Sri Lanka’s largest single-country apparel market, this move threatens to severely undermine the sector’s competitiveness and could lead to a projected 20% drop in exports.

In response, Sri Lankan apparel manufacturers and multinational textile companies are urgently exploring alternative markets to diversify their exports and reduce reliance on the U.S. Among them, leading fabric manufacturer Teejay Lanka is proactively adapting its operations to weather the disruption.

Teejay Lanka, a multinational with textile manufacturing facilities in Sri Lanka, India, and East Asia, is taking strategic measures to cushion the impact of the new tariffs. “While the current tariff ruling is being challenged in court, Teejay is closely monitoring the situation and proactively adapting its operations,” Group CEO Pududu de Silva noted in the company’s annual report.

The group’s ability to shift production across multiple locations gives it a crucial advantage in maintaining supply chain stability and cost competitiveness. Teejay is also leveraging its balanced portfolio between U.S. and European Union markets to spread risk.

In a bid to expand its global footprint and reduce exposure to U.S. policy volatility, Teejay recently launched partner operations in Egypt and Indonesia. These new facilities have already begun commercial operations in the 2024/25 financial year. Two dedicated teams have been assigned to ensure operational efficiency at these new sites, reinforcing Teejay’s strategy of sustainable growth and global market expansion.

Beyond geographic diversification, Teejay is also investing in renewable energy — including solar and biomass — to reduce operational costs and enhance long-term sustainability.

Despite the current challenges, Sri Lanka’s apparel sector remains committed to ethical and sustainable manufacturing practices. Industry leaders are urging the government to take swift action to support the sector and help find solutions to counter the adverse effects of the tariffs.

As pressure mounts from shifting U.S. trade policies, Sri Lanka is doubling down on efforts to strengthen trade ties with other regions, aiming to secure new markets and protect one of its most vital export industries.

Dr. Dharmasri Kumaratunge to Lead Next Phase of Fintech Growth as PayMedia Chief

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By: Staff Writer

June 08, Colombo (LNW): PayMedia Ltd., a leading provider of digital financial solutions in Sri Lanka, has appointed Dr. Dharmasri Kumaratunge as its new Chairman in a strategic leadership reshuffle aimed at accelerating innovation and regional expansion.

Dr. Kumaratunge, a seasoned economist and veteran in financial services, brings over 35 years of experience spanning banking, financial technology, international trade, and digital transformation. He previously served as Assistant Governor at the Central Bank of Sri Lanka (CBSL) and was Director of the CBSL’s Payments and Settlements Department from 2016 to 2022. He also held the position of Secretary of the Ministry of Technology.

His appointment is expected to enhance PayMedia’s alignment with global standards, reinforce governance, and support long-term sustainability. The company said it is honoured to welcome Dr. Kumaratunge, citing his deep industry insight and leadership as critical assets in guiding PayMedia through its next phase of growth.

PayMedia’s board now comprises three senior leaders: Dr. Kumaratunge as Chairman, company Founder Kanishka Weeramunda, and Rohan Muttiah, who joined as a non-Executive/Independent Director in November 2024.

Weeramunda, whose vision founded the company, played a key role in transforming Sri Lanka’s digital payment landscape. Under his guidance, PayMedia introduced innovative solutions in payment automation and financial inclusion, earning recognition both locally and internationally.

Muttiah, a veteran in banking and IT governance with 45 years of experience, brings critical oversight on areas including cybersecurity, artificial intelligence, fraud management, and digital banking channels. His broad expertise in public and private sector governance is expected to strengthen the company’s compliance and risk management capabilities.

The leadership appointments come at a crucial juncture as PayMedia intensifies its expansion efforts in international markets including the Maldives, Bangladesh, and Nigeria. The company is also enhancing its digital onboarding technologies and card issuance solutions within Sri Lanka’s cooperative and banking sectors.

With nearly 200 professionals on its team, PayMedia is certified with ISO 9001:2015 and complies with PCI DSS standards, reflecting its commitment to quality management and secure payment systems. The new leadership structure is anticipated to drive increased agility, innovation, and growth as the company continues its mission to empower financial institutions and communities through advanced financial technology.

Elephant House Expands into India via Reliance Retail Partnership

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By: Staff Writer

June 08, Colombo (LNW): Sri Lanka’s renowned beverage brand, Elephant House, has entered the Indian market in a landmark move through a strategic partnership with Mukesh Ambani’s Reliance Group. This collaboration sees the distribution and sale of Elephant House soft drinks in India, marking a significant international expansion for the iconic Sri Lankan brand.

Ceylon Cold Stores, a subsidiary of John Keells Holdings (JKH), confirmed that Elephant House beverages are now being distributed in India. The rollout follows a franchise agreement made in February 2024 with Reliance Consumer Products Limited (RCPL), a wholly owned subsidiary of Reliance Retail Ventures Limited (RRVL). Under this arrangement, RCPL will manufacture, market, distribute, and sell Elephant House beverages across India.

The partnership enables Elephant House to export its carbonated soft drink concentrate to Reliance, which will then handle local production and distribution. According to JKH, the similar flavour preferences between Indian and Sri Lankan consumers, verified through pilot studies, provide a unique advantage for the brand’s success in the Indian market.

While the financial impact of this partnership on Ceylon Cold Stores is currently minimal, JKH expects it to grow as brand recognition and sales volume increase in India. The collaboration also aims to strengthen supply chains and reduce credit risks by working closely with suppliers and distributors.

Reliance, known for its robust retail footprint, operates a vast omni-channel network comprising approximately 18,700 stores and digital platforms, alongside a merchant base exceeding three million. This extensive infrastructure is set to offer Elephant House significant market reach and visibility in India.

RCPL’s growing beverage portfolio, which already includes legacy Indian brands such as Campa, Sosyo, and Raskik, will now be enhanced by the addition of Elephant House products. RCPL’s COO, Ketan Mody, expressed enthusiasm about the deal, describing Elephant House as a beloved brand with deep heritage and strong market credibility. He noted that Indian consumers would benefit from an expanded range of quality beverages and improved value offerings.

JKH Chairperson Krishan Balendra hailed the partnership as a milestone in the legacy of Elephant House, a brand with over 150 years of history. He emphasized the shared commitment between JKH and Reliance to innovation, quality, and expanding access to premium products in new markets.

RCPL reiterated its vision to provide Indian consumers with a broad portfolio of globally respected brands. The company is actively scaling up its distribution channels to serve a wider demographic across the country, ensuring that Elephant House’s expansion into India is both sustainable and impactful.