Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernandoyesterday said that irresponsible borrowings following the end of the war in 2009 had prevented Sri Lanka from achieving sustained economic growth, as much of the borrowed funds had not been directed into productive economic channels.

Speaking at the Voyage Sri Lanka 2025 International Maritime Summit, which brought together global experts, investors, policymakers, and industry leaders to shape the country’s blue economy, Dr. Fernando noted that while some economic growth was visible in 2010, it was not sustainable due to poor investment decisions.

“You may see some growth in economic development in 2010, but it was not sustainable, because most of the borrowing had not gone into productive economic channels,” he said.

Dr. Fernando emphasized that Sri Lankans are capable of contributing meaningfully to development, but structural missteps and poor financial decisions had hindered progress. “Opportunities alone don’t bring change. What we need is action — and that includes committed Government intervention,” he added.

Highlighting the Government’s proactive role in economic facilitation, he said, “Our mandate is to look at everything carefully and support investors. This is not politicisation – it’s facilitation.”

He further clarified that while political engagement is necessary to support investment, politicisation — or intervening to maximize private interests — will not be tolerated.

The Voyage Sri Lanka 2025 Summit aims to foster collaboration and unlock new opportunities for development in key sectors such as ship repair, shipbuilding and boatbuilding, offshore services and energy, and marine tourism — all identified as critical drivers of export growth and technological advancement in the maritime domain.

Sri Lanka has entered into a USD 100 million loan agreement with the Asian Development Bank (ADB) to enhance the country’s health sector, the Ministry of Finance announced.

The agreement was signed by Finance Ministry Secretary Harshana Suriyapperuma on behalf of Sri Lanka, and ADB Country Director Takafumi Kadono representing the Asian Development Bank.

According to the Ministry, the funds—provided through ADB’s Ordinary Capital Resources window—will support the implementation of the National Strategic Framework for Health Services Development, focusing on improving the efficiency and quality of secondary healthcare services as the first point of referral care. The initiative aims to strengthen Sri Lanka’s progress toward universal health coverage.

In addition to the loan, the package includes an externally financed grant of USD 6.9 million from the Pandemic Fund, provided under a Results-Based Lending approach. This grant component is expected to support measures that enhance the health system’s resilience and preparedness for future public health emergencies.

The National Operations Council for the “Ratama Ekata – National Operation” convened for the first time yesterday (17) at the Presidential Secretariat, under the patronage of President Anura Kumara Dissanayake, to implement a comprehensive national program aimed at eradicating the growing drug menace in Sri Lanka, the President’s Media Division (PMD) reported.

The “Ratama Ekata – National Operation” initiative—declared a top national priority—was formally approved by the Cabinet of Ministers on October 13, following a proposal presented by President Dissanayake. The newly established National Operations Council has been tasked with coordinating and driving the program’s implementation.

During its inaugural session, the Council discussed key areas of action including dismantling drug trafficking networks, rehabilitating drug addicts, mobilizing public participation, and engaging community organizations and media to raise awareness on the dangers of drug abuse.

President Dissanayake, outlining the main objective of the Council, emphasized that the drug crisis has evolved into a national socio-economic disaster, endangering the lives and futures of the country’s youth and schoolchildren. He stressed that eradicating the drug menace requires a unified effort that combines law enforcement, rehabilitation, education, and public cooperation.

The President further noted that the “Ratama Ekata – National Operation” will serve as a coordinated platform bringing together government agencies, civil society organizations, and local communities to build a drug-free nation.

Sri Lankan Prime Minister Harini Amarasuriya today praised India’s Neighbourhood First policy, describing it as a cornerstone of regional stability and cooperation that has benefitted all neighbouring countries.

Speaking at the NDTV World Summit in New Delhi under the theme “Steering Change in Uncertain Times,” Prime Minister Amarasuriya said, “India’s rise, coupled with its inclusive approach, provides an anchor of stability. For Sri Lanka, this partnership embodies a shared belief that we achieve more and rise stronger when we rise together.”

She expressed deep gratitude for India’s assistance during Sri Lanka’s 2022 economic crisis, calling it a moment that “redefined leadership.”
“India’s support at our hour of need is remembered and deeply valued by our people,” she said, recalling India’s $500 million line of credit for fuel purchases and a $1 billion facility for essential imports including food and medicine during the crisis.

Amarasuriya, who studied at Hindu College, Delhi in the 1990s, reflected on her student days, saying that returning to India now felt like “coming full circle.”
“In 1991, I was a student here navigating a period of change. Returning now, I have seen India transform into a vibrant country of 1.4 billion,” she said.

During her first official visit to India, Amarasuriya also met with Prime Minister Narendra Modi, where discussions focused on strengthening bilateral ties across multiple sectors.

Referring to Sri Lanka’s path of recovery after the crisis, she said the country has emerged with “a clear mandate for a forward-looking Sri Lanka.”
“We have restructured our debt and we are digitising the public structure,” she noted, emphasizing resilience amid economic and political challenges.

Looking ahead, the Prime Minister outlined key areas for India-Sri Lanka collaboration — including trade, regional connectivity, renewable energy, and Indian Ocean security.
“It is very important that India-Sri Lanka relations, especially in trade and investment, must not be seen as a zero-sum game,” she said.

Highlighting economic ties, Amarasuriya noted that India is Sri Lanka’s largest trading partner, leading investor, and top tourism source, while Sri Lankan investments in India — particularly in the apparel sector — employ around 20,000 Indians, mostly women from rural Andhra Pradesh.

She added that Sri Lanka aims to become a maritime hub for the Indian Ocean, offering a cost-effective gateway for global trade, complementing India’s regional growth ambitions.

“As India positions itself as a global manufacturing hub, Sri Lanka can serve as a complementary production base — especially in textiles, electronics, and food processing,” she said.

The Prime Minister also pointed to tourism as a major growth frontier, offering opportunities in hospitality, infrastructure, and new travel experiences.

“Our two nations share more than geography — we share a destiny. Together, we can chart a future of inclusive growth and regional prosperity,” Amarasuriya concluded.

A case has been filed against a lawyer accused of digitally altering a photograph of a female lawyer using artificial intelligence (AI) to create explicit images and sharing them online.

The case, bearing number B 41701/01/25, was taken up today (14) before the Colombo Chief Magistrate’s Court, presided over by Magistrate Asanga Bodaragama. The court observed that the actions of the accused lawyer, identified as Kingsly Sandun Sanjeewa, were unbecoming of the legal profession. The magistrate further noted that a record of this observation would be included in the case file and instructed the victim’s legal team to consider filing a complaint with the Supreme Court.

According to the case, the accused allegedly took a photograph of his colleague—also a lawyer and a member of his group at the Open University—and used AI technology to create nude versions of her image. He then reportedly distributed these fabricated images, along with her real name and phone number, via social media platforms such as Facebook, WhatsApp, and Telegram.

Investigations revealed that the accused had been communicating under her identity for nearly two years, sharing the manipulated images and engaging in sexually explicit conversations with individuals online. Screenshots of these chats were also circulated in online groups.

The female lawyer became aware of the incident only after friends, clients, and acquaintances who had seen the posts on social media informed her about them.

Following a technical investigation conducted by the Computer Crimes Division of the Criminal Investigation Department (CID), the suspect was arrested on 3 October 2025. However, he was later released on bail due to health reasons, having recently undergone surgery related to diabetic complications.

When the case was called again today, Magistrate Bodaragama expressed strong disapproval of the accused’s conduct and ordered the case to be recalled on 28 October 2025.

A legal team led by Senior Attorney Jaliya Samarasinghe and Attorney Udul Premarathne appeared on behalf of the aggrieved female lawyer.

 Human Rights Watch (HRW) yesterday warned that Sri Lanka’s flawed tax policies were central to the country’s 2022 economic collapse and continue to deprive citizens of essential public services. The rights group called on President Anura Kumara Disanayake’s government to overhaul a system that favours corporations and the wealthy while failing to generate sufficient revenues for public welfare.

In its 101-page report, “Tax Giveaways, Struggling Schools: How Low Taxes Drove Sri Lanka’s Economic Crisis and Squandered its Education Lead,” HRW highlighted how decades of revenue-starving policies have weakened the State, leaving it heavily dependent on regressive consumption taxes.

“For decades, Sri Lanka has been hostage to economic policies that starve its Government of revenue and focus narrowly on GDP growth,” said HRW Senior Economic Justice Researcher Sarah Saadoun. “These ruinous tax policies have left education spending far behind, turning Sri Lanka from a global leader in public education to a laggard.”

The report found that public education spending fell from 3–5% of GDP in the two decades after independence to just 1.5% in 2022, among the lowest globally. Funding gaps forced schools to charge fees for basic resources, exacerbating inequality and undermining children’s right to free education.

HRW said Sri Lanka’s low revenue base contributed to the April 2022 debt default, triggering job losses, soaring inflation, and a prolonged social crisis. The group traced the roots of the problem to liberalisation policies of the late 1970s, worsened by 2019 tax cuts under former President Gotabaya Rajapaksa, which significantly reduced government revenues.

By 2022, tax exemptions for companies cost the Treasury 56% of total revenue, nearly three times the national education budget, while 80% of tax income came from goods and services, disproportionately burdening low-income households.

Saadoun emphasized, “Growth alone is not enough to fulfil human rights. The Government should establish a progressive tax system and ensure funds are used to support education and public services for all.”

HRW recommended eliminating costly corporate exemptions, introducing a wealth tax, and strengthening enforcement. While the current administration has taken limited measures, such as a Rs. 6,000 transfer to low-income families, HRW urged the government to raise education spending to 4–6% of GDP in line with international standards and human rights obligations.

HRW Calls for Tax Reform to Rescue Sri Lanka’s Education Sector

Human Rights Watch (HRW) has warned that Sri Lanka’s tax policies played a major role in the 2022 economic collapse and continue to deprive citizens of essential services. In its 101-page report, HRW said successive governments favoured corporations and the wealthy while failing to generate adequate revenue, leaving the country reliant on regressive consumption taxes.

 The report noted that education spending fell to 1.5% of GDP in 2022, forcing schools to charge fees for basic resources and widening inequality. Tax exemptions for companies cost the Treasury 56% of total revenue, nearly three times the national education budget, while 80% of tax income came from goods and services, disproportionately affecting low-income households.

 HRW urged President Anura Kumara Disanayake’s government to introduce a progressive tax system, eliminate corporate exemptions, and increase education spending to 4-6% of GDP to uphold human rights and strengthen social services.