The World Bank Group has confirmed its commitment to continuing all ongoing World Bank-supported projects in Sri Lanka under the country’s new government. Plans are also underway to establish an advisory group tasked with evaluating how best to align World Bank assistance with the new government’s development priorities.

This agenda, presented by the new administration under President Dissanayake, emphasizes reducing rural poverty and addressing longstanding issues in the North and East, including land and housing challenges faced by the plantation community.

 The government has also prioritized economic modernization, as reflected in its push for a Digital Identity Card initiative. 

The World Bank praised the administration’s “Clean Sri Lanka” initiative, reaffirming its support for these environmental efforts.

Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe recently met with World Bank Country Manager Gevorg Sargsyan to discuss structural barriers that have hindered industrial growth in Sri Lanka for decades.

These include the absence of a national integrated industrial plan, limited access to capital, weak institutional frameworks, insufficient anti-dumping measures to protect local industries, and a shortage of skilled labor necessary for sustainable development. 

The meeting also addressed the impacts of recent tax policy changes and non-performing debts.

The deputy minister outlined the government’s strategic vision for industrial development, its short-term objectives, and specific assistance needed to meet these goals. 

In response, the World Bank delegates shared details of their ongoing programs and areas where they could provide support, such as the Business Ready Index, technical research assistance, and State-Owned Enterprise (SOE) restructuring. 

They also reaffirmed their commitment to agricultural transformation and offered guidance on how their expertise could align with Sri Lanka’s broader development plans.

The World Bank delegation included key figures such as Lead Economist Gregory Smith, IFC Senior Country Officer Victor Anthonypillai, and Economist Amila Dahanayake. The deputy minister’s team comprised Personal Secretary Yasas Hewage and Coordinating Secretary Melani Augustine.

Sri Lanka has firmly rejected media claims suggesting an agreement was reached to construct an Indian oil pipeline during recent bilateral talks. Foreign Minister Vijitha Herath clarified that no such deal was finalized during President Anura Kumara Dissanayake’s visit to India, dismissing reports as inaccurate.

The controversy stems from Indian Prime Minister Narendra Modi’s statement on November 16, where he outlined plans for enhanced energy collaboration between the two nations, including connecting power grids and laying a petroleum pipeline. Modi’s remarks followed his meeting with President Dissanayake in New Delhi, marking the Sri Lankan leader’s first official visit since assuming office after a decisive election victory in September.

While India’s state-run Petronet LNG has agreed to supply liquefied natural gas (LNG) to Colombo’s power plants via its Kochi terminal for five years, discussions on broader energy projects remain preliminary. According to Minister Herath, a proposal involving India, Sri Lanka, and the United Arab Emirates (UAE) to construct a multi-product energy pipeline has been introduced but is still under review, with no formal agreement in place.

Herath emphasized the importance of continuing dialogue on energy collaboration but dismissed allegations of a finalized deal for Indian oil pipelines in Sri Lanka as false. He made these clarifications during a special briefing held on November 20 at the Department of Government Information.

The official joint statement issued by India’s Ministry of External Affairs highlighted mutual interest in strengthening energy cooperation. Both leaders agreed on the need for reliable and affordable energy to ensure energy security and meet public demands.

 Specific areas of focus include implementing the Sampur solar power project and exploring its expansion based on Sri Lanka’s needs. Other proposals under discussion involve LNG supply, offshore wind power development in the Palk Strait, and a potential high-capacity power grid interconnection.

The Indo-Lanka-UAE pipeline proposal aims to facilitate affordable and sustainable energy supply, addressing regional energy challenges. While the project could hold significant strategic and economic benefits, its feasibility and timeline remain subjects of ongoing deliberations.

While India and Sri Lanka have pledged to deepen energy ties, claims of a concrete oil pipeline agreement are unsubstantiated. The dialogue reflects both nations’ commitment to exploring innovative energy solutions while prioritizing environmental conservation and regional energy security.

1. President Anura Kumara Dissanayake highlighted the critical challenge of transforming Sri Lanka’s public service into an efficient state mechanism. He pointed out that the newly appointed committee tasked with reviewing state institutions would make decisions without being influenced by political pressures.
2. The Government has not held any discussions nor have entered into any agreements with India regarding the proposed Economic and Technological Cooperation Agreement (ETCA) between India and Sri Lanka during President Anura Kumara Dissanayake’s recent state visit to India. Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath said this during the special media conference.
3. Lanka Sathosa has begun distributing imported rice stocks through its outlets from yesterday. Lanka Sathosa Chairman Dr.Samitha Perera said 1,500 metric tonnes of rice was purchased for this purpose.
4. A Gazette notification has been issued establishing an 18 member Presidential Task Force to plan and implement the “Clean Sri Lanka” Programme, a key feature in President’s policy statement. They have been tasked with preparing a plan, guide, implement, review the progress, and complete the “Clean Sri Lanka” programme within a given time frame aiming to achieve the objectives of elevating society to a more advanced status through a social, environmental and ethical awakening.
5. SLPP Member of Parliament D.V. Chanaka has been appointed as the National Convenor of the Sri Lanka Podujana Peramuna (SLPP).
6. President Anura Kumara Dissanayake says that the Local Government Elections will be held next year before the Sinhala and Tamil New Year.
7. The Panadura Magistrate’s Court has granted bail to notorious underworld figure and drug kingpin Salindu Malshitha Gunaratne, also known as ‘Kudu Salindu’, on three sureties of Rs. 01 million each.
8. Sri Lanka will soon formulate a national policy on allowing visits by foreign research vessels, Foreign Minister Vijitha Herath said here on Friday, amidst frequent docking requests from Chinese surveillance ships which raised concerns in India. Herath’s comments came days after Sri Lankan President Anura Kumara Dissanayake’s visit to India.
9. The Panadura Magistrate’s Court has granted bail to notorious underworld figure and drug kingpin Salindu Malshitha Gunaratne, also known as ‘Kudu Salindu’, on three sureties of Rs. 01 million each.
10. Sri Lanka Cricket (SLC) has announced significant amendments to its Constitution following an Extraordinary General Meeting (EGM) held on Friday (December 20), including a substantial reduction in the total number of voting members from 147 to 60. The amendments reaffirm SLC’s commitment to fostering good governance, transparency, inclusivity, and efficiency in its management structure, the SLC said in a statement.

Lanka Sathosa has commenced distributing imported rice stocks through its outlets as of yesterday, according to Chairman Dr. Samitha Perera. A total of 1,500 metric tonnes of imported rice has been procured for this initiative.

Dr. Perera emphasized that the distribution of locally produced rice at controlled prices continues uninterrupted through Lanka Sathosa outlets, ensuring no shortage for consumers.

Meanwhile, the government has announced an extension of the deadline for rice imports until January 10, 2025. This decision was finalized during a discussion held at the Trade Ministry last night, providing additional time for importers to meet domestic demand.

Sri Lanka Customs reports that 35,600 metric tonnes of rice stocks ordered by private importers have already arrived in the country, further contributing to the available supply.

These measures aim to stabilize rice availability and prices in the market while addressing any potential shortages.

The Sri Lankan Government has confirmed that no discussions or agreements were made regarding the proposed Economic and Technological Cooperation Agreement (ETCA) with India during President Anura Kumara Dissanayake’s recent state visit. Foreign Affairs, Foreign Employment, and Tourism Minister Vijitha Herath made this clarification at a special media briefing held yesterday (20) at the Department of Government Information.

Minister Herath emphasized that the state visit was a significant success, further solidifying bilateral relations between the two countries. Key outcomes of the visit include strengthened cooperation in economic, cultural, digital, technological, environmental, and other sectors.

Key Agreements and Initiatives

Two Memorandums of Understanding (MOUs) were signed:

1. Public Service Training: A two-week training program in India for 1,500 Sri Lankan state officials over the next five years.
2. Double Taxation Removal: A measure to eliminate double taxation for Sri Lankan businesses in India and vice versa, fostering economic benefits for the business communities of both nations.

Discussions on Fisheries Issues

The ongoing issues between Sri Lankan fishermen and South Indian fishing communities were also addressed. President Dissanayake highlighted concerns over bottom trawling by South Indian fishermen in Sri Lankan waters and arrests for trespassing. Both governments agreed to expedite discussions to find a permanent solution.

Infrastructure and Economic Development Projects

India pledged support for various development projects, including:

• Housing Projects: Continuation of Indian-funded housing initiatives in Sri Lanka.
• Mahawa–Omanthai Railway Line Renovation: Conversion of the Indian loan into a grant to complete the railway renovation, including a traffic signal system and operationalization of two trains between Anuradhapura and Jaffna.
• Karainagar Boat Complex: Grant funding for the construction of a boat complex to benefit the fishing industry in the North and nationwide.

Energy Cooperation

Sri Lanka and India reaffirmed their commitment to several energy projects:

• Sampur Solar Power Project: Continued collaboration under an existing agreement.
• Renewable Energy Initiatives: Discussions on joint LNG and wind power projects, with plans to export excess electricity through India under BIMSTEC cooperation.
• Multi-Product Oil Pipeline: A proposed joint venture involving Sri Lanka, India, and the UAE to construct a pipeline to supply affordable energy.

Maritime and Security Assurances

President Dissanayake proposed initiating talks to finalize Sri Lanka’s Exclusive Economic Zone (EEZ) demarcation, a proposal India agreed to discuss. The President also assured India that Sri Lankan territory, including land and sea, would not be used by any foreign power to threaten regional security.

Commitment to Responsible Agreements

Minister Herath stressed that the Sri Lankan government remains committed to agreements that prioritize the country’s well-being. “The government under President Anura Kumara Dissanayake will not agree to anything that is detrimental to the country in any way,” he affirmed.

This state visit marked a pivotal step in fostering stronger ties between India and Sri Lanka, with mutual agreements and discussions aimed at long-term benefits for both nations.

Several spells of showers will occur in Western and Sabaragamuwa provinces and in Galle and Matara districts.

Showers or thundershowers will occur at several places in Eastern, Central and Uva provinces and in Hambantota and Polonnaruwa districts during the evening or night.

Misty conditions can be expected at some places in Central, Sabaragamuwa, Uva and Eastern provinces during the morning.

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