Home Blog Page 297

Government to Amend Controversial Online Safety Act Amid EU Pressure

0

By: Staff Writer

May 21, Colombo (LNW): The government has announced plans to amend the controversial Online Safety Act, No. 9 of 2024, a law initially passed under the previous regime despite strong opposition from civil society groups, media organizations, and opposition parties.

Public Security Minister Ananda Wijepala confirmed that the move is part of broader efforts to align Sri Lanka’s legislation with European Union (EU) standards, particularly in light of the upcoming review of the country’s eligibility for the EU’s Generalised Scheme of Preferences Plus (GSP+).

The EU’s GSP+ facility grants Sri Lanka preferential trade access, which is vital for sectors such as apparel and manufacturing. Losing this benefit could result in significant economic setbacks, affecting both exports and employment.

Wijepala revealed that a special committee comprising representatives from the Ministries of Public Security, Health, Media, and Justice has been tasked with drafting amendments. These ministries are expected to submit a joint Cabinet Paper outlining proposed changes to the Online Safety Act.

A monitoring delegation from the EU is scheduled to visit Sri Lanka in late April 2025 to evaluate the country’s compliance with GSP+ requirements.

These include adherence to international standards on human rights, labor rights, environmental protection, and good governance. The Online Safety Act and the Prevention of Terrorism Act (PTA) have drawn particular concern due to their potential impact on freedom of expression.

An official from the Department of Commerce noted that EU oversight could influence domestic policies, especially legislation that affects internet freedom or privacy.

He also mentioned that new GSP+ guidelines may require signatories to ratify additional treaties, including those related to disability rights, children’s rights, and climate change.

Originally proposed by former Public Security Minister Tiran Alles, the Online Safety Act aimed to combat online fraud, gender-based violence, and child abuse.

However, the bill was met with fierce legal and public resistance. Over 50 petitions were filed with the Supreme Court, challenging the bill’s constitutionality.

The court ruled that several provisions required a special parliamentary majority but could be passed with a simple majority if amended at the committee stage.

Despite widespread objections, then-Speaker Mahinda Yapa Abeywardena signed the bill into law, prompting further legal action. Transparency International Sri Lanka and others filed fundamental rights petitions, claiming the enactment process violated constitutional principles.

During a court session in February 2025, Additional Solicitor General Viraj Dayaratne confirmed that the current National People’s Power (NPP)-led government intends to introduce amendments. The Supreme Court, acknowledging this development, postponed the next hearing to June 23, 2025.

Govt to Regularise Samurdhi Banks under Audit for Transparency 

0

By: Staff Writer

May 21, Colombo (LNW): Sri Lanka’s Samurdhi community-based banks and rural banking societies are set to be brought under formal government oversight, according to the Ministry of Finance. 

The move aims to regulate the Samurdhi banking system by placing it under the scrutiny of government audit processes.

On Wednesday, May 7, the Cabinet of Ministers approved the publication of a draft bill in the Government Gazette to amend the Samurdhi Act No. 1 of 2013, as previously updated by the Divinaguma (Amendment) Act No. 2 of 2017. The bill will later be presented to Parliament for final approval.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa stated at the weekly post-Cabinet press briefing that the proposed amendments will bring all Samurdhi community banks and rural banking societies under government audit.

This is expected to enhance financial supervision, ensure transparency, and improve accountability in the handling of public funds allocated under the Samurdhi welfare programme.

Initially approved by the Cabinet in December 2024, the draft legislation has since been cleared by the Attorney General and was prepared by the Legal Draftsman’s Department.

This development, first reported by Sunday Times Business on April 28, 2024, aims to curtail misuse of Samurdhi funds by corrupt officials or politicians. 

The regulation will ensure better transparency and independence, with plans to eventually place Samurdhi banking activities under the Central Bank’s oversight.

Currently, the Samurdhi banking system holds assets amounting to Rs. 400 billion, which includes compulsory savings of Samurdhi beneficiaries. These funds have been invested in various banks and government securities.

 Despite operating like banks, the 1,092 Samurdhi “branches” across the country are not legally classified as banks, as they fall outside the Central Bank’s regulatory framework. Instead, they have mainly served as distribution centers for monthly welfare payments.

However, numerous reports have emerged of funds being siphoned from these institutions, sometimes in collusion with branch managers and Samurdhi development officers. These abuses were often masked as welfare-related transactions.

Additionally, during the COVID-19 pandemic in 2020, the government drew heavily from Samurdhi banks and beneficiary savings to provide emergency cash relief.

Over Rs. 50 billion was disbursed—including Rs. 5,000 to more than five million individuals and Rs. 10,000 to two million households—to support vulnerable groups such as the elderly, disabled, and low-income families. 

While this provided critical aid, it also created significant liquidity and capital challenges for the Samurdhi banking system.

 The proposed amendments are part of a broader initiative to restore credibility and integrity to the Samurdhi financial framework while ensuring protection for beneficiaries’ savings.

Kompanna Veediya Flyover Delays Cost Government Over Rs. 400 Million

0

By: Staff Writer

May 21, Colombo (LNW): The construction of a flyover above the railway track near Justice Akbar Mawatha in Kompanna Veediya, launched in 2020, has faced major delays, forcing the government to pay more than Rs. 400 million in delay charges to the contractor.

Originally scheduled for completion by June 2022, the project deadline was later extended to September 2024 due to complications with relocating local residents, according to sources from the Road Development Authority (RDA).

In August 2020, the Cabinet approved the construction of two flyovers near the Kompanna Veediya railway station in Colombo at an estimated cost of Rs. 6 billion.

The project includes the design and construction of two main flyovers and a connecting section between them. These flyovers are positioned over the railway lines along Sri Uttarananda Mawatha and Justice Akbar Mawatha.

One of the flyovers, linking Kompanna Veediya with Justice Akbar Mawatha and Uttarankanda Mawatha, was inaugurated by former President Ranil Wickremesinghe on April 8 last year.

The area in question is known for intense traffic congestion, worsened by the railway crossing which disrupts movement in this busy commercial district.

The region houses government offices, hospitals, religious sites, restaurants, and entertainment venues, contributing to its high traffic volume.

To ease congestion, the RDA assigned Maga Engineering to carry out the construction work. However, due to prolonged delays, the government has been incurring Rs. 500,000 in daily penalty payments. During a site visit on Monday the 28th,

Transport Minister Bimal Rathnayake confirmed the accumulated delay charges and expressed optimism that the underlying issues would be resolved soon.

A major obstacle to progress has been the flyover along Boy Scouts Lane, which cuts through an area containing police quarters. The demolition of six buildings was necessary, resulting in an estimated two-year delay in that section of the project.

Despite setbacks, the new flyovers are anticipated to greatly improve long-term traffic flow. They aim to mitigate the severe congestion that results from frequent closures at the railway crossings, especially during peak travel hours.

Once completed, the infrastructure will significantly enhance accessibility and connectivity within the Kompanna Veediya area, alleviating the burden on both commuters and local institutions.

Defence Ministry launches new Internal Unit to curb malpractice and strengthen public accountability

0

May 21, Colombo (LNW): In a move aligned with the national agenda to promote integrity in public institutions, Sri Lanka’s Ministry of Defence has introduced a dedicated unit tasked with enhancing internal oversight and addressing shortcomings in public service provision.

The newly formed Internal Affairs Unit (IAU), now operational at the Ministry’s premises, is expected to play a pivotal role in bolstering institutional transparency and confronting entrenched inefficiencies.

This initiative follows a directive issued through a circular from the Presidential Secretariat and forms part of the broader 2025–2029 National Anti-Corruption Framework initiated by President Anura Kumara Dissanayake.

The IAU is designed to function as a preventative and investigative mechanism, focusing not only on addressing public complaints but also on conducting internal reviews and identifying vulnerabilities in administrative processes.

According to Ministry sources, the unit will actively monitor service delivery standards and highlight systemic weaknesses that may contribute to corruption or procedural lapses.

It is mandated to submit comprehensive annual reports to both the Presidential Secretariat and the national anti-bribery commission, ensuring a consistent review of its progress and findings.

At the official launch, Retired Air Vice Marshal Sampath Thuiyacontha, the Secretary to the Ministry of Defence, underlined the shared duty of public servants in maintaining institutional integrity. He stated that accountability must not be confined to enforcement bodies alone but should be reflected in the everyday operations of government departments.

He further remarked that the introduction of such internal oversight mechanisms marks a shift in governance strategy—one that seeks to embed ethical discipline within the core of public administration, rather than relying solely on punitive after-the-fact interventions.

Mrs Priyangani Hewarathna, who has been appointed to lead the Internal Affairs Unit, presented the framework and functions of the division to Ministry officials during the inaugural briefing. Her address outlined plans for a collaborative approach in evaluating risks, responding to public grievances, and supporting internal capacity-building efforts.

The occasion drew the participation of several senior figures, including the Chief of National Intelligence, the Director General of Planning (Disaster Management), and various additional secretaries and departmental heads within the Defence Ministry. Attendees reportedly expressed optimism about the potential of the unit to reinforce the credibility of the Ministry’s operations and reduce inefficiency and misconduct.

GMOA raises alarm over critical drug shortages as paramedics launch nationwide strike

0

May 21, Colombo (LNW): Sri Lanka’s public health sector is facing mounting pressure as the Government Medical Officers’ Association (GMOA) has sounded the alarm over a worsening shortage of essential medicines in hospitals, whilst the Joint Federation of Paramedical Professionals is preparing to launch an island-wide token strike from May 22.

Addressing the media, GMOA spokesperson Dr. Chamil Wijesinghe revealed that the country’s hospital network is grappling with a dire lack of critical medications, including antibiotics, insulin, painkillers, and drugs for heart disease and hypertension.

He added that by the end of April, the Medical Supplies Division (MSD) had completely run out of nearly 180 essential medicines, with a further 50 varieties missing from hospital stocks.

“This crisis spans both national and regional hospitals. It’s not only about medicine – even basic surgical equipment is in short supply,” said Dr. Wijesinghe. “The implications for patient care are catastrophic if these gaps are not addressed immediately.”

Healthcare professionals have expressed growing frustration over the Ministry of Health’s failure to ensure uninterrupted drug supplies, warning that systemic failures in the procurement and distribution process could risk patient lives and paralyse hospital functions.

In a further escalation, the Joint Federation of Paramedical Professionals, representing crucial non-physician medical staff including radiographers, laboratory technicians, and pharmacists, has announced a nationwide token strike beginning tomorrow (22) at 8:00 a.m..

Federation president Ravi Kumudesh said the strike is being carried out in protest against long-standing grievances that have remained unresolved despite repeated appeals to the Minister of Health, the Public Service Commission, and other relevant authorities.

“For over two months, we have requested meetings to discuss these urgent matters. Our calls have been ignored. This token strike is not our first option – it’s our last,” Kumudesh declared. “The Ministry must bear full responsibility for any disruption to health services.”

Labour Dept temporarily suspends key EPF services amid system maintenance

0

May 21, Colombo (LNW): The Department of Labour has announced a temporary suspension of several critical services related to the Employees’ Provident Fund (EPF) due to essential maintenance work on its computer database. The suspension will be effective from May 21 to 23, 2025, impacting Labour Offices across the country.

This urgent system maintenance is necessary to upgrade and secure the EPF’s digital infrastructure, ensuring smoother and more reliable services for the future, according to the Commissioner General of Labour.

During this period, the following EPF-related services will be unavailable:

  • Payment of EPF Full Benefits (K Applications)
  • Payment of EPF Deceased Member Benefits (L Applications)
  • Payment of EPF 30 per cent Withdrawals
  • AH Registrations
  • Registration of New Institutions
  • Amendment of B Cards

Clients who had made appointments in advance for these services via the EPF hotline (011 2201201) will be given priority once operations resume after the scheduled downtime.

The Department has apologised for any inconvenience caused and assures the public that all services will be promptly restored once maintenance work is completed. Clients seeking further information or assistance are encouraged to contact their nearest Labour Office or visit the official Department of Labour website.

The temporary service disruption highlights the growing need for digital system upgrades across public sector institutions, particularly those responsible for vital financial and retirement services. With over 2.5 million members relying on EPF services for their retirement security, efficient database management and timely access are crucial.

CoPE flags financial irregularities and mismanagement at Sri Jayewardenepura Hospital

0

By: Staff Writer

May 21, Colombo (LNW): The Committee on Public Enterprises (CoPE) has unveiled a series of concerning revelations regarding the ongoing financial losses and administrative misconduct at Sri Jayewardenepura General Hospital, one of Sri Lanka’s flagship state-run medical institutions.

The findings emerged during a recent COPE session chaired by MP Dr. Nishantha Samaraweera, where the 2022 and 2023 Auditor General’s reports and the hospital’s current performance were examined.

Despite its long-standing reputation and infrastructure, the hospital is reportedly operating at a sustained financial loss. CoPE identified multiple contributing factors, including the provision of treatment to patients without payment and instances where fees that should have been collected were instead waived without proper justification.

One of the more pressing concerns highlighted was the hospital’s inability to generate adequate income from its specialist services, despite paying nearly Rs. 600 million in professional fees to its staff in 2023 alone. It was revealed that the medical equipment used for these services had been sourced from the hospital, yet the institution failed to see a proportional financial return.

Officials also disclosed that the hospital maintains a scheme to offer free treatment to clergy, staff family members, and retired employees—though the latter benefit is capped at Rs. 4,000. While such practices may reflect humanitarian intentions, CoPE members questioned the financial viability of these subsidies without proper cost recovery mechanisms in place.

In addition to financial issues, COPE raised serious concerns about irregular appointments and staffing practices. It was revealed that several individuals were recruited to unauthorised posts during the pre-election period, receiving a 35% salary allowance without legal approval. In stark contrast, no salary was paid for the legally sanctioned position of “Laundry Inspector,” indicating a complete breakdown of internal controls.

The Auditor General’s Department further noted that employee appointments, salary disbursements, and monitoring systems were inadequately managed, allowing for the proliferation of illegal payments. COPE has instructed that a comprehensive internal investigation be launched, with a full report to be submitted within two months.

The committee also scrutinised a contract signed in 2015 to implement an electronic document management system for the hospital’s Board of Directors. It was shockingly revealed that the contract had been awarded to a company in which the wife of a then hospital director was a board member—raising significant conflict of interest concerns. Even more troubling, the company had been registered just one day prior to being awarded the contract.

Mismanagement was further evidenced by a procurement scandal involving television sets intended for the hospital wards. Although approval had been obtained for 25 televisions of 32-inch size, the hospital instead purchased 43-inch sets at a higher price. As of 30 April 2025, only six of these units had actually been installed and used, indicating wasteful expenditure and poor planning.

In light of these troubling disclosures, CoPE has announced plans to summon the hospital’s former chairman and board of directors for further inquiry. The committee stressed the urgent need to enforce accountability and restore both administrative order and fiscal discipline at the hospital.

Members of Parliament who participated in the session included Nalin Bandara, S. M. Marikkar, Samanmalee Gunasinghe, Sunil Rajapaksha, Asitha Niroshana Egoda Vithana, Chandima Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.

Sudden closure of NEXT Garment Factory in Katunayake FTZ leaves over 1,400 jobless

0

May 21, Colombo (LNW): In a move that has shocked both workers and trade unions, the NEXT garment factory located in the Katunayake Free Trade Zone has abruptly ceased operations, reportedly without any prior warning to its workforce.

Over 1,400 employees have been left without jobs or explanations, raising serious concerns about corporate responsibility, legal protections, and economic stability in Sri Lanka’s critical garment sector.

The factory premises were sealed earlier this week, with only private security personnel now stationed at the gates, according to initial reports. Workers arriving for duty were reportedly turned away, with no official communication from the company regarding the shutdown, severance packages, or future job placements.

“This was completely unexpected. We came to work and found the gates locked,” said one long-serving employee on the condition of anonymity. “We have families, loans, and no answers. This is inhumane.”

Trade unions and labour rights groups have condemned the manner of the closure, calling it a gross violation of labour laws and ethical standards. The Free Trade Zones & General Services Employees Union (FTZ&GSEU) has demanded immediate government intervention to investigate the circumstances and ensure that the rights of the workers are protected.

The sudden and opaque nature of this shutdown has called that reputation into question, prompting demands for accountability not only from the company but also from its international partners.

The garment and apparel industry is one of Sri Lanka’s largest foreign exchange earners, employing hundreds of thousands, primarily women, across various Export Processing Zones (EPZs).

A disruption on this scale could have ripple effects across the industry — undermining investor confidence and exacerbating social vulnerabilities at a time when the country is still grappling with the aftermath of an economic crisis, labour experts pointed out.

President directs probe into SriLankan Airlines as unions pledge support for reform

0

May 21, Colombo (LNW): President Anura Kumara Dissanayake has directed the formation of a special committee under the Presidential Secretariat to investigate longstanding allegations of corruption and mismanagement at SriLankan Airlines.

The directive comes amid renewed efforts to salvage the financially troubled national carrier without further dependence on state funds.

The decision was announced following an extensive four-hour meeting held on Monday at the Presidential Secretariat, which included the airline’s Board of Directors and representatives from all affiliated trade unions.

According to a statement from the President’s Media Division (PMD), the meeting was convened to forge a path toward sustainable reform under continued government ownership.

During the discussions, President Dissanayake stressed the urgency of institutional accountability and financial self-reliance, ruling out any future financial bailouts from the General Treasury.

“We cannot continue to fund inefficiency,” the President reportedly told attendees, highlighting that the national carrier must now stand on its own through improved management and internal discipline.

He further insisted that the national airline must be rebuilt through a collective effort, with all stakeholders — including employees and management — taking shared responsibility for its recovery.

The President underlined that this restructuring process is part of the government’s broader strategy to pull the country out of its economic crisis, noting that difficult sacrifices must be made across the board.

The meeting also focused on the implementation of a newly developed business plan aligned with the government’s policy to retain SriLankan Airlines as a state-owned entity.

The plan reportedly centres on operational efficiency, restructuring debt, cutting non-essential expenditure, and revitalising revenue streams such as cargo and tourism-related partnerships.

In a significant show of consensus, representatives from the airline’s major trade unions — including pilots, engineers, technicians, executives, and general staff — expressed their willingness to support the government’s vision.

They affirmed their readiness to work collaboratively toward restoring the airline’s financial health, with some suggesting the establishment of performance-based incentives as a way to motivate internal reform.

SriLankan Airlines has been operating at a loss for several years, weighed down by mounting debt, alleged procurement scandals, and successive failed privatisation attempts.

Calls for transparency intensified after previous reports hinted at irregularities in leasing arrangements, aircraft maintenance contracts, and recruitment practices.

The new investigative committee, expected to be announced in the coming days, will reportedly be tasked with auditing past financial decisions, identifying irregular procurement deals, and recommending actionable measures to hold those responsible to account.

The committee’s findings are likely to carry significant political and legal implications as the administration seeks to demonstrate its commitment to good governance.

Present at the meeting were SriLankan Airlines Chairman Sarath Ganegoda, board members, and representatives from the SriLankan Pilots’ Association, Licensed Aircraft Engineers’ Association, Airline Employees’ Association, SriLankan Airlines Technicians’ Association, Freelance Employees’ Association, Executives’ Association, and the Inter-Company Employees’ Association.

Showery trend persists across island: Fairly heavy falls above 50 mm expected

0

May 21, Colombo (LNW): South-West monsoon conditions are gradually getting established over the island, and showers or thundershowers, therefore, will occur at times in Western, Sabaragamuwa, North-western and Central provinces and in Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (21).

Fairly heavy falls above 50 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle, Matara, Puttalam, Nuwara-Eliya and Kandy districts.

A few showers may occur in North-central province.

Showers or thundershowers may occur at a few places in Uva province and in Ampara district during the evening 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 or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle.

Winds:

Winds will be westerly to south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to (55-65) 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 Hambanthota.

Wind speed can increase up to (50-55) kmph at times in the sea areas off the coast 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 Hambanthota will be rough at times.
The sea areas off the coast 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 2.0 – 2.5 m) in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota (this is not for land area).

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

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.