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New Highlands Authority Debate Balances Risk, Reform, Reality

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The government’s move to establish a Central Highlands Authority following the Cyclone Ditwah disaster has triggered a wider policy debate over environmental governance, economic resilience, and institutional reform. The initiative, discussed at the Presidential Secretariat under President Anura Kumara Dissanayake, aims to create a single coordinating body responsible for restoring and managing Sri Lanka’s most ecologically sensitive highland region.

The Central Highlands play a vital role in regulating the country’s climate system, supplying water to major river basins, and supporting agriculture and hydropower generation. The recent cyclone-induced landslides exposed how vulnerable these systems have become. Entire communities were displaced, while critical infrastructure including rural roads and irrigation networks suffered extensive damage. Agricultural output in surrounding districts is expected to decline due to soil erosion and disrupted planting cycles, creating knock-on effects for food supply and export earnings.

The proposed authority would consolidate environmental restoration efforts, enforce land-use regulations, and improve coordination among existing institutions. It is also expected to integrate climate adaptation strategies and disaster risk reduction into a unified framework. Government officials argue that fragmented governance has historically slowed response times and weakened enforcement in high-risk zones.

Proponents highlight several advantages. A dedicated authority could streamline decision-making, attract international climate funding, and implement long-term watershed protection strategies more effectively than existing agencies. It could also introduce natural capital accounting, allowing environmental resources to be factored into national economic planning.

However, concerns remain over feasibility and governance efficiency. Sri Lanka’s institutional landscape already includes multiple bodies responsible for environment, forestry, irrigation, and disaster management. Analysts warn that without clear legal mandates, the new authority could overlap with existing functions, leading to administrative redundancy. There are also concerns about funding sustainability and political interference in land-use decisions.

Despite these challenges, the urgency created by Cyclone Ditwah has shifted the policy momentum. The scale of damage has underscored that incremental reforms may no longer be sufficient. Instead, a more integrated governance model may be required to address interconnected risks such as climate change, deforestation, and unplanned development.

Ultimately, the success of the proposed Central Highlands Authority will depend on whether it can balance strong regulatory power with coordination efficiency. If designed effectively, it could become a model for climate-resilient governance. If poorly implemented, it risks adding another layer to an already complex institutional system without solving the underlying problems.

State Control or Reform: SriLankan Airlines Faces Defining Moment

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Sri Lanka’s national carrier, SriLankan Airlines, is heading toward a decisive” restructuring phase under the JVP-led National People’s Power (NPP) government, with authorities signalling that a final model will be chosen within months. The process unfolds under the broader economic reform framework tied to the International Monetary Fund (IMF), which has urged loss-making state-owned enterprises to undergo deep restructuring.

Deputy Minister Janitha Ruwan Kodithuwakku recently confirmed that studies are ongoing to determine whether the airline will pursue internal reforms, partial divestment, or alternative hybrid models. However, early signals suggest the government is reluctant to relinquish ownership, citing the airline’s strategic and financial role.

Currently operating a fleet of around 23 aircraft, SriLankan Airlines continues to face liquidity pressures. These stem not only from legacy debt estimated in past disclosures to exceed $1 billion—but also from external shocks, including fuel price volatility and geopolitical instability in the Middle East, a key aviation corridor. Such factors have strained cash flow despite signs of operational resilience.

Recent financial patterns reveal a nuanced picture. While the airline remains burdened by historical liabilities, it has periodically reported operating profits, including a positive performance in early 2026. This suggests that its core aviation business passenger and cargo services spanning Asia, Europe, the Middle East, and Australia remains viable. Load factors and cargo demand, particularly post-pandemic, have supported revenue generation, even as financing costs drag down net profitability.

The IMF program adds urgency. Sri Lanka has committed to reforming state-owned enterprises to reduce fiscal risks, and SriLankan Airlines is among the most prominent cases. Analysts’ note that a purely internal restructuring focused on management efficiency, cost controls, and route optimization may fall short unless paired with balance sheet restructuring or external investment.

However, the NPP government appears cautious about privatization, reflecting both political ideology and concerns over national connectivity. Retaining state control allows the government to channel airline revenues toward servicing debt, though critics argue this approach risks perpetuating inefficiencies.

Operationally, the airline continues to maintain critical international links that support tourism and trade sectors vital to Sri Lanka’s recovery. Any restructuring decision must therefore balance commercial sustainability with broader economic priorities.

With a decision expected within two to three months, SriLankan Airlines stands at a crossroads. Whether the government opts for deep structural reform or incremental internal changes will determine if the carrier can transition from a debt-laden entity into a competitive regional player—or remain a persistent fiscal burden.

EU Launches €2.6M ‘Together We Rise’ Project to Strengthen Civil Society in Sri Lanka

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The European Union has launched the “Together We Rise” initiative, a €2.6 million project aimed at strengthening civil society and promoting human rights, inclusion, and accountable governance in Sri Lanka.

Implemented by World Vision Lanka and the SAFE Foundation, the three-year programme will support 50 civil society organisations (CSOs) through targeted training and resources, while also engaging government institutions, policymakers, and 250 social activists to enhance transparency, accountability, and civic participation.

According to a statement, the initiative is expected to benefit over 701,000 people across nine districts, with a particular focus on underserved and conflict-affected areas. Participating organisations will include women-led and youth-led groups, as well as those representing persons with disabilities.

More than 350 CSO staff will receive tailored capacity-building and technical support. The project will begin with a Capacity Development Needs Assessment (CDNA), followed by customised development plans to address identified gaps and strengthen organisational effectiveness.

Key focus areas include governance and leadership, financial management, inclusion and safeguarding, gender equity, civic engagement, digital innovation, and long-term sustainability.

EU Head of Cooperation in Sri Lanka, Dr. Johann Hesse, said the programme reflects the EU’s commitment to inclusive and sustainable development through stronger partnerships with civil society.

Selected organisations will also receive small grants to implement development plans and address community needs, while platforms will be created to facilitate dialogue between communities, civil society, and government stakeholders.

Project representatives highlighted ongoing challenges such as youth unemployment—estimated at 34.5% among those aged 15–29—as well as barriers faced by women and persons with disabilities.

Officials emphasised that the initiative adopts a rights-based, community-driven approach aimed at empowering grassroots leadership and fostering long-term, sustainable impact across the country.

Sri Lankan-Born Population in Australia Nears 185,000 in 2025

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The Sri Lankan-born population in Australia has continued its steady growth, reaching an estimated 184,800 by mid-2025, according to the latest data from the Australian Bureau of Statistics.

This marks a notable increase from 172,800 in June 2024 and 158,300 in June 2023, reflecting sustained post-pandemic migration trends.

Sri Lanka now ranks among the top 10 overseas-born populations in Australia, remaining just ahead of Malaysia-born residents and other migrant communities.

Over the past decade, the Sri Lankan-born population has expanded significantly, rising from just over 110,000 in 2013 to nearly 185,000 in 2025, accounting for a growing share of Australia’s migrant population.

According to the latest estimates, India-born residents remain the largest overseas-born group in Australia, followed by those born in England.

The figures are based on Australia’s population-by-country-of-birth data released by the Australian Bureau of Statistics.

Trump ‘likely’ to be among Nobel Peace Prize nominees

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A total of 287 candidates are currently under consideration for the 2026 Nobel Peace Prize, the Secretary of the Norwegian Nobel Committee confirmed on Thursday.

The list includes 208 individuals and 79 organisations, according to Kristian Berg Harpviken, who assumed the role in January 2025.

Harpviken noted a significant level of turnover in nominations compared to the previous year.

“Since I am new in the job, one of the things that has to some extent surprised me is how much renewal there is from year to year on the list,” he said.

Despite growing global conflicts and increasing pressure on international cooperation, he stressed the continued significance of the award.

“The Peace Prize is even more important in a period like the one we’re living in,” Harpviken said, adding that “there is as much good work, if not more, than ever.”

Donald Trump is likely to be among this year’s nominees, with leaders from Cambodia, Israel, and Pakistan having previously indicated that they nominated him for the prize.

Those nominations, reportedly submitted during spring and summer 2025, remain valid as the deadline for consideration was January 31.

Govt to Enforce Mandatory Approvals for Monks Travelling Abroad

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The Sri Lankan government has decided to strictly enforce a requirement for Buddhist monks travelling overseas to obtain recommendations from their respective senior monk (Guru Hamuduruwo), the regional Buddhist leader, and the Mahanayaka Thero of their Nikaya.

Deputy Minister of Buddhasasana, Religious and Cultural Affairs Gamagedara Dissanayake said the regulation had been introduced previously but had not been consistently implemented in recent years.

He noted that the decision was reinforced following discussions between President Anura Kumara Dissanayake and Registrar Theros, with Mahanayaka Theros also being informed of the move.

The Deputy Minister made these remarks in response to a recent incident involving the arrest of 22 Sri Lankan Buddhist monks at Bandaranaike International Airport while returning from Thailand in possession of large quantities of narcotics.

Meanwhile, he said a separate discussion was held yesterday (29) involving Registrar Theros, the Attorney General, and ministry officials regarding urgent amendments to the Buddhist Temporalities Ordinance.

Further deliberations have also taken place on granting authority to take action in such cases to a committee led by the Mahanayaka Theros, in line with Sections 41 and 42 of the Ordinance.

Special Security and Traffic Plans in Place for May Day Rallies

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Sri Lanka Police have announced that special security arrangements will be in effect today (01) as political parties and organisations hold May Day rallies and meetings across the island, including in Colombo, to mark International Workers’ Day.

Deputy Inspector General of Police (DIG) in charge of Traffic Control and Road Safety, W.P.J. Senadheera, said comprehensive traffic and security plans have been implemented to ensure public safety during the events.

“All traffic and road security arrangements have been prepared for the May Day rallies and meetings. Special security measures have been put in place, with deployments made based on intelligence reports. Accordingly, security personnel, including intelligence officers, have been assigned for duty,” he said.

He added that adequate security will be provided to participants attending rallies and related events, with arrangements made under the supervision of divisional officers and DIGs of the respective provinces, particularly in areas expecting large gatherings.

Thundershowers Expected Islandwide; Public Advised to Take Precautions

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Showers or thundershowers are expected in most parts of the island after 1.00 p.m., according to the Department of Meteorology.

Fairly heavy rainfall exceeding 50 mm is likely at some locations in the Sabaragamuwa, Central, Uva, and North Central provinces.

Morning showers are also expected in coastal areas of the Western and Southern provinces.

Misty conditions may prevail in parts of the Central, Sabaragamuwa, North Central, and Uva provinces.

The general public has been advised to take necessary precautions to minimise potential damage caused by temporary strong winds and lightning during thundershowers.

Cyber Fraud Threatens Future of Sri Lanka Postal Services

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By: Staff Writer

April 30, Colombo (LNW): The disappearance of over USD 625,000 in funds intended for the United States Postal Service has triggered a far-reaching investigation into Sri Lanka’s postal and financial systems, exposing vulnerabilities that could have lasting consequences for the institution’s future.

Officials confirm that the money was sent by the Department of Posts but never acknowledged by the recipient, creating a puzzling financial void. The revelation, confirmed by Nalinda Jayatissa, has intensified concerns about both cyber-security and internal governance.

The investigation is being spearheaded by the Criminal Investigation Department alongside internal auditors from the postal department. Simultaneously, cybersecurity specialists from Sri Lanka Computer Emergency Readiness Team and the University of Colombo are analyzing whether the breach originated from phishing schemes, spoofed email instructions, or compromised financial channels.

Experts believe the fraud may have exploited reliance on unsecured email communications—a method increasingly targeted in global financial scams. Without multi-factor authentication or independent verification, such systems can be manipulated to redirect funds seamlessly. The similarity to a recent $2.5 million Treasury fraud suggests a troubling pattern rather than an isolated lapse.

The broader implications extend beyond a single financial loss. Sri Lanka’s postal service, established during British rule as a critical administrative and commercial network, is already grappling with declining usage. The rapid adoption of digital communication tools email, messaging apps, and mobile banking—has significantly reduced traditional mail volumes, eroding revenue streams.

In this context, financial mismanagement or cyber fraud could accelerate institutional decline. If international partners like the USPS lose confidence, Sri Lanka risks disruptions in global mail exchange agreements, potentially isolating its postal system from key networks.

However, the crisis also presents an opportunity. Experts argue that modernizing infrastructure, implementing secure digital payment systems, and strengthening oversight could transform the postal service into a more resilient, technology-driven entity. Diversification into logistics, e-commerce delivery, and financial services may offer a path forward.

Public trust remains a critical factor. As investigations continue, transparency and accountability will be essential to restoring confidence in a system that has long been a pillar of national connectivity. Whether Sri Lanka’s postal service can adapt to the dual challenges of cyber threats and digital disruption will determine its relevance in the years ahead.

RDA System Errors or System Failures? Treasury Chaos under Scrutiny

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By: Staff Writer

April 30, Colombo (LNW): Sri Lanka’s financial governance is facing renewed criticism following a string of controversies involving public funds, with the RDA payment dispute emerging as a symbol of broader systemic dysfunction. While officials attribute recent irregularities to technical errors, critics argue that the real issue lies in administrative inefficiency and weak institutional coordination under the NPP government.

At the center of the latest controversy is an alleged duplicate payment exceeding Rs. 380 million to contractors. Although authorities insist the duplication originated from a banking transmission error, the lack of immediate detection raises serious concerns. In well-functioning financial systems, such discrepancies are typically flagged instantly through internal controls yet in this case, the issue only came to light after political intervention.

Statements from officials have done little to clarify the situation. While the RDA denies responsibility, government representatives acknowledge that an additional payment was indeed processed. This inconsistency points to a deeper communication breakdown between agencies and financial institutions. The inability to present a unified, transparent account has amplified public skepticism.

The role of state banks has also come under scrutiny. Although assurances have been given that recovery mechanisms are in place, the incident exposes vulnerabilities in inter-bank payment systems. A single transmission error resulting in hundreds of millions of rupees being misdirected suggests insufficient safeguards and oversight.

Critics argue that these failures are symptomatic of a larger pattern. Since assuming power, the NPP government has faced repeated challenges in managing public finances efficiently. Delays in Treasury payments, administrative bottlenecks, and now high-profile financial discrepancies have collectively eroded confidence in state institutions.

Equally troubling is the apparent lack of communication skills among key officials. Conflicting narratives, delayed responses, and defensive statements have hindered efforts to manage the crisis effectively. In an era where transparency is crucial, the government’s handling of the issue has been perceived as reactive rather than proactive.

The controversy also raises questions about accountability. If the error occurred at the banking level, what oversight mechanisms were in place to prevent or quickly detect such anomalies? And if funds were indeed duplicated, why were contractors reportedly asked to return money despite official denials of any loss?

These unanswered questions point to a governance gap that extends beyond technical systems. Effective financial management requires not only reliable infrastructure but also competent leadership and clear communication channels. Without these, even minor errors can escalate into major crises.

As Sri Lanka continues to navigate economic recovery, incidents like the RDA payment controversy serve as cautionary tales. They highlight the urgent need for institutional reform, improved coordination, and stronger accountability frameworks. Whether the government can address these challenges will determine not just the resolution of this case, but the future credibility of its financial stewardship.