By: Staff Writer

May 19, Colombo (LNW): Sri Lanka’s budget deficit narrowed in the first quarter of 2025, falling to 234.5 billion rupees from 281.3 billion rupees a year earlier, according to Central Bank data. While this marks an improvement in fiscal discipline, current expenditures—especially on public sector wages and subsidies—continued to outpace revenue growth.

Government revenue rose 17% year-on-year to 1,066 billion rupees as of March, driven primarily by an 18% increase in tax collections, which reached 985.9 billion rupees. A standout contributor was the financial VAT—a tax applied on value addition in financial services, not directly invoiced to customers—soaring over 400% to 40.4 billion rupees. This jump reflects higher wage bills in the banking sector, following both a currency crisis and staff losses due to increased income taxes.

Current spending (excluding interest) climbed 21% to 587 billion rupees, just ahead of a full public sector salary increment slated for April. Public salary payments alone rose from 168 billion to 182 billion rupees, while subsidies grew significantly from 53 billion to 82 billion rupees. These include rice subsidies to farmers—despite retail prices remaining 30–50% higher than regional benchmarks—and fuel subsidies for fishermen.

Despite these pressures, the current account deficit (revenue minus current expenditure) slightly improved, reducing from 169.3 billion to 153.5 billion rupees. However, critics argue that under the IMF-backed program, fiscal consolidation focuses excessively on taxation rather than expenditure reforms. This revenue-based approach has drawn scrutiny for its heavy burden on productive sectors and savers.

One notable change was the partial relaxation of the vehicle import ban, initially imposed during the 2020 currency crisis triggered by aggressive monetary easing. Although vehicles now face steep import taxes, excise revenue from them surged to 17 billion rupees from 7.8 billion the previous year. Industry sources report a softening of dealer markups as vehicle inflows stabilize.

Capital and net lending expenditures dropped to 82.1 billion rupees from 113.2 billion, though actual capital spending could be higher due to repayments from state-owned enterprises. The government anticipates an increase in capital investments once bilateral loans, particularly from Japan, resume after debt restructuring.

Interest payments edged up 5.8% to 597.2 billion rupees. However, confidence in the economy is gradually improving, aided by tighter monetary policy and a stable exchange rate. Interest rates have begun to decline, supported by shrinking budget deficits, though renewed private credit growth may offset these gains.

For the full year 2025, the budget deficit is forecast at 2.2 trillion rupees—higher than last year’s 2.04 trillion—largely due to rising salary obligations. Most of this will be financed through domestic borrowing, continuing the government’s effort to reduce external debt exposure.

By: Staff Writer

May 19, Colombo (LNW): Sri Lanka stands to unlock significant health and diplomatic advantages through active participation at the 78th World Health Assembly in Geneva, Switzerland, this week.

 With global health challenges evolving rapidly, this prestigious platform organized by the World Health Organization (WHO) presents an opportunity for Sri Lanka to align with international health standards, influence policymaking, and attract technical and financial support for national health initiatives.

Minister of Health and Mass Media Dr. Nalinda Jayatissa departed for Switzerland on Saturday (May 18) to attend the Assembly, which will be held from May 19 to 27 under the theme “One World for Health.”

The event convenes health ministers and over 15,000 government officials from across the globe to engage in high-level discussions, share innovative strategies, and develop actionable policies aimed at improving global public health.

Joining Minister Jayatissa at the Assembly are Dr. Anil Jasinghe, Secretary to the Ministry of Health, Sri Lanka’s Permanent Representative to the United Nations in Geneva, Himali Arunatilaka, and First Secretary Nishanthini Victor, along with other key officials. Together, this delegation represents Sri Lanka’s voice in the global health community.

Participation in this Assembly enables Sri Lanka to engage in critical policy dialogues, gain exposure to emerging research and best practices, and forge strategic collaborations with other countries.

It is a chance to influence global health agendas while also advocating for Sri Lanka’s own pressing health priorities—such as managing non-communicable diseases, improving maternal and child health, and enhancing public health preparedness for future pandemics.

Key Benefits for Sri Lanka:

Policy Influence:

As an active member state, Sri Lanka can shape international health policies to ensure they reflect the country’s specific needs and contexts. This engagement bolsters the country’s ability to safeguard its public health interests on the global stage.

Access to Resources:

Direct engagement with WHO and allied bodies could open channels for technical assistance and funding, particularly for infrastructure development, emergency preparedness, and disease control programs.

Health Diplomacy and Collaboration:

The Assembly provides a rare opportunity to strengthen diplomatic ties, build partnerships, and explore joint ventures in healthcare delivery, research, and training. Such collaboration could lead to formal agreements and long-term support.

Showcasing Achievements:

Sri Lanka’s public health successes, such as universal vaccination and free healthcare services, can be shared globally, enhancing its reputation and encouraging further cooperation with international health agencies.

Adopting Best Practices:

Learning from other nations facing similar health challenges allows Sri Lanka to refine its national strategies with innovative, evidence-based approaches.

Strategic Alignment:

Participation helps align Sri Lanka’s health policies with international frameworks such as the Sustainable Development Goals (SDGs) and Universal Health Coverage (UHC).

To maximize these benefits, the Ministry emphasizes the importance of a focused agenda, active engagement during the Assembly, and a robust post-conference action plan to implement insights gained and follow up on potential partnerships.

May 19, Colombo (LNW): Former Minister of Agriculture Mahindananda Aluthgamage has been ordered to remain in remand custody until May 26 following his appearance before the Colombo Chief Magistrate’s Court earlier today (19).

The decision was delivered by Chief Magistrate Thanuja Lakmali in connection with serious allegations concerning a mismanaged fertiliser import that reportedly caused significant financial and environmental damage.

Aluthgamage is accused of being directly involved in the procurement of a consignment of organic fertiliser that was found to be contaminated with hazardous bacteria and pathogens. The shipment, intended to support the country’s controversial transition to fully organic farming during his tenure, has now been linked to a financial loss exceeding Rs. 13 million to the state.

May 19, Colombo (LNW): Chamara Sampath Dassanayake, MP representing the Badulla District under the New Democratic Front (NDF), has been granted bail by the Badulla Magistrate’s Court in connection with a case concerning the alleged misappropriation of public funds.

Magistrate Nujith de Silva ordered the release of the MP on two surety bails, each valued at one million rupees. The case in question, initiated by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), revolves around a transaction dating back to Dassanayake’s term as Chief Minister of the Uva Provincial Council in 2016.

According to investigative records, Dassanayake allegedly solicited financial contributions from three state-owned banks, presenting the appeal under the guise of funding preschool bag distribution initiatives for children across the province. Two of these banks reportedly released sums of Rs. 1 million and Rs. 2.5 million, respectively.

Instead of channelling these funds into the intended programme, investigators claim the money was diverted into a personal account tied to the MP’s private foundation.

Further tension emerged when the third bank refused to comply with his request. In response, Dassanayake is alleged to have ordered the withdrawal of provincial fixed deposits from the institution, in what has been interpreted as an act of retribution using public authority.

Dassanayake’s legal troubles are not limited to this instance. He was previously remanded in connection with other bribery-related charges, all tied to his actions during his tenure in provincial leadership.

He had earlier been granted bail twice by the Colombo Magistrate’s Court over separate but related corruption allegations. His most recent remand followed proceedings at the Badulla Magistrate’s Court, which now have taken a turn with this latest bail ruling.

The MP’s legal team argues that the charges are politically motivated and lack substantive evidence of personal gain. However, the Bribery Commission continues to pursue multiple lines of inquiry, alleging a pattern of systemic misuse of public funds and abuse of influence during Dassanayake’s time in office.

By: Isuru Parakrama

May 19, Colombo (LNW): In a notable political development, the Samagi Jana Balawegaya (SJB) and the United National Party (UNP) have reached a preliminary consensus on cooperating in local government bodies where opposition majorities have been secured.

This agreement signals a strategic alignment between the two parties in a bid to consolidate influence at the grassroots level.

The joint decision was announced this morning (19) in a formal statement issued by SJB General Secretary Ranjith Madduma Bandara and his UNP counterpart, Thalatha Athukorala.

The statement followed a discussion held earlier the same day between senior figures from both parties.

May 19, Colombo (LNW): A formal inquiry into alleged misconduct and abuse of authority by Sri Lanka’s suspended Inspector General of Police, Deshabandu Tennakoon, is set to begin this afternoon (19).

Tennakoon has been summoned to appear before the inquiry committee at 2:00 p.m. in Committee Room No. 8 at the Parliamentary Complex, the Parliament Secretariat disclosed.

This marks his initial appearance before the panel, following weeks of background work by investigators.

The inquiry committee—tasked with examining serious accusations surrounding Tennakoon’s conduct during his tenure as IGP—has already undertaken a series of preliminary deliberations behind closed doors.

These discussions included internal assessments of the alleged infractions, and the gathering of relevant documentation, before extending a formal notice to Tennakoon earlier this month.

The inquiry follows growing public and institutional pressure to address concerns over alleged high-level misconduct within the country’s police force, a topic that has generated significant attention in both legal and political circles.

The investigative panel is chaired by Supreme Court Justice P.P. Surasena and includes Justice W.M.N.P. Iddawala as well as Mr. E.W.M. Lalith Ekanayake, who serves ex officio as Chairman of the National Police Commission.

The inclusion of senior members from both the judiciary and independent police oversight signals the government’s intention to conduct the inquiry with a degree of impartiality and legal rigour.

At its last meeting on May 15, the committee held discussions to finalise its approach, with particular emphasis on the scope of questioning and evidence collection. The inquiry is expected to examine a range of allegations, though precise details of the charges against Tennakoon have not been made public in full.

May 19, Colombo (LNW): Sri Lanka is poised to commemorate the sixteenth anniversary of the conclusion of its protracted civil conflict with a state-led event honouring the country’s military personnel.

The National War Heroes’ Commemoration will be held this evening (19) at the War Heroes Memorial in Battaramulla, paying tribute to those who fought in the final campaign that brought an end to more than three decades of bloodshed.

The remembrance ceremony, scheduled from 4:00 p.m. to 6:00 p.m., will take place under the patronage of President Anura Kumara Dissanayake. A number of key military figures who played decisive roles in the closing chapter of the war are expected to attend, including Field Marshal Sarath Fonseka, Admiral of the Fleet Wasantha Karannagoda, and Marshal of the Air Force Roshan Gunathilaka.

Their presence is expected to symbolise both the strategic coordination that led to the conclusion of the conflict and the enduring legacy of the country’s armed forces.

This year’s commemoration is expected to draw participation from across the political spectrum, military leadership, families of fallen soldiers, and representatives of civil society, signifying a collective effort to recognise the costs and consequences of war, while promoting a spirit of national reconciliation and remembrance.

The state-organised event is also intended to serve as a moment for reflection on the trajectory the country has taken since the war’s conclusion in 2009. Whilst the event honours military sacrifice, it comes at a time when Sri Lanka continues to grapple with post-conflict challenges, including questions of transitional justice, memorialisation, and ethnic reconciliation.

Security and logistical arrangements have been made to accommodate the influx of participants and to ensure the smooth conduct of proceedings. The Sri Lanka Police have advised motorists of a temporary traffic control plan in areas adjacent to Parliament.

Although no road closures will be enforced, vehicles using the stretch from Polduwa Junction to Kianyam Junction via Jayanthipura may experience slow movement due to crowd build-up.

To alleviate congestion, alternative routes have been outlined. Vehicles exiting Colombo may travel from Polduwa Junction to Battaramulla Junction, then proceed via Palam Thuna to Kianyam Junction. Incoming traffic is advised to use the reverse route for access to the city.

May 18, Colombo (LNW): The Bar Association of Sri Lanka (BASL) has voiced serious concerns over a growing wave of online commentary that it claims is undermining the country’s judiciary.

In a strongly worded statement issued on Sunday (18), the BASL condemned a series of online media posts and social media content that it says unjustly target judicial officers, thereby threatening the integrity of the justice system.

According to the association, recent digital content—some of which includes images of judges accompanied by speculative commentary—has fuelled public conjecture over matters currently under judicial inquiry.

The BASL stressed that such commentary, in the absence of verified information or legal substantiation, encourages a culture of “trial by media” that endangers the rule of law and erodes public trust in judicial independence.

Judicial officers, by the nature of their role, are constrained from responding publicly to accusations or speculation, the BASL noted. As such, unverified allegations circulated online can unfairly tarnish reputations and potentially influence ongoing legal processes.

The association reminded the public and media professionals alike that due process must be respected, especially when legal proceedings are active or pending.

Highlighting the constitutional framework governing the conduct and discipline of the judiciary, the BASL underscored that formal mechanisms already exist to review and, where appropriate, censure judicial behaviour.

Circumventing these established protocols through social media discourse, it warned, not only breaches ethical norms but also risks placing undue pressure on judges who must remain impartial.

The statement also reaffirmed the fundamental principle of the presumption of innocence, which it described as the bedrock of Sri Lanka’s legal system.

Undermining this principle—whether through irresponsible commentary, speculation, or premature judgment—was described as not merely inappropriate but dangerous to democratic governance.

In its concluding remarks, the BASL urged both legal professionals and members of the public to uphold the dignity of the judiciary and to engage in responsible discourse.

It called for restraint in commenting on judicial matters, particularly those that are sub judice, and appealed for a collective commitment to fairness, legality, and institutional respect.