The Colombo Stock Exchange (CSE) achieved another milestone today, as the All Share Price Index (ASPI) reached an all-time high of 14,500.44 points at the close of trading. This marks an increase of 295.10 points, surpassing the previous record of 14,205.34 points set last Friday.
The S&P SL20 index, which tracks the performance of the 20 largest and most liquid stocks, closed at 4,349.82 points.
The day’s trading session also recorded a significant turnover of Rs. 8.2 billion, underscoring the continued robust activity in the market.
This remarkable performance highlights the sustained confidence of investors in the Sri Lankan stock market.
Parliament will convene today at 9:30 a.m., under the chairmanship of Deputy Speaker Dr. Mohammed Rizvi Sally, to elect a new Speaker following the resignation of former Speaker Ashoka Sapumal Ranwala. Ranwala, who served as Speaker of the Tenth Parliament, recently stepped down, and his resignation was formally accepted by President Anura Kumara Dissanayake.
The main agenda for today’s session is the appointment of the new Speaker. Members nominated from the National List of the Samagi Jana Balawegaya (SJB) will also take their oaths before the Speaker’s election.
If only one candidate is nominated for the Speaker position, they will be appointed unopposed. However, in the event of multiple nominations, Parliament will conduct a secret vote to determine the new Speaker.
According to reports, several public representatives have been nominated by the National People’s Power (NPP) for the position. These include Deputy Speaker Dr. Mohammed Rizvi Sally, Dr. Jagath Wickramaratne, Lakshman Nipuna Arachchi, and Nihal Galappaththi.
Meanwhile, the SJB has also announced its intention to nominate a candidate. Party sources reveal that MP Rohini Kumari Wijerathna will be their proposed candidate for the post.
The election of the Speaker is expected to be a significant moment in shaping the direction of the current parliamentary session.
President Anura Kumara Dissanayake has extended an invitation to Indian Prime Minister Narendra Modi to visit Sri Lanka, during the joint media briefing held in New Delhi. Meanwhile, he also stated that PM Modi had assured continued economic support for Sri Lanka. During the meeting, the Sri Lankan leader assured that the island nation would not allow the country to be used in “a manner that is detrimental to the interest of India”.
The National Building and Research Organisation (NBRO) has issued early landslide warnings for multiple areas in several districts, as heavy rainfall continues in parts of the island. The NBRO says that the warnings will be in effect until 4.00 p.m. today (Dec. 17).
Parliament will elect a new Speaker today to fill the vacancy created by the resignation of former Speaker Ashoka Sapumal Ranwala, who was appointed as the Speaker of the Tenth Parliament. Parliament is scheduled to meet at 9.30 am today under the patronage of Deputy Speaker Dr. Mohammed Rizvi Sally and the main business of the House will be the appointment of the Speaker.
The Consumer Affairs Authority (CAA) says that 342 raids have been carried out so far ahead of the festive season with regard to selling rice above the controlled price. CAA Chairman Hemantha Samarakoon stated that these raids were carried on between November 17.
Minister Wasantha Samarasinghe says the government has decided to impose maximum retail prices on a range of essential items in the future. He made these remarks today (16) while speaking to the media in Anuradhapura.
A group of 27 Sri Lankans, including eight women, who were victims of human traffickers in Myanmar, has returned to the country. They arrived at the Bandaranaike International Airport (BIA) in Katunayake onboard a SriLankan Airlines flight from Bangkok, Thailand.
The present Government will not implement the Galle Harbour Port City project which had been planned and proposed to be implemented by the previous Government, Deputy Minister of Fisheries, Aquatic and Ocean Resources Rathna Gamage said. The Deputy Minister disclosed the Government’s stand on the project when responding to the media, during his inspection tour of the Galle Fishery Harbour recently.
Sri Lanka and India today exchanged a Memorandum of Understanding (MoU) to avoid double taxation and to train Sri Lankan civil administrators at the Indian National Centre for Good Governance. The signing of the MoU was carried out in the presence of Indian Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake, who is on a three-day state visit to India.
The Department of Inland Revenue has announced that outstanding taxes for the 2023/2024 assessment year must be paid by December 26. Inland Revenue Commissioner General Sepalika Chandrasekara emphasised that no penalty waivers will be granted to individuals or companies failing to meet the deadline.
Sri Lankan national swimmer Minagi Rupesinghe, representing Killer Whale Aquatics (KWA), emerged as the undisputed Women’s National Champion at the Sri Lanka National and Junior National Short Course Swimming Championship held at the Isipathana College Swimming Pool Complex last week.
The Department of Inland Revenue has issued a reminder that all outstanding taxes for the 2023/2024 assessment year must be settled by December 26.
Commissioner General of Inland Revenue, Sepalika Chandrasekara, stressed that no penalty waivers will be granted for late payments by individuals or companies failing to meet the deadline. She emphasized that the Department has already begun field inspections and legal actions under the Inland Revenue Act to recover unpaid self-assessed taxes and other outstanding dues.
Starting January 2025, the Department will intensify its efforts against defaulters by initiating legal proceedings. Funds may also be directly recovered from the bank accounts of tax defaulters without prior notice. Furthermore, criminal cases will be filed based on the amount of taxes outstanding, reinforcing the Department’s commitment to ensuring compliance.
On December 12, 2024, Ambassador Majintha Jayesinghe officially presented his Letters of Credence to President Xi Jinping of the People’s Republic of China at the Great Hall of the People in Beijing. Accompanying the Ambassador was Counsellor of the Embassy, Niranga Palipana.
During the ceremony, Ambassador Jayesinghe conveyed greetings from Sri Lankan President Anura Kumara Dissanayake and the people of Sri Lanka to President Xi. In response, President Xi extended his greetings to the President and the people of Sri Lanka, emphasizing the strong friendship between the two countries.
President Xi expressed hope that the newly accredited envoys would promote exchanges, enhance cooperation, and work towards strengthening the bonds of friendship with China. He reiterated China’s commitment to sharing its development expertise and opportunities while promoting modernization globally through peaceful development, mutual benefit, and common prosperity.
Ambassador Majintha Jayesinghe, who joined the Sri Lanka Foreign Service in 1998, has served as Ambassador to the United Arab Emirates and Austria. While in Austria, he was the Permanent Representative to UN entities and was concurrently accredited to the Slovak Republic, Republic of Slovenia, Czech Republic, Hungary, Republic of Serbia, and Bosnia and Herzegovina.
In addition to his ambassadorial roles, he has served as Chief of Protocol and held positions in the Sri Lankan Ministry of Foreign Affairs. He has previously served in the Sri Lankan Embassy in Beijing, as Consul General in Shanghai, and as Deputy High Commissioner in Malaysia.
Ambassador Jayesinghe is a graduate of the University of Birmingham, United Kingdom, and an alumnus of St. Joseph’s College and Royal College, Colombo.
The current government has announced its decision not to proceed with the proposed Galle Harbour Port City project, initially planned by the previous administration. Deputy Minister of Fisheries, Aquatic, and Ocean Resources, Rathna Gamage, confirmed this during an inspection tour of the Galle Fishery Harbour.
The proposed Galle Harbour Port City project involved:
Reclaiming 44.97 hectares of land for tourism and recreational real estate.
Building a cruise terminal and a 150-metre berth for super yachts and passenger ships.
Dredging 1.9 million metric tonnes of material from the Bay of Galle seabed.
However, significant concerns were raised by ecologists, environmental organisations, and other stakeholders regarding the project’s potential environmental and ecological impact. Issues included the selection of environmentally sensitive ocean areas for land reclamation and the lack of scientific planning.
Deputy Minister Gamage stated that the project posed unacceptable risks, citing previous negative experiences with similar ventures. “We have studied the project thoroughly and concluded that it is not a wholesome initiative. Therefore, we will not proceed with it,” he asserted.
Local stakeholders in Galle have also expressed strong opposition to the project. A meeting was held at the NPP office in Galle, where Deputy Minister of Vocational Education, Nalin Hewage, assured the community that the government would not advance the project.
The government’s decision aligns with its focus on sustainable development and environmental preservation. This move also demonstrates responsiveness to community concerns and a commitment to ensuring that future development projects adhere to rigorous environmental and scientific standards.
The shelving of the Galle Harbour Port City project marks a departure from the previous government’s approach, underscoring the current administration’s prioritisation of ecological balance and long-term sustainability.
President Anura Kumara Dissanayake, on a three-day official visit to India, held comprehensive discussions with Indian Prime Minister Narendra Modi on December 16 at Hyderabad House in New Delhi. The visit marked a significant step in advancing the partnership between the two countries, encompassing economic, political, and strategic dimensions.
Key Agreements and Initiatives
Memorandums of Understanding (MoUs):
Avoidance of double taxation.
Capacity building for Sri Lankan government officials.
Economic and Infrastructure Development:
Strengthening ties through electricity grid connections and a multi-product petroleum pipeline.
Advancing Indian-funded projects such as upgrading the Anuradhapura railway signalling system and Kankesanthurai Port.
Providing scholarships for 200 students from Jaffna and Eastern Province universities.
Training 1,500 Sri Lankan civil servants over five years.
Debt Restructuring:
India’s ongoing support for Sri Lanka’s economic stability, including assistance in debt restructuring and emergency financing worth $4 billion.
Finalizing a bilateral MoU on debt restructuring to shift towards investment-led partnerships.
Energy Collaboration:
Implementation of the Sampur solar power project and exploring offshore wind energy potential.
Proposals for LNG supply and power grid interconnection.
People-Centric Digitization:
Expedited implementation of the Sri Lanka Unique Digital Identity (SLUDI) project.
Rolling out UPI digital payments and exploring India-inspired systems like DigiLocker.
Trade and Investment:
Enhancing INR-LKR trade settlements and continuing discussions on the Economic and Technological Cooperation Agreement (ETCA).
Maritime and Security Cooperation:
Strengthening collaboration in maritime security, disaster relief, and counterterrorism.
Enhancing defence capabilities with joint exercises, equipment provision, and training programs.
Cultural and Tourism Development:
Promoting religious and cultural tourism and enhancing air connectivity between the two nations.
Fisheries and Livelihood:
Addressing fishermen’s concerns through humanitarian approaches and collaborative solutions.
Regional Cooperation:
Commitment to regional security frameworks under BIMSTEC and IORA.
India’s support for Sri Lanka’s application to BRICS.
President Dissanayake emphasized Sri Lanka’s commitment to regional stability, ensuring its territory would not pose a security threat to India. Prime Minister Modi appreciated the enduring partnership and pledged continued support for Sri Lanka’s recovery and growth.
The leaders instructed their teams to expedite ongoing projects and finalize agreements to further deepen ties. President Dissanayake extended an invitation to Prime Minister Modi to visit Sri Lanka, highlighting the renewed commitment to a mutually beneficial partnership.
This visit heralds a forward-looking chapter in India-Sri Lanka relations, underscoring shared values and aspirations for regional prosperity.
The low pressure area over the southwest Bay of Bengal is currently (on the morning of 17th December) located to the east of the island, and It is expected to gradually move west-northwestwards, moving towards the Tamil Nadu coast near the northern coast of Sri Lanka during the next 48 hours.
Weather Forecast for today (17th of December):
Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in Northern, Eastern, North-central, Uva, Central and North-western provinces. Fairly heavy showers above 75mm are likely at some places in Northern, Eastern, North-central and North-western provinces and in Matale district.
Showers or thundershowers may occur at several places elsewhere during the evening or night.
Fairly strong winds of about 40 kmph can be expected at times over Northern, North-central and North-western provinces and in Matale and Trincomalee districts.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
December 16, Colombo (LNW): The Excise Department is facing serious allegations of corruption, particularly in the secretive issuance of liquor licences and the use of counterfeit security stickers, despite posting record revenues of Rs. 152 billion in the first nine months of this year, new administration sources said.
The current administration, led by President Anura Kumara Dissanayake, pledged to investigate these allegations, including accusations of bribes up to Rs. 2 million taken by excise officials under the previous government.
Minister Wasantha Samarasinghe also claimed that 500 licences were issued under questionable circumstances, including 70 granted to a businessman allegedly paying Rs. 30 million per licence while owing substantial tax dues.
Additionally, a major fraud involving counterfeit excise stickers cost the government an estimated Rs. 60 billion in lost tax revenue. W.M. Mendis & Company, linked to Arjun Aloysius, was implicated, reportedly responsible for Rs. 440 million in unpaid taxes.
The National Audit Office uncovered procedural irregularities in licence renewals during 2023, with missing documentation such as police reports and tax clearances. Despite these controversies, the government continues its push for increased excise revenue
Sri Lanka’s Excise Department has set an ambitious revenue target of Rs. 232 billion, the highest in its history.
To achieve this, sweeping amendments to excise laws were introduced under former President Ranil Wickremesinghe, who also served as Finance Minister.
These changes included massive hikes in excise licence fees across all categories. Distillery licence fees rose from Rs. 1 million to Rs. 25 million, while fees for toddy and palmyrah arrack licenses increased tenfold.
Retail licences for liquor also saw dramatic increases, with fees in municipal areas reaching Rs. 15 million.
While this strategy boosted government revenue substantially—liquor licence fees alone generated Rs. 3.1 billion by October 2024, compared to Rs. 200 million in 2023—it triggered mounting controversy.
Allegations emerged that licence issuance was politically motivated, with claims that licences were exchanged for bribes to facilitate political crossovers. Leader of the House, Bimal Rathnayake, accused the former administration of issuing 361 licences between January and October, including 110 in the politically powerful Western Province, suggesting a politically driven allocation.
Adding to the controversy, Rathnayake claimed that 172 of these licences were issued under the FL-4 category, which permits retail liquor sales in wine stores, further fueling allegations of political favoritism. These claims sparked intense parliamentary debate, with some lawmakers demanding investigations into potential misuse of public office.
Compounding the scandal, a Supreme Court order from August 2023 (SC/FR/116/2023) had capped licence issuance to two per individual or organization per district to prevent monopolies. However, it was alleged that licences continued to be issued in violation of this ruling.
This prompted wine shop owners to file petitions, leading the court to issue an interim injunction halting new licence issuance. The Supreme Court extended the injunction and scheduled a hearing for February 2025.
Former Excise Commissioner General M.J. Gunasiri defended the department’s actions, emphasizing the record-breaking revenue achieved and the reduction of illicit liquor sales.
He denied any violations of laws and stressed that policy decisions were implemented as directed by the previous government. However, he was abruptly removed from his post in October 2024, with U.L. Udaya Kumara Perera recently assumed duties as the new Commissioner General.
The Excise Department remains under scrutiny, with court cases and ongoing investigations casting a shadow over its operations and governance.
December 16, Colombo (LNW): The aviation world has witnessed its fair share of offbeat airlines, and Sri Lanka’s Mihin Lanka is no exception. Operating from 2007 to 2016, this government-owned low-cost carrier struggled to stay afloat amidst financial mismanagement, political controversies, and questionable leadership. Though now defunct, Mihin Lanka’s story remains an eyebrow-raising chapter in Sri Lanka’s aviation history.
An Unconventional Start and Questionable Practices
Mihin Lanka was launched during the administration of President Mahinda Rajapaksa. From the outset, the airline faced criticism, with local media labeling it a “political embarrassment” and an “extravagance.” The airline’s establishment lacked cabinet approval, with Sri Lanka’s Civil Aviation Authority also initially bypassed. Even the country’s aviation minister was reportedly unaware of the airline’s inception.
The leadership team reflected the political undertones of the project. Among the three directors, one was the President’s brother, while another was a commander in the Sri Lankan Air Force. The airline’s CEO, Sajin Vaas Gunewardena, received approval to operate the carrier within days—an expedited process that typically takes years. This expedited approval, coupled with hiring inexperienced trainee pilots, drew widespread criticism.
Operations and Destinations
Despite its rocky start, Mihin Lanka operated for nine years, connecting Colombo’s Bandaranaike International Airport to 14 domestic and international destinations, including routes across South Asia, Southeast Asia, and the Gulf. However, the airline’s financial woes began early and never subsided.
Lingering Debt and Financial Mismanagement
By the time Mihin Lanka ceased operations on October 30, 2016, it had accumulated significant financial liabilities. According to the Ministry of Finance’s Mid-Year Fiscal Position Report, as of June 30, 2024, the airline still owes Rs. 3,201.77 million in unresolved debts. This lingering financial burden underscores the long-term repercussions of mismanagement in Sri Lanka’s aviation sector.
New Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, recently acknowledged Mihin Lanka’s unresolved financial issues. However, he emphasized that the government’s current priority is preparing for the upcoming tourism season by enhancing airport infrastructure and ensuring sufficient flight arrangements.
Part of a Broader Pattern
Mihin Lanka’s collapse is symptomatic of larger systemic issues within Sri Lanka’s aviation sector, particularly under the Rajapaksa administration. During this period, the national carrier SriLankan Airlines underwent an expensive re-fleeting plan, costing $2.3 billion, despite more economical alternatives being available. Investigations by the Weliamuna Commission uncovered fraudulent activities, including falsified documents to lease luxury vehicles for officials, a failed air taxi service, and rampant conflicts of interest during procurement processes.
Future Prospects
While the government appears focused on boosting tourism, Mihin Lanka’s unresolved status remains on the agenda. Deputy Minister Kodithuwakku hinted that the Ministry of Ports and Civil Aviation plans to deliberate on the airline’s liabilities soon, although tangible steps remain uncertain.
The story of Mihin Lanka serves as a cautionary tale of financial mismanagement, political interference, and misplaced priorities in the aviation industry—lessons that Sri Lanka must heed to avoid repeating its turbulent history.
