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.
December 16, Colombo (LNW): Sri Lanka has successfully concluded its International Sovereign Bond (ISB) exchange program with a 98% participation rate from bondholders, marking a crucial milestone in its journey toward economic stability. This initiative forms a key component of a $14.2 billion debt restructuring plan aimed at addressing the country’s external debt crisis, which culminated in its first-ever sovereign default in April 2022.
Key Highlights of the Debt Restructuring Program
Debt Service Reduction:
The restructuring will reduce debt service payments by $9.5 billion over four years, offering much-needed fiscal relief. This is expected to ease the financial burden on the government and create space for economic reforms.
Coupon Rate and Maturity Extensions:
The average interest rate (coupon rate) on the restructured bonds has been lowered by 31% to 4.4%, with maturities extended by an average of five years. This adjustment reduces the cost of borrowing and aligns with Sri Lanka’s medium-term fiscal recovery plans.
IMF Support:
The program satisfies the conditions set by the International Monetary Fund (IMF) under its $2.9 billion Extended Fund Facility (EFF). Successful completion of the bond exchange will unlock additional tranches of IMF funding, which are critical to stabilizing the economy and restoring investor confidence.
Challenges Ahead
Despite the high participation rate, potential legal disputes from holdout creditors could complicate the implementation of the restructuring plan. Moreover, systemic economic weaknesses, such as low foreign reserves, persistent inflation, and political uncertainty, remain unaddressed by the debt exchange alone.
The accompanying austerity measures, a common requirement of debt restructuring, may provoke social unrest, adding pressure on the government to balance fiscal discipline with public welfare.
Economic Recovery Prospects
President and Finance Minister Anura Kumara Dissanayake expressed optimism about the program’s outcomes, stating, “This high level of participation from international and local bondholders reflects confidence in Sri Lanka’s economic recovery. The debt exchange will provide substantial fiscal relief, freeing up resources for development and social priorities.”
He emphasized that the success of the restructuring provides an opportunity to restore macroeconomic stability, improve public finances, and normalize relations with international creditors. The government plans to use the fiscal space created by the program to focus on critical areas such as infrastructure, healthcare, and economic growth initiatives.
Path to Stability
The Finance Ministry announced that the bond exchange’s final results will be confirmed on 16 December, with settlement expected by 20 December. Dissanayake acknowledged the contributions of stakeholders, including the IMF, official and commercial creditors, and Sri Lanka’s internal leadership, in achieving this landmark agreement after two years of intense negotiations.
The ISB exchange is a pivotal step toward regaining debt sustainability and rebuilding investor confidence. However, the government’s ability to fully capitalize on this progress will depend on the implementation of structural reforms, fiscal discipline, and sustained economic growth to prevent future debt crises.
Sri Lanka’s journey toward economic recovery remains fraught with challenges, but this successful debt restructuring offers hope for a more stable and prosperous future.
December 16, Colombo (LNW): The newly formed government has prioritized financial stability and sustainability in Sri Lanka’s banking and finance sector by appointing highly qualified professionals as chairpersons and board directors of state-owned banks.
These appointments, based solely on merit, aim to provide competent leadership to effectively navigate the sector’s challenges and opportunities, according to a senior official.
Notable recent appointments include professional bankers such as Kavinda De Zoysa as Bank of Ceylon Chairman, Prof. P.N.D. Fernando as People’s Bank Chairman, P.J. Jayasinghe as HDFC Bank Chairman, and Lasantha Fernando as RDB Chairman.
These changes reflect the government’s focus on reshaping the sector under the visionary leadership of President Anura Kumara Dissanayake (AKD), said Dilshan Chamikara, Private Secretary to the Finance, Planning, and Economic Development Minister.
Chamikara emphasized that the reforms are built on principles of meritocracy and professionalism to achieve sustainable development.
Meritocracy, a cornerstone of the government’s vision, ensures that individuals are recognized and advanced based on their skills, achievements, and contributions rather than privilege or connections.
Decades of inefficiency and political interference have previously hampered the performance of key institutions, Chamikara stated, undermining their capacity to drive national growth.
In response, the government is empowering these institutions with leaders who demonstrate expertise, integrity, and vision.
Integrity, he added, is fundamental to building trust and credibility within governance. Alongside this, the government’s zero-tolerance stance on corruption and the misuse of public funds underpins the reforms.
Transparency and accountability are prioritized to ensure that public funds allocated to financial institutions deliver maximum value to the people.
To enhance governance and improve institutional efficiency, the government is introducing Key Performance Indicators (KPIs) along with detailed action plans featuring measurable goals and milestones.
These efforts are supported by robust monitoring and reporting frameworks to restore public confidence in the financial sector.
While acknowledging the dedication and talent of employees within these institutions, Chamikara noted that a lack of visionary leadership in the past had hindered their full potential. The reforms, therefore, aim to empower employees, enabling them to thrive and contribute more effectively to institutional progress.
The government also invites banking and finance professionals to actively participate in this mission, fostering a financial ecosystem that promotes sustainable growth and uplifts the nation.
December 15, Colombo (LNW): The Sri Lanka National Olympic Committee (NOCSL) has been suspended by both the International Olympic Committee (IOC) and the Olympic Council of Asia (OCA) following its failure to implement recommendations from the Ethics Committee regarding accusations against certain members.
This suspension, which affects the NOCSL’s access to critical funding, was confirmed in a joint statement released on December 10, signed by James MacLeod on behalf of the IOC and Hussein Al Musallam representing the OCA.
The core issue behind the suspension stems from the NOCSL’s lack of action in addressing the findings of the Ethics Committee, which had recommended the removal of several officials implicated in unethical practices.
Rather than acting on these recommendations, the executive committee has instead moved towards holding elections aimed at re-electing many of the same individuals accused of misconduct, as they continue to hold a majority in the current composition of the committee.
The joint statement issued by the IOC and OCA highlighted the significant damage to the credibility and reputation of the Sri Lanka Olympic Committee. It also stated that funds allocated to the NOCSL would remain suspended until further notice.
However, the statement did not specify if or when these payments would be reinstated, instead emphasising that the suspension would remain in place until serious ethical concerns surrounding the process were resolved.
Despite numerous ongoing discussions between the IOC, OCA, and the NOCSL over the years, no substantial progress has been made. The international bodies pointed out that the NOCSL has failed to implement any of the measures suggested by its own Ethics Committee, and individuals suspected of corruption or fraud have not lost their official positions, including the highly influential Secretary of the NOCSL, who remains accused of misconduct.
This situation has drawn widespread criticism, not only within Sri Lanka’s media but also from international sports publications. The international bodies have expressed disappointment that local authorities, including the Sports Minister, Deputy Minister, and the Director General of the Sports Development Department, have seemingly overlooked or failed to act upon the allegations.
In response to the actions of the NOCSL, the IOC and OCA have made it clear that merely conducting elections under the current circumstances, without addressing the serious allegations, is insufficient.
The election process is being viewed as an attempt to legitimise the status quo, rather than address the ethical issues that have plagued the NOCSL.
The ongoing situation raises serious concerns about Sri Lanka’s future participation in the international sporting community. Whilst the NOCSL may attempt to proceed with elections as a way to bypass the crisis, it is uncertain whether the international bodies will recognise such an election unless it is accompanied by a thorough investigation into the allegations raised in the Ethics Committee’s report.
As the crisis deepens, the international community continues to stress that any efforts to resolve the situation must begin with a transparent and fair investigation, followed by the removal of individuals found guilty of misconduct.
Only then can the NOCSL hope to restore its credibility and re-establish its position within the global sporting arena.
The suspension serves as a stark warning about the potential consequences of failing to address corruption within national sports bodies, with the looming threat of Sri Lanka’s membership in the Olympic movement being put at risk.
The path forward is clear: to protect the integrity of sports in Sri Lanka, the necessary reforms must be made before any election can be deemed valid in the eyes of the international community.
December 16, Colombo (LNW): During his official state visit to India, President Anura Kumara Dissanayake had an important meeting today with Indian Prime Minister Narendra Modi.
The meeting, which took place at the prestigious Hyderabad House, was warmly welcomed by PM Modi, who expressed India’s readiness to engage in detailed discussions with the Sri Lankan leader.
As part of the extensive talks, President Dissanayake and PM Modi are expected to focus on a broad range of key issues that will shape the future of bilateral relations between the two nations.
Among the topics to be discussed are the enhancement of trade ties, increased investment opportunities, development cooperation, and strengthening security collaboration.
The meeting reflects the growing partnership between Sri Lanka and India, with both leaders recognising the importance of fostering closer economic and strategic ties in the face of regional challenges.
