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UK Firm Joins Sri Lanka Mineral Boom amid Rising Indian Interest

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By: Staff Writer

June 03, Colombo (LNW):Amid growing regional interest in Sri Lanka’s rich mineral reserves, British firm Capital Metals PLC has entered the island’s mining sector with backing from local investment company Ambeon Capital PLC. This move follows a wave of Indian interest, particularly in securing critical minerals needed for renewable energy and strategic industries.

India has intensified efforts to secure resources like lithium, graphite, and nickel through regional partnerships under its National Critical Mineral Mission. Sri Lanka, with its substantial deposits of industrial and critical minerals, has emerged as a key focus. Delegations from India’s Ministry of Mines and major public sector companies have visited Sri Lanka to assess collaboration opportunities and evaluate local mining assets. Indian interest centers especially on Sri Lanka’s highly pure vein graphite, vital for lithium-ion battery production.

As India looks to expand its mineral footprint, Ambeon Capital has opted to diversify its investment strategy by partnering with UK-listed Capital Metals in a major mineral sands project in Sri Lanka’s Eastern Province. According to a filing on the Colombo Stock Exchange (CSE), the “Taprobane Minerals Project” is considered one of the world’s highest-grade mineral sand ventures, with scope for resource expansion and technological upgrades.

Ambeon’s initial investment of Rs. 600 million, to be made by June 4, 2025, will be directed to the project’s Sri Lankan holding company, Redgate Lanka Ltd. In return, Ambeon will receive 59.7 million ordinary shares in Capital Metals, representing a 14.1% stake in the UK firm. These shares will be listed on the London Stock Exchange, enabling Ambeon to participate in Capital Metals’ global mineral strategy.

Capital Metals will conduct operations in Sri Lanka through two local entities holding exploration and industrial licenses for mineral sands such as ilmenite, rutile, zircon, and garnet. These materials are critical for industries ranging from electronics to aerospace and renewable energy.

Meanwhile, India is strengthening ties with Sri Lanka under the Indo-Sri Lanka Free Trade Agreement (ISLFTA), which offers duty concessions on mineral exports. Sri Lanka’s new national mineral policy also aims to attract foreign investors and partners by encouraging joint ventures, especially in the critical minerals space.

With India and now the UK investing in the country’s mineral wealth, Sri Lanka is poised to become a regional hub for critical mineral exploration and processing, balancing geopolitical interests while tapping into the global green energy supply chain.

Cabinet Minister quashes rumours of leadership shake-up in government

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By: Isuru Parakrama

June 03, Colombo (LNW): Cabinet Spokesman Dr. Nalinda Jayatissa has firmly denied speculation about any plans to replace Prime Minister Dr. Harini Amarasuriya or to reorganise the current Cabinet.

Speaking at briefing held at the Department of Government Information in Colombo this (03) afternoon, Dr. Jayatissa addressed swirling rumours that have gripped political circles and media outlets in recent days.

Dr. Jayatissa dismissed suggestions of an impending Cabinet reshuffle as baseless, asserting that no discussions or decisions have been made to alter the government’s leadership structure.

He accused certain groups, in collusion with sections of the media, of spreading misinformation to serve their own agendas, urging the public to disregard such reports.

Tragic incident at Kuliyapitiya Technical College sparks Police action

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June 03, Colombo (LNW): In a distressing event at Kuliyapitiya Technical College, four students have been arrested following an incident that allegedly drove a fellow student to attempt suicide.

The troubling episode, linked to reported ragging, has raised serious concerns about student welfare at the institution.

Yesterday afternoon, a first-year female student reportedly leapt into a nearby lake in a desperate act. Local residents acted swiftly, pulling her from the water and ensuring she was rushed to Kuliyapitiya Hospital for urgent care.

Medical staff have confirmed that, whilst shaken, the young woman is stable and receiving treatment, with her condition described as non-life-threatening.

Initial police inquiries suggest the student’s actions were a direct response to a humiliating ragging ordeal, a practice that continues to plague educational institutions despite efforts to curb it.

The four arrested students, all enrolled at the same college, are now in custody as authorities delve deeper into the circumstances surrounding the incident. The investigation aims to uncover the extent of the ragging and whether others were involved in perpetuating or enabling the behaviour.

The incident has sparked outrage amongst the local community, with calls for stricter measures to prevent such harmful traditions.

Kuliyapitiya Police are continuing their inquiries, vowing to address any systemic issues that may have contributed to this alarming event.

Sri Lanka and Australia pledge deeper ties in high-level talks

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June 03, Colombo (LNW): President Anura Kumara Dissanayake met with Australia’s Deputy Prime Minister and Defence Minister, Richard Marles, for bilateral discussions held at the Presidential Secretariat earlier today.

The meeting marked a renewed commitment by both nations to strengthen a diplomatic partnership that has endured for more than seven decades.

The talks, described as cordial and forward-looking, revolved around deepening economic ties, reinforcing political cooperation, and expanding collaboration on regional security issues.

According to official sources, the two leaders explored new avenues for strategic engagement, particularly in the Indo-Pacific context.

President Dissanayake extended his gratitude to the Australian Government for its continued support in various critical sectors. He highlighted Canberra’s contributions to Sri Lanka’s efforts in enhancing maritime safety, countering transnational crime, and addressing pressing issues such as people smuggling and the illicit arms trade.

These areas, the President noted, are vital to regional stability and the protection of national sovereignty.

Mr Marles arrived on the island yesterday evening, accompanied by a delegation of senior officials aboard a special aircraft operated by Australia’s Ministry of Defence. His visit underscores the growing importance of Sri Lanka in Australia’s broader regional security and economic framework.

Drop in Foreign Job Seekers Sparks Alarm over SLBFE Mismanagement.

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By: Staff Writer

June 03, Colombo (LNW):Over 350,000 Sri Lankans left the country for foreign employment in 2024, with tens of thousands more departing in the first half of 2025. However, this outward trend has now slowed significantly, with a 20% drop in overseas job seekers reported compared to previous years.

Industry stakeholders warn that this decline could deal a serious blow to Sri Lanka’s already fragile economy, especially in terms of foreign exchange inflows.

The Association of Licensed Foreign Employment Agencies (ALFEA) attributes the reduction to growing public distrust in the Sri Lanka Bureau of Foreign Employment (SLBFE) and a surge in malpractice by rogue job agencies. ALFEA Secretary Mohamed Farooq Mohamed blamed so-called social activists for running disinformation campaigns that have discouraged potential migrant workers.

He emphasized that the fallout is already visible, with fewer Sri Lankans opting for foreign employment. “This will inevitably hurt the country’s foreign exchange reserves,” he cautioned.

Meanwhile, the Committee on Public Enterprises (COPE) has uncovered a host of financial and administrative irregularities at the SLBFE. Notably, more than Rs. 1.3 billion was spent on two programs that were not approved in the Bureau’s 2024 action plan.

These include Rs. 63 million spent on the ‘Vigamanika Harasara’ initiative and over Rs. 1.25 billion on the ‘Glocal Fair’, which was launched without Cabinet approval.

COPE also raised concerns about the mismatch in scale, noting that such events typically receive only Rs. 2 million in annual funding. The Bureau further came under fire for failing to recover Rs. 100 million from a 2013 housing loan scheme due to the non-implementation of an MoU with the Samurdhi Authority. Officials admitted they had no data on beneficiaries and were instructed to submit a detailed report.

Additional concerns include underutilized fixed deposits worth Rs. 18 billion, misuse of registration fees by fraudulent agencies, and the lack of action on a dormant Rs. 5.1 billion Kuwait Compensation Fund. A sub-committee is to be appointed to investigate these financial misappropriations.

Despite these issues, Farooq said ALFEA supports strict action against any official, agency, or individual engaged in malpractice. However, he warned that continued disruption in the foreign employment sector could mirror the 2022 economic crisis. He urged the government to intervene urgently to restore confidence in the system and stabilize the sector.

Govt moves to ease return of long-term refugees from India

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June 03, Colombo (LNW): The government is preparing to dismantle longstanding legal obstacles that have hindered the return of citizens who fled the country during the protracted civil conflict with the LTTE and have since been living as refugees in India.

Minister of Public Security and Parliamentary Affairs Ananda Wijepala announced that preliminary steps are already underway to revise existing immigration and emigration regulations.

These changes are intended to support the reintegration of thousands of displaced individuals who sought safety in Tamil Nadu during the years of violence that engulfed Sri Lanka’s north.

Many of these individuals have spent decades in Indian refugee camps, unable to return to their homeland due to restrictive legal frameworks. Minister Wijepala acknowledged that the current laws present significant barriers to re-entry and resettlement.

He confirmed that a Cabinet proposal aimed at amending these legal provisions is in preparation and will soon be presented for formal approval.

Meanwhile, authorities in Talaimannar have detained three individuals who arrived from India by sea, underscoring the urgency of legal reforms. The group—a young couple aged 24 and their toddler—reportedly made the journey from Rameswaram. Police investigations indicate they originally fled Sri Lanka by boat in May 2023 and were attempting to return outside official channels due to the legal constraints still in place.

India Gifts 22 Diesel Locomotives to Boost Sri Lanka Railways’ Struggling Fleet

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By: Staff Writer

June 03, Colombo (LNW): India is sending 22 powerful WDM3D Alco-class diesel locomotives to Sri Lanka, offering a much-needed lifeline to the crisis-hit Sri Lanka Railways (SLR).

Among the 32 locomotives identified for export, five come from Mumbai, including four from the Kurla Diesel Loco Shed and one from Kalyan.

This move follows an official request from the Sri Lankan government and represents a significant act of regional cooperation and goodwill.

These WDM3D locomotives, developed by Banaras Locomotive Works in 2003 and produced until 2016, have been the backbone of Indian Railways for decades, especially on routes like the Konkan Railway prior to electrification.

With a robust 3300-horsepower diesel-electric engine and their iconic chugging sound, the Alco-class units are beloved by rail enthusiasts and valued for their durability and performance.

The Ministry of External Affairs (MEA) approved the transfer via the Railway Board’s infrastructure directorate. “

The locomotives are being dispatched in excellent working condition,” an official confirmed. India has previously shared similar locomotives with countries like Bangladesh and Sri Lanka, underscoring its commitment to regional support through rail diplomacy.

This timely donation comes as Sri Lanka Railways grapples with aging infrastructure, reduced service reliability, and chronic financial losses.

According to Sri Lanka’s Ministry of Transport, the railway department recorded losses exceeding LKR 14 billion in 2023 alone. A lack of new rolling stock and years of underinvestment have led to increased breakdowns, delays, and commuter dissatisfaction.

As of 2024, Sri Lanka Railways operates a fleet of over 300 locomotives, but more than 40% are inoperable due to technical issues and lack of spare parts.

The majority of the active fleet is decades old, some dating back to the 1970s. These aging engines consume excessive fuel and are often unable to meet the demands of daily commuter and freight services.

Transport experts suggest that India’s contribution could help fill the operational gaps, especially for long-distance and freight services.

However, they warn that without systemic reforms—such as improved maintenance regimes, staff training, and investment in infrastructure—the benefits of the new locomotives may be short-lived.

Nevertheless, this gesture not only symbolizes India’s support for Sri Lanka during economic hardship but also highlights the strategic importance of railways in regional connectivity and trade. With the right strategic planning, these locomotives could be the first step in modernizing Sri Lanka Railways and restoring public confidence in the island’s vital transportation network

Australian Deputy PM begins diplomatic mission in Sri Lanka

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June 03, Colombo (LNW): Richard Marles, Australia’s Deputy Prime Minister and Minister for Defence, commenced an official visit to Sri Lanka this morning (03), marking a significant diplomatic engagement aimed at deepening bilateral ties between the two nations.

Upon his arrival, he was formally welcomed at Bandaranaike International Airport by Deputy Minister of Public Security and Parliamentary Affairs, Sunil Watagala.

This visit, seen as a reaffirmation of Australia’s growing interest in South Asian regional partnerships, includes a series of high-level meetings with senior members of the Sri Lankan government.

Marles is scheduled to hold discussions with President Anura Kumara Dissanayake, whose administration has been working to reposition Sri Lanka as a strategic hub in the Indian Ocean through a policy of non-alignment and diversified international engagement.

The discussions are expected to cover a broad spectrum of issues including maritime security, defence capacity-building, and regional cooperation on transnational threats.

Marles will also meet with Foreign Minister Vijitha Herath, who oversees not only diplomatic affairs but also labour migration and tourism—two sectors where collaboration with Australia continues to grow.

The Australian government has expressed interest in expanding opportunities for skilled migration from Sri Lanka, particularly in healthcare and engineering, whilst also encouraging increased tourism exchanges.

A key engagement during the visit will be a formal luncheon hosted at Australia House in Colombo, where Prime Minister Dr Harini Amarasuriya is expected to be the Chief Guest. The event, attended by government officials, business leaders, and representatives from civil society, is aimed at fostering people-to-people connections alongside formal state-level dialogue.

Defence cooperation remains central to Mr Marles’ agenda. He is set to engage in detailed bilateral talks with Sri Lanka’s Deputy Minister of Defence, Major General (Retired) Aruna Jayasekara. These discussions are likely to address joint training initiatives, maritime surveillance, and enhancing interoperability between the two countries’ defence forces.

Australia has provided support in areas such as naval capability development and disaster response coordination in the past, and there are expectations of new frameworks being proposed to deepen such assistance.

Marles is accompanied by a delegation of senior officials from Australia’s Department of Defence, Department of Foreign Affairs and Trade, and the Prime Minister’s Office, underscoring the strategic weight of the visit.

Cyberattack on Water Board’s SMS system triggers security overhaul

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June 03, Colombo (LNW): Authorities at the National Water Supply and Drainage Board (NWSDB) have confirmed that a recent cyber intrusion targeting their SMS communication system has not resulted in any loss or compromise of sensitive customer data.

The incident, which unfolded on Sunday, involved an unauthorised attempt to access the Board’s web-based systems, leading to a temporary disruption in its SMS services.

According to Additional General Manager Pradeep Herath, whilst the infiltration allowed the unidentified perpetrator to send out around 10,000 deceptive text messages to customers’ mobile phones, internal systems containing user data remained secure.

The attacker reportedly issued messages urging recipients to make payments in exchange for access to their own information—a tactic reminiscent of common phishing or ransomware schemes, though no payment platform was engaged.

The Board acted swiftly to regain control of the SMS platform, cutting off the unauthorised access and restoring normal operations within hours. Affected customers were subsequently notified about the fraudulent nature of the messages, with reassurances that no action was required on their part.

The organisation has since launched a specialised programme to enhance the security infrastructure surrounding its digital platforms.

This breach has raised broader concerns over the vulnerability of state-run digital infrastructure. In response, the Sri Lanka Computer Emergency Readiness Team (SLCERT) has announced plans to implement round-the-clock monitoring mechanisms for public sector websites.

Charuka Damunupola, a senior cybersecurity analyst at SLCERT, noted that weaknesses in existing security protocols may have contributed to the success of the intrusion. He stressed the urgent need for robust preventative measures across all government-managed web platforms.

Ex-Minister Keheliya Rambukwella and son released on bail amid corruption allegations

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June 03, Colombo (LNW): The Colombo Magistrate’s Court has granted bail to former cabinet minister Keheliya Rambukwella and his son, Ramith Rambukwella, who are currently under investigation for alleged abuse of public funds.

The decision was made by Colombo Chief Magistrate Thanuja Lakmali following detailed submissions presented by both the Commission to Investigate Allegations of Bribery or Corruption and the defence.

The court ruled that both individuals be released on a cash bail of Rs. 50,000 each, in addition to two surety bails amounting to Rs. 1 million per suspect. As part of the bail conditions, a travel ban has been imposed on both the former minister and his son, barring them from leaving the country while the legal proceedings are ongoing.

The corruption case centres on allegations that Keheliya Rambukwella, during his time as a government minister, orchestrated the appointment of fifteen individuals to his personal staff without proper authorisation.

These appointments, according to the complaint lodged by the Bribery Commission, resulted in a financial loss exceeding Rs. 8 million to the state, through the illicit collection of salaries, allowances, and overtime payments made to these personnel.

Rambukwella was initially detained on May 07, whilst his son, a former national cricketer, was arrested two weeks later after voluntarily appearing before the anti-corruption authorities to provide a statement.

The case is now set to resume on October 10, when the court will review the progress of the investigation.