Home Blog Page 336

Judicial Transfers and Appointments Spark Concerns of Political Influence

0

The judicial sector has been thrown into turmoil following a series of transfers and appointments made by the Judicial Service Commission (JSC), raising concerns over political interference in the country’s legal system.

According to reports, several senior and additional magistrates have been reassigned effective August 25, 2025. Colombo Chief Magistrate B.J.T.L. Jayasinghe, ranked 17th in seniority, has been transferred as Mahara District Judge, while Y.R.B. Nelumdeniya, the Kesbewa District Judge and 26th in seniority, has been moved to Hambantota as District Judge.

In the lower ranks, further changes have been made. Mount Lavinia Magistrate A.D.C.C. Silva (48th in seniority) has been appointed as Kesbewa District Judge. Colombo Additional Magistrate K.P.S. Harshan (51st in seniority) has been named Embilipitiya District Judge, while Colombo Additional Magistrate L.M. Ratnayake (65th in seniority) has been transferred to Wellawaya as District Judge.

Meanwhile, Judge Asanka Bodaragama, ranked 58th in seniority, has been appointed as the new Colombo Chief Magistrate. Reports highlight that he previously served as a junior lawyer under incumbent Justice Minister Harsha Nanayakkara, a connection that has drawn attention given the prominence of the Colombo Chief Magistrate’s Court, which hears a significant number of high-profile cases.

Further changes include the appointment of Judge Pasan Amarasekara from Hulftsdorp Magistrate’s Court No. 3 as the new Mount Lavinia Magistrate. Legal circles have voiced concern that this move may affect ongoing cases involving powerful political figures such as Cabinet Minister Wasantha Samarasinghe, Deputy Minister Mahinda Jayasinghe, Kaduwela Mayor Ranjan Jayalal, and the Secretary to the Ministry of Public Security.

It has also been reported that the Ampara Magistrate has been given charge of the highly sensitive Kotuwa Magistrate’s Court. However, she has formally notified the JSC that she lacks adequate experience for the position, further fueling questions about the motivations behind the appointment.

These developments have led to strong suspicion that the transfers and appointments are politically motivated, threatening the independence of the judiciary and undermining public trust in the rule of law.

When contacted, senior government officials denied any involvement, stressing that the government had no connection to the changes and insisting that President Anura Kumara Dissanayake was unaware of the decisions.

Nevertheless, critics argue that the government must act swiftly. They have called on the President to intervene immediately to safeguard both public confidence in the judiciary and the credibility of his administration in the face of growing skepticism.

Govt Launches Rs. 5 Million Concessionary Loan Scheme to Create 50,000 Young Agri-Entrepreneurs

0

The Cabinet of Ministers has approved the implementation of a Rs. 5 million concessionary loan scheme for individual agricultural entrepreneurs, with the aim of attracting more young people into the agriculture sector, Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa announced on Tuesday (19).

The initiative is part of the Government’s plan to create 50,000 agricultural entrepreneurs within the next five years.

Key Features of the Loan Scheme

  • Loan amount: Up to Rs. 5 million per individual
  • Interest rate: 4% annually on the outstanding balance
  • Duration: Five years
  • Partner banks: Bank of Ceylon, People’s Bank, and Regional Development Bank

Dr. Jayatissa explained at the weekly Cabinet briefing that limited access to affordable financial facilities has long been a barrier to entrepreneurship in both the agriculture and industry sectors.

“This has discouraged investment, reduced the participation of young entrepreneurs in agriculture, increased the extent of uncultivated land, and ultimately lowered food production,”
he said.

To address these challenges, the Government has allocated Rs. 500 million under the 2025 budget to fund the new scheme, which will support the development of entrepreneurs in agriculture and related industries.

The Cabinet gave approval to the proposal presented by the Minister of Agriculture, Livestock, Land and Irrigation to proceed with the program.

SLTB to Introduce SMS and Hotline Notifications, Faster Refunds for Cancelled Online Bus Bookings from September

0

From September 1, 2025, passengers booking bus journeys online with the Sri Lanka Transport Board (SLTB) will begin receiving real-time updates on their reservations and refunds via SMS and the SLTB’s 1315 hotline, Deputy Transport, Highways, Ports and Civil Aviation Minister Dr. Prasanna Gunasena told Parliament yesterday (19).

Responding to a question raised by MP Thurairasa Ravikaran, the Deputy Minister said passengers will be notified of key details such as bus departure time, the conductor’s contact number, cancellations, or alternative bus arrangements. If a scheduled bus is cancelled and no alternative is available, passengers will receive cancellation notices directly via SMS.

He confirmed that refunds for cancelled journeys will be credited directly to passengers’ bank accounts without delay from September onward.

“Depending on passenger preference, SLTB will arrange another bus on the same day, or a bus to the same destination on another day. Passengers unwilling to accept either option will be entitled to a full refund,”
Dr. Gunasena explained.

High Number of Cancellations in 2025

The Deputy Minister also disclosed that SLTB has cancelled 4,928 scheduled bus journeys with online reservations in 2025 so far without providing alternatives. For another 2,541 cancelled journeys, replacement buses were deployed, while 1,505 journeys were rebooked for another date or service.

He further admitted that nearly Rs. 1 million in collected fares from cancelled bookings remains unpaid to passengers, a gap that the new system is expected to address.

Govt Directs Ministries to Work with National Cyber Protection Operations Center

0

The Government has instructed Secretaries and heads of ministries to establish direct collaboration with the National Cyber Protection Operations Center to ensure continuous professional support against rising cyber threats, Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa announced yesterday (19).

He said the Center operates 24/7 to monitor, identify, and respond to cyber threats, while also providing resources to detect and report malicious software and unauthorized access attempts.

Dr. Jayatissa warned that cyberattacks on public institutions and financial entities could disrupt essential services and lead to serious consequences, including the leakage of sensitive data, threats to personal and national security, risks to economic stability, and erosion of public trust in institutions.

“There is a risk of obstruction to essential services due to cyberattacks. Such incidents could compromise personal security within the community, national security, public health, economic stability, and good governance,”
he stressed.

The Minister said the National Cyber Protection Operations Center was established under the guidance of the Sri Lanka Computer Emergency Readiness Team (CERT) and the Digital Economy Ministry, with the aim of minimising such threats and safeguarding digital infrastructure.

Govt Firm on Postal Workers’ Dispute: Minister Tells Unions to Accept Policy or Leave

0

Health and Mass Media Minister Dr. Nalinda Jayatissa has made it clear that the Government will not alter its position regarding the ongoing trade union action by postal workers, stressing that those unwilling to work under government policy are free to seek employment elsewhere.

Addressing the weekly Cabinet press briefing yesterday (19), the Minister said that of the 19 demands raised by postal trade unions, 17 have already been fulfilled or are being addressed. The only remaining issues, he noted, concern overtime payments and the fingerprint attendance system.

“The government stands by its policy and is open to discussions only if the trade unions agree to the government’s stance on overtime pay and the fingerprint system,”
Dr. Jayatissa said.

Salaries and Overtime Policy

The Minister highlighted that postal workers have already received significant salary benefits. Basic state sector salaries were increased in three phases—April 2025, January 2026, and January 2027. Overtime payments for around 23,000 postal workers are being calculated on the January 2027 salary scale, providing higher compensation compared to the past.

“This is the final decision on overtime pay. It is in line with government policy and will not be changed under any circumstances,”
he stressed.

Fingerprint Attendance System

On the second contentious issue, Dr. Jayatissa said the fingerprint attendance system is already in use at administrative offices of the Postal Department, with only a small minority at the Central Postal Exchange opposing it.

“That cannot be tolerated. Postal workers unwilling to accept the fingerprint system can find employment elsewhere,”
he warned.

Allegations of Political Influence

The Minister accused political parties of fuelling union action, noting that the Postal Department is operating at a loss, with revenue insufficient to cover even salaries and overtime.

“In such a situation, we cannot entertain unjust demands,”
he added.

Government’s Modernisation Drive

Despite the standoff, Dr. Jayatissa emphasised that the government is actively modernising the postal service, addressing long-neglected issues. Approvals for new recruitments have been granted and interviews are already underway.

“The postal sector is receiving more attention now than at any time in the past. We are tackling problems ignored for 7 to 8 years,”
he said.

The Minister reiterated that while the government remains open to dialogue, discussions will only take place once unions accept the government’s policy decisions.

Sri Lankan Garment Sector to Gain Boost with UK’s Liberalised Trade Rules from 2026

0

Sri Lankan garment manufacturers are set to gain unprecedented access to UK markets under new liberalised trade rules coming into effect in early 2026. The reforms will allow manufacturers to source up to 100 percent of garment inputs from any country worldwide, while still enjoying tariff-free access to the UK.

According to the British High Commission in Colombo, Sri Lanka benefits from the UK’s Developing Countries Trading Scheme (DCTS) as an ‘Enhanced Preference’ country. Currently, Sri Lankan garment exports qualify for tariff-free access only if inputs are sourced from within South Asia and subject to strict processing restrictions.

The upcoming reforms will place Sri Lanka on par with lower-income countries such as Bangladesh, which enjoy ‘Comprehensive Preferences’ under the scheme. This means Sri Lankan garment exports will now be eligible for zero tariffs regardless of where raw materials are sourced.

British High Commissioner to Sri Lanka, Andrew Patrick, noted:

“We are pleased to confirm further details of the reforms to the DCTS. I know from my discussions with the JAAF, Sri Lankan manufacturers and UK brands that the changes are likely to have a significant positive impact on the garment sector in Sri Lanka, while helping lower prices on the UK high street.”

Mark Surgenor, President of The Council for Business with Britain, also welcomed the changes, calling it “a particular success story for Sri Lanka’s garment industry,” and highlighting that more exports will now qualify for zero tariffs, strengthening bilateral trade.

The British High Commission added that the reforms reflect the UK’s role as a progressive trade partner, simplifying rules of origin and enabling Sri Lankan manufacturers to be more competitive in global markets while retaining preferential access to the UK.

The DCTS, covering 65 developing countries, provides tariff reductions across multiple product categories. Sri Lanka’s Enhanced Preference status offers significant advantages under this framework.

In addition to garment sector reforms, the UK in June announced the creation of a new Asia Regional Cumulation Group comprising 18 countries, including Sri Lanka. For all eligible products, inputs sourced from any member country will be treated as originating in Sri Lanka if final processing or manufacturing occurs locally. This broadens opportunities for exporters and enhances competitiveness.

The group includes Afghanistan, Bangladesh, Bhutan, Cambodia, India, Indonesia, Kyrgyzstan, Laos, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Sri Lanka, Tajikistan, Timor-Leste, Uzbekistan, and Vietnam.

Govt. Moves to Curb Exploitative Lending With New Microfinance Law

0

The government has approved fresh legislation to rein in widespread abuses in the country’s microfinance sector, a long-criticised industry blamed for trapping poor and vulnerable families in cycles of debt.

At its weekly meeting on Tuesday (12), the Cabinet of Ministers gave policy clearance to draft a new Microfinance and Loan Regulation Authority Bill, on the recommendation of President and Finance Minister Anura Kumara Dissanayake. The new law will replace the outdated Microfinance Act No. 6 of 2016 and aims to establish a stronger regulatory authority with wider powers.

The move follows the collapse of the Microfinance and Credit Regulatory Authority Bill introduced by the previous administration.

 That draft, published in October 2023 and tabled in Parliament in January 2024, was withdrawn after facing widespread public resistance, constitutional petitions, and Supreme Court challenges.

Civil society groups including Transparency International Sri Lanka (TISL) argued that the bill failed to address the heart of the problem—unethical lending practices such as exorbitant interest rates, intimidation of borrowers, and harassment during loan recovery.

Some petitioners also noted that the earlier draft excluded major players such as banks, finance companies, and leasing firms, effectively leaving large segments of borrowers unprotected. Despite amendments suggested by the Supreme Court, the Finance Ministry withdrew the bill, acknowledging that it failed to reflect the government’s intended policy.

To rebuild public confidence, the Treasury and Central Bank appointed a joint committee to review the issue, while the Parliamentary Sectoral Oversight Committee on the Economic Crisis Impact gathered submissions from stakeholders. Their recommendations form the basis of the new bill now cleared for drafting.

Sri Lanka’s microfinance industry has been at the centre of controversy for over two decades. While originally promoted as a poverty alleviation tool, the sector has increasingly been associated with debt distress, farmer suicides, and exploitation of women in rural areas.

 Borrowers often take out loans for consumption or emergency needs, rather than income generation, only to find themselves unable to meet repayment schedules. With interest rates sometimes exceeding 200 percent annually, families are forced to pawn assets, sell land, or migrate for low-wage labour abroad.

Today, the country has over 11,000 microfinance institutions, but fewer than 100 are formally regulated by the Central Bank. The lack of oversight has allowed money lenders to operate unchecked, often demanding repayments on a daily or weekly basis and using public humiliation, threats, and coercion as collection tactics.

The Central Bank of Sri Lanka has consistently warned that leaving this sector unregulated could lead to illegal deposit-taking, exploitation of low-income communities, and systemic financial instability.

The proposed new authority will be tasked with licensing, regulating, and supervising all microfinance and money-lending institutions, capping interest rates, and ensuring stronger borrower protection measures.

The government’s move marks its second legislative attempt in less than a year and underscores growing recognition of the urgent need to reform microfinance. If effectively enforced, the new law could finally bring relief to thousands of Sri Lankan families burdened by years of exploitative lending.

CHOGM Luxury Buses Back on the Road after Years of Neglect

0

Nearly a decade after they were imported at massive cost for the 2013 Commonwealth Heads of Government Meeting (CHOGM) in Colombo, nine out of 35 luxury buses have finally been restored and redeployed for passenger transport. The move comes as the government attempts to salvage value from a controversial purchase that once symbolized extravagance and waste.

The fleet of 35 super luxury buses was brought down in 2013 under the Mahinda Rajapaksa administration to ferry CHOGM delegates between venues and hotels. Official records show that billions of rupees were spent not only on the buses but also on extensive infrastructure projects to host the high-profile summit.

Once the event concluded, however, the majority of these buses were left idle at depots, deteriorating without any accountability or clear plan for their use.

At a ceremony held yesterday at the Katubedda Super Luxury Tourist Depot, Highways, Ports and Civil Aviation Deputy Minister Prasanna Gunasena confirmed that nine buses had been repaired at a cost of Rs. 375 lakh.

He said the government had already procured spare parts to restore the rest of the fleet and expressed confidence that all remaining buses would return to service within the next three months.

“The buses brought for CHOGM had been withdrawn from service. Today, nine of them have been renovated and redeployed. There is a high demand for long-distance services to destinations such as Galle, Matara, and Kandy. These buses will initially run 5,000 km of short-distance services before being assigned to long-distance routes,” Minister Gunasena explained.

The government’s decision highlights a stark contrast between past misuse of public funds and present efforts to maximize resources.

Analysts point out that the original procurement reflected a lack of planning, as vehicles intended for foreign dignitaries ended up wasting away for years. Critics argue that such neglect illustrates a broader culture of impunity that has plagued state expenditure.

In addition to restoring the buses for intercity travel, Minister Gunasena announced that the government plans to expand rural transport networks, in line with the President’s vision of strengthening connectivity across underserved regions. “Reliable public transport is essential for both urban and rural populations. These buses, once symbols of waste, can now be put to productive use,” he said.

For many citizens, the reactivation of these buses offers a glimpse of accountability long overdue. While questions remain about the billions lost during CHOGM preparations, the current government’s move to repurpose idle assets signals a pragmatic step towards efficiency in public transport

Sri Lanka’s Coconut Industry Faces Policy Vacuum amid Falling Prices

0

Sri Lanka’s coconut industry, a key pillar of its agricultural economy, is facing renewed challenges as prices fell at the latest weekly auction, despite a modest recovery in production earlier this year. According to Coconut Development Authority (CDA) data, the average price for 1,000 coconuts dropped by 5.4 percent to 133,623 rupees at the August 16 auction.

Auction volumes also reflected uncertainty in the market. The number of coconuts offered fell to 658,480 from 751,836 a week earlier, while sales rose slightly to 582,000 nuts compared to 523,823 previously.

On the ground, wholesale prices ranged between 170–180 rupees for a large nut and 140–160 rupees for smaller ones, while farmgate prices in Kurunegala — Sri Lanka’s main coconut belt — stood at 120–155 rupees per nut.

 Meanwhile, copra traded at 120,000–125,000 rupees per 250 kg, and local coconut oil prices ranged from 880,000 to 900,000 rupees per metric ton.

Central Bank figures show coconut production had risen 18.3 percent year-on-year in June 2025, with output climbing from 170 million nuts in January to 289.5 million by mid-year.

This recovery followed drought-hit declines in late 2024, when adverse weather and irregular rainfall severely impacted cultivation. However, growers and exporters warn that the improvement is fragile.

Exports of coconut-based products such as desiccated coconut, virgin coconut oil, coir, and activated carbon continue to contribute significantly to foreign exchange earnings, but shipments have slowed this year.

Provisional data shows that in the first seven months of 2025, coconut product exports brought in around USD 450 million — a decline compared to USD 510 million during the same period in 2024.

 Industry analysts attribute the slowdown to inconsistent production, volatile global demand, and competition from the Philippines and Indonesia, the world’s two largest coconut producers.

The structural problems in Sri Lanka’s coconut sector go beyond temporary price fluctuations. Smallholder farmers, who account for nearly 80 percent of coconut cultivation, struggle with rising input costs, aging trees, land fragmentation, and a lack of access to modern technology.

Erratic weather patterns linked to climate change have also worsened yields in traditional growing regions such as Kurunegala, Puttalam, Gampaha, and parts of the Southern Province.

 Industry stakeholders argue that the absence of a coherent government policy has left the sector vulnerable. Although successive governments have promised replanting programs, irrigation schemes, and research investments, progress has been slow.

Experts stress the need for an integrated national coconut policy focusing on replanting with high-yielding varieties, promoting value-added exports, expanding irrigation facilities, and ensuring price stabilization for farmers.

Without a strategic approach, Sri Lanka risks losing its competitive edge in global markets. As one industry representative put it, “We have the potential to double coconut export earnings within five years, but only if policymakers treat this industry as a national priority.”

Thailand Turns to Sri Lanka for Workers amid Labour Crisis

0

Thailand’s government has approved the recruitment of 10,000 Sri Lankan workers as part of its drive to plug a deepening labour shortage, a move that reflects both the country’s growing demographic challenge and its dependence on foreign labour.

The decision, announced by Labour Minister Pongkawin Jungrungruangkit, comes in the wake of a mass exodus of Cambodian workers who returned home after a deadly border conflict last month.

The fighting, the worst in decades, killed at least 43 people and displaced more than 300,000 on both sides before a fragile ceasefire was struck.

Before the clashes, over 520,000 Cambodians were employed in Thailand, making up nearly 12% of its foreign workforce. An estimated 400,000 have since returned home, leaving serious gaps in key industries.

Thailand, already grappling with a fast-ageing population and shrinking domestic workforce, has relied heavily on foreign labour to sustain its economy.

According to the International Labour Organization, at least three million registered foreign workers are employed in agriculture, construction, and manufacturing.

With fertility rates dropping and one in five Thais projected to be over 60 by 2035, the government faces mounting pressure to secure a steady inflow of migrant workers.

Sri Lanka has emerged as a major source. More than 30,000 Sri Lankans have registered, with the first batch of 10,000 expected to depart soon. Bangkok is also opening doors to workers from Nepal, Bangladesh, Indonesia, and the Philippines to ensure supply continuity.

For Sri Lanka, the opportunity is significant. Labour migration remains the largest source of foreign exchange for the island nation, which sent a record 314,786 workers abroad in 2024 amid ongoing economic struggles.

While the Middle East continues to be the top destination, demand from East and Southeast Asia, particularly South Korea, Japan, and now Thailand, is rising rapidly.

However, analysts warn that the Thai government’s plan may not be without risk. On the one hand, the influx of Sri Lankan and other

South Asian workers will stabilize industries reliant on low-cost labour and cushion the economy from immediate shocks caused by the Cambodian exodus.

On the other hand, critics argue that excessive reliance on foreign labour could strain social services, spark cultural tensions, and potentially erode wages for local workers.

For Thailand’s ruling socialist-leaning coalition, the move is politically delicate. While business groups welcome the decision, opposition parties could exploit fears over job competition and national identity.

If mismanaged, the migrant recruitment drive may dent the government’s popularity, particularly among its rural voter base, who already feel neglected in the country’s economic model.

In the long run, Thailand faces a difficult balancing act: meeting urgent labour demands while addressing demographic decline and safeguarding social stability.

Whether the recruitment of 10,000 Sri Lankans is a temporary fix or the beginning of a deeper shift in Thailand’s labour strategy remains to be seen.