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Sri Lanka Signs USD 100 Million Loan Agreement with ADB to Strengthen Health Sector

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Sri Lanka has entered into a USD 100 million loan agreement with the Asian Development Bank (ADB) to enhance the country’s health sector, the Ministry of Finance announced.

The agreement was signed by Finance Ministry Secretary Harshana Suriyapperuma on behalf of Sri Lanka, and ADB Country Director Takafumi Kadono representing the Asian Development Bank.

According to the Ministry, the funds—provided through ADB’s Ordinary Capital Resources window—will support the implementation of the National Strategic Framework for Health Services Development, focusing on improving the efficiency and quality of secondary healthcare services as the first point of referral care. The initiative aims to strengthen Sri Lanka’s progress toward universal health coverage.

In addition to the loan, the package includes an externally financed grant of USD 6.9 million from the Pandemic Fund, provided under a Results-Based Lending approach. This grant component is expected to support measures that enhance the health system’s resilience and preparedness for future public health emergencies.

President Dissanayake Chairs First Meeting of National Operations Council to Combat Drug Menace

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The National Operations Council for the “Ratama Ekata – National Operation” convened for the first time yesterday (17) at the Presidential Secretariat, under the patronage of President Anura Kumara Dissanayake, to implement a comprehensive national program aimed at eradicating the growing drug menace in Sri Lanka, the President’s Media Division (PMD) reported.

The “Ratama Ekata – National Operation” initiative—declared a top national priority—was formally approved by the Cabinet of Ministers on October 13, following a proposal presented by President Dissanayake. The newly established National Operations Council has been tasked with coordinating and driving the program’s implementation.

During its inaugural session, the Council discussed key areas of action including dismantling drug trafficking networksrehabilitating drug addictsmobilizing public participation, and engaging community organizations and media to raise awareness on the dangers of drug abuse.

President Dissanayake, outlining the main objective of the Council, emphasized that the drug crisis has evolved into a national socio-economic disaster, endangering the lives and futures of the country’s youth and schoolchildren. He stressed that eradicating the drug menace requires a unified effort that combines law enforcement, rehabilitation, education, and public cooperation.

The President further noted that the “Ratama Ekata – National Operation” will serve as a coordinated platform bringing together government agencies, civil society organizations, and local communities to build a drug-free nation.

India’s Neighbourhood First Policy Anchors Regional Stability – PM Harini Amarasuriya

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Sri Lankan Prime Minister Harini Amarasuriya today praised India’s Neighbourhood First policy, describing it as a cornerstone of regional stability and cooperation that has benefitted all neighbouring countries.

Speaking at the NDTV World Summit in New Delhi under the theme “Steering Change in Uncertain Times,” Prime Minister Amarasuriya said, “India’s rise, coupled with its inclusive approach, provides an anchor of stability. For Sri Lanka, this partnership embodies a shared belief that we achieve more and rise stronger when we rise together.”

She expressed deep gratitude for India’s assistance during Sri Lanka’s 2022 economic crisis, calling it a moment that “redefined leadership.”
“India’s support at our hour of need is remembered and deeply valued by our people,” she said, recalling India’s $500 million line of credit for fuel purchases and a $1 billion facility for essential imports including food and medicine during the crisis.

Amarasuriya, who studied at Hindu College, Delhi in the 1990s, reflected on her student days, saying that returning to India now felt like “coming full circle.”
“In 1991, I was a student here navigating a period of change. Returning now, I have seen India transform into a vibrant country of 1.4 billion,” she said.

During her first official visit to India, Amarasuriya also met with Prime Minister Narendra Modi, where discussions focused on strengthening bilateral ties across multiple sectors.

Referring to Sri Lanka’s path of recovery after the crisis, she said the country has emerged with “a clear mandate for a forward-looking Sri Lanka.”
“We have restructured our debt and we are digitising the public structure,” she noted, emphasizing resilience amid economic and political challenges.

Looking ahead, the Prime Minister outlined key areas for India-Sri Lanka collaboration — including trade, regional connectivity, renewable energy, and Indian Ocean security.
“It is very important that India-Sri Lanka relations, especially in trade and investment, must not be seen as a zero-sum game,” she said.

Highlighting economic ties, Amarasuriya noted that India is Sri Lanka’s largest trading partner, leading investor, and top tourism source, while Sri Lankan investments in India — particularly in the apparel sector — employ around 20,000 Indians, mostly women from rural Andhra Pradesh.

She added that Sri Lanka aims to become a maritime hub for the Indian Ocean, offering a cost-effective gateway for global trade, complementing India’s regional growth ambitions.

“As India positions itself as a global manufacturing hub, Sri Lanka can serve as a complementary production base — especially in textiles, electronics, and food processing,” she said.

The Prime Minister also pointed to tourism as a major growth frontier, offering opportunities in hospitality, infrastructure, and new travel experiences.

“Our two nations share more than geography — we share a destiny. Together, we can chart a future of inclusive growth and regional prosperity,” Amarasuriya concluded.

Island-Wide Showers Expected Today – Met Department

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The Department of Meteorology forecasts showers or thundershowers in most parts of Sri Lanka after 1.00 p.m. today (18).

Fairly heavy rainfall above 75 mm is likely in certain areas of the Western, Sabaragamuwa, Central, Uva, North-Central, and North-Western Provinces, the Department said.

Morning showers are also possible in parts of the Western and Southern Provinces.

The public is advised to take necessary precautions to minimize damages from temporary strong winds and lightning that may accompany thundershowers.

Sri Lanka’s Hayleys pays Rs2.5bn for 40-pct of Harischandra, retail price soars

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EconomyNext :  Sri Lanka’s Hayleys paid 2.57 billion rupees to buy a 40 percent stake in Harischandra Mills, the company said in stock exchange filing.

The company paid 3,300 rupees a share for 779,946 shares.

Senthilverl Holdings was the seller.

Asia Securities handled the transaction.

In retail trade Harishchandra closed up 2,475 rupees at 7,424 rupees.

Sri Lanka’s batting maestro Aravinda celebrates 60

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Today marks the 60th birthday of one the greatest batsman Sri Lanka has ever produced and one of the finest the world has ever seen. Much time has passed since he lit up the cricketing world during the 1996 World Cup and gave all Sri Lankans a magnificent reason to celebrate at a time when there was little to cheer back home. Even cricket fans who were just babies at the time or were born thereafter would have heard of that amazing run. No cricket fan alive today can say ‘I have not heard of Aravinda de Silva.’

I was one among hundreds of thousands of Sri Lankans who were glued to the television on that historic day when Aravinda scored a century to defeat Mark Taylor’s Aussies in Lahore.

I had the privilege of knowing Aravinda de Silva as a close friend for many decades. For nearly four to five years of my life we were even flatmates. During that time, I came to know him not just as a cricketer but as a man driven by an extraordinary will. Aravinda thrives on challenges. Whether it is cricket, business, or love. Put simply, he never gives up until he gets what he wants. His determination borders on the relentless and his self-belief even in the face of adversity is truly something to behold. I saw it all, first hand.

I once heard Sri Lanka’s World Cup winning captain Arjuna Ranatunga say that there will never be another batsman like Aravinda, that there is and always will be only one Aravinda. It is a sentiment that every Sri Lankan cricket fan, regardless of background or allegiance and regardless of which era he or she was born, will share. He is, without question, the most naturally gifted batsman our country has produced; elegant, fearless, and original. He soaked the praise, he suffered the occasional insult and remained humble and unfazed through it all. Focused on his cricket. From the first day he donned the Sri Lankan cap until the day he retired.

He always had the support of his fans. He was and is revered as a legend. On the other hand, he would probably count his family as his greatest strength and if asked would say that they, more than anyone else, shaped his indomitable spirit. Among them, naturally, is his wonderful father in Uncle Sam (the late Sam de Silva), his gracious mother in Aunty Rani, his devoted sister Araliya and loving wife Anushka.

Today, my friend Aravinda turns 60. He will be surrounded by the near and dear. They will all celebrate. I, unfortunately, will not be there to share in the celebrations. My thoughts however are with Aravinda. May he continue to bat on healthily, steadily, and joyfully for many, many more years to come.

Krishantha Prasad Cooray

Lawyer Accused of Using AI to Create and Share Explicit Images of Female Colleague Faces Legal Action

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A case has been filed against a lawyer accused of digitally altering a photograph of a female lawyer using artificial intelligence (AI) to create explicit images and sharing them online.

The case, bearing number B 41701/01/25, was taken up today (14) before the Colombo Chief Magistrate’s Court, presided over by Magistrate Asanga Bodaragama. The court observed that the actions of the accused lawyer, identified as Kingsly Sandun Sanjeewa, were unbecoming of the legal profession. The magistrate further noted that a record of this observation would be included in the case file and instructed the victim’s legal team to consider filing a complaint with the Supreme Court.

According to the case, the accused allegedly took a photograph of his colleague—also a lawyer and a member of his group at the Open University—and used AI technology to create nude versions of her image. He then reportedly distributed these fabricated images, along with her real name and phone number, via social media platforms such as Facebook, WhatsApp, and Telegram.

Investigations revealed that the accused had been communicating under her identity for nearly two years, sharing the manipulated images and engaging in sexually explicit conversations with individuals online. Screenshots of these chats were also circulated in online groups.

The female lawyer became aware of the incident only after friends, clients, and acquaintances who had seen the posts on social media informed her about them.

Following a technical investigation conducted by the Computer Crimes Division of the Criminal Investigation Department (CID), the suspect was arrested on 3 October 2025. However, he was later released on bail due to health reasons, having recently undergone surgery related to diabetic complications.

When the case was called again today, Magistrate Bodaragama expressed strong disapproval of the accused’s conduct and ordered the case to be recalled on 28 October 2025.

A legal team led by Senior Attorney Jaliya Samarasinghe and Attorney Udul Premarathne appeared on behalf of the aggrieved female lawyer.

HRW Urges Sri Lanka to Reform Tax System, Boost Education Funding

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 Human Rights Watch (HRW) yesterday warned that Sri Lanka’s flawed tax policies were central to the country’s 2022 economic collapse and continue to deprive citizens of essential public services. The rights group called on President Anura Kumara Disanayake’s government to overhaul a system that favours corporations and the wealthy while failing to generate sufficient revenues for public welfare.

In its 101-page report, “Tax Giveaways, Struggling Schools: How Low Taxes Drove Sri Lanka’s Economic Crisis and Squandered its Education Lead,” HRW highlighted how decades of revenue-starving policies have weakened the State, leaving it heavily dependent on regressive consumption taxes.

“For decades, Sri Lanka has been hostage to economic policies that starve its Government of revenue and focus narrowly on GDP growth,” said HRW Senior Economic Justice Researcher Sarah Saadoun. “These ruinous tax policies have left education spending far behind, turning Sri Lanka from a global leader in public education to a laggard.”

The report found that public education spending fell from 3–5% of GDP in the two decades after independence to just 1.5% in 2022, among the lowest globally. Funding gaps forced schools to charge fees for basic resources, exacerbating inequality and undermining children’s right to free education.

HRW said Sri Lanka’s low revenue base contributed to the April 2022 debt default, triggering job losses, soaring inflation, and a prolonged social crisis. The group traced the roots of the problem to liberalisation policies of the late 1970s, worsened by 2019 tax cuts under former President Gotabaya Rajapaksa, which significantly reduced government revenues.

By 2022, tax exemptions for companies cost the Treasury 56% of total revenue, nearly three times the national education budget, while 80% of tax income came from goods and services, disproportionately burdening low-income households.

Saadoun emphasized, “Growth alone is not enough to fulfil human rights. The Government should establish a progressive tax system and ensure funds are used to support education and public services for all.”

HRW recommended eliminating costly corporate exemptions, introducing a wealth tax, and strengthening enforcement. While the current administration has taken limited measures, such as a Rs. 6,000 transfer to low-income families, HRW urged the government to raise education spending to 4–6% of GDP in line with international standards and human rights obligations.

HRW Calls for Tax Reform to Rescue Sri Lanka’s Education Sector

Human Rights Watch (HRW) has warned that Sri Lanka’s tax policies played a major role in the 2022 economic collapse and continue to deprive citizens of essential services. In its 101-page report, HRW said successive governments favoured corporations and the wealthy while failing to generate adequate revenue, leaving the country reliant on regressive consumption taxes.

 The report noted that education spending fell to 1.5% of GDP in 2022, forcing schools to charge fees for basic resources and widening inequality. Tax exemptions for companies cost the Treasury 56% of total revenue, nearly three times the national education budget, while 80% of tax income came from goods and services, disproportionately affecting low-income households.

 HRW urged President Anura Kumara Disanayake’s government to introduce a progressive tax system, eliminate corporate exemptions, and increase education spending to 4-6% of GDP to uphold human rights and strengthen social services.

Virtusa Expands Sri Lanka Hub with 200 New AI and Tech Roles

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Virtusa Corporation has announced a major expansion of its Sri Lanka Delivery Centre, creating over 200 new career opportunities across high-growth technology sectors such as Artificial Intelligence (AI), Data Science, Full Stack Development, DevOps, and BPO/KPO services. The move marks a renewed phase of investment in Sri Lanka as Virtusa advances toward its goal of becoming a $5 billion enterprise by 2030.

The announcement aligns with the strategic vision of Virtusa CEO Nitesh Banga, who has committed to positioning the company as the world’s leading domain-driven engineering partner for the AI-driven enterprise. During his recent visit to Sri Lanka, Banga underscored the country’s pivotal role in Virtusa’s global operations, noting that Colombo remains the firm’s founding centre of excellence and a key contributor to its global delivery model.

The newly announced positions, open to both fresh graduates and experienced professionals, will enable Sri Lankan talent to work on cutting-edge AI and digital transformation projects for Fortune 500 clients across industries such as banking, financial services, insurance, telecom, healthcare, and technology.

Virtusa’s Sri Lankan operations have long been central to its success, combining deep domain expertise with agile engineering and a culture of continuous innovation. The Colombo centre also leads advancements in Virtusa Helio, the company’s proprietary suite of AI-powered accelerators that help enterprises achieve faster and measurable business outcomes through intelligent automation.

“Sri Lanka continues to be a strategic centre of excellence for Virtusa,” said Virtusa Corporation Chief Operating Officer Venkatesan Vijayaraghavan. “Our recruitment drive reflects confidence in the country’s exceptional talent and its ability to deliver world-class AI and engineering solutions to global clients.”

Reinforcing its focus on AI-led innovation, Virtusa continues to upskill its workforce through the Virtusa Thrive Academy, offering specialized programs in AI orchestration, prompt engineering, and domain-specific AI applications. These initiatives aim to prepare employees for the next wave of technological disruption while contributing to Sri Lanka’s growing digital economy.

Virtusa Joint Country Head (Sri Lanka) Denver De Zylva added, “As we move toward our $5 billion goal by 2030, our commitment remains to nurture world-class Sri Lankan talent ready to lead in an AI-first world.”

Candidates can explore and apply for open roles through Virtusa’s careers portal, as the company continues to position Sri Lanka as a global innovation hub within its international delivery network.

Government to Introduce Four New Bills under Labour Law Reform Drive

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The Government is moving ahead with a sweeping overhaul of Sri Lanka’s labour laws, with four new bills set to be introduced as part of efforts to modernise the country’s employment framework and align it with evolving economic and social realities, the Parliament Secretariat announced yesterday.

The initiative, presented at the Ministerial Consultative Committee on Labour Affairs, focuses on simplifying and consolidating existing laws while balancing worker protection and employer flexibility. Labour Minister Dr. Anil Jayantha Fernando and Deputy Minister Mahinda Jayasinghe took part in the discussions outlining the reform strategy.

A 17-member expert committee has been appointed to review 14 existing labour laws and draft four new bills covering key areas such as trade unions, labour relations, occupational safety, and termination of employment. The committee has also agreed to propose interim amendments to existing laws until the new legal framework is fully enacted.

The upcoming reforms will also address women’s night-time employment rights, labour protection mechanisms, and employment termination insurance provisions, aiming to bring Sri Lanka’s labour standards in line with international best practices.

Officials said the new legal framework seeks to create a fair balance between safeguarding worker rights and improving the competitiveness and adaptability of businesses in a rapidly changing global environment.

According to Labour Ministry sources, the National Policy on Occupational Safety and Health (OSH) has reached its final drafting stage and will be published soon. The Ministry is also working on a major digitalisation initiative, upgrading the Labour Department’s database to ensure that every worker is registered in the national system as soon as they enter the labour force.

Officials noted that this digital registry will enhance transparency, compliance, and social protection coverage while reducing administrative delays.

The labour reform programme is seen as a critical step toward creating a modern, inclusive, and dynamic labour market capable of supporting investment, productivity, and sustainable growth.