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Several districts to witness a few showers (Aug 19)

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August 19, Colombo (LNW): A few showers will occur in the Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (19).

Mainly fair weather will prevail over elsewhere of the island.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Trincomalee and Hambantota districts.

Marine Weather:

Condition of Rain:
Showers may occur at a few places in the sea areas off the coast extending from Colombo to Matara via Galle.

Winds:
Winds will be south-westerly to westerly and wind speed will be (25-35) kmph.

Wind speed can increase up to (50-55) kmph at times in the sea areas off the coast extending from Chilaw to Mannar via Puttalam and from Pottuvil to Hambantota.

Wind speed can increase up to 45 kmph at times in the sea areas off the coast extending from Mannar to Trincomalee via Kankasanthurai and Mullaittivu.

State of Sea:
The sea areas off the coast extending from Chilaw to Mannar via Puttalam and from Pottuvil to Hambantota may be rough at times.

The sea areas off the coast extending from Mannar to Trincomalee via Kankasanthurai and Mullaittivu will be moderate.

Over 1,600 fatal road accidents reported in 2025

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August 18, Colombo (LNW): Sri Lanka has seen a noticeable rise in road accidents and related fatalities in 2025, with police data showing a sharp increase compared to the previous year.

According to figures released by the Sri Lanka Police, a total of 1,605 fatal road accidents have been recorded so far this year—171 more than were reported during the same period in 2024.

The death toll has also climbed, with 1,700 lives lost to road accidents, reflecting an increase of 193 fatalities over the previous year’s count.Authorities have identified careless and irresponsible driving as the primary cause behind the surge.

Amongst the most commonly cited factors are driving whilst drowsy or fatigued, and operating vehicles under the influence of alcohol. Police officials warn that such behaviours continue to put both drivers and pedestrians at serious risk.

The rising figures come amid broader concerns over road safety and enforcement in the country. Despite public awareness campaigns and an increased police presence in high-risk zones, reckless driving remains a persistent issue on Sri Lanka’s roads.

Law enforcement agencies have urged motorists to take greater responsibility and adhere strictly to traffic regulations, especially as traffic volumes increase with ongoing economic activity and inter-provincial travel.

In addition, there are renewed calls for tougher penalties and the expansion of road safety education across schools and driving institutions.

Authorities have also hinted at plans to strengthen the use of technology—such as speed cameras and mobile breathalysers—in high-risk areas, as part of a broader push to curb dangerous driving habits.

CEB swings back to profit, but earnings drop sharply compared to last year

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August 18, Colombo (LNW): The Ceylon Electricity Board (CEB) has posted a profit of Rs. 5.31 billion for the quarter ending 30 June 2025, marking a notable financial rebound from the previous quarter’s loss of Rs. 18.47 billion.

This turnaround follows the implementation of revised electricity tariffs in June, a move that analysts say was crucial in pulling the state utility back into profitability. The adjustment came after months of mounting financial strain, exacerbated by a tariff cut introduced in January 2025 shortly after the new government came to power.

That reduction—estimated at around 20 per cent—was widely popular among consumers but led to a substantial revenue shortfall in the first quarter of the year. Despite the improvement, the latest figures still represent a steep year-on-year decline. In the corresponding quarter of 2024, the CEB recorded a profit of Rs. 34.53 billion, making this year’s figure an 85 per cent drop.

The contrast underscores the delicate balance the utility faces between financial sustainability and political pressure to maintain affordable electricity prices.The International Monetary Fund (IMF), which has been working closely with Sri Lanka under its Extended Fund Facility programme, had explicitly called for the reintroduction of cost-reflective electricity pricing as a condition for the release of further financial support.

The tariff revision in June was seen as a direct response to this requirement.While the latest quarterly result signals a return to operational viability, energy sector analysts caution that the CEB’s long-term fiscal health remains uncertain.

Factors such as global energy price volatility, hydropower dependency, and political resistance to regular pricing adjustments continue to pose challenges.The CEB, once a consistent loss-maker burdened by debt and inefficient pricing structures, has made efforts in recent years to reform its operations and improve transparency.

However, as these latest results suggest, profitability can still fluctuate significantly depending on regulatory decisions and external fiscal pressures.

Further reforms—both in terms of pricing mechanisms and operational efficiency—are likely to be necessary to ensure the CEB remains financially stable while meeting the country’s growing energy demands.

Police in talks with WhatsApp to expand capacity of public complaint hotline

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August 18, Colombo (LNW): Sri Lanka Police have initiated discussions with WhatsApp to enhance the functionality of their recently introduced public complaint number, following an overwhelming response from citizens.

The dedicated WhatsApp line, 071 859 8888, was launched by Inspector General of Police (IGP) Priyantha Weerasooriya as a direct platform for the public to report instances of police misconduct or inadequate service delivery.

Since its launch, the number has received in excess of 2,000 complaints, surpassing its current technical handling capacity.

According to police sources, the initiative has seen a flood of submissions from across the island, ranging from reports of unprofessional behaviour to concerns over unresolved complaints at local stations. The high volume of messages has prompted urgent discussions with the messaging platform to explore options for expanding its capacity and improving the system’s responsiveness.

Authorities say the move reflects a broader commitment to accountability within the police force and aims to provide the public with a more accessible, transparent avenue for lodging grievances.

Plans are reportedly being developed to integrate the WhatsApp service into a larger digital complaint management system, with features such as automated tracking and categorisation of reports to ensure timely review and action.

Government signals major constitutional overhaul after upcoming Provincial Polls

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August 18, Colombo (LNW): Sri Lanka is poised to embark on a significant constitutional reform process following the anticipated Provincial Council Elections, according to a statement made by Minister Bimal Rathnayake during a briefing in Kilinochchi yesterday (17).

The Minister confirmed that the long-delayed provincial elections are now expected to take place within the first half of 2026, provided the remaining legal impediments are addressed in time.

He acknowledged that although parliamentary elections were held in 2025 and presidential polls took place in November 2024, provincial-level representation has remained in limbo due to unresolved legal and procedural complexities.

“Our intention is to ensure that the Provincial Council Elections are held by mid-next year,” Rathnayake stated. “There are still legal and regulatory challenges, but the necessary groundwork is being laid to overcome these obstacles.”

According to Rathnayake, once the elections are completed, the government plans to initiate a broad and inclusive process of constitutional reform. He confirmed that a formal policy decision has already been made at the cabinet level to draft a new constitution, though he underscored that such a task cannot be rushed and will require wide-ranging political engagement and public consultation.

He further noted that the constitutional reforms will go beyond mere amendments, hinting at a deeper restructuring of the existing framework to reflect the evolving aspirations of the people and the need for more accountable and decentralised governance.

Interest rates edge higher as Sri Lanka grapples with fragile monetary conditions

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August 17, Colombo (LNW): Interest rates in Sri Lanka have begun to rise again in June 2025, following a controversial rate reduction the previous month, as the country’s financial system shifts under the weight of conflicting pressures.

Official figures indicate a subtle yet significant upward movement in deposit rates, overnight borrowing costs, and interbank call money rates—signs of a tightening liquidity environment amid growing concerns about reserve depletion and monetary mismanagement.

The uptick in deposit rates comes at a time when banks are under increasing pressure to attract fresh funds to support rising credit demand, a trend linked to the economy’s slow emergence from a prolonged period of instability. After a currency collapse and subsequent fiscal tightening, credit is beginning to expand again—but funding this expansion requires a stronger deposit base.

Interbank markets, particularly the call money segment where banks lend to each other without collateral, have seen both interest rates and volumes increase after an initial dip in the wake of May’s rate cut. This shift suggests a reawakening of interbank activity, albeit within a constrained liquidity environment now defined by what analysts call a “scarce reserve regime.”

Under such a regime, central bank liquidity is no longer freely available. Instead, banks must settle overnight imbalances through actual deposits or by curbing credit expansion. While this can encourage more disciplined financial behaviour, it also raises the cost of short-term borrowing and puts pressure on banks to compete more aggressively for depositors—hence the rising rates.

The Central Bank’s own data show that average new lending rates ticked upward through June, following an initial decline. This could reflect a short-lived response to the previous rate cut or be the result of increased competition, leading to narrower margins across the banking sector. While narrower margins are often seen as a sign of improved efficiency, they may also discourage investment in low-yield government securities.

Economists caution that Sri Lanka’s monetary policy continues to be burdened by structural flaws. In the past, similar liquidity strategies—particularly efforts to maintain an artificially low policy rate—have led to rapid currency depreciation, foreign reserve losses, and eventual sovereign default. Despite having temporarily stabilised its foreign currency reserves through tight policy, the government is once again facing difficulty due to the central bank’s dominant role in managing foreign currency transactions.

In recent months, the Treasury has relied on the central bank to sell dollars to meet external debt obligations, a practice some critics argue exposes the country to renewed risk. Without a firm commitment to deflationary policy and current account discipline, such as under previous International Monetary Fund (IMF) agreements, fears are growing that the nation could slip into a second default.

The problem is compounded by the central bank’s continued reliance on a single policy rate—a method originally designed in the West to combat asset deflation in the aftermath of housing bubbles. While such an approach was meant to stimulate investment and protect markets, its long-term adoption in Sri Lanka has contributed to systemic imbalances, including inflationary pressures and a weakened interbank market.

Calls are mounting for a return to a more robust monetary framework—specifically a wide corridor scarce reserve regime—which allows short-term interest rates to rise and fall naturally in response to liquidity conditions. Under such a system, monetary authorities have greater flexibility to defend currency stability without distorting long-term rates or over-relying on external borrowing.

Historically, attempts to narrow the interest rate corridor—reducing it from 150 to 100 basis points, for instance—have been linked to several currency crises and, eventually, the country’s default on international debt. Experts now warn that without fundamental changes in liquidity management and reserve accumulation strategies, Sri Lanka’s economy remains vulnerable.

In the past, the government attempted to cover external financing needs by borrowing heavily through international bonds and syndicated loans rather than adjusting domestic policy. These approaches, viable only when credit ratings were higher, are no longer feasible.

As economic conditions remain delicate, Sri Lanka’s policymakers face a critical choice: pursue structural reform in monetary operations and restore market-based discipline, or continue on a path that risks repeating past mistakes with even less room to manoeuvre.

Widespread shutdown in North and East as protests erupt over Mullaitivu death

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August 18, Colombo (LNW): A large-scale shutdown is unfolding across Sri Lanka’s Northern and Eastern provinces today, as communities observe a hartal in response to the controversial death of a local man in Mullaitivu.

The action, initiated by the Ilankai Tamil Arasu Kachchi (ITAK), has drawn support from multiple political parties and civil society groups, reflecting growing unrest and calls for accountability.

The hartal was triggered by the death of 32-year-old Edirmanasingam Kabilraj, whose body was discovered in a water tank days after he reportedly entered a nearby military installation and went missing.

His mysterious death has ignited widespread anger, with many residents and activists alleging foul play and pointing to the militarised environment in the region as a source of tension and fear.

Shops, businesses, and public transport services in several towns have remained closed since early morning, with local organisers urging communities to stand in solidarity with the family of the deceased. The protest has received backing from a range of political groups, including the Tamil National Alliance (TNA), Sri Lanka Muslim Congress (SLMC), Tamil Progressive Alliance (TPA), and the Ceylon Workers’ Congress (CWC), all of whom have expressed concern over the lack of transparency and the handling of the investigation.

ITAK has submitted a formal appeal to President Anura Kumara Dissanayake, calling for urgent intervention. The party’s letter criticised what it described as an oppressive military presence in the North and East, and urged the President to take decisive steps to demilitarise the region and restore civilian confidence.

Meanwhile, Cabinet Spokesman Dr Nalinda Jayatissa addressed the media, cautioning against the spread of misinformation and urging the public to remain calm. He acknowledged that three military personnel have been taken into custody and that legal proceedings are underway, though he warned against drawing conclusions before the investigation is completed.

The Army, for its part, has issued a firm denial of any involvement in Kabilraj’s death, maintaining that the matter is under independent judicial review. However, tensions remain high, with activists and residents demanding a thorough and impartial inquiry, and some even calling for international observers to ensure justice is served.

Labour Minister strengthens ties with Singapore to expand employment opportunities

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August 18, Colombo (LNW): Minister of Labour and Deputy Minister of Economic Developmen Professor Anil Jayantha Fernando recently concluded a productive visit to Singapore, aimed at deepening bilateral cooperation on labour mobility and economic engagement.

From August 11 to 13, 2025, Prof. Fernando was in Singapore to participate in the ‘Invest Sri Lanka Investor Forum,’ an event jointly organised by the Securities and Exchange Commission of Sri Lanka and the Colombo Stock Exchange, with the support of the Sri Lankan High Commission in Singapore.

The forum brought together a range of investors, policymakers, and business leaders, showcasing Sri Lanka’s economic potential and reform agenda.

On the sidelines of the forum, Prof. Fernando held a series of high-level meetings with Singaporean ministers, including Dinesh Vasu Dash, Minister of State for Culture, Community and Youth & Manpower, and Alvin Tan, Minister of State for National Development. Discussions focused on creating structured pathways for Sri Lankan workers to access employment in Singapore, particularly in sectors facing labour shortages.

In his meeting with Minister Vasu Dash, Prof. Fernando highlighted the need for mutual recognition of qualifications and the development of targeted training programmes that align with Singapore’s industry standards.

He also advocated for expanding job opportunities for Sri Lankan professionals in key areas such as eldercare, hospitality, healthcare services, and light manufacturing.

Minister Vasu Dash responded positively, reiterating Singapore’s continued interest in sourcing skilled labour from Sri Lanka and ensuring fair working conditions and professional development opportunities for migrant workers.

Both sides acknowledged the growing importance of well-regulated, ethically managed labour migration and agreed to explore mechanisms to enhance transparency and worker welfare.

Additionally, Prof. Fernando convened a separate discussion at the Sri Lankan High Commission with representatives of Singapore-based employment agencies that recruit from Sri Lanka. The session focused on improving recruitment practices, ensuring the rights and safety of workers abroad, and maintaining strong communication between government bodies and private sector intermediaries.

New school term begins for most students across the country

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August 18, Colombo (LNW): Government and government-recognised private schools across Sri Lanka are set to reopen today (18), marking the beginning of the first stage of the third academic term for 2025, confirmed the Ministry of Education.

This term, which will run until November 07, signals a return to routine for thousands of students and teachers following the conclusion of the second term break.

Schools have been instructed to resume full academic programmes immediately, with a particular emphasis on syllabus coverage and exam preparation, as the education calendar begins to tighten in the latter part of the year.

However, schools catering to the Muslim community have been granted a deferred start, with classes scheduled to commence on Monday (25). This adjustment has been made in recognition of recent religious observances and the need to accommodate a brief extension to the holiday period.

Officials from the Ministry of Education have called on school administrators to ensure a smooth transition back to in-person learning, urging staff to focus on academic catch-up where necessary. In many schools, additional measures are being taken to support students who may have fallen behind during earlier parts of the year due to regional disruptions, absenteeism, or weather-related closures.

Postal services paralysed for second day as union strike escalates across Sri Lanka

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August 18, Colombo (LNW): Postal operations across Sri Lanka face a second consecutive day of complete disruption as trade union action by the Postal and Telecommunications Officers’ Union and the United Postal Trade Unions’ Front (UPTUF) intensifies.

The widespread strike, driven by a list of 19 unresolved demands, is creating growing pressure on the government and public services alike.

Union leaders insist the core of their protest centres on longstanding issues, including the demand for overdue overtime payments and strong opposition to the recent requirement mandating the use of biometric fingerprint systems for administrative staff to register attendance.

Workers argue that such measures are intrusive and unnecessarily bureaucratic, particularly given the already strenuous working conditions they face.The protest was initiated on the afternoon of August 17 at the Colombo Central Mail Exchange and quickly escalated into a nationwide walkout, affecting not only regular postal delivery but also the administrative operations critical to the day-to-day running of the Department of Posts.

Chinthaka Bandara, co-convener of the UPTUF, stated that postal services would remain at a standstill until meaningful dialogue was initiated. “This is not a decision we took lightly,” he noted. “Our members have raised these issues repeatedly. The strike will continue until tangible solutions are offered.”However, the government has pushed back against the strike.

Speaking at a press briefing in Colombo, Postmaster General Ruwan Sathkumara dismissed the protest as unreasonable, claiming that many of the issues raised had already been addressed or were in the process of being resolved. He suggested the strike action was disproportionate and risked damaging public trust in the service.

Further criticism came from Minister of Mass Media and Postal Services, Dr Nalinda Jayatissa, who warned that the disruption posed serious financial implications. “Even a brief lapse in operations can result in significant revenue losses for the department,” he said, adding that these shortfalls might jeopardise future wage increases and budget allocations, including for overtime and infrastructure improvements.

Dr Jayatissa argued that the timing of the strike was particularly problematic, as the department was in the midst of important reforms — including digitisation efforts, fleet upgrades, and staffing increases — all of which aimed to modernise and stabilise postal services.

In a direct appeal to workers, he urged a return to duty, calling for employees to act in the broader national interest. “This strike only hinders progress. We’re asking our staff to recognise the realities, get back to work, and help us build a stronger, more efficient postal service that benefits everyone.”