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Supreme Court Clears Money Laundering Bill for Parliamentary Approval with Limited Exceptions

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June 09, Colombo (LNW): Sri Lanka’s Supreme Court has determined that the proposed amendments to the Prevention of Money Laundering Act can largely proceed through Parliament with the support of a simple majority, while identifying several provisions that require a higher threshold for approval.

Announcing the Court’s determination in Parliament on Monday, Speaker Jagath Wickramaratne said a handful of clauses were found to necessitate a special majority under constitutional requirements. These include Clause 14 and the proposed Sections 12A and 12B, as well as Clause 18 and the proposed Sections 17A, 17B and 17C.

However, the Court noted that the same provisions could be enacted with an ordinary majority if the amendments recommended during the judicial review process are incorporated into the Bill before it is taken up for a vote.

The legislation, aimed at strengthening Sri Lanka’s legal framework against financial crimes and illicit transactions, was referred to the Supreme Court after petitions were filed challenging its constitutionality under Article 121(1) of the Constitution.

Ex-Minister Sarana Gunawardena Jailed Over Corruption Convictions Linked to Lottery Board Tenure

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June 09, Colombo (LNW): The Colombo High Court today (09) sentenced former Deputy Minister Sarana Gunawardena to a total of four years’ rigorous imprisonment in each of four corruption cases brought by the Commission to Investigate Allegations of Bribery or Corruption.

Delivering the ruling, High Court Judge Mohamed Mihail also ordered Gunawardena to pay cumulative fines amounting to Rs. 1.8 million.

The convictions stem from Gunawardena’s period as Chairman of the Development Lotteries Board in 2006, during which he was found to have engaged in irregular procurement practices that resulted in financial losses to the State.

According to the prosecution, the former minister authorised the hiring of vehicles for the institution under rental arrangements that were deemed detrimental to public finances. The court concluded that these actions constituted corruption under the relevant laws.

Showers, thundershowers further expected in many provinces (June 09)

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June 09, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.

A few showers may occur in Anuradhapura and Hambantota districts.

Strong winds about (40-50) kmph can be expected at times over Western slopes of the central hills, Northern and North-central provinces and in Hambantota and Trincomalee districts. Fairly strong winds about (30-40) kmph can be expected at times over other areas of island.

The general public is kindly requested to take adequate precautions to minimise damage caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain: Showers or thundershowers will occur at times in the sea areas off the coast extending from Chilaw to Hambantota via Colombo and Galle.

Winds: Winds will be south-westerly. Wind speed will be (30-40) kmph. Wind speed can increase up to (60-70) kmph at times in the sea areas off the coast extending from Kankasanthurai to Kalpitiya via Mannar.
Wind speed can increase up to (50-60) kmph at times in the sea areas off the coast extending from Trincomalee to Kankasanthurai via Mullaittivu and Kalpitiya to Pottuvil Via Colombo, Galle and Hambantota.

State of Sea: The sea areas off the coasts extending from Kankasanthurai to Kalpitiya via Mannar will be very rough at times. Naval and fishing communities are advised not to venture into these sea areas, until further notice.

The sea areas off the coasts extending from Trincomalee to Kankasanthurai via Mullaittivu and Kalpitiya to Pottuvil Via Colombo, Galle and Hambantota will be rough at times. The other sea areas around the island will be fairly rough at times.

The wave height may increase about (2.0 – 2.5) meters in the sea areas off the coast extending from Mannar to Pottuvil via Colombo, Galle and Hambantota.

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Nandalal of Central Bank Must Answer

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By Adolf

Recent remarks in Parliament and at public briefings have reignited debate over Sri Lanka’s external accounts and the integrity of reported balance of payments figures, with attention drawn to an alleged discrepancy of approximately US$ 808 million. The issue gained visibility following comments by former Minister and Parliamentarian Dayasiri Jayasekara, who urged greater clarity from the Central Bank of Sri Lanka (CBSL) and other monetary authorities.

According to Jayasekara, IMF-related documentation and associated financial data raise questions about whether a significant amount of foreign exchange may have flowed out of the country through formal or informal channels. Speaking at a media briefing in Colombo on June 5, he characterized the alleged movement of funds as a matter requiring urgent explanation, particularly given Sri Lanka’s fragile external position following the 2022 sovereign debt crisis.

He further argued that, in a period marked by tight foreign exchange controls and structural adjustment measures, even relatively smaller leakages would have macroeconomic implications. The reference to an “over US$ 800 million discrepancy” has since circulated in political and media discourse, although a detailed public clarification of the methodology or accounting basis behind this figure has not yet been made fully available.

The International Monetary Fund, in its periodic review reports on Sri Lanka’s Extended Fund Facility programme, has consistently emphasized the importance of improving data transparency, strengthening external sector statistics, and tightening oversight over capital flows. However, IMF documentation typically relies on data provided by national authorities, and differences in interpretation, timing, or classification of transactions can sometimes lead to apparent discrepancies that require technical reconciliation rather than immediate conclusions of wrongdoing.

Bankruptcy

The Central Bank of Sri Lanka, under Governor Dr. Nandalal Weerasinghe, is accused by critics of having declared bankruptcy without parliamentary approval. Furthermore, it is alleged that the Bank raised interest rates to levels particularly damaging to small and medium-sized enterprises (SMEs), credit growth, and employment conditions. Some political figures have attributed these outcomes to what they describe as an “overcorrection” in monetary policy. Additionally, critics argue that delays in responding recently to the foreign exchange crisis in a timely manner have pushed government borrowing costs up by billions of Rupees.

Against this backdrop, allegations or suggestions of large-scale unaccounted capital outflows naturally heighten public sensitivity. Yet economists caution that balance of payments statistics are complex aggregates that include trade flows, services, remittances, external debt servicing, and financial account movements. Apparent gaps may emerge due to lagging data capture, revisions, or classification differences between preliminary and final accounts.

What is essential at this stage is a clear, technical reconciliation of the figures in question. If a discrepancy of the magnitude cited does exist, it would require a detailed breakdown by the Central Bank in consultation with the IMF, including identification of whether the variance arises from private sector flows, public sector obligations, or statistical adjustments.

Public Confidence

At the same time, public confidence in economic governance depends not only on technical accuracy but also on transparent communication. In periods of economic fragility, unexplained figures—particularly those involving foreign exchange—can quickly become politicized, potentially undermining confidence in stabilization efforts.

As Sri Lanka continues its IMF-supported reform path, questions surrounding data integrity, capital flows, and policy impacts are likely to remain central to public debate. The challenge for policymakers, including the Central Bank leadership, will be to ensure that technical explanations are communicated clearly while maintaining institutional credibility in a highly scrutinized economic environment.

Ultimately, resolving the current concerns will require not only political discourse but also rigorous statistical verification and open disclosure of the underlying data. Fortunately President AKDs limited knowledge of English and Economics is helping CBSL to limp on and make lame excuses .

Locally Developed Agricultural Drones to Support Maha Season Farming

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June 08, Colombo (LNW): Sri Lanka is preparing to introduce drone-assisted technology into paddy cultivation during the forthcoming Maha season, marking a significant step towards the modernisation of agricultural practices in the country’s dry zone regions.

The technology is expected to be utilised for a range of farming operations, including the distribution of paddy seed and the application of fertiliser, with the aim of improving efficiency, reducing labour demands and enhancing productivity.

The initiative was highlighted at a specialised workshop held in Kurukulawa, attended by Minister of Science and Technology Professor Chrishantha Abeysena. The event brought together technology developers, agricultural experts and industry stakeholders to explore practical applications of unmanned aerial systems in local farming.

A key feature of the programme was the presentation of an agricultural drone designed and developed using locally produced technology. Developers showcased a system equipped with domestically created software and control mechanisms, demonstrating Sri Lanka’s growing capacity to produce advanced technological solutions tailored to local requirements.

Participants also examined how drone-based services could be incorporated into large-scale cultivation activities during the next planting season. Discussions focused on the potential benefits of precision agriculture, including more accurate resource management, reduced wastage and improved crop monitoring capabilities.

Officials believe that the adoption of such innovations could help transform traditional farming methods, particularly in areas where labour shortages and rising production costs have become increasing challenges. The initiative is also expected to encourage greater collaboration between the agricultural and technology sectors as the country seeks to strengthen food production through innovation.

With preparations underway for the Maha season, authorities are optimistic that drone technology will play an increasingly important role in improving agricultural efficiency and supporting the long-term development of Sri Lanka’s farming industry.

Vehicle Number Plate Production Resumes After Extended Suspension

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June 08, Colombo (LNW): The Department of Motor Traffic (DMT) has officially resumed the production of vehicle registration number plates, bringing an end to a disruption that had persisted for more than a year.

The recommencement of operations took place this morning at the DMT headquarters in Werahera, with proceedings beginning at 10.00 a.m. in the presence of Minister of Transport and Highways Bimal Rathnayake and senior officials.

The service had remained inactive since May 2025 following complications linked to the procurement and tendering process for the supply of number plates. The interruption resulted in delays affecting vehicle registrations and related administrative procedures across the country.

Authorities stated that the government finalised a new agreement earlier this year to restore the service and address the backlog created during the suspension period. The contract required for the production and supply of number plates was formally concluded in March, paving the way for operations to restart.

Officials expect the resumption of printing activities to gradually ease delays faced by vehicle owners and dealers, while enabling the Department to process pending registrations more efficiently.

Three Sri Lankans Freed After Anti-Kidnapping Operation in Ethiopia

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June 08, Colombo (LNW): Three Sri Lankan citizens who were reportedly abducted shortly after arriving in Ethiopia have been rescued safely following a multi-agency security operation that led to the arrest of six suspects.

The three men had travelled to the country in late May in search of employment opportunities. Shortly after their arrival, they were allegedly taken against their will and held at a separate location while their captors demanded a substantial ransom for their release.

Authorities launched an investigation after the disappearance of the individuals was brought to the attention of local police by the Sri Lankan Embassy. The case prompted a coordinated response involving several Ethiopian security and intelligence agencies.

Investigators utilised digital tracking and intelligence-gathering techniques to trace the whereabouts of the victims, eventually locating them at a residence in the town of Shashemene in the Oromia region. Security personnel subsequently carried out a raid on the property, successfully securing the release of all three hostages without reported injuries.

Six individuals were taken into custody during the operation. Those arrested include two Ethiopian nationals and four Pakistani citizens who are suspected of involvement in the abduction and ransom scheme. Authorities allege that the group had demanded approximately USD 90,000 in exchange for the victims’ freedom.

Reports indicate that the Sri Lankans were allegedly transported from the airport shortly after landing and held in captivity until law enforcement officers intervened. Investigators are continuing to examine the circumstances surrounding the incident, including the recruitment arrangements that brought the victims to Ethiopia.

The rescue operation was carried out through the combined efforts of national intelligence services, federal law enforcement agencies, cyber-security specialists and regional police units.

Regional Inequalities Continue to Define Sri Lanka’s Poverty Landscape

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June 08, Colombo (LNW): Although Sri Lanka achieved notable progress in reducing poverty during the years leading up to the late 2000s, official statistics reveal that economic hardship remained unevenly distributed across the country, with certain regions and communities continuing to face significant challenges.

Data from the Department of Census and Statistics, based on the Household Income and Expenditure Survey 2006/07, indicated that approximately 2.8 million people—equivalent to 15.2 per cent of the population at the time—were living below the national poverty threshold. While the overall trend pointed towards improvement compared with previous decades, the benefits of economic growth were not shared equally among all sectors of society.

Rural communities bore the largest burden of poverty, accounting for the overwhelming majority of those living below the poverty line. The incidence of poverty in these areas exceeded the national average, highlighting the continued vulnerability of households dependent on agriculture and informal employment.

Conditions were even more severe in the estate sector, where nearly one-third of residents were classified as poor, making it the most disadvantaged segment of the population.

By comparison, urban centres recorded considerably lower poverty levels. However, despite a relatively modest poverty rate, densely populated urban regions still contributed a sizeable number of poor households due to their large populations.

Provincial disparities were particularly striking. The Western Province recorded the lowest proportion of people living in poverty, reflecting its stronger economic base and concentration of employment opportunities. In contrast, provinces such as Uva and Central continued to experience substantially higher levels of deprivation.

At district level, areas including Nuwara Eliya and Monaragala emerged as the most affected, with poverty impacting a significant share of residents.

The figures also highlighted the depth of financial hardship experienced by low-income households. Analysts estimated that a relatively modest increase in household income could have lifted many families above the poverty line, suggesting that poverty was often driven by limited earnings rather than extreme destitution. Nevertheless, the cumulative resources required to eliminate poverty nationwide remained substantial.

Income distribution presented another challenge. Consumption patterns showed a considerable imbalance between wealthy and low-income groups, with the highest-earning segment of the population accounting for nearly half of all household consumption. Meanwhile, the poorest segment controlled only a small fraction of national spending power, reflecting persistent economic inequality.

Nutritional indicators also raised concerns. Average daily calorie consumption was only slightly above the recommended minimum level, while a large proportion of the population failed to meet basic dietary requirements. Interestingly, urban households were found to consume fewer calories on average than those in rural and estate communities, despite generally higher income levels.

Over the longer term, Sri Lanka succeeded in reducing poverty significantly, with the national rate falling from over a quarter of the population in the early 1990s to just above 15 per cent by 2006/07. Much of this progress was attributed to improvements in rural living standards and broader economic development.

However, economists and development specialists have long argued that national averages can mask deep localised disparities. They note that pockets of entrenched poverty continue to exist in several districts, particularly within the Central and Uva regions, underscoring the need for targeted policies focused on employment, education, infrastructure and social protection to ensure more balanced and inclusive development.

Worker Remittances Continue Strong Growth, Boosting Foreign Exchange Earnings

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June 08, Colombo (LNW): Sri Lanka recorded a substantial increase in foreign remittances from overseas workers during May 2026, highlighting the continued contribution of migrant employment to the country’s external finances.

According to the latest figures released by the Central Bank of Sri Lanka, remittance inflows for the month reached USD 847 million, representing a significant improvement compared with the corresponding month a year earlier. In May 2025, the country received USD 641.7 million through official remittance channels, indicating a year-on-year increase of more than USD 200 million.

The strong performance has also contributed to a notable rise in cumulative earnings from overseas workers during the first five months of the year. Between January and May 2026, total remittances amounted to USD 3.90 billion, reflecting robust growth compared with the same period in the previous year.

Economic analysts view the upward trend as a positive development for Sri Lanka’s foreign exchange position, as remittances remain one of the country’s most reliable sources of external income. The increase is expected to support currency stability, strengthen foreign reserves and ease pressure on the balance of payments.

With remittance inflows recording an increase of approximately 26 per cent during the first five months of the year, the sector remains a key pillar of the country’s economic recovery efforts.

Detained Ex-Intelligence Chief Sallay Moved to National Hospital Amid Health Concerns

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June 08, Colombo (LNW): Major General (Retired) Suresh Sallay, the former Director of Sri Lanka’s State Intelligence Service (SIS), was admitted to the National Hospital in Colombo on Sunday (07) after concerns emerged regarding his health while in detention.

Sallay was transferred to the Emergency Treatment Unit (ETU) for medical assessment and care, according to reports. Authorities have not yet disclosed details regarding his condition or the nature of the treatment being provided.

The hospitalisation follows growing concern expressed by family members and legal representatives over his wellbeing. Earlier in the day, Sallay’s wife, Manori Sallay, visited the Criminal Investigation Department (CID), where he is being held under detention orders, and stated that her husband had begun a fast-unto-death strike in protest against what he believes to be unfair treatment during his detention.

Speaking to the media following the visit, she described her husband as a public servant who dedicated nearly four decades of his life to national service and appealed for public support during what she characterised as a difficult period for the family. She said she had urged him to abandon the protest but that he remained determined to continue, citing concerns over what he regards as injustice.

Family members, including his wife, son and brother, were granted an opportunity to meet him while he remained in CID custody. Following those visits, fresh concerns were raised about his physical and mental condition.

Separately, Manori Sallay has submitted a written appeal to the Inspector General of Police requesting an independent investigation into allegations surrounding her husband’s treatment while in custody. The complaint calls for an inquiry into claims that include denial of adequate medical attention, abuse of authority and treatment allegedly inconsistent with accepted standards for detainees.

According to the letter, the family believes the circumstances described by Sallay during recent visits raise serious questions regarding his health, safety and fundamental rights. The correspondence also states that he has expressed confidence that ongoing legal proceedings will ultimately clear him of wrongdoing and has instructed his lawyers to continue pursuing legal remedies regardless of future developments.

The family further noted that an earlier complaint concerning similar allegations had reportedly been submitted several months ago, but they claim no update has been provided regarding any investigation or action taken in response.

In light of the reported hunger strike and his subsequent admission to hospital, the family has renewed its appeal for immediate intervention and an impartial examination of the allegations. Authorities have yet to publicly respond to the latest claims.

Major General (Retired) Sallay was taken into custody by the CID in February as part of investigations connected to the 2019 Easter Sunday attacks and remains under detention pending further legal proceedings.