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Widespread mosquito breeding grounds detected amid rising dengue concerns

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July 01, Colombo (LNW): Health authorities have sounded the alarm as preliminary findings from a nationwide inspection indicate that roughly 20 per cent of properties examined are conducive to mosquito breeding.

The discovery was made during intensified inspections launched in tandem with National Mosquito Control Week, which officially began yesterday (30) and will continue through July 05.

Dr Prasheela Samaraweera, a Community Medical Specialist with the National Dengue Control Unit, revealed that the situation is more serious than initially anticipated, particularly in urban and semi-urban areas where stagnant water and improper waste disposal have become common.

The inspections, which span 16 high-risk districts, are being carried out by 1,100 field teams tasked with identifying breeding hotspots and raising public awareness.

The campaign comes amid a sharp increase in mosquito-borne illnesses, most notably dengue and chikungunya, which have surged in the wake of persistent rainfall across much of the island.

This wet spell has created ideal conditions for mosquito larvae to thrive, especially in water-collecting containers, discarded plastic items, gutters, and overgrown gardens.

So far this year, 28,752 confirmed cases of dengue have been recorded, with the Western Province continuing to report the highest incidence. Sixteen deaths linked to the disease have also been reported, underscoring the seriousness of the current outbreak.

Officials are urging the public to take immediate action by eliminating potential breeding grounds in and around their homes. Regular checks, proper disposal of household waste, and maintaining clean water storage practices are being stressed as key steps in controlling the spread.

Gun attack in Kahawatta leaves one dead and another hospitalised

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July 01, Colombo (LNW): A fatal shooting took place late last night along Andana Road in Kahawatta, claiming the life of a young man and leaving another seriously injured.

The incident unfolded under murky circumstances, with authorities confirming that an unknown group of assailants arrived at the scene and opened fire before fleeing the area.

The deceased, a 22-year-old male, was pronounced dead at the scene, whilst a 27-year-old man who sustained gunshot wounds was rushed to Kahawatta Hospital, where he is currently receiving treatment.

Police have launched a full investigation. At this stage, no arrests have been made, and the identity or motive of the attackers remains unclear.

Planned bus fare reduction halted amid fresh fuel price hike

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July 01, Colombo (LNW): A proposed cut in bus fares, originally scheduled to take effect from today (01), has been put on hold following a sudden rise in fuel costs.

The National Transport Commission (NTC) confirmed that the anticipated 2.5 per cent reduction will no longer be implemented, citing the recent hike in diesel prices as the driving factor behind the reversal.

Late on June 30, the Ceylon Petroleum Corporation (CEYPETCO) announced an increase in fuel prices, including a Rs. 15 jump in the cost of auto diesel — a key expense for public transport operators.

This prompted immediate concern within the transport sector, leading the NTC to reconsider the fare revision.

In a brief statement, the NTC explained that the revised pricing of fuel has directly affected the calculations used to determine public transport tariffs. As a result, the previously announced fare reduction was deemed unfeasible under current conditions.

A spokesperson for the Commission noted that a new fare structure is under urgent review and is expected to be made public later in the day. Until then, fares will remain unchanged.

Ex-Minister Gamini Lokuge passes away

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July 01, Colombo (LNW): Former Minsiter Gamini Lokuge has passed away aged aged 82.

His demise was confirmed yesterday evening (30), bringing an end to a lengthy presence in Sri Lankan politics.

Over the course of several decades, he held various ministerial positions under different administrations, including in the areas of Sports, Energy, and Transport.

Affiliated initially with the Sri Lanka Freedom Party (SLFP) and later aligning with the Sri Lanka Podujana Peramuna (SLPP), Lokuge represented the Colombo District in Parliament through multiple electoral cycles.

His political activities spanned numerous regimes, and he remained a visible—albeit frequently controversial—figure in the national political landscape.

India’s strategic stake in Colombo Dockyard signals shifting regional dynamics

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July 01, Colombo (LNW): In a move poised to reshape the balance of maritime influence in the Indian Ocean, India’s state-owned Mazagon Dock Shipbuilders Ltd. (MDL) is preparing to take a controlling interest in Colombo Dockyard PLC, one of Sri Lanka’s key shipbuilding and repair facilities.

The initiative, backed by the Indian Ministry of Defence, represents not only a commercial investment but also a strategic foray into a highly sensitive geopolitical space.

The proposed acquisition, estimated at up to US$ 52.96 million, was greenlit by MDL’s board of directors, according to Indian media reports. A tripartite agreement, signed on June 27, outlines MDL’s plan to purchase the majority shareholding currently held by Japan’s Onomichi Dockyard.

This will give the Mumbai-based defence shipbuilder effective control of the Sri Lankan facility.

Mazagon Dock, often referred to as the “Shipyard of the Nation,” has a long-standing reputation for building complex naval assets, including warships and submarines. With a market capitalisation exceeding US$ 15 billion as of late June 2025, MDL’s financial and technical credentials make it a formidable player in the regional shipbuilding industry.

Colombo Dockyard, meanwhile, has been grappling with financial distress for several years, teetering on the edge of default. Amidst growing economic challenges, Sri Lankan authorities have reportedly been encouraging regional partners to invest in strategic national assets, and India emerged as a suitable candidate, given its naval expertise and proximity.

The entry of an Indian defence-linked enterprise into Colombo Port — a major transhipment hub — introduces a new dynamic into the island’s already complex foreign relations. Analysts suggest the deal enhances India’s leverage in South Asia, particularly as a counterweight to China’s growing footprint in Sri Lanka, notably through its long-term lease of Hambantota Port.

Observers warn that this acquisition could reignite regional rivalries. Whilst Japanese ownership of Colombo Dockyard was generally perceived as neutral, India’s involvement — especially through a defence manufacturer — is expected to raise eyebrows in Beijing. China has already expressed concern over India’s influence on Sri Lanka’s foreign policy, particularly following Colombo’s decision to restrict Chinese research vessels from docking in its ports.

Critics within Sri Lanka have also voiced alarm. The Frontline Socialist Party (FSP) has condemned the agreement. They argue that handing over a strategic asset to a foreign military-linked entity undermines national sovereignty and poses long-term risks to national security.

The party further claims that the deal lacks transparency and could result in significant economic loss for the country if not properly regulated.

Despite these concerns, the Sri Lankan government appears to view the investment as a necessary step toward revitalising a critical industrial facility and securing foreign capital. Negotiations are said to be ongoing, with final regulatory approvals pending.

Government seeks balanced resolution amid controversy over Parate Law reinstatement

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July 01, Colombo (LNW): The Sri Lankan government is preparing to initiate talks with financial institutions and key stakeholders following growing unease over the renewed enforcement of the Parate law, according to Deputy Minister of Economic Development Dr Anil Jayantha Fernando.

The discussions, aimed at identifying a workable path forward, are expected to commence within the next few days.

The Parate law, which legally empowers banks to repossess mortgaged property without court intervention when borrowers default on loans, was reinstated as of midnight on June 30. Its return has ignited widespread concern amongst small and medium-scale entrepreneurs, many of whom fear that aggressive enforcement could trigger a wave of bankruptcies and force numerous local businesses to shut their doors.

Previously, the government had temporarily halted the application of the law, granting borrowers a three-month reprieve. An earlier moratorium under former President Ranil Wickremesinghe had extended the suspension for six months. These pauses were welcomed by business owners struggling with financial strain in a challenging economic climate.

With the reactivation of the law now in effect, business leaders are calling on the authorities to reconsider. Many within the SME sector are urging the government to extend the suspension for a further twelve months, arguing that many enterprises are still in recovery mode after years of economic instability and external shocks.

Responding to these concerns, Dr Fernando stated that the administration is committed to finding a “sustainable and fair” solution that considers both the financial system’s stability and the survival of local industries. He acknowledged the delicate balance between ensuring banks’ ability to recover loans and protecting struggling businesses from potential collapse.

Fuel prices soar

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July 01, Colombo (LNW): Motorists across Sri Lanka will see a fresh wave of fuel price increases taking effect from midnight yesterday (30), as the Ceylon Petroleum Corporation (CEYPETCO) introduced revised rates.

Under the new pricing, Petrol 92 Octane will now cost Rs. 305 per litre—reflecting a Rs. 12 rise—whilst the price of Kerosene has climbed by Rs. 7 to Rs. 185 per litre. The rate for Auto Diesel has also seen a significant increase of Rs. 15, bringing it to Rs. 289 per litre.

Notably, there has been no change in the cost of higher-grade fuels: Petrol 95 Octane remains at Rs. 341 per litre, and Super Diesel continues to be priced at Rs. 325.

The revised pricing applies not only to CEYPETCO outlets but has also been mirrored by Lanka IOC (LIOC) and Sinopec Energy Lanka, both of which adjusted their rates in tandem with the CEYPETCO.

The full list of revised fuel prices now stands as follows:

  • Petrol 92 Octane – Rs. 305 per litre (up by Rs. 12)
  • Auto Diesel – Rs. 289 per litre (up by Rs. 15)
  • Kerosene – Rs. 185 per litre (up by Rs. 7)
  • Petrol 95 Octane – Rs. 341 per litre (unchanged)
  • Super Diesel – Rs. 325 per litre (unchanged)

Several provinces to witness a few showers: Fairly strong winds expected (Jul 01)

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July 01, Colombo (LNW): A few showers will occur in the Western, Sabaragamuwa and North-western provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (01).

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:
A few showers may occur in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.

Winds:
Winds will be /south-westerly and wind speed will be (30-40) kmph.

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

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

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

The sea areas off the coast extending from Chilaw to Matara via Colombo and Galle and from Kankasanthurai to Trincomalee via Mullaittivu will be fairly rough at times.

Advocata Urges Redraft of Gambling Bill to Ensure Independent Regulation

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By: Staff Writer

June 30, Colombo (LNW):The Advocata Institute has called on the Sri Lankan government to withdraw and redraft the proposed Gambling Regulatory Authority Bill, warning that the current version threatens the integrity and credibility of the gambling sector due to excessive control vested in the Minister of Finance.

According to Advocata Research Consultant Sudaraka Ariyaratne, the draft law fails to establish a truly independent regulatory body, a key principle in maintaining transparency and preventing political interference. “In its current form, the Bill does not create a regulator; it creates a proxy,” he said, noting that the proposed framework grants unchecked powers to the Minister, who would control the appointment of the Director General and board members, issue binding directives, and formulate regulations unilaterally.

Such centralized authority undermines international regulatory best practices, which emphasize impartiality, consistency, and separation from political influence. Advocata recommends that board appointments be subject to Constitutional Council approval, that the Director General be selected through a competitive process, and that regulatory power rest with the Authority itself—similar to models like Sri Lanka’s Securities and Exchange Commission.

Beyond the issue of independence, Advocata has also identified several other policy flaws in the Bill. One key concern is the lack of representation from the tourism sector, despite the close ties between gaming and tourism. The Bill fails to include the Sri Lanka Tourism Development Authority (SLTDA) as an ex-officio member and does not consider hospitality experience as a qualification for board appointments.

The draft also exempts the National and Development Lotteries Boards from regulatory oversight, even though lotteries are widely recognized as a form of gambling. This loophole leaves state-run lotteries unregulated, raising concerns over financial mismanagement and consumer protection.

Another major oversight is the absence of provisions for regulating online gambling. The Bill does not address online platforms or require user registration, nor does it consider how to manage cross-border gambling sites that often partner with local sporting bodies. Advocata stresses the need for clear rules to monitor digital platforms and minimize harm to consumers.

Additionally, the current draft lacks effective mechanisms to trace revenues or enforce taxation, raising fears of underreporting and significant revenue leakage. Penalties for violations are also deemed too weak, with fines as low as Rs. 100,000 and limited imprisonment terms—far too lenient for an industry valued in billions.

While Advocata acknowledges the importance of establishing a regulatory authority, it insists that the legislation must be fundamentally revised. The institute is calling for broad public consultation and expert input to ensure the final Bill promotes a credible, independent, and modern regulatory regime that serves both the industry and the public interest.

Tax Loopholes and Valuation Gaps Raise Alarms over Sri Lanka Used Vehicle Imports

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By: Staff Writer

June 30, Colombo (LNW): Sri Lanka’s decision to lift a five-year ban on vehicle imports has revived the automobile trade, generating much-needed government revenue. However, the surge in vehicle imports—particularly used vehicles—has exposed significant weaknesses in tax collection and customs valuation procedures, triggering serious concerns over potential revenue losses.

The Committee on Public Finance (CoPF) has flagged critical discrepancies in the valuation of used and unregistered vehicle imports. The main concern centers around the apparent inconsistency in applying Value Added Tax (VAT) and excise duties, especially for vehicles with minimal mileage or those only a few days old. These discrepancies, according to CoPF, could result in billions of rupees in lost government revenue annually.

At a recent CoPF session, Chairperson Dr. Harsha de Silva questioned why Sri Lanka Customs continues to depreciate vehicle values by 15%, even for imports with less than 50 kilometers of mileage or as new as five days old. Customs officials explained that they follow a 2016 Gazette that has not been updated, with no fresh guidance issued on valuation timelines or mileage brackets.

This outdated system, the CoPF warned, may be allowing revenue leakage on a large scale. Customs Additional Director General Seevali Arukgoda revealed that about 200–300 vehicles are processed daily, and since the lifting of the import ban, around 16,000 vehicles have been cleared. Yet a random data check revealed that the government may have lost up to Rs. 250 billion in just three days due to improper valuations—translating to a potential annual loss exceeding Rs. 36 billion.

Importers and industry representatives voiced their grievances as well. Sampath Merenchige, President of the Vehicle Importers Association of Lanka (VIAL), said that three-year-old vehicles imported from Japan are often overvalued compared to their actual market price. Meanwhile, Prasad Manage of VIASL noted that used vehicle importers do not receive proper depreciation allowances, even on three-year-old vehicles, unlike brand-new vehicles which get favorable valuation treatment.

Further inconsistencies were cited in declarations of vehicle power. For instance, the same model BYD Sealion was declared with different kilowatt power ratings depending on whether it was imported by a private party or directly by the manufacturer—raising suspicions of manipulation and lack of standardization.

Adding to importers’ woes is the recent decision to double electric vehicle (EV) excise duties from 15% to 30%, alongside a 50% surcharge on customs duties, which has led to a sharp increase in vehicle prices—both new and used. While this is expected to boost government revenue, consumer affordability has taken a hit.

The CoPF urged Sri Lanka Customs and the Department of Motor Traffic to standardize and clarify vehicle valuation and registration processes. Customs has been asked to modernize its depreciation guidelines and implement robust mechanisms to prevent undervaluation and tax evasion.

Dr. de Silva emphasized that transparency, accountability, and urgency in reforming the valuation process are vital to closing loopholes and safeguarding public funds. If left unchecked, these gaps could continue to deprive the government of billions in revenue at a time when fiscal discipline is crucial.