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Inflation in Colombo edges up slightly in June, driven by non-food price movements

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June 30, Colombo (LNW): Consumer price inflation in Colombo showed a marginal uptick in June 2025, with figures revealing a slight easing of the deflationary trend that has characterised recent months.

According to the latest report from Sri Lanka’s Department of Census and Statistics, the year-on-year inflation rate stood at -0.6 per cent for June, up from -0.7 per cent in May.

The Colombo Consumer Price Index (CCPI), which serves as a key benchmark for gauging inflation, reached 194.5 points in June, marking an increase of 1.7 points from May’s figure of 192.8.

This rise in the index indicates a mild shift in the cost of living for urban households, though the overall inflation rate remains in negative territory.

Breaking down the figures, the annual inflation rate for food items slowed to 4.3 per cent in June, down from 5.2 per cent in the previous month.

This moderation suggests that prices of essential foodstuffs may be stabilising after recent fluctuations. In contrast, the non-food category saw its deflation ease to -2.8 per cent from -3.3 per cent in May, pointing to a slight recovery in that sector.

Food prices continued to play a central role in influencing overall inflation trends, contributing approximately 1.37 percentage points to the year-on-year rate for June.

High Court schedules hearing for Duminda Dissanayake’s bail petition in firearm case

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June 30, Colombo (LNW): The Colombo High Court has fixed a date to examine a petition submitted by former minister Duminda Dissanayake, who remains in remand custody over the discovery of a gold-plated assault rifle allegedly linked to him.

The matter will be heard on July 14, 2025, following initial legal arguments presented in court.

The case came before High Court Judge Manjula Thilakaratne on June 30, where legal representation for the petitioner was led by President’s Counsel Sampath Mendis. In court, counsel provided a series of detailed submissions, requesting judicial consideration of Dissanayake’s continued detention in light of evolving case circumstances.

After reviewing the representations made, Judge Thilakaratne ruled that the petition merits formal inquiry. In particular, the court observed that the investigation files concerning the incident have already been handed over to the Attorney General’s Department and are currently being scrutinised for further legal action.

The court also drew attention to a significant development involving another individual implicated in the same case. According to submissions, the third suspect has already been granted bail by the Magistrate’s Court, prompting the High Court to seek clarity from the State on the comparative circumstances of Dissanayake’s continued remand.

The Judge directed the State Counsel to present additional information, including the contents of the former minister’s police statement, at the upcoming hearing. The outcome of that inquiry could have a bearing on the possibility of interim relief or bail.

The incident in question gained considerable public attention due to the conspicuous nature of the firearm involved—reportedly a T-56 assault rifle embellished with gold plating. The weapon was recovered during a recent search operation, though the specific circumstances surrounding its possession and potential misuse remain under active investigation.

Man with alleged extremist ties detained for suspicious filming at religious event in Colombo

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June 30, Colombo (LNW): A man previously flagged for suspected involvement in extremist activities has been taken into custody after he was found recording video near a high-profile religious gathering in Colombo.

The individual, identified as 27-year-old Mohamed Shafrool, also known by the alias “Podi Zaharan”, was arrested in the vicinity of a mosque in Bambalapitiya where a major spiritual convention of the Dawoodi Bohra community is presently underway.

The arrest was made on Friday by officers from the Bambalapitiya police division following reports of a person behaving suspiciously near the convention site.

Shafrool, reportedly a resident of Kandy, was observed recording video footage close to the area where the event was being held, prompting swift action from law enforcement officials stationed nearby.

Authorities have confirmed that the suspect has a prior history with the security services. He had previously been detained in connection with investigations into the 2019 Easter Sunday bombings, a series of coordinated attacks that deeply shook the nation and led to extensive counterterrorism operations across the island.

New appointment announced for Police Media Spokesperson role

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June 30, Colombo (LNW): Assistant Superintendent of Police F.U. Wootler, who is also a practising Attorney-at-Law, has been officially appointed as the new spokesperson for the Sri Lanka Police.

His appointment marks a step up from his previous role as Assistant Director within the Police Media Division, where he was closely involved in managing communication strategies and liaising with the press.

The position was previously held by Senior Superintendent of Police and Attorney-at-Law Buddhika Manatunga, who has now been transferred to lead police operations in the Polonnaruwa Division.

Ex-Minister Lakshman Yapa Abeywardena indicted over misuse of public funds

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June 30, Colombo (LNW): Former Cabinet Minister Lakshman Yapa Abeywardena and one-time Director General of the Board of Investment (BOI), Jayantha Edirisinghe, appeared before the Colombo High Court today (30) as they faced formal indictments over alleged financial misconduct linked to state resources.

The legal action, initiated by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), centres on accusations that the pair were responsible for a financial loss exceeding Rs. 1.7 million to the state.

The case pertains to the use of BOI funds for a series of newspaper advertisements that were published to mark the second anniversary of the swearing-in of then President Mahinda Rajapaksa in 2014.

The charges were read out before High Court Judge Pradeep Abeyratne during a scheduled hearing. Prosecutors contend that the promotional material had no direct bearing on the official mandate of the BOI and was instead a politically motivated expenditure, raising questions about the misuse of public funds for partisan purposes.

Both defendants were granted bail following the submission of indictments. Conditions of their release include reporting to relevant authorities and a restriction on foreign travel pending further proceedings.

Supreme Court flags constitutional issues in proposed Electricity Law reforms

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June 30, Colombo (LNW): The Supreme Court has raised constitutional concerns over several provisions within the proposed Electricity Amendment Bill, according to a formal announcement made in Parliament by Deputy Speaker Dr Rizvie Salih.

Delivering the Court’s determination, Dr Salih informed the House that certain sections of the draft legislation have been deemed inconsistent with the Constitution.

As a result, these particular provisions—if left unaltered—would require not only the backing of a two-thirds majority in Parliament but also the endorsement of the public through a national referendum.

However, the Deputy Speaker went on to clarify that these constitutional barriers can be bypassed if the relevant sections of the bill are revised in accordance with the Supreme Court’s recommendations.

Such amendments would allow the legislation to proceed through Parliament under standard approval mechanisms, avoiding the need for a public vote.

Concerns mount over sharp rise in book prices following new tax measures

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June 30, Colombo (LNW): The cost of printed books in Sri Lanka has surged by approximately 20 per cent, prompting alarm among industry stakeholders who warn that the tax-driven price hike could deal a serious blow to the country’s publishing and literary sectors.

Speaking at the anniversary gathering of the National Book Traders Association, Samantha Indeewara, President of the Sri Lanka Book Publishers’ Association, drew attention to the recent introduction of Value Added Tax (VAT) and Nation Building Tax (NBT) on printed publications.

He noted that the shift marks a dramatic departure from previous tax policy, where printed books had been exempt from VAT.

According to Indeewara, confusion has arisen over the application of taxes to different product categories, particularly with officials failing to distinguish between stationery and books. “There has been a misunderstanding. Stationery already carried a small VAT component—around 3 per cent—but printed books were taxed at zero. That has now jumped to 18 percent, a significant and sudden increase,” he explained.

The revised tax policy, introduced in January 2024, has drawn sharp criticism from within the industry, with many fearing long-term damage to reading culture and educational accessibility. Indeewara also revealed that the industry had received correspondence from the Presidential Secretariat around a month ago, indicating that an internal review of VAT implications was underway, though no definitive outcome has been communicated.

Gamini Moragoda, Patron of the National Book Traders Association, also voiced concern, describing the new tax framework as unprecedented and detrimental. “We are now seeing a tax imposed on books that is unlike anything found in most parts of the world. This is a policy reversal not seen in 75 years, and its consequences will be felt most acutely by students and families. If this persists, books will soon be out of reach for the average child,” he stated.

Industry leaders are calling on policymakers to re-examine the decision urgently, warning that continued taxation on books could lead to a decline in literacy, further strain on publishers, and reduced access to learning materials for future generations.

National Police Commission approves key Police leadership reshuffle

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June 30, Colombo (LNW): In a move aimed at reinforcing operational efficiency and leadership across multiple branches of law enforcement, the Sri Lanka Police Headquarters has confirmed a series of senior-level officer transfers.

Amongst the significant appointments, Senior Superintendent of Police (SSP) H.W.I.S. Muthumala, who previously headed the Criminal Investigation Department (CID), will now lead the Bureau for the Investigation of Abuse of Children and Women.

SSP K.C. Ariyawansa, formerly serving in the Gampola Division, has been entrusted with the leadership of the Central Crimes Investigation Bureau.

In the sphere of police training and leadership development, SSP C. Gunaratna, previously the Director of the Police Cadet Division, will assume directorship of the Sri Lanka Police Academy. He will continue to oversee the Cadet Division, ensuring continuity and cohesion in police training standards.

Meanwhile, SSP B.A.E. Prasanna will take charge of the Kebithigollewa Division, having previously served in Mount Lavinia, while SSP A.J. Gunasekara, who was formerly responsible for the Bureau for the Investigation of Abuse of Children and Women, has been appointed to the Mount Lavinia Division in exchange.

Further transfers include SSP B.D. Gunasekara, who will shift from the Badulla Division to assume duties in the Colombo Central Division. Additionally, SSP Y.B. Krishantha has been reassigned from Kebithigollewa to the Field Force Headquarters.

Nationwide mosquito eradication campaign launched amid spike in dengue cases

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June 30, Colombo (LNW): Sri Lanka has launched a nationwide mosquito eradication drive today (30), marking the start of a week-long campaign aimed at curbing the spread of mosquito-borne illnesses such as dengue and chikungunya.

The initiative, which will run until July 05, comes in response to a notable surge in infections following recent bouts of heavy rainfall across the island.

With stagnant water providing ideal breeding conditions for mosquitoes, health officials are stepping up efforts to tackle the root causes of disease outbreaks. The campaign is being spearheaded by the National Dengue Control Unit and involves coordinated action in 16 districts, where more than 1,000 specialised teams have been mobilised to carry out inspections, cleaning operations, and educational outreach.

According to the latest figures from the National Dengue Control Unit, over 28,000 dengue cases have been recorded since the beginning of the year, with the Western Province bearing the brunt of the epidemic.

Alarmingly, 16 deaths linked to the disease have been confirmed during this period, prompting renewed urgency among health authorities.

The campaign will prioritise areas that have been flagged as high-risk, including densely populated neighbourhoods and neglected urban zones with poor waste management.

Medical Officer of Health (MOH) divisions identified as hotspots are being given particular attention, with community involvement being strongly encouraged.

Dr Prashila Samarawira, a community health expert at the National Dengue Control Unit, noted that public participation is critical to the success of the campaign.

She stressed the importance of household vigilance, urging residents to eliminate breeding grounds by clearing gutters, covering water storage containers, and discarding items that can collect rainwater.

Public health officials hope that this intensified national effort will help curb the current outbreak and set a foundation for sustained mosquito control throughout the year.

The government has also called on schools, workplaces, and local councils to support the campaign through coordinated clean-up activities and awareness programmes.

Loan repayment grace period for larger SMEs expires as parate relief adjustments take effect

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June 30, Colombo (LNW): The grace period granted to small and medium-sized enterprises (SMEs) with substantial outstanding loans officially concludes today, bringing an end to the temporary suspension of certain debt recovery actions under the Parate Law.

According to the Central Bank of Sri Lanka (CBSL), this measure applied specifically to businesses with loan obligations exceeding Rs. 50 million, provided they had entered into active discussions with their respective lending institutions prior to March 31 this year.

The temporary relief allowed these enterprises time to restructure or negotiate repayment terms without immediate risk of asset seizure under the Parate legal framework.

The Parate Law enables banks to recover debts by auctioning mortgaged property without court proceedings—a mechanism often viewed as burdensome for struggling businesses during periods of financial hardship. The now-lapsed moratorium offered a brief buffer, particularly for larger SMEs hit by recent economic fluctuations.

However, not all relief measures are being lifted simultaneously. Enterprises with outstanding loans between Rs. 25 million and Rs. 50 million will continue to be protected under the same legal moratorium until September 30, giving them additional time to stabilise operations and finalise repayment arrangements.