Abstention on Ukraine Ceasefire Resolution Reverberates Across South Asia

The decision by Sri Lanka and India to abstain from a crucial vote at the United Nations General Assembly has sent ripples across diplomatic corridors in South Asia and beyond. The resolution, marking four years since Russia launched its invasion of Ukraine, called for an immediate ceasefire and reaffirmed Ukraine’s sovereignty.

Adopted with 107 votes in favour, the measure also demanded the exchange of prisoners of war, the release of unlawfully detained civilians and the return of deported individuals, including children. It expressed grave concern over ongoing Russian attacks on civilian infrastructure and the deteriorating humanitarian crisis.

Nevertheless 51 countries chose to abstain. Alongside Sri Lanka and India were China, Brazil, South Africa and the United States, illustrating a fragmented international consensus.

For India, abstention is consistent with its long-standing strategic autonomy. New Delhi has deep defence ties with Moscow and relies heavily on Russian military equipment and discounted energy supplies. Simultaneously, it has strengthened partnerships with Western powers. By abstaining, India avoids alienating either side, reinforcing its image as an independent global actor.

Sri Lanka’s calculus is intertwined with India’s. Facing acute economic pressures in recent years, Colombo depends significantly on Indian financial assistance and regional goodwill. Aligning its vote with New Delhi reduces the risk of diplomatic friction with its most influential neighbour. However, this alignment also underscores Sri Lanka’s limited room for manoeuvre in global affairs.

The repercussions could be multifaceted. Western governments may quietly reassess Colombo’s reliability as a partner committed to upholding international norms. Conversely, Moscow may interpret the abstention as a signal that Sri Lanka remains open to continued cooperation, particularly in tourism and energy.

Regionally, the vote highlights South Asia’s cautious approach to great-power rivalry. Rather than taking firm positions, countries are prioritising economic resilience and geopolitical flexibility. This reflects a broader Global South trend of resisting binary alignments in an increasingly multipolar world.

The abstention may not dramatically alter Sri Lanka’s or India’s bilateral relations with Ukraine or Russia in the immediate term. But it reinforces a diplomatic doctrine that privileges balance over boldness. In a conflict that has reshaped global alliances, the choice to abstain is itself a powerful statement one that reveals as much about regional anxieties and strategic dependencies as it does about the war in Ukraine.

The 2026 fiscal narrative of the National People’s Power government has taken a dramatic turn. After President and Finance Minister Anura Kumara Dissanayake assured Parliament that no new tax revisions would be introduced, the latest amendments to the Inland Revenue Act reveal a markedly different trajectory.

The changes reflect a strategic recalibration: expanding the tax base, tightening compliance, and elevating capital taxation all under a government rooted in the Marxist tradition of the Janatha Vimukthi Peramuna.

Ideology Meets Fiscal Reality

The tax revisions suggest a shift from populist reassurance to fiscal pragmatism. Sri Lanka’s revenue-to-GDP ratio remains under pressure, and international obligations require sustained domestic revenue mobilisation.

The Capital Gains Tax increase from 10% to 15% for individuals and up to 30% for trusts and funds signals a redistributive tilt. Capital transactions, often associated with higher-income groups, are now more heavily taxed.

However, the expanded 5% Withholding Tax complicates that narrative. By drawing in professionals across creative, technical, and skilled trades, the policy reaches well beyond the wealthy elite.

Formalising the Informal

A central objective appears to be formalisation. The widened WHT net and mandatory registration rules aim to capture income streams historically underreported. Enhanced information-sharing powers between tax authorities, the Financial Intelligence Unit, and police further strengthen enforcement architecture.

From a governance standpoint, this reduces leakage and strengthens compliance culture. Nevertheless it also increases anxiety among small-scale operators unfamiliar with formal tax processes.

Investment Signals: Mixed Messages

The introduction of 100% capital allowances for investments between $250,000 and $3 million subject to approval by the Board of Investment of Sri Lanka is a clear pro-investment signal.

But this incentive coexists with higher capital taxation and stricter rules for collective investment vehicles. For foreign and domestic investors alike, predictability is paramount. A perceived reversal from a “no tax revision” pledge risks denting policy credibility.

Impact on Households

For salaried workers, the safe harbour provision (requiring 120% of prior-year tax to avoid reassessment) may indirectly pressure higher declarations. For freelancers and service providers, the automatic 5% deduction affects cash flow.

While exemptions for life insurance proceeds and limited filing relief for low-interest earners offer some respite, the broader effect is contractionary: reduced disposable income and heightened compliance costs.

A Calculated Trade-Off

Taken together, the reforms represent a classic trade-off. The government prioritises revenue stability, enforcement strength, and structured compliance over short-term political comfort.

Whether this pivot strengthens long-term fiscal resilience or erodes public trust depends less on the technical merits of the Bill and more on whether citizens perceive fairness  and consistency  in governance.

The promise of “no new taxes” has given way to a comprehensive restructuring. For Sri Lanka’s taxpayers, the question is no longer whether change is coming but who ultimately bears its weight.

Sri Lanka now faces a decisive economic crossroads. The signals from Washington are neither hostile nor unconditional; they are transactional and reform-driven. The question is whether Colombo can respond with urgency and coherence.

The United States has indicated that expanded trade and investment will follow credible structural reform. This is not a new formula, but the current geopolitical and economic climate gives it sharper urgency. Global capital is increasingly selective, favouring jurisdictions that minimise regulatory risk and institutional opacity.

For Sri Lanka, the immediate priority must be restoring predictability.

First, regulatory consistency must replace ad hoc policy reversals. Investors American or otherwise  price uncertainty as risk. Clear tax regimes, enforceable contracts, and transparent dispute-resolution mechanisms are non-negotiable prerequisites.

Second, procurement reform is essential. Opaque tender processes and shifting compliance standards undermine confidence and inflate financing costs. Competitive neutrality and public disclosure standards would send a powerful signal that Sri Lanka is serious about institutional credibility.

Third, logistics modernisation must continue, anchored by the expansion of the Port of Colombo. Positioned strategically along Indian Ocean trade routes, Sri Lanka can leverage its geography only if operational efficiency is matched by governance integrity. A high-standard logistics hub integrated into Indo-Pacific supply chains would attract manufacturing, warehousing, and value-added services.

Fourth, Sri Lankan firms must look outward. Engagement with the United States should not be limited to exporting goods. By utilising platforms such as SelectUSA, Sri Lankan enterprises can embed themselves within US state-level ecosystems, secure incentives, and gain proximity to advanced technology networks. Outbound investment can strengthen domestic resilience through knowledge transfer and supply-chain integration.

Finally, reconstruction and recovery efforts must prioritise institutional reform over short-term stimulus. Strengthened market institutions, independent regulatory bodies, and rule-based governance will do more to secure long-term capital flows than temporary incentives.

The US stance reflects a broader global shift: economic partnerships are increasingly contingent on governance standards. Sri Lanka cannot rely solely on strategic geography or diplomatic balancing. It must compete on transparency, rule of law, and operational efficiency.

The immediate future demands disciplined reform, not incremental adjustment. If Sri Lanka consolidates predictable rules and reciprocal trade flows, it can position itself as a dependable Indian Ocean trading hub where global supply chains converge.

Failure to do so risks marginalisation in a world where capital has choices and increasingly chooses certainty.

Sri Lanka’s long-dormant graphite industry may be on the brink of transformation following a high-level visit by a U.S. delegation under the Montana State Partnership Program (SPP). The team — including Lieutenant Colonel Chris Cory, Mr. James Mooney of Mooney Group LLC, Ms. Mary Mooney, and Mr. Chris Dorrington  met Ambassador Mahinda Samarasinghe to explore investment prospects in Sri Lanka’s critical mineral sector.

The discussions centered on graphite, a mineral increasingly viewed as strategic due to its role in semiconductors, electric vehicle batteries, and defense systems. Sri Lanka is one of the few countries producing high-grade vein graphite, with carbon purity levels often exceeding 95%, placing it in a niche category globally. However, despite this geological advantage, the industry remains underdeveloped.

Primitive Industry, Untapped Potential

As of February 2026, Sri Lanka’s graphite production is estimated at approximately 7,000–8,000 metric tons annually modest compared to global leader China, which accounts for over 60% of world output exceeding 1 million metric tons per year. Sri Lanka’s mining operations are primarily small- to medium-scale, with limited mechanization and minimal downstream processing. Much of the output is exported in raw or semi-processed form, forfeiting higher margins available through value-added refinement.

Key mining sites remain concentrated in areas such as Kahatagaha and Bogala, both historically significant but constrained by aging infrastructure and limited technological modernization. The sector contributes less than 0.2% to national GDP and employs fewer than 3,000 workers directly, underscoring its primitive stage of development.

Strategic U.S. Involvement

The Mooney Group’s interest signals potential change. The firm specializes in developing critical minerals for advanced manufacturing sectors in the United States, aligning with Washington’s broader strategy to diversify supply chains away from overreliance on dominant producers. For Sri Lanka, U.S. participation could introduce advanced extraction technologies, environmental safeguards, and internationally compliant safety standards.

Ambassador Samarasinghe emphasized Sri Lanka’s commitment to facilitating Foreign Direct Investment and expanding value-added production. A partnership with American investors could accelerate the development of purified spherical graphite a key input for lithium-ion batteries and possibly establish local processing plants. If realized, this could multiply export revenues three- to fourfold over the next five years.

Economic and Geopolitical Implications

The timing is significant. As global competition intensifies for critical minerals, Sri Lanka’s strategic location along major Indian Ocean trade routes enhances its appeal. Collaboration under the Montana SPP framework also deepens bilateral ties beyond traditional defense cooperation.

However, risks remain. Environmental oversight, community engagement, and transparent licensing processes will be critical to avoid the pitfalls seen in extractive industries elsewhere. Regulatory modernization and infrastructure upgrades will require coordinated policy support.

Still, the prospective U.S.–Sri Lanka graphite initiative represents more than a commercial venture. It reflects a broader shift in the geopolitics of minerals and offers Sri Lanka a rare opportunity to move from raw material exporter to value-added participant in the global critical minerals supply chain.

A collective representing employees who opted for the Voluntary Retirement Scheme (VRS) at the Ceylon Electricity Board (CEB) has condemned a recent token strike launched by several trade unions, describing the industrial action as illegal.

In a letter addressed to the Minister in charge of Energy, the VRS Employees’ Collective stated that the trade union action violated existing laws and regulations governing essential services.

The group claimed the strike was unsuccessful despite alleged threats issued by certain union leaders, noting that fewer than 25 percent of employees had participated. It emphasized that its members had been instructed not to engage in any activity aimed at disrupting the ongoing reform process at the CEB or supporting what it described as politically motivated agendas against the government.

According to the collective, none of its members took part in the token strike, and it reaffirmed that they would not participate in any future actions intended to obstruct reforms.

The group also urged the Energy Minister not to be influenced by union pressure and called for the final phase of the reform process to be expedited through the gazetting of the designated date, citing national interest.

Additionally, the collective requested that if there is any delay in gazetting the relevant date, employees be permitted to take approved unpaid leave until the process is completed, the letter stated.

The progress review meeting of the 16th session of the National Council for Disaster Management was held last morning (26) at the Presidential Secretariat under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.

During the meeting, Dr. Kumanayake observed that institutions responsible for providing relief to those affected by Cyclone Ditwah operate with distinct roles and implementation plans, according to the President’s Media Division (PMD).

He emphasized that enhanced coordination and collaboration among these institutions at this stage would enable disaster management and relief operations to be carried out more efficiently and effectively.

The Secretary to the President noted that by functioning as a unified mechanism with a shared objective and ensuring the accurate exchange of information, relief measures for affected communities could be expedited. He also stressed the importance of obtaining accurate and reliable data to support these efforts.

Discussions were held on identifying suitable lands for constructing new houses for disaster-affected families and those living in high-risk areas. It was highlighted that construction activities should proceed promptly in line with the recommendations and guidelines of the National Building Research Organisation (NBRO), following proper site inspections.

It was also decided to hold a special discussion with the Commissioner General of Essential Services to accelerate the housing programme.

Dr. Kumanayake further instructed officials to ensure the timely payment of compensation and allowances to affected individuals and to give special attention to appeals from those who have not yet received benefits.

Among those present were Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd.), Housing Construction and Water Supply Secretary Kumudulal Bogahawatta, Senior Additional Secretary to the President Kapila Janaka Bandara, Additional Secretary of the Disaster Management Division K.G. Dharmathilaka, Director General of the Department of Meteorology Athula Karunanayake, Senior Assistant Secretary of the National Disaster Relief Services Centre Namal Liyanage, Director General of the NBRO Asiri Karunanayake, Director General of the Disaster Management Centre Major General Sampath Kotuwegoda (Retd.), and representatives from several other relevant institutions.

The President and CEO of the World Economic Forum (WEF), Borge Brende, has resigned after an independent review examined his past contacts with the late financier Jeffrey Epstein.

The WEF initiated the review following the release of additional Epstein-related files by the US Department of Justice. Brende acknowledged that he had dined with Epstein on three occasions between 2018 and 2019 and had communicated with him via email and text. However, he stated he was “completely unaware” of Epstein’s prior criminal activity at the time.

In a statement, the WEF said the independent review found “no additional concerns beyond what has been previously disclosed.”

Brende, a former Norwegian foreign minister, has expressed regret for not having investigated Epstein more thoroughly before engaging with him.

Announcing his decision on Thursday, Brende said he was stepping down after more than eight years in the role following “careful consideration.”

“I believe now is the right moment for the Forum to continue its important work without distractions,” he said.

Epstein was convicted in 2008 for soliciting prostitution from a minor and was required to register as a sex offender. Being named in the released files does not imply criminal wrongdoing, and Brende has not been accused of any offence.

WEF co-chairs Andre Hoffmann and Larry Fink thanked Brende for his “significant contributions” and said they respected his decision to step aside.

The World Economic Forum, best known for its annual meeting in Davos, Switzerland, brings together political, business and global leaders from around the world.

The WEF announced that Alois Zwinggi, previously a managing director on its executive body, will serve as interim president and CEO while the board of trustees begins the process of appointing a permanent successor.

The latest release of Epstein-related files has led to renewed scrutiny of numerous public figures globally. The documents include emails, images and investigative materials connected to US probes into Epstein, who died in 2019 while awaiting trial on sex trafficking charges.

In Norway, several public figures have also faced attention over past associations with Epstein, although inclusion in the files does not indicate criminal liability.

Organized criminal figure and alleged drug trafficker Arumahandi Janith Madhusankha de Silva, alias “Podi Lassie”, was brought back to Sri Lanka from India by a special police team this morning (27).

He had been arrested by Indian security authorities following diplomatic engagement and with the intervention of Interpol.

According to reports, ‘Podi Lassie’ fled to India by sea after being granted bail on December 9, 2024. He was subsequently apprehended by security officials in Mumbai in January 2025.

He arrived at Bandaranaike International Airport (BIA) in Katunayake from Mumbai at 5.55 a.m. today (27) aboard SriLankan Airlines flight UL-142.

Upon arrival, he was taken away from the airport under heavy security and handed over to the Elpitiya Divisional Crimes Investigation Bureau for further investigations.

Mainly fair weather will prevail over the most parts of the island.

Showers or thundershowers are likely at a few places in Southern province and in Rathnapura and Monaragala districts after 2.00 p.m.

Misty conditions can be expected at several places in the island during the early hours of the morning.