April 01, Colombo (LNW): The Department of Motor Traffic (DMT) has announced that individuals seeking its services will be required to provide a Taxpayer Identification Number (TIN) from 15 April 2025 onwards.
This new requirement is aimed at strengthening financial accountability and streamlining administrative processes.
In an official statement, the DMT emphasised that the submission of a TIN will be compulsory for all transactions and services provided by the department. This includes vehicle registrations, ownership transfers, licence renewals, and other related procedures.
Authorities have urged vehicle owners, buyers, and motorists to ensure they possess a valid TIN before approaching the department for services. The measure is expected to create a more transparent system and facilitate efficient record-keeping.
April 01, Colombo (LNW): In a significant legal development, the Court of Appeal has directed Returning Officers to suspend all activities related to the forthcoming Local Government (LG) Elections in areas where petitions have been filed contesting the rejection of nomination papers.
This suspension will remain in effect until April 02, 2025, pending further judicial review.
The ruling, issued by the bench of Acting President Justice Mohamed Lafar Tahir and Justice K.P. Fernando, came after a series of petitions were lodged by political parties and independent groups.
These petitions were filed in response to the rejection of their nomination papers for various local government positions, including those for the prestigious Colombo Municipal Council (CMC).
Amongst the petitioners is the United People’s Freedom Alliance (UPFA), which is challenging the rejection of its nominations across multiple local councils.
The court’s decision to suspend the election-related activities comes as these legal disputes are still under deliberation, raising concerns over the transparency and fairness of the nomination process.
This short article is to alert a possibility of Treasury bill market irregularities that can cost to the government and its debt sustainability. This is revealed from the unusual pattern of acceptance of bids at the last Treasury bill auction held on 26 March and recent auction trends.
Auction results
Yields rates were kept unchanged at the previous week’s levels by accepting significantly below the funding requirement, especially for 91D bills.
Selected early warnings and concerns over the auction results
Acceptance of a negligible amount of 91D bills (Rs. 4,809 mn) way blow the announced amount (Rs. 20,000 mn) and bids (Rs. 21,383 mn) which is a deviation to the recent trend. The trend of lower acceptance of 91D bills was observed from several auctions prior to this although the normal tendency has been to accept bids of 91D much more than the amount announced for the auction.
Acceptance of sizable amounts from other two longer maturities while this tendency has prevailed for several auctions prior to this auction against the normal pattern.
Total acceptance from all three maturities was well below the funding requirement (i.e., accepted Rs. 73,380 mn against the requirement of Rs. 100,500). There has been only 13 such instances in 2024 and this is the first instance so far in 2025.
It is surprising that even the post-auction, e-mail-based placement system offered at the auction weighted average yields subscribed only a negligible amount of Rs. 519 mn as compared to the funding deficit of Rs. 27,120 mn. Therefore, the placement system which is an instrument created to neutralize market pressures and undue speculations also has failed in this instance.
Auction governance concerns
This auction seems to be non-compatible with the last monetary policy statement released on same day because keeping Treasury bill yields unchanged by under-funding the government is inconsistent with the money market conditions with excess liquidity and falling interest rates that were stated in the monetary policy statement.
Why the Central Bank accepted more bids from longer maturities when interest rates are expected to decline in contrast to the best practice of accepting more from shorter maturities in such market conditions is questionable. The best practice is to economize the interest cost to the borrower. Instead, the concerned acceptance has become favourabel to dealers’ or lenders’ profitability and their portfolio management.
The sudden change in the bidding behaviour reflects market expectations of higher interest rates in the near-term. This may be the reason for the reluctance of the Central Bank to cut policy interest rates despite the persistent deflationary trap confronted by the economy on year-on-basis from August 2024 and monthly basis from January 2024 where the Central Bank forecasts this to continue in the near-term.
If interest rates prevail to stay or rise as such, given the present deflationary trend, the question arises as to who is to benefit. This may especially help hot capital investors affected by the forced appreciation of the Rupee, given global interest rates are in falling trend in line with reduced inflation.
The space for this type of questionable yield rate decisions is available because the Central Bank does not have an announced policy for auctioning Treasury bills. If the Central Bank is free to announce and accept any amounts of the three maturities on auctions, the question arises as to what is the purpose of announcing different amounts for the three maturities in the total funding requirement. It would be more transparent to announce auctions soliciting bids for the total funding requirement and to accept bids for different maturities depending on respective demand conditions and debt profile.
Therefore, it is a clear insider information if the Central Bank accepts lower or higher amounts inconsistent with the total funding requirement. This has helped the Central Bank to use auctions of government securities as the de factor monetary instrument to drive its interest rate policy, given the activisms of the government securities market, as the policy interest rates are virtually dormant or hypothetical instruments. The public issue here is the additional interest cost involved in under-funding to keep market interest rates at levels as the Central Bank wishes outside the debt market forces. Therefore, government debt market has lost the flexibility to respond to own demand and supply conditions, other than the Central Bank’s monetary preferences. In that context, the government will never have an independent fiscal policy.
Graphical evidence
Acceptance of bids
Auctions have been driven by 91D maturity but its significance has been reduced in last three auctions by giving the prominence to other two maturities.
Yields and monetary policy
Treasury bill yields are unofficially driven for the monetary policy as revealed from the Central Bank’s Standing Lending Facility Rate (SLFR).
In last three months, policy interest rates have been kept artificially high despite the chronic deflationary plight observed from the beginning of 2024 while pushing yield rates arbitrarily below policy interest rates to signal the market of lower interest rate policy. Therefore, Central Bank’s claim that policy interest rates at present levels are appropriate has no basis.
Rising yield rates of longer maturities and the tendency of keeping policy rates higher are clearly observable from money market interest rates. Therefore, risks to public debt sustainability are hidden in numbers despite artificial stories of international credit ratings, debt restructuring and IMF debt sustainability analysis.
Concluding concerns
In view of the total volume and turnover of Treasury bills accepted from auctions since August 2021 amounting to Rs. 22.3 trillion, the impact of market manipulation of auction yield rates for non-funding/non-fiscal objectives would be significant on interest cost to the government. This is alarming as the total interest cost in the budget 2025 is expected to be 59.1% of the estimated government revenue.
Under the new Public Debt Management Act, Government’s Public Debt Management Office and Minister of Finance are responsible for issuance and management of public debt. Therefore, the Central Bank dealing with auctions of government securities within the monetary policy requirements is clearly in conflict of the budgetary and debt management policy of the government.
The danger of the debt management by the Central Bank during the past 72 years from 1950 is evident from the eventual default of debt by the Central Bank itself in 2022. Therefore, the new Public Debt Management Act should be an attempt to prevent such defaults in future by managing debt in safe, sound and sustainable manner within the interests of the budgetary requirements and fundamentals in the public/tax payer interest.
Non-transparency of government securities market in the absence of a modern electronic trading platform is a continuous blow to sound debt management and market development.
As the government is not interested in any change of prevailing systems, given risks to its sustainability, tax payers cannot expect any benefits from debt management stated above in the foreseeable future. Therefore, debt mismanagement and abuse will continue for long-term in future.
(This article is released in the interest of participating in the professional dialogue to find out solutions to present economic crisis confronted by the general public consequent to the global Corona pandemic, subsequent economic disruptions and shocks both local and global and policy failures. All are personal views of the author based on his research in the subject of Economics which have no intension to personally or maliciously discredit characters of any individuals.)
P Samarasiri
Former Deputy Governor, Central Bank of Sri Lanka
(Former Director of Bank Supervision, Assistant Governor, Secretary to the Monetary Board and Compliance Officer of the Central Bank, Former Chairman of the Sri Lanka Accounting and Auditing Standards Board and Credit Information Bureau, Former Chairman and Vice Chairman of the Institute of Bankers of Sri Lanka, Former Member of the Securities and Exchange Commission and Insurance Regulatory Commission and the Author of 13 Economics and Banking Books and a large number of articles published.)
April 01, Colombo (LNW): Colombo Magistrate’s Court has ruled that MP Chamara Sampath Dassanayake will remain in remand custody until April 08, 2025, extending his detention as legal proceedings against him continue.
Dassanayake, who was arrested on March 27, appeared before the court today (01). Whilst he was granted bail in connection with two charges, he remains in remand over a third, more serious allegation.
The case, brought forward by the Bribery Commission, stems from his tenure as Chief Minister of Uva Province in 2016.
Investigators allege that Dassanayake orchestrated a scheme to solicit funds from three state-owned banks under the guise of financing schoolbags for preschool children.
Whilst two banks complied, transferring Rs. 1 million and Rs. 2.5 million respectively into an account linked to his personal foundation, a third institution refused to disburse funds.
In apparent retaliation, Dassanayake is accused of withdrawing fixed deposits held by the Uva Provincial Council from that bank, allegedly causing a government financial loss of Rs. 17.3 million.
The court, after reviewing the evidence, ruled that the MP could be granted bail on two of the charges but must remain in custody over the third.
April 01, Colombo (LNW): Despite recent earthquakes not directly impacting Sri Lanka, the Geological Survey & Mines Bureau (GSMB) has advised both authorities and the public to remain vigilant about potential seismic threats in the region.
Experts warn that a major earthquake near Sumatra could trigger tsunami-like effects along Sri Lanka’s coastline, prompting the need for continuous monitoring and preparedness.
GSMB officials reassured that global seismic activity is being closely tracked, and contingency measures are in place to respond swiftly to any potential threats.
The advisory comes amid a surge in earthquake activity worldwide, raising concerns about regional stability and disaster preparedness.
The warning follows a catastrophic 7.7-magnitude earthquake in Myanmar, which has caused massive devastation. Reports from international news agencies indicate that the death toll has exceeded 2,000, with rescue teams struggling to manage the aftermath.
Relief efforts are ongoing, with emergency response teams working to locate survivors and provide essential aid to affected communities.
Adding to concerns, Japan has issued an alert regarding a possible earthquake with a magnitude between 8 and 9 on the Richter scale. Japanese authorities predict that such an event could result in catastrophic destruction, with over 300,000 lives potentially at risk. Given Japan’s history of major earthquakes and tsunamis, experts are urging heightened precautionary measures.
Meanwhile, India’s capital, New Delhi, experienced a 4.0-magnitude tremor last month, adding to a series of recent seismic disturbances across South and East Asia.
With earthquake activity on the rise globally, Sri Lankan authorities stress the importance of disaster readiness. The National Tsunami Early Warning Centre, in coordination with international seismic monitoring agencies, is actively tracking potential threats. Officials urge the public to stay informed, follow safety guidelines, and be prepared for any emergency response measures that may arise.
April 01, Colombo (LNW): The Colombo High Court has handed down a death sentence to notorious underworld figure K.M. Sarath Bandara, widely known as ‘SF Sarath’, after finding him guilty of murdering a man in Borella in 2014.
Delivering the verdict today (01), High Court Judge Nawarathne Marasinghe ruled that SF Sarath was directly responsible for the fatal shooting of Hettiarachchige Duminda inside a salon in Wanathamulla, Borella, on August 01, 2014.
The ruling marks the conclusion of a prolonged legal battle, which saw multiple defendants facing trial over their alleged involvement in the crime.
While SF Sarath received the maximum penalty, the court acquitted and ordered the release of three other accused individuals, including the notorious underworld figure Chaminda Ravi Jayanath, known as ‘Dematagoda Chaminda’.
The judge ruled that the prosecution had failed to provide sufficient evidence to convict them.
The case, which dates back over a decade, was part of a broader crackdown on organised crime and contract killings in Sri Lanka. SF Sarath, a known enforcer in the underworld, was accused of carrying out the targeted assassination as part of an ongoing turf war. Authorities believe the murder was linked to criminal rivalries and disputes within Colombo’s underworld networks.
April 01, Colombo (LNW): Former Minister S. Viyalendiran, who is currently facing corruption charges, has been further remanded until April 08, 2025, as ordered by the Aluthkade Magistrate’s Court.
Viyalendiran was taken into custody on March 26, 2025 following an inquiry by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). His arrest was linked to allegations that he had facilitated and assisted in a bribery-related incident.
After providing a formal statement to CIABOC, he was immediately placed under arrest and subsequently produced before the court, where he was remanded until April 01.
During today’s court proceedings, the magistrate extended his remand as investigations continue. Legal representatives of the prosecution emphasised the serious nature of the charges, arguing that releasing the suspect at this stage could hinder ongoing inquiries.
Meanwhile, the defence sought bail, maintaining that the case against Viyalendiran was politically motivated. However, the court ruled in favour of continued detention, pending further legal review.
April 01, World (LNW): The Japanese government has released a sobering report warning that a massive earthquake in the Nankai Trough could result in up to 298,000 deaths, primarily due to tsunamis and building collapses.
The Nankai Trough, a 900-kilometre-long submarine trench off Japan’s Pacific coast, has a history of generating powerful earthquakes. Experts estimate an 80 per cent probability of a magnitude 8 to 9 quake occurring in this region within the next 30 years.
This latest projection marks a slight decrease from the 2012-2013 estimate of 323,000 potential fatalities.
The reduction is attributed to advancements in seismic retrofitting and the development of tsunami evacuation facilities. However, updated terrain and ground data suggest that flooded areas would expand in the event of a tsunami.
Economic repercussions are also expected to be severe, with potential damages estimated at 292.2 trillion yen (approximately $1.81 trillion). This figure represents an increase from the previous estimate of 237.2 trillion yen, reflecting current economic conditions and higher prices.
In a worst-case scenario, the earthquake could trigger tsunamis up to 20 metres high, causing widespread devastation. The timing of such an event could exacerbate its impact; for instance, a winter evening occurrence would pose additional challenges due to colder temperatures and increased indoor activity.
The government report underscores the importance of preparedness and continued investment in disaster mitigation strategies. Whilst improvements have been made since the 2011 Tōhoku earthquake and tsunami, which resulted in over 15,000 deaths and a nuclear disaster, the potential for significant loss of life and economic damage remains a critical concern.
Authorities are urging residents, particularly those in high-risk areas, to familiarise themselves with evacuation routes and to participate in regular disaster drills. The emphasis is on reducing casualties through proactive measures, community awareness, and infrastructure resilience.
April 01, Colombo (LNW): The Sri Lankan government is actively pursuing equitisation as a strategy to improve the governance of state-owned enterprises (SOEs) and stimulate capital market liquidity, rather than opting for full privatisation, which has historically faced strong public opposition.
This approach was outlined by Securities and Exchange Commission (SEC) Chairman, Senior Professor Hareendra Dissabandara, who spoke at the Invest Sri Lanka Forum held in Colombo last week.
Prof. Dissabandara explained that whilst privatisation typically involves a complete transfer of ownership, equitisation offers a more gradual and structured approach, where SOEs can raise capital through the stock market whilst remaining under state control.
He cited Vietnam as an example of a country that has successfully leveraged equitisation to modernise its state enterprises.
Privatisation remains a contentious issue in Sri Lanka, often linked to political disputes, concerns over corruption, and fears of job losses. Recognising these challenges, the government aims to gain public trust by ensuring transparency, safeguarding worker rights, and tackling governance issues.
Labour and Economic Development Deputy Minister Dr. Anil Jayantha reinforced the government’s openness to reforming SOEs through mechanisms that enhance efficiency without triggering social backlash.
The Colombo Stock Exchange (CSE) is poised to play a key role in this process through its Catalyst Board, which allows SOEs to list shares whilst adhering to minimum listing criteria.
Unlike full privatisation, this approach would involve partial divestment, with 20 to 30 per cent of shares being made available to investors. Prof. Dissabandara noted that listing SOEs on the stock market would not only provide access to cheaper capital but also introduce greater transparency and accountability, aligning these enterprises with international corporate governance standards.
To further strengthen market oversight, the SEC has acquired an advanced surveillance system from Nasdaq, which is expected to be operational by mid-June.
Prof. Dissabandara highlighted that this system would significantly enhance the SEC’s ability to detect fraudulent activities, market manipulation, and financial irregularities, reinforcing confidence in the Sri Lankan financial sector.
Meanwhile, SEC Director General Chinthaka Mendis stressed the importance of integrating Sri Lanka into global financial networks to attract foreign investment.
He warned that imposing excessive restrictions on market operations could make the country less competitive, as international investors seek markets with greater flexibility and efficiency.
With a combination of equitisation, regulatory modernisation, and digital transformation, the government hopes to revitalise SOEs, strengthen market confidence, and position Sri Lanka as a competitive player in the global financial landscape.
April 01, Colombo (LNW): Consumers will face higher prices for domestic gas as private vendor Laugfs Gas has implemented a price increase, effective from March 31.
Accordingly, the cost of a 12.5kg cylinder has risen by Rs. 420, bringing the new retail price to Rs. 4,100.
Similarly, the 5kg cylinder has also seen an increase, with prices going up by Rs. 168, setting the new retail price at Rs. 1,645.
The price adjustment comes amid rising costs in the global energy market and fluctuating import expenses.
