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Sri Lankas Renews Commitment to Combat Corruption and Financial Crimes.

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By: Staff Writer

November 28, Colombo (LNW): Under the leadership of President Anura Kumara Dissanayake, Sri Lanka is intensifying efforts to investigate and address high-profile corruption cases and financial crimes. The administration is focusing on recovering overseas assets linked to prominent political figures and is reviewing international legal frameworks to facilitate this process.

Key cases under scrutiny include the Central Bank bond scam, misappropriation of sugar tax funds, garlic fraud, coal procurement for the Lakvijaya Power Plant from 2022 to 2025, and the purchase of 96,000 metric tons of organic fertilizer.

Public Security Minister Ananda Wijepala announced plans to establish a mechanism for stolen asset recovery in line with the Stolen Asset Recovery Initiative (StAR Initiative). He emphasized the need for new legislation to support this mechanism, aligning with the government’s mandate from the recent elections.

Regarding the revival of the Financial Crimes Investigation Division (FCID), Minister Wijepala stated that while the FCID currently operates under the Criminal Investigation Department (CID) without being a separate entity, its functions will continue.

He noted that some initiatives to combat corruption and fraud can proceed under existing laws, but establishing a special investigative agency for stolen asset recovery would require new legislation.

The National People’s Power (NPP) party, which emphasizes rooting out corruption and fraud, is committed to enforcing laws that prevent corrupt individuals from easily obtaining bail.

Wasantha Samarasinghe, convener of the JVP-led Anti-Corruption Voice and a member of the NPP executive committee, revealed that 118 files related to alleged financial crimes, previously investigated by the now-defunct FCID, remain pending at the Attorney General’s Department. These cases, submitted in 2016, have been reviewed and completed by the FCID but are still awaiting prosecution.

The International Monetary Fund (IMF) has acknowledged the significance of recent corruption investigations in Sri Lanka.

The IMF’s Technical Assistance Report on Governance Diagnostic Assessment observed that widespread protests in 2022 revealed public consensus that systemic corruption played a significant role in precipitating the country’s economic crisis.

The resignation of former President Gotabaya Rajapaksa in July 2022 underscored the need for governance reform as a vital part of economic recovery, with civil society playing an instrumental role in advocating for accountability and transparency.

The enactment of the Anti-Corruption Act No. 9 of 2023 by the previous regime repealed the long-standing Bribery Act No. 11 of 1954, the Commission to Investigate Allegations of Bribery or Corruption Act No. 19 of 1998, and the Declaration of Assets and Liabilities Law No. 1 of 1975. Under this new legislation, the Anti-Corruption Commission has the authority to conduct preliminary inquiries upon receiving complaints, information, or motions.

Upon finding reasonable grounds to suspect an offense, the Commission can direct the Director General of the Bribery or Corruption Investigation Commission to conduct a full investigation and initiate criminal proceedings in the relevant courts.

This strengthened legislative and investigative framework is expected to restore public trust and provide a clear path forward in tackling corruption and financial misconduct across the nation.

SL, WB discuss strategic development priorities

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By: Isuru Parakrama

November 28, Colombo (LNW): On the 27th of November, a virtual meeting was held between Sri Lankan President Anura Kumara Dissanayake and Mr. Ajay Banga, the President of the World Bank Group, to explore the future development trajectory of Sri Lanka.

The discussion, which took place at the Presidential Secretariat, focused on identifying key areas for collaboration in promoting long-term economic stability and growth.

In the meeting, Mr. Banga underscored the World Bank’s ongoing commitment to addressing critical development challenges across the globe, with particular emphasis on fostering job creation.

He also highlighted the bank’s role in providing both financial and technical support to Sri Lanka, aimed at driving innovation and transforming various sectors vital to the nation’s development.

These areas include education, healthcare, social protection, and broader economic prosperity.

The World Bank’s support, according to the statement from the President’s Media Division, would extend beyond immediate financial assistance to encompass vital aspects such as enhancing Sri Lanka’s economic policy, bolstering investments, improving competitiveness, strengthening institutions, and reducing poverty.

Additionally, the World Bank aims to assist in advancing agriculture, water resource management, and addressing climate change.

Sustainability efforts are also a major priority, with a focus on environmental preservation, social inclusion, infrastructure development, and the digitisation of various sectors to ensure comprehensive and inclusive growth.

During the talks, President Dissanayake outlined the Sri Lankan government’s concerted efforts to alleviate poverty, particularly in rural areas.

He emphasised the importance of improving government revenue by leveraging digital technologies, as well as reinforcing strategic sectors such as tourism, maritime industries, state-owned enterprises (SOEs), and energy, with particular focus on encouraging foreign investment in power generation projects.

The President also shed light on the government’s initiatives to promote regional development in the Northern and Eastern provinces. He stressed the need for enhanced educational and healthcare systems, alongside more targeted efforts in human resource development.

Furthermore, Dissanayake pointed out the growing necessity of aligning vocational education with academic learning to equip the future workforce with the skills needed to meet evolving industry demands, particularly in these regions.

Banga shared the exciting news that Sri Lanka has been selected as one of only 20 countries globally to host the new integrated South Asia office. The office is set to open in July 2025, as part of a broader initiative to strengthen the World Bank Group’s global network.

This new office will facilitate better coordination among the bank’s four main arms—the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA)—to streamline efforts and improve development outcomes in the region.

The meeting was also attended by Deputy Minister of Economic Development, Prof. Anil Jayantha, and Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma, both of whom participated in the fruitful discussions.

2024 GCE A/L Exams dragged in till Dec 03 due to severe weather

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By: Isuru Parakrama

November 28, Colombo (LNW): In response to the ongoing adverse weather conditions, the Sri Lanka Examinations Department has announced a postponement of the 2024 GCE Advanced Level (A/L) examinations.

Originally scheduled to begin later this week, the exams will now commence on December 4, 2024.

Amith Jayasundara, the Commissioner General of Examinations, confirmed that the decision was made after carefully considering the impact of the severe weather on the safety and well-being of students and exam personnel.

The examinations, which were initially set to start earlier, have been delayed by one day, with the new starting date now confirmed for December 4.

The Department has advised all candidates and examination centres to stay updated on any further instructions, including possible changes to venue arrangements, as weather conditions continue to be closely monitored.

CBSL introduces new overnight policy rate, cuts monetary policy by 50 basis points

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By: Isuru Parakrama

November 28, Colombo (LNW): The Central Bank of Sri Lanka has introduced a new primary policy tool known as the overnight policy rate (OPR), setting it at 8.00 per cent.

This marks a 50-basis-point reduction in the central bank’s policy stance, targeting the call money rate, which is commonly used in the interbank market.

The call money rate, which stood at 8.55 per cent the previous day, is now expected to align closely with the OPR, reinforcing the Central Bank’s efforts to influence market lending rates more effectively.

Governor Nandalal Weerasinghe explained that this shift to a single policy rate structure would enhance the effectiveness of monetary policy, facilitating smoother transitions in both the government securities market and the broader economy.

By targeting the call money rate—the interest rate at which commercial banks lend to each other overnight—the OPR will serve as a more precise tool for adjusting market lending rates and guiding overall economic activity.

The move comes amidst a deflationary environment that has seen Sri Lanka experience two consecutive months of falling prices, with no immediate signs of inflation returning to positive figures until mid-2025.

In this context, the Central Bank has opted to ease its monetary stance further, expecting inflation to gradually converge towards the target level of 5.0 per cent over the medium term.

The immediate impact of the OPR adjustment was evident in the Treasury bill auction held shortly thereafter, where yields dropped significantly.

The benchmark one-year Treasury bill yield, in particular, fell by 70 basis points to 9.08 per cent, indicating stronger demand for government securities and market expectations of further easing in monetary conditions.

Although the Central Bank has streamlined its approach by adopting a single policy rate, the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) will remain in place for overnight transactions, albeit no longer as primary policy rates.

These rates will now be linked to the OPR, with the SDFR set at 7.50 per cent and the SLFR at 8.50 per cent, establishing a narrow 50-basis-point band for overnight borrowing and lending transactions.

The broader economic context for this policy adjustment reflects improved conditions in Sri Lanka’s external sector, with foreign currency reserves now at US $6.5 billion, providing a stronger buffer to support monetary policy easing.

The Central Bank has revised its growth forecast for 2024, now expecting the economy to expand by 4.5 to 5.0 per cent, a higher figure than initially anticipated, largely driven by stronger external trade and a gradual recovery in key sectors.

Sri Lanka voices support for Israel-Lebanon ceasefire amidst hopes for regional stability

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By: Isuru Parakrama

November 28, Colombo (LNW):  The Ministry of Foreign Affairs has officially expressed its backing for the newly announced ceasefire between Israel and Lebanon, urging that this development may signal the possibility of long-lasting peace in the region. 

In a statement, the Ministry stressed that the government conveyed its optimism, highlighting its hope that the truce would lay the groundwork for stability, not only in Lebanon but across the broader Middle East.

The ceasefire, which was announced on November 26, marks a significant step toward halting nearly 14 months of hostilities, primarily driven by the ongoing conflict between Israel and Hamas in Gaza. 

This temporary cessation of violence follows a particularly volatile period, with both Hezbollah and Israeli forces engaging in direct confrontations that had further escalated the situation.

Although there have been no immediate reports of violations following the ceasefire’s commencement, signs of relief and celebration have emerged in Beirut, as many are hopeful that the truce will hold. Nevertheless, Israel has made it clear that any breach by Hezbollah could lead to retaliation. 

The ceasefire agreement mandates a two-month suspension of hostilities, during which Hezbollah is expected to withdraw its military forces from southern Lebanon, while Israeli troops will also be required to pull back to their side of the border. 

To enforce the ceasefire, additional Lebanese troops, along with United Nations peacekeepers, will be deployed in the southern region, and a monitoring panel, led by the United States, will oversee compliance.

Despite the relative calm, an Israeli military spokesperson cautioned against the return of residents to southern Lebanon, stating that the area remains under Israeli military surveillance. 

This came just hours after Israel had launched its heaviest airstrike campaign on Beirut, marking the most intense bombardment of the city since the conflict’s inception. 

Local authorities reported at least 42 deaths from the airstrikes, which had targeted various locations across the country.

While the ceasefire brings a much-needed respite to Lebanon, it does not address the ongoing and devastating war in Gaza, where Hamas continues to hold hostages, and the conflict remains unresolved. 

Lebanon’s caretaker Prime Minister Najib Mikati has welcomed the truce, describing it as a vital step toward restoring stability and enabling the return of displaced citizens to their homes.

Hezbollah has officially stated its acceptance of the ceasefire but has indicated that it is still reviewing the agreement’s final terms. A senior official from the group, Mahmoud Qamati, emphasised that while Hezbollah desires an end to hostilities, it would not accept any violations of Lebanon’s sovereignty. 

The group’s forces are required to withdraw to positions north of the Litani River, which is located roughly 30 kilometres from the border.

This development comes after a year of escalating violence, sparked by Hezbollah’s retaliatory actions in northern Israel on October 08, 2023, following the Hamas-led attack on Israel. Since then, both parties have exchanged frequent artillery fire, further intensifying the regional crisis.

Election Commission ponders dates for LG Polls amid examination concerns

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By: Isuru Parakrama

November 28, Colombo (LNW): The Election Commission is currently deliberating on suitable dates for the upcoming local government elections, with a focus on ensuring that the elections do not clash with ongoing examination schedules.

In a meeting held yesterday (27) chaired by R.M.A.L. Ratnayake, the Commission discussed various aspects of the electoral process, including timing and logistics, while taking into account the importance of not disrupting academic activities.

While no definitive date for the elections was set during the meeting, the Chairman assured that the Commission will reconvene in the near future to finalise the election schedule.

He reiterated that the urgency of holding the local government elections is underscored by a ruling from the Supreme Court, which has directed that the elections be held without unnecessary delays.

The final decision on the election date is expected to be reached shortly, with the Commission prioritising both the constitutional mandate and the academic calendar.

Moody’s reviews SL’s credit rating for potential upgrade following debt restructuring efforts

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By: Isuru Parakrama

November 28, Colombo (LNW): Moody’s Investors Service has announced that it is reviewing Sri Lanka’s Ca long-term foreign currency rating for a possible upgrade, a move triggered by the government’s recent bond-exchange offer.

This development comes after the country launched the bond swap on Tuesday, a key component of its ongoing debt restructuring programme, which is aimed at addressing its $12.55 billion external debt.

The bond exchange is an integral step in Sri Lanka’s efforts to stabilise its economy and navigate its financial challenges.

This restructuring initiative follows the country’s historic default on its foreign debt in May 2022, which marked a critical point in Sri Lanka’s economic crisis.

The default was triggered by a crippling debt burden, exacerbated by dwindling foreign exchange reserves and mounting fiscal pressures.

As part of the restructuring process, the Sri Lankan government has also introduced new US dollar-denominated debt instruments, which Moody’s has provisionally rated at Caa1.

Severe weather disrupts SL: Thousands of families affected by floods, heavy rains

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By: Isuru Parakrama

November 28, Colombo (LNW): Adverse weather conditions have caused widespread disruption across Sri Lanka, with 20 districts experiencing significant impact.

According to the Disaster Management Centre (DMC), a total of 80,642 households in 166 Divisional Secretariat divisions have been affected by the ongoing storms and flooding.

The DMC has reported that 276,550 individuals are currently grappling with the effects of the extreme weather, and 16,553 people from 5,305 families have been forced to seek shelter in safer locations.

In addition to the immediate challenges posed by the heavy rainfall, the Irrigation Department has raised concerns about the ongoing flood risks in low-lying areas near reservoirs.

G.W.A. Sakura Dilthara, an Irrigation Engineer, warned that rising water levels in key rivers, particularly the Deduru Oya and the Mahaweli River, are likely to worsen the flooding in the surrounding regions.

The increased water flow poses a serious risk to communities living near these watercourses, potentially leading to further displacement and damage to property.

The situation remains dire, with authorities urging the public to stay alert and take necessary precautions as the rainfall continues.

Emergency services remain on high alert, working to support affected families and mitigate the risks posed by the relentless weather conditions.

Deep depression near SL intensifies: Heavy rain, strong winds expected in Northern, Eastern regions (Nov 28)

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November 28, Colombo (LNW): The deep depression over the southwest Bay of Bengal was located to 100 km northeast of Trincomalee at around 2.30 a.m. of 28th November 2024.

It is likely to move slowly, north-northwestwards closer to the east coast of Sri Lanka and intensify further into a cyclonic storm today (28th November).

Under influence of the system cloudy skies will prevail over most parts of the island, very heavy showers and strong gusty winds can be expected in Northern province and in Trincomalee district.

Showers or thundershowers will occur at times in Northern province and in Trincomalee district. Very heavy showers above 150 mm are likely at some places.

Showers will occur at times elsewhere of the island too. Heavy showers above 100 mm are likely at some places in North Central and North-western provinces and in and Matale and Kegalle districts.

Very strong winds of about (60-70) kmph can be expected at times over Northern, North-central, and North-western provinces and in Trincomalee district. strong winds of about (40-50) kmph can be expected at times elsewhere of the Island.

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

Sri Lanka Original Narrative Summary: 28/11

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  1. President Anura Kumara Dissanayake instructs officials to provide immediate relief to disaster-affected areas by gathering on-site information and strengthening grassroots-level mechanisms: emphasises ensuring shelter, food, water, and sanitation for affected populations, with a focus on the Northern and Eastern Provinces: also directs support for students facing Advanced Level exams and fishermen at sea.
  2. Opposition Leader Sajith Premadasa criticises the government for ignoring the people’s mandate and following former President Ranil Wickremesinghe’s path: accuses the government of failing to deliver promised relief, including reducing electricity and fuel prices, while becoming subservient to IMF directives: emphasises the need for tax reforms to ease the public’s burden and criticises the government’s lack of transparency and meaningful reforms.
  3. Geethanath Cassilingham, a Sri Lanka Podujana Peramuna (SLPP) member, criticises Northern Province MPs from the National People’s Power (NPP) for failing to assist those affected by Cyclone Fengal: With over 250,000 people impacted by severe floods, accuses the NPP MPs of prioritising photo opportunities over providing aid, while the SLPP has actively delivered relief: calls for responsible governance from lawmakers.
  4. The Department of Meteorology issues a “Red” advisory for Sri Lanka, warning of a deep depression in the southwest Bay of Bengal, expected to intensify into a cyclonic storm: The system will bring heavy showers, strong winds, and rough sea conditions, especially in the Northern, Eastern, and Central provinces: Affected communities are advised to stay alert, avoid coastal areas, and follow future advisories.
  5. The National Building Research Organisation (NBRO) issues updated landslide warnings for nine districts, including Red Notices for divisional secretariats in Kandy, Matale, Nuwara Eliya, and Kegalle: Following rainfall of over 150 mm in the past 24 hours, residents are urged to stay alert and evacuate to safe areas to avoid the risks of landslides, rockfalls, and ground subsidence.
  6. Australia offers technical support to Sri Lanka in areas such as national security, maritime affairs, digitalisation, vocational education, public sector modernisation, and energy: During a meeting with Sri Lanka’s Secretary to the President, Dr. Nandika Sanath Kumanayake, Australia’s High Commissioner Paul Stephens expresses support for Sri Lanka’s corruption-free governance approach and the “Clean Sri Lanka” initiative, emphasising the 75-year bilateral relationship.
  7. On November 26, the Central Bank’s Monetary Policy Board decided to ease its monetary policy by setting the Overnight Policy Rate (OPR) at 8.00%, reducing it by 50 basis points: This decision was based on favorable inflation trends, better-than-expected external developments, and the need to support economic growth while aiming for an inflation target of 5%.
  8. Dr. Kapila Kannangara, Director of Health Services for Sabaragamuwa, reports Ratnapura District has seen the highest number of leptospirosis cases this year, with 1,882 infections and 22 deaths: High-risk areas include Eheliyagoda and Kiriella: warns of severe complications from untreated leptospirosis and advised taking Doxycycline as a preventive measure before fieldwork to reduce infection risk.
  9. President Anura Kumara Dissanayake appoints new Secretaries to two key ministries: Mr. K.R. Uduwawala will serve as Secretary to the Ministry of Environment, and Mr. Y.L. Mohamed Nawawi will be Secretary to the Ministry of Science and Technology: The appointment letters were handed over on November 27 by Secretary to the President, Dr. Nandika Sanath Kumanayake.
  10. On the first day of the Test in Durban, Sri Lanka’s seamers, led by Vishwa and Asitha Fernando, made early inroads, reducing South Africa to 80 for 4 before rain halted play: Vishwa was particularly impressive, taking the wicket of Tony de Zorzi: Temba Bavuma survived two close calls, and despite Sri Lanka’s disciplined bowling, play was called off early due to rain.