Home Blog Page 56

CBSL Raises Key Interest Rate Amid Economic Uncertainty

0

May 26, Colombo (LNW): The Central Bank of Sri Lanka has announced a sharp increase in its Overnight Policy Rate, lifting it by 100 basis points to 8.75 per cent after the latest meeting of its Monetary Policy Board held on Monday.

Officials stated that the move was taken after an extensive review of both local and international economic developments, with policymakers weighing mounting financial pressures and broader market trends.

The decision is expected to influence borrowing costs across the banking sector while signalling the Central Bank’s continued focus on maintaining monetary stability.

The CBSL further noted that evolving global conditions, including external economic risks and inflationary concerns, were among the factors considered during deliberations before reaching the latest policy decision.

Southwest Monsoon in Gradual Establishment: Increase in Rainfall Expected (May 26)

0

May 26, Colombo (LNW): Southwest Monsoon is gradually establishing across the island, an increase in rainfall over the southwestern parts of the island is expected, the Department of Meteorology said.

Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts. Heavy falls about 100 mm are likely at some places in these areas.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa district after 1.00 pm.

Fairly strong winds about (30-40) kmph can be expected at times over Western slopes of the central hills, Northern, North-central, North-western and Southern provinces and in Trincomalee district.

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

Marine Weather:

Condition of Rain: Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle. Showers or thundershowers may occur at a few places in the other sea areas around the island in the evening or night.

Winds: Winds will be southwesterly. Wind speed will be (30-40) kmph. Wind speed can increase up to (50-60) kmph at times in the sea areas off the coast extending from Kankasanthurai to Chilaw via Mannar and from Matara to Pottuvil via Hambantota. Wind speed can increase up to 50 kmph at times in the other sea areas around the island.

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

The wave height may increase about (2.0 – 2.5) meters in the sea areas off the coast extending from Hambantota to Pottuvil (this is not for land area).

Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Weerawansa Released on Bail Following Arrest Over War Heroes’ Monument Incident

0

May 25, Colombo (LNW): Former Minister and National Freedom Front leader Wimal Weerawansa was granted bail by the Kaduwela Magistrate’s Court after being taken into police custody earlier today in connection with a recent confrontation near the National War Heroes’ Memorial in Battaramulla.

Court proceedings concluded with the former parliamentarian being released on surety bail amounting to Rs. 500,000.

Weerawansa had appeared at the Thalangama Police Station this morning to record a statement regarding the incident before officers placed him under arrest.

The controversy stems from events that unfolded on 18 May during preparations for the National War Heroes’ Day commemoration. According to police, a group of around 35 individuals, including Weerawansa, allegedly attempted to enter the memorial premises without prior authorisation while official rehearsals and security arrangements were underway.

Authorities claim the group’s actions disrupted scheduled activities linked to the state ceremony, prompting officers stationed at the site to block entry and escort those involved away from the area.

Police had earlier announced that legal proceedings would be initiated against several individuals connected to the incident.

The situation reportedly escalated when Weerawansa and a number of party supporters arrived at the memorial to pay tribute to fallen military personnel. Tensions rose after security personnel prevented the group from accessing the designated area for floral offerings.

Witnesses at the scene described heated exchanges between protesters and law enforcement officers, while footage circulated on social media appeared to show the former MP stumbling to the ground amid a confrontation as police attempted to hold back the crowd.

During the unrest, two individuals were briefly detained and placed inside a police vehicle. Weerawansa later entered the same vehicle in protest before the detainees were eventually released.

How Big Private Sector Big Wigs Were Washed Publicly

0

By Adolf

When the NDB daylight robbery of LKR 13.5 billion was disclosed, nobody could believe it. The board included names synonymous with corporate excellence: Kasturi Chellai, the so-called leadership reformer; Brandix’s “King of Transformation,” Hasitha Premarathne; BCG M&A expert Sanjay Mohottala; HSBC stalwarts in the Chairman and CEO roles; and Sujewa Mudelige, the Audit and Risk Guru. With such luminaries, nothing of this sort should ever have happened—because publicly, they preached nothing but their own competence. Duminda Hulungamuwa, E&Y Managing Partner who works for all governments, is also in hot water for failing to report on the NDB fraud. The once most respected audit firm’s reputation is now shattered for good. He continues regardless. This is well known. The question that haunts the public is: How did this happen with all the safeguards supposedly embedded in the banking system? The forensic report will disclose all this.

CBSL 

The Central Bank of Sri Lanka (CBSL) has washed its hands of the matter altogether. This single act—or rather, this act of inaction—speaks volumes. It reveals a pathetic state of affairs in the country, where the very institutions and individuals entrusted with oversight become either complicit or willfully blind. Let us be clear: This is not merely a failure of process. It is a failure of character. When high-profile professionals adorn boards for status and stipends rather than stewardship, the entire system rots from the head down. The NDB robbery is not just a theft of money; it is a theft of public trust. And the fact that no one of stature has been held accountable suggests that the perpetrators feel untouchable.

Banking Sector 

The banking sector, protected by layers of audit committees, risk officers, and regulatory oversight, should have caught this. But when the watchdogs are busy burnishing their personal brands—collecting non-executive directorships like trophies and lecturing others on governance while their own committees sleep—then the heist is not a surprise. It is an inevitability.

Conclusion 

What we are witnessing is the great unravelling of Sri Lanka’s corporate elite. Washed publicly, not by their enemies, but by their own staggering hypocrisy. They stood on podiums and in newspaper interviews, speaking of transparency, ethics, and world-class standards. But when the money vanished, so did their accountability. Until the CBSL grows a spine, until audit committee chairs resign in disgrace, and until “leadership reformers” actually reform something, the message to the public is brutally simple: The big wigs will keep talking, and the billions will keep disappearing. The only thing being washed here is the nation’s future—down the drain of impunity. Restoring confidence requires more than public statements. It demands independent investigations where necessary, clear regulatory communication, and visible accountability outcomes. It also requires boards and executives to go beyond formal compliance and embrace substantive governance—where controls are not just documented, but meaningfully enforced. In an era where capital is mobile and trust is fragile, financial institutions cannot afford even the perception of weak governance. The cost is not only reputational—it is systemic.Finally, the derivative action filed in court will reset corporate governance and director accountability in Sri Lanka forever and expose all the incompetence of corporate Sri Lanka. 

The Key Actors 

India Donates Fleet of Police Vehicles to Strengthen Northern Operations in Sri Lanka

0

May 25, Colombo (LNW): India has further reinforced its cooperation with Sri Lanka by officially handing over a fleet of 134 single-cab vehicles to support policing and public security operations in the Northern Province.

The vehicles were presented to President Anura Kumara Dissanayake during a formal ceremony held this morning at the Presidential Secretariat under the Indo–Sri Lanka Friendship Programme.

Valued at approximately Rs. 300 million, the newly donated fleet is expected to enhance mobility and operational capacity at police stations across the north, where authorities have been seeking improved logistical support for community policing and rapid response duties.

Speaking during the event, Indian High Commissioner Santosh Jha reaffirmed New Delhi’s continued commitment to assisting Sri Lanka through development and security-related initiatives. He noted that India hopes to expand cooperation in several sectors in the years ahead, particularly in areas linked to regional stability and institutional support.

In a gesture of appreciation, Inspector General of Police Priyantha Weerasooriya presented a commemorative token to the Indian High Commissioner on behalf of the Sri Lanka Police.

The ceremony was attended by a number of senior government representatives and officials, including Minister of Public Security Ananda Wijepala, Deputy Minister Sunil Watagala, Ministry Secretary Ravi Seneviratne, and senior officers attached to the Sri Lanka Police and the Indian High Commission.

Representatives from DIMO, which is associated with the vehicle distribution process, were also present at the occasion.

AG Signals Imminent Charges Against Ex-IGP Tennakoon Over 2022 Galle Face Violence

0

May 25, Colombo (LNW): Sri Lanka’s Attorney General is expected to file formal indictments against former Inspector General of Police (IGP) Deshabandu Tennakoon in connection with the violent incidents that unfolded at Galle Face during the height of the 2022 protest movement.

The development was disclosed before the Supreme Court today (25), where Deputy Solicitor General Suharshi Herath, representing the Attorney General’s Department, informed the bench that legal action against the former police chief is likely to be initiated within the next month.

The case relates to allegations that Tennakoon failed to take adequate measures to prevent attacks on anti-government demonstrators at Galle Face on May 09, 2022 — a day that marked one of the most turbulent episodes during the nationwide political unrest.

The revelation came as the Supreme Court took up an appeal filed by the Attorney General challenging an earlier Court of Appeal decision. That ruling had nullified a directive issued by the Attorney General instructing police investigators to identify Tennakoon as a suspect in the incident.

The appeal was heard before a three-member Supreme Court bench comprising Justices A.H.M.D. Nawaz, Achala Wengappuli and Sampath Wijeratne. After considering preliminary submissions, the Court fixed the matter for further hearing on September 02.

The Galle Face clashes remain a politically sensitive chapter in Sri Lanka’s recent history, with continuing legal scrutiny over the conduct of law enforcement authorities and political figures during the unrest.

Sri Lanka Introduces Free Tourist ETA Scheme for Travellers from 40 Nations

0

May 25, Colombo (LNW): Sri Lanka has unveiled a major tourism-friendly initiative by granting free Electronic Travel Authorisations (ETAs) to visitors from 40 countries, in a move aimed at boosting international arrivals and supporting the country’s recovering travel industry.

The Department of Immigration and Emigration announced that the new arrangement came into effect on 25 May 2026 and applies to travellers visiting the island for tourism purposes. Eligible visitors will receive a complimentary 30-day ETA with double-entry privileges.

Authorities stated that the concession applies to passport holders from a wide range of countries across Asia, Europe, the Middle East, Oceania and North America, including the United Kingdom, United States, India, China, Australia, Germany, Japan and the United Arab Emirates.

The Department confirmed that the facility is available to holders of diplomatic, official, service and ordinary passports from the approved nations.

Officials stressed that all foreign travellers entering Sri Lanka must still obtain an ETA before arrival, including citizens from countries covered under reciprocal bilateral agreements such as the Maldives, Seychelles and Singapore.

Under the existing arrangement with the Maldives, Maldivian nationals will continue to receive a 90-day tourist visa through the ETA platform, while visitors from the newly approved countries will qualify for a free 30-day authorisation.

The Government believes the initiative will make Sri Lanka a more attractive and accessible destination at a time when regional tourism competition is intensifying. Industry stakeholders have welcomed the decision, noting that simplified entry procedures often play a key role in influencing travel choices.

Immigration authorities also clarified that applicants who paid ETA processing fees before the new policy came into operation will not be eligible for refunds.

Tourists wishing to remain in the country beyond the initial 30-day period may apply for visa extensions by paying the relevant charges under existing immigration regulations.

Meanwhile, travellers from countries not included in the latest scheme will continue to follow the standard ETA and visa procedures currently enforced by Sri Lankan authorities.

Over 160,000 Graduates Sit Nationwide Exam for Teaching Appointments

0

May 25, Colombo (LNW): Sri Lanka’s drive to strengthen the education sector gathered momentum this week as more than 160,000 graduates sat a highly anticipated competitive examination aimed at recruiting teachers for national and provincial schools.

The examination, conducted yesterday across 1,048 centres islandwide, drew a significant response from both graduates already employed in the public sector and those seeking entry into government service through the teaching profession.

Officials from the Department of Examinations confirmed that nearly 67,000 applicants were graduates currently attached to the public service, while more than 96,000 applications were submitted by external candidates hoping to secure teaching appointments in Sinhala, Tamil and English medium schools.

The large turnout reflects the growing demand for stable employment opportunities, particularly within the education sector, as well as the urgent need to address teacher shortages reported in several parts of the country.

Special provisions were also introduced for candidates with disabilities, with tailored examination arrangements made for 323 applicants to ensure equal access to the recruitment process.

The examination had initially been scheduled for 2023 but was postponed following a series of legal challenges, including fundamental rights petitions filed before the Supreme Court and proceedings before the Court of Appeal.

With those cases now resolved, authorities proceeded with this year’s examination under an expanded framework allowing both state-sector graduates and private applicants to compete for vacancies.

CBSL Cracks Down on Vehicle and Gold-Backed Lending Amid Rising Financial Risks

0

May 25, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has brought into force a fresh set of lending restrictions aimed at curbing growing financial vulnerabilities linked to vehicle financing and loans backed by gold.

The new regulations, which took effect today (25), were introduced by the Governing Board of the CBSL in an effort to encourage more disciplined lending practices and strengthen the stability of the country’s financial sector.

Under the revised framework, financial institutions will now be required to adhere to stricter Loan-to-Value (LTV) limits when issuing loans for motor vehicles. In addition, the Central Bank has, for the first time, imposed a ceiling on LTV ratios for credit facilities secured against gold.

According to the CBSL, the move follows a sharp increase in lending tied to both vehicle purchases and gold-backed borrowing in recent months. Officials warned that allowing these trends to continue unchecked could expose banks and finance companies to elevated levels of risk.

The Central Bank also pointed to mounting global economic uncertainty and geopolitical tensions, which have contributed to fluctuations in gold prices and instability in currency markets. Such conditions, it said, could directly affect the value of collateral held against loans and increase pressure on the financial system.

Authorities further noted that recent exchange rate movements and temporary tax-related increases on imported vehicles have artificially pushed up vehicle prices. This, in turn, may distort asset valuations and encourage excessive borrowing.

As part of the latest measures, licensed banks and finance companies will now be permitted to lend only up to 70 per cent of the value of gold pledged as collateral. The rule will also apply to existing gold-backed credit facilities renewed from today onwards.

Meanwhile, maximum LTV ratios for vehicle loans have been reduced by 10 percentage points across several categories. For unregistered vehicles and those used locally for less than one year after their first registration, the revised limits are as follows:

  • 60 per cent for commercial vehicles
  • 40 per cent for cars, SUVs, vans, three-wheelers and other vehicle categories

2025 O/L Examination Results Likely to Be Released in June

0

May 25, Colombo (LNW): The Department of Examinations has indicated that the results of the 2025 G.C.E. Ordinary Level Examination are expected to be issued around the middle of June, easing anticipation among hundreds of thousands of candidates awaiting their performance outcomes.

Commissioner General of Examinations Indika Kumari Liyanage stated that while discussions are underway to finalise the release process, no confirmed date has yet been decided. She also dismissed widespread speculation circulating on social media suggesting that the results would be published within the next few days.

Education authorities say evaluation and verification procedures are currently being completed to ensure accuracy before the results are officially released. Officials added that the department is working to avoid unnecessary delays while maintaining standard review procedures.

This year’s Ordinary Level examination was conducted from 17 to 26 February at examination centres across the island, drawing a significant number of applicants from both schools and private institutions.

According to official figures, more than 451,000 candidates sat the examination, including over 382,000 school applicants and more than 69,000 private candidates. The examination is regarded as one of the country’s most important academic milestone