February 19, Colombo (LNW): Sri Lanka’s Police Department has been equipped with a substantial consignment of technical resources valued at Rs. 556 million, in what officials describe as the most significant investment of its kind in recent years.
The handover was carried out by Minister of Public Security and Parliamentary Affairs Ananda Wijepala, who formally presented the equipment to Inspector General of Police Priyantha Weerasooriya at a ceremony held within the Ministry premises. Senior officers and ministry officials were also in attendance.
According to information released by the Police Media Division, the allocation marks an unprecedented level of funding dedicated specifically to enhancing the technological capabilities of the force. Authorities maintain that the move aims at strengthening operational efficiency and improving public service delivery.
The package includes 1,718 desktop computers valued at Rs. 365 million, 575 photocopiers costing Rs. 129 million, speed monitoring devices amounting to Rs. 45 million, and 1,750 uninterruptible power supply (UPS) units worth Rs. 17 million. The equipment is expected to be distributed among police stations and specialised divisions across the island.
Ministry sources indicated that the upgraded digital infrastructure will support more effective data management, streamline administrative procedures and enhance traffic enforcement capabilities. Officials further expressed confidence that the improvements would enable officers to respond more swiftly to incidents and carry out investigations with greater precision.
The initiative is seen as part of ongoing efforts to modernise public institutions, with an emphasis on integrating technology into frontline services to bolster law enforcement and public safety nationwide.
Police Receive Record Rs. 556 Million Technology
President AKD to Champion Inclusive AI Agenda at Delhi Summit
February 19, Colombo (LNW): Sri Lankan President Anura Kumara Dissanayake is set to deliver a keynote address today (19) at the AI Impact Summit 2026 in New Delhi, placing Sri Lanka firmly within the global conversation on the future of artificial intelligence.
The President arrived in the Indian capital on Tuesday following a formal invitation from Indian Prime Minister Narendra Modi. He was received at the airport by India’s Minister of State Shri Raj Bhushan Choudhary, alongside senior diplomatic representatives, in what officials described as a cordial welcome reflecting the close ties between the two neighbours.
The summit, regarded as the first major global AI gathering to be staged in the Global South, has drawn leaders and delegates from more than 20 countries. Convened at a time when artificial intelligence is rapidly transforming industries, public services and labour markets, the forum aims to explore how emerging technologies can be harnessed responsibly and equitably.
In a statement issued by Sri Lanka’s High Commission in India, Colombo’s participation was portrayed as a clear indication of the growing strategic partnership between the two nations. The mission underscored a shared determination to ensure that technological progress remains people-focused, transparent and aligned with sustainable development goals.
Momentum in bilateral relations has gathered pace since President Dissanayake’s State Visit to India in December 2024, which produced the joint vision titled “Fostering Partnerships for a Shared Future”. Since then, cooperation has reportedly expanded across trade, digital innovation, infrastructure connectivity, skills development and cultural exchanges.
The Delhi summit has assembled heads of government, senior policymakers, technology firms, start-up founders and academic experts. Discussions are expected to cover AI governance frameworks, ethical safeguards, innovation ecosystems and the role of artificial intelligence in advancing climate resilience and inclusive growth.
In addition to his address at the summit, President Dissanayake is scheduled to hold bilateral meetings with Prime Minister Modi and other international counterparts, with talks likely to centre on strengthening digital collaboration, investment opportunities and regional stability. The three-day event concludes tomorrow.
Showery trend to continue: Fairly heavy falls about 75 mm expected in some districts (Feb 19)
February 19, Colombo (LNW): Showers will occur at times in Uva, Central and Eastern provinces and in Polonnaruwa district, the Department of Meteorology said in its daily weather forecast today (19).
Fairly heavy falls about 75 mm are likely at some places in Uva province and in Matale, Batticaloa, Ampara and Polonnaruwa districts.
Several spells of showers will occur in Northern Province and in Anuradhapura and Hambantota districts.
Showers or thundershowers may occur at several places elsewhere after 1.00 p.m.
Fairly strong winds about (30-40) kmph can be expected at times over Northern, North-central and North-western provinces and in Matale, Trincomalee and Hambantota districts.
Misty conditions can be expected at some places in Central and Sabaragamuwa provinces and in Galle and Matara districts during the early hours of the morning.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
The low-pressure area still persists over the Southwest Bay of Bengal to the south-east of Sri Lanka. Navel and fishing communities are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regards.
Condition of Rain:
Showers or thundershowers will occur at times in the sea areas off the coast extending from Galle to Trincomalee via Hambantota and Batticaloa. 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 North-easterly and wind speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coast extending from Colombo to Kankasanthurai via Puttalam and from Matara to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coast extending from Colombo to Kankasanthurai via Puttalam and from Matara to Pottuvil via Hambantota will be fairly rough at times. Other sea areas around the island will be moderate.
Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Rs. 200 Million Spent, No Privatizations — Why a parliamentary Audit is needed?
By Adolf
In the Interim Budget 2022, the Government of Sri Lanka announced the creation of a State-Owned Enterprise (SOE) Restructuring Unit within the Ministry of Finance, Economic Stabilization and National Policies, with an allocation of Rs. 200 million to oversee reforms of major loss-making state corporations such as SriLankan Airlines, the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC). The aim, as presented by the Presidency and Treasury, was to strengthen financial performance and reduce the fiscal burden from persistent SOE losses.
The unit was led by Suresh Kumar Shah, a chartered accountant and a controversial private sector leader, appointed to head restructuring efforts. Despite this high-level commitment and public expectations that at least some responsible enterprises would either be privatized or meaningfully reformed during the two-year period, no major privatization has taken place to date. There have been debates around strategic reforms and closures, but no successful divestment of significant SOEs has been completed.
Auditor General Report
In fact, the Auditor General’s 2024 report on the Ministry’s finances provides new insight into how the allocated funds were actually spent. According to the audit findings, a total of Rs. 121 million was spent on operating the SOE Restructuring Unit in 2023 and 2024, with nearly half (Rs. 58 million) going to salaries within the unit. A portion — about Rs. 193 million (over multiple years) — was also paid to two foreign transaction consultants contracted to assist in the restructuring process. What the audit was clear about was that by the end of 2024, the core objectives of the restructuring program had not been achieved, and the unit’s activities had been temporarily suspended in early 2025, with no clear deliverables completed.
Tax Payers Money
Critics point to these facts and argue that taxpayer money was squandered on administrative costs, consultants, and advertising, without generating meaningful outcomes such as successful privatizations or improved SOE performance. Many commentators on social media and in public debates have questioned why millions were spent while state enterprises continue to weigh heavily on the national finances and ongoing fiscal reforms.
Expenditure
This expenditure stands in sharp contrast to ongoing high-profile probes into smaller procurement issues, such as the case involving a former Water Board General Manager and a former president over vehicle hire spending in the UK — cases where individuals have faced legal scrutiny and arrests. Public sentiment is now asking: Why is there silence on an institutional expenditure that arguably had larger fiscal implications than these individual cases?
Economists argue that SOE reform is a vital part of any credible fiscal recovery strategy. Advocates for divestiture note that Sri Lanka’s SOEs have long accumulated losses and consumed public resources that could otherwise go toward social priorities, infrastructure and debt reduction.
Parliamentary Audit
Given this backdrop, a full parliamentary audit of the SOE Restructuring Unit’s budget, contracts, and outcomes is increasingly being demanded by civil society, taxpayers and political watchdogs. A transparent investigation — reviewing the full two years of operations, contract awards, fees paid to consultants and the actual outcomes achieved — could restore public confidence in reforms and ensure that future state restructuring efforts avoid similar waste. LNW will investigate the performance of the UNIT and how the leadership spent money and the need for accountability .
IMF Conditions Challenge Sri Lanka Strategic Project Incentives
Sri Lanka’s ambitious drive to attract large-scale investments through Strategic Development Projects is confronting new constraints under its reform program with the International Monetary Fund. At the center of debate is the continued use of tax concessions granted under the Strategic Development Projects Act, No. 14 of 2008.
The Act empowers authorities to designate projects as “strategic” based on their anticipated economic and social contribution. Once approved, these ventures may receive extensive tax holidays, exemptions from value-added tax, customs duties, and other levies. The rationale has been clear: reduce upfront costs for investors to stimulate transformative projects in infrastructure, tourism, energy, and manufacturing.
But Sri Lanka’s fiscal landscape has dramatically changed since the economic collapse of 2022. With public debt levels elevated and tax revenue historically low as a share of GDP, the IMF-backed reform agenda prioritizes strengthening state income. Central to this approach is minimizing tax expenditures the revenue government forgoes through exemptions and special treatment.
The IMF has urged authorities to rationalize incentive schemes and ensure that any concessions are transparent, targeted, and time-bound. This reflects a broader policy shift toward rule-based taxation rather than negotiated exemptions. The objective is twofold: restore fiscal credibility and ensure equitable tax treatment across sectors.
Supporters of SDP concessions caution against abrupt policy reversals. Large investors often plan projects years in advance, and policy uncertainty can deter capital inflows. In a post-crisis economy striving to rebuild growth momentum, foreign direct investment remains a critical pillar.
However, fiscal experts argue that incentives must demonstrate clear cost-benefit outcomes. If revenue losses outweigh job creation, technology transfer, or export growth, the net economic impact could be negative. Moreover, overly generous exemptions may distort competition, disadvantaging domestic enterprises that do not qualify for SDP status.
There is also a governance dimension. Ensuring parliamentary scrutiny, public disclosure of projected revenue foregone, and post-implementation audits could strengthen accountability. Aligning the SDP framework with IMF benchmarks may require codifying stricter eligibility criteria and limiting discretionary approvals.
Ultimately, Sri Lanka’s recovery strategy hinges on reconciling two imperatives: sustaining investor confidence and restoring fiscal health. The future of tax concessions under the SDP regime will likely depend on how effectively policymakers can prove that strategic incentives yield measurable national returns without undermining revenue stability.
The IMF program has not eliminated investment incentives but it has placed them under a sharper fiscal microscope.
Cyclone, Debt, and Dollars
As International Monetary Fund chief Kristalina Georgieva concludes high-level talks in Colombo, scrutiny is mounting over whether Sri Lanka can secure swift access to two EFF tranches amid mounting cyclone recovery costs and lingering external vulnerabilities.
President Anura Kumara Dissanayake has framed the discussions as forward-looking—focused on ensuring that economic stabilization translates into tangible benefits for citizens, particularly rural communities battered by Cyclone Ditwah. Yet IMF engagements are rarely symbolic; they revolve around data, compliance, and fiscal discipline.
The Core Economic Pressures
Sri Lanka’s balance-of-payments position remains delicate. Tourism has rebounded, remittances are stabilizing, and inflation is moderating. But reconstruction imports, debt repayments, and weak export diversification strain reserves. Drawing two EFF tranches could help:
Offset immediate disaster-relief expenditures
Stabilize foreign exchange reserves
Maintain investor confidence
Fund social safety nets without breaching fiscal ceilings
Sensitive Reform Areas on the Table
Investigative sources indicate discussions likely covered electricity pricing reforms, public financial management upgrades, anti-corruption legislation, and progress in restructuring bilateral and private external debt. The IMF will also evaluate governance transparency in cyclone-related procurement and distribution of relief funds.
Climate adaptation financing is another emerging theme. With Sri Lanka increasingly exposed to extreme weather events, integrating resilience into macroeconomic planning may become a prerequisite for future multilateral support.
Reading the Signals
Georgieva’s public remarks commended Sri Lanka’s stabilization trajectory and disaster response. That tone suggests constructive engagement rather than confrontation. Still, IMF approval hinges on performance criteria reviews. Any deviation from agreed fiscal targets or delays in SOE restructuring could slow disbursement.
A positive decision would send a strong signal to global lenders and ratings agencies that Sri Lanka remains reform-committed. Conversely, hesitation could widen spreads and complicate market access.For now, the mood appears pragmatic. Both Colombo and Washington recognize that sustaining recovery amid climate shocks requires flexibility within reform frameworks. The coming weeks will reveal whether that flexibility translates into funds
Sri Lanka’s Market Bets on Reform, But Risks Linger
The steady fall in yields on Sri Lanka’s restructured International Sovereign Bonds may reflect renewed optimism, but it also places the Government’s reform credibility under sustained scrutiny.
Following the 2024 debt exchange, yields on the new instruments have compressed to between 3.6% and 8.4%, according to Bloomberg data cited during an investor call led by Treasury Secretary Dr. Harshana Suriyapperuma. While short-term maturities remain elevated around 8–8.5%, longer-dated bonds have tightened sharply, with the longest tenor trading near 3.6%.
Officials interpret this trend as validation of Sri Lanka’s compliance with its program under the International Monetary Fund. Yet markets are effectively pricing in continued fiscal discipline, structural reforms, and political stability through 2027 assumptions that carry inherent risks.
The new bond architecture is complex. Governance-Linked Bonds adjust coupons based on revenue performance starting in 2028, while Macro-Linked Bonds are tied to debt sustainability metrics aligned with IMF thresholds. These instruments were designed to share risk between creditors and the sovereign, rewarding performance but potentially raising costs if targets are missed.
Authorities say they remain comfortably within IMF debt sustainability parameters, even if the first variable threshold on the macro-linked bonds is triggered. However, such assurances depend heavily on sustained revenue mobilization and expenditure control pillars of the IMF’s Extended Fund Facility.
Cyclone Ditwah’s limited market impact has been cited as evidence of resilience. But analysts caution that exogenous shocks from global financial volatility to commodity price swings could quickly alter investor sentiment. The brief yield spike in early 2025 due to geopolitical tensions illustrates the sensitivity of frontier-market debt to global conditions.
Sri Lanka has secured agreements with creditors representing nearly all external debt, with over 92% already restructured. This near-completion reduces legal uncertainty, yet the durability of the recovery hinges on continued policy consistency beyond immediate IMF reviews.
The Fifth Review Staff-Level Agreement reached at end-2025 signals strong program performance. Approval would unlock another $350 million, raising total IMF disbursements to about $2 billion. But the program runs through 2027, and future reviews will test the Government’s resolve to maintain politically difficult reforms.
Markets appear willing, for now, to reward reform adherence. The challenge for policymakers is to ensure that declining yields reflect sustainable economic fundamentals rather than temporary optimism. In frontier sovereign debt markets, confidence can build steadily but it can also reverse abruptly
Bond Haircuts and IMF Oversight Define Sri Lankan Airlines Rescue
The restructuring of SriLankan Airlines is emerging as a critical test of Sri Lanka’s commitment to fiscal discipline, as the state carrier navigates bond haircuts, capital infusions, and oversight linked to the International Monetary Fund program.
At the centre of the plan is a Rs. 25.2 billion Government capital injection completed in December 2025. The funds were used to extinguish outstanding state bank debt under a newly agreed restructuring package. The move strengthens the airline’s balance sheet but simultaneously increases direct state exposure, as new shares are issued primarily to the Government.
The recapitalisation follows a sharp deterioration in financial performance. For the year ended March 2025, the airline group swung to a Rs. 2.7 billion loss from an Rs. 8 billion profit the previous year, while revenue contracted significantly. The reversal has intensified scrutiny over the sustainability of state ownership.
A parallel negotiation addressed USD 175 million in Government-guaranteed bonds maturing in June 2024. Talks between the airline’s advisors — Lazard and Norton Rose Fulbright — and an ad hoc bondholder group represented by Akin Gump resulted in a proposed 15% haircut on principal. The remaining claims would be settled via a mix of cash and medium-term Government bonds at 4% interest.
Crucially, the deal requires Cabinet approval and IMF non-objection, aligning the airline’s restructuring with the country’s wider sovereign debt overhaul. By removing the Government’s guarantee liability upon completion, the agreement would reduce contingent fiscal risks a key metric under IMF debt sustainability analysis.
Treasury officials argue that settling 99% of external debt will help stabilise Sri Lanka’s credit outlook and support a future return to capital markets. However, analysts caution that restructuring addresses legacy debt but not structural inefficiencies. Without operational reforms or a credible strategic investor, recapitalisation risks becoming cyclical.
Compounding uncertainty is the leadership vacuum following CEO Richard Nuttall’s departure to Philippine Airlines. A new chief executive will inherit the challenge of restoring profitability while potentially negotiating private-sector participation.
The airline’s future now hinges on whether financial engineering and IMF-aligned oversight can translate into operational turnaround or whether deeper structural transformation will be required to secure lasting sustainability.
Akuregoda Shooting Not a Threat to National Security – Minister
Public Security and Parliamentary Affairs Minister Ananda Wijepala told Parliament that the area in Akuregoda, Thalangama—where lawyer Buddhika Mallawarachchi and his wife were killed in a recent shooting—is not a high-security zone.
Responding to a question raised by Opposition Leader Sajith Premadasa under Standing Order 27/2 in Parliament, the Minister stressed that the incident was isolated and does not pose a threat to national security, public safety or the maintenance of peace in the country.
He stated that isolated incidents occurring in different parts of the country do not undermine overall national security and added that ongoing operations to suppress underworld activity and drug trafficking are being carried out successfully.
Minister Wijepala also rejected allegations by the Opposition Leader that the government and the Police Media Spokesman had issued official statements within two hours of the shooting, claiming the deceased lawyer had links to the underworld and that the killing was connected to such associations.
He clarified that neither the government nor the Police had made any such official statements. The Minister revealed that 12 special Police teams were deployed immediately after the incident to conduct investigations and apprehend those responsible. He said four suspects accused of aiding and abetting the shooters have already been arrested and are being questioned. However, he noted that further details cannot be disclosed at this stage as it may compromise ongoing investigations.
The Minister further alleged that the Opposition was attempting to portray the incident as a breakdown of national security.
“We do not underestimate the life of any individual in this country. We do not condone anyone being killed. As a government, we are committed to protecting every citizen,” he said.
He added that since assuming office, the government has taken several measures to address the circulation of illegal weapons. He noted that weapons previously issued to politicians have yet to be fully surrendered and that investigations are underway into firearms allegedly provided to underworld elements from certain military camps.
Minister Wijepala condemned the culture of violence and reiterated the government’s regret over the tragic incident. He also extended his condolences to the family of the deceased lawyer and his wife, emphasising that the crime should not be viewed as a threat to the rule of law.
Govt to Implement Welfare Schemes for Journalists This Year – Deputy Minister
Mass Media Deputy Minister Dr. Kaushalya Ariyarathna informed Parliament that the Government has taken steps to introduce several welfare measures for journalists this year.
He made these remarks in response to questions raised by MP Dharmapriya Dissanayake during the oral question session in Parliament yesterday (17) regarding issues faced by journalists.
The Deputy Minister said the Ministry has received numerous complaints concerning private media institutions, including closures, non-payment of Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) contributions, as well as salary arrears.
However, he noted that as private media institutions operate independently, the Media Ministry has limited authority to directly intervene in matters related to salaries and employment conditions. Such issues fall under the purview of the Labour Act and can be addressed through the Department of Labour.
He added that the Director General of the Department of Government Information (DGI) has issued a letter to all media institutions urging them to ensure proper remuneration for journalists. The Government has also requested that private sector media organisations provide fair and timely payments to their employees.
Dr. Ariyarathna further stated that, in line with the Government’s policy statement, steps are underway to establish a chartered institution for journalists. A draft bill for this purpose has been prepared and submitted to the Attorney General’s Department, and approval has been obtained. The bill is expected to be published in the Gazette shortly.
He said these measures respond to long-standing demands by journalists and aim to create a conducive environment for them to work with dignity and professional rights, including mechanisms to seek redress if wronged.
In addition, the Deputy Minister said that the scholarship programme previously offered to journalists will continue this year. Plans are also in place to introduce a health insurance scheme—particularly benefiting provincial journalists—alongside a broader social security programme, with implementation expected within the year.