October 14, Colombo (LNW): The Colombo Magistrate’s Court has handed down a six-month prison sentence to Arjun Aloysius, Director of W.M. Mendis Distilleries, along with two other executives, for their failure to settle Rs. 3.5 billion in unpaid Value Added Tax (VAT).
The Inland Revenue Department (IRD) had filed the case against the company for defaulting on tax payments owed to the government from 2016 to 2019.
The case, which was heard before Colombo Additional Magistrate Bandara Ilangasinghe, saw the court impose the sentence following the company’s repeated failure to comply with a previous order to pay the outstanding amount.
In November 2023, the court had directed the accused to clear the dues, yet the required payments were not completed.
With the company failing to adhere to legal directives, the court’s ruling is expected to set a precedent for other corporations with outstanding financial obligations to the state.
This case has drawn significant attention due to the high-profile nature of the individuals involved, particularly Aloysius, who has faced scrutiny in the past for his involvement in other high-stakes financial matters.
October 14, Colombo (LNW): The Institute for Democratic Reforms and Electoral Studies (IRES) has raised concerns over the recent reappointment of Shani Abeysekera to the police service, stating it was not done at an appropriate time.
According to a statement issued by the organisation yesterday (13), IRES believes the timing of Abeysekera’s return to a senior position in the police force, during an active election campaign, raises serious questions.
Manjula Gajanayake, Executive Director of IRES, expressed particular unease over the decision to appoint Abeysekera as the director of a police unit. The issue stems from Abeysekera’s involvement in supporting the National People’s Power (NPP) during the previous presidential election, when he was part of a group of retired police officers advocating for the party’s victory.
This background, Gajanayake suggests, adds a layer of controversy to the timing of his reinstatement, especially with the ongoing electoral preparations.
The announcement by IRES highlights the broader concerns about ensuring neutrality and maintaining public trust in state institutions when the country is approaching a pivotal election.
Gajanayake stressed that decisions of this nature should be approached with caution to avoid any perceptions of bias or undue influence, especially when the integrity of the electoral process is paramount.
October 14, Colombo (LNW): The Chief Prelate of the Malwatte Chapter, Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Mahanayake Thera, has voiced concerns regarding the inefficiency of previous governments despite their large number of ministers.
He emphasised that, despite the presence of numerous ministers, deputy ministers, and state ministers in the past, many sectors within the state saw no significant progress.
Speaking during a courtesy visit by Ranjith Ariyarathne, Secretary to the Ministry of Buddha Sasana, on Saturday, 12th October, the Chief Prelate welcomed the decision of the current government to reduce the number of ministers.
He described it as a commendable and positive shift.
“The new administration has restricted the number of ministers, which is admirable. Currently, there are just three ministers managing the state, in stark contrast to the hundreds of ministers seen in the past. Despite those large numbers, some sectors failed to progress, and issues faced by the public remained unresolved,” the Prelate said.
The Chief Prelate further highlighted the importance of reforming the Vihara Devalagam Ordinance, which governs the management of Buddhist temples. He revealed that a document containing proposed amendments had been prepared by the monastic leadership.
However, he acknowledged that the limited number of ministers made it challenging to address all pressing issues, saying, “There is much work to be done, but managing all of this with just three ministers is a difficult task.”
After meeting with the Chief Prelate, Secretary Ariyarathne addressed the media to clarify circulating rumours regarding constitutional reforms. He denied claims that the Ninth Article of the Constitution, which gives priority to Buddhism while ensuring equal respect for other religions, would be removed.
“Neither the President nor any ministers have proposed such a change. The Ninth Article remains intact, and there is no plan to amend it. Even non-Buddhist scholars working with us have stressed the importance of retaining this article,” he explained.
Ariyarathne added that the Ministry of Buddha Sasana had already initiated amendments to the Vihara Devalagam Ordinance.
“We have received a draft from the Attorney General’s office, which has been shared with the Chief Prelates for their review. Based on their guidance, we will move forward with the next steps of the amendment process,” he confirmed.
October 14, Colombo (LNW): The Sri Lankan government has secured an agreement with the International Monetary Fund (IMF) to expand relief measures for citizens, according to Prof. Anil Jayantha, the President’s Adviser on Economic and Financial Affairs.
He disclosed that proposals outlining the enhanced relief will be submitted to the IMF in the near future as part of ongoing efforts to revitalise the country’s economy.
Prof. Jayantha highlighted that the government is prioritising increased support for the public as a key strategy for economic recovery.
The administration has engaged in detailed discussions with the IMF, emphasising the need to meet essential needs such as food, clean water, and fertiliser for farmers to stimulate growth.
“We stressed to the IMF that for the economy to truly recover, the basic necessities of the people must be addressed. The IMF did not oppose this view and, in fact, encouraged us to submit detailed programmes for increasing relief,” he stated.
In addition to discussions with the IMF, Prof. Jayantha noted that the government is coordinating with related institutions linked to the international financial body to ensure that aid is delivered efficiently and effectively.
The proposed measures are expected to focus on improving the supply of essential goods and services, enabling citizens to actively participate in the nation’s production process.
By facilitating access to vital resources, the government aims to bolster local industries and agriculture, thereby creating a stronger foundation for sustained economic recovery.
Prof. Jayantha stressed the urgency of these measures, expressing the administration’s commitment to ensuring that relief reaches those in need as quickly as possible.
As Sri Lanka navigates its way through economic challenges, this expanded relief package is seen as a crucial step towards stabilising the economy and fostering long-term growth.
With international support, the government is confident that these measures will help pave the way for a more resilient and prosperous future.
October 14, Colombo (LNW): The Sri Lankan government has placed major decisions concerning the restructuring of state-owned enterprises, including SriLankan Airlines and the potential transfer of Mattala International Airport, on hold until after the general election, a report by Daily Mirror claimed citing a senior official.
The election, scheduled for November 14, 2024, has prompted the government to delay actions on key initiatives.
Under the previous administration, the State-Owned Enterprises Restructuring Unit was set up to oversee the divestment of 130 state-run businesses.
Amongst these were significant entities like Sri Lanka Insurance, SriLankan Airlines, Sri Lanka Cashew Corporation, and Sri Lanka Telecom.
However, following the change in leadership under President Anura Kumara Dissanayake, the board of the restructuring unit resigned, leaving its future uncertain, according to report.
When asked about the status of the restructuring unit, a high-ranking official from the current administration stated that no decision regarding the unit or any state-owned enterprise would be made until after the general election.
This pause reflects the government’s decision to approach these issues with caution during the election period.
One of the focal points is SriLankan Airlines, the national carrier, which has been struggling financially.
The official clarified that the airline would not be sold off outright, but its future will be discussed in consultation with a newly appointed management team.
This approach signals a potential shift in strategy, away from privatisation towards a more collaborative model of development.
Additionally, the previous government had planned to transfer operations of Mattala International Airport—a project valued at $209 million and initiated during the tenure of former President Mahinda Rajapaksa—to a joint India-Russia venture.
However, this transfer has been stalled, pending approval from the Attorney General’s office for the commercial agreement.
Beyond these major entities, other significant infrastructure projects are also in limbo. The construction of the Colombo-Ratnapura expressway and stages three and four of the Central Expressway, which connects Kurunegala to Kandy and Dambulla, remains uncertain.
Progress on the Kadawatha-Meerigama stretch of the Central Expressway has been delayed due to ongoing negotiations with the EXIM Bank of China, which has not yet disbursed funds following the country’s recent debt restructuring efforts.
Whilst the government acknowledges the importance of these initiatives, its current focus is on stabilising the political climate through the upcoming election.
The decisions regarding these critical state-owned enterprises and infrastructure projects are expected to be revisited after the elections, with further clarity on the future direction of the country’s economic and development policies.
October 14, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has reported encouraging signs of economic recovery, noting a steady reduction in domestic macro-financial risks.
Whilst challenges remain, the gradual restoration of financial stability is being facilitated by the country’s declining inflation, lower interest rates, and strengthened currency, creating a more favourable business environment.
The Central Bank attributes much of this improvement to its accommodative monetary policy, which has helped correct interest rate anomalies and reinvigorate credit growth.
The reduction in risk premiums and enhanced credit availability, particularly for the private sector, have bolstered the economic recovery.
Additionally, a shift in financial exposure away from the public sector and towards the private sector indicates better resource allocation, further supporting this progress.
Sri Lanka’s fiscal performance in 2024 has exceeded expectations, despite the significant challenges it continues to face. Key fiscal balances have improved due to robust revenue-based consolidation efforts.
The successful Domestic Debt Optimisation (DDO) process completed in 2023 and the forthcoming External Debt Restructuring (EDR) finalisation in 2024 are expected to reduce uncertainty and restore confidence among investors.
The stock market also reflects these positive trends, with the All Share Price Index showing a year-to-date increase after a period of uncertainty linked to the ongoing election cycle.
Financial institutions have demonstrated resilience during the first half of 2024, with banking sector indicators, such as credit quality, liquidity, and capital adequacy, showing marked improvements.
Bank profitability has been significantly boosted by an increase in net interest incomes, although the non-performing loan (NPL) ratio remains a concern.
The improved provision coverage ratio indicates banks are better prepared to manage potential risks.
Amid falling interest rates and a gradual resurgence in domestic demand, the banking sector has witnessed renewed credit growth, particularly within the private sector.
Meanwhile, the state-owned enterprises’ (SOE) reliance on banking sector credit has decreased, largely due to the Central Government’s intervention in absorbing certain SOE credit facilities.
However, despite these positive trends, lingering effects from previous economic challenges, such as elevated price levels, reduced real income, and rigid labour market conditions, continue to pose obstacles to sustained macroeconomic and financial stability.
Looking ahead, the Central Bank anticipates that the financial system will continue to improve, with asset quality expected to strengthen and capital buffers to grow.
The CB urges careful risk management as the economy stabilises further and moves towards long-term recovery, despite the ongoing challenges posed by both domestic and global factors.
October 14, Colombo (LNW): Sri Lanka, together with 39 other nations, has vehemently condemned recent Israeli attacks on the United Nations peacekeeping mission in Lebanon (UNIFIL), calling for a thorough investigation into the incidents.
Amongst those injured in the escalating violence are two Sri Lankan peacekeepers, prompting an outcry from Sri Lanka’s Foreign Affairs Ministry.
The attacks occurred in southern Lebanon, where Israeli forces have launched a ground offensive against Hezbollah militants.
At least five UNIFIL peacekeepers, including the two Sri Lankans, have been wounded as a result of the conflict.
In response, the Sri Lankan Foreign Affairs Ministry issued a stern statement on Friday, expressing deep concern for the safety of its peacekeepers and the inviolability of UN premises.
“Sri Lanka strongly condemns the attack on UNIFIL’s headquarters in Naqoura, South Lebanon, which injured two Sri Lankan peacekeepers. We are in contact with UNIFIL to ensure they receive immediate medical attention and wish them a swift recovery,” the statement read.
The ministry reaffirmed Sri Lanka’s commitment to upholding the safety and security of UN personnel worldwide and underscored the nation’s pride in its peacekeepers’ brave contributions to global peace missions.
The joint statement issued on Saturday by 40 countries, including Sri Lanka, echoed the call for immediate cessation of attacks on peacekeeping forces. The statement demanded an investigation into the incidents, stressing the vital role UNIFIL plays in mediating and supporting peace during the ongoing conflict.
“Such actions must stop immediately and should be thoroughly investigated,” it stated.
The countries also urged all parties involved in the conflict to guarantee the security of UN personnel so they can continue their essential work.
Several nations, including Spain, France, and Italy, have already condemned the attacks as “unjustifiable,” whilst U.S. President Joe Biden called for Israel to cease targeting UN peacekeepers, adding global pressure to the situation.
UNIFIL has reported multiple attacks on its facilities, including shots deliberately fired at its headquarters in Naqoura.
As tensions rise in the region, Sri Lanka and the international community remain firm in their demand for the protection of peacekeeping forces and the continuation of their mission in Lebanon.
October 14, Colombo (LNW): A final decision regarding this year’s Grade 05 Scholarship Examination, following allegations of a question paper leak, is expected to be announced today (14).
The Commissioner General of Examinations is scheduled to hold a special press conference to address the matter.
Reports suggest that despite the allegations, authorities have opted not to reconduct the examination. This decision comes after investigations revealed that only three questions were leaked, rather than the entire paper as initially feared.
The evaluation of answer sheets, which had been temporarily halted amid the controversy, is set to resume immediately following the announcement.
Several committees were appointed to investigate the matter, and they concluded that the leak was limited to just a few questions.
In addition to the internal investigation, the Criminal Investigation Department (CID) launched its own probe into the alleged leak.
The matter has sparked widespread concern among parents, some of whom held press conferences and staged protests, claiming the entire exam had been compromised.
The issue gained further attention when the concerned parents raised their grievances with President Anura Kumara Dissanayake, resulting in the temporary suspension of answer sheet evaluations.
The upcoming announcement is expected to bring much-needed clarity on how the examination process will move forward amidst these concerns.
October 14, Colombo (LNW): The Disaster Management Centre (DMC) has reported that a staggering 134,484 individuals from 34,492 families across 12 districts in Sri Lanka have been severely impacted by the ongoing adverse weather conditions.
The heavy rains and flooding have so far claimed three lives, with rescue and relief operations continuing in affected areas.
According to the DMC, 6,963 people from 1,753 families have been forced to seek refuge in 81 established relief centres as the extreme weather continues to disrupt lives and livelihoods across the country.
In response to the crisis, local authorities and humanitarian organisations have ramped up their efforts, ensuring that those displaced are provided with essential supplies, medical aid, and shelter.
The DMC remains vigilant, with teams actively monitoring high-risk areas for further flooding or landslides, and issuing timely alerts to ensure public safety.
October 14, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa, North-western and Northern provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts, with heavy showers above 100mm being likely to occur at some places in Western, Sabaragamuwa, North-western and Northern provinces and in Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (14).
Showers or thundershowers will occur at several places elsewhere during the evening or night.
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:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas around the island.
Winds:
Winds will be south-westerly or variable in direction and speed will be (30-40) kmph. Wind speed can increase up to (50-60) kmph at times in the sea areas off the coasts extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota.
State of Sea:
The sea areas off the coasts extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota can be rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
