The determined residents have thwarted the resumed efforts of excavation of mineral sand in Mullaitivu, in a major resistance to exploitation of resources in war-affected Vanni District of Sri Lanka.

A project by the Indian-linked Midwest Heavy Sands that was granted licenses by the previous administration came under public protests on December 13, forcing officials and company representatives to flee the area without being able to carry out their survey.

This incident underscores the growing resistance from communities in Sri Lanka’s war-affected Vanni District to exploitative resource extraction projects.

The determined opposition in Mullaitivu, led by residents and local leaders like TNA MP Thurairasa Raviharan, reflects a broader demand for sustainable development and public participation in decision-making.

The protests highlight the importance of involving local communities in decisions about resource use, especially in areas still recovering from the war. Residents are calling for public consultation and transparency, rejecting top-down, exploitative projects that threaten the environment and livelihoods.

: The devastation caused by previous mining projects, such as in Kokkilai, serves as a stark reminder of the long-term environmental and social consequences of poorly managed resource extraction. This history fuels mistrust of new ventures.

The continuation of projects approved by previous administrations, like Midwest Heavy Sands, demonstrates the challenges in reversing harmful policies. President Anura Kumara Dissanayake’s government faces the task of aligning current policies with the NPP’s manifesto promises of sustainability and public involvement.

: This resistance signifies the rising awareness among marginalized communities about their rights and the need for sustainable resource management. It also sends a strong message to foreign investors and governments about the risks of ignoring local voices.

: Raviharan’s demand for addressing past destruction in Kokkilai emphasizes the need for accountability. Restoring damaged lands and compensating affected communities could be a precondition for future projects to gain local acceptance.

This episode also reflects a potential shift in governance under Dissanayake’s administration, where public opposition and demands for accountability could shape a more sustainable and equitable approach to resource management.

The government’s next steps, particularly in addressing past grievances and ensuring participatory decision-making, will be critical in rebuilding trust with the people of Mullaitivu and beyond.

The Central Bank of Sri Lanka (CBSL) has officially launched the Digital Payments Promotion Campaign 2025, themed “Shaping the Future through Digital Transactions”, to accelerate the adoption of digital payments across the country.

The campaign was inaugurated by CBSL Governor Dr. Nandalal Weerasinghe on January 9 at the Magam Ruhunupura Administrative Complex in Hambantota. Organized with the support of Hambantota District Secretary Bimal Indrajith De Silva, financial institutions, and telecommunication service providers, the event witnessed significant participation from public officials, Micro, Small, and Medium Enterprises (MSMEs), and the general public.

In his keynote address, Governor Weerasinghe stressed the transformative potential of digital payments in fostering economic development and improving the quality of life for all citizens. He called for greater collaboration among government institutions, businesses, and financial institutions to popularize digital payment methods.

Hambantota District Secretary Bimal Indrajith De Silva emphasized the necessity for financial institutions to simplify technological processes to ensure accessibility for all segments of society.

CBSL Deputy Governor J. P. R. Karunaratne announced that similar awareness campaigns would be held island-wide, particularly targeting remote areas to enhance financial inclusion and allow all citizens to benefit from digital payment systems.

The event featured active participation from banks, finance companies, e-money service providers, and mobile payment application providers. Attendees were guided on how to use mobile phones for digital transactions through the LANKAQR payment method, known for its speed, safety, affordability, and user-friendliness. Vendors at the venue also showcased the convenience of accepting digital payments for daily transactions.

This campaign marks the first in a series of initiatives by CBSL to promote digitalization, aligning with the Government’s broader strategy to achieve sustainable and inclusive economic growth through modern financial technologies.

A high-level delegation from the Institute for Security Governance (ISG), USA, accompanied by representatives from the United States Embassy, held discussions with Acting Defence Minister Major General Aruna Jayasekara (Retd) in Colombo on Wednesday (15).

The ISG, a key entity within the U.S. Defence Department, is instrumental in reviewing and developing Institutional Capacity Building projects with the Sri Lanka military, including the Navy, Air Force, Coast Guard, National Defence College, Kothelawala Defence University, and the Defence Services Command and Staff College.

The delegation, led by Michael Rembold, Regional Programme Leader (Indo-Pacific Region), included:

• Matt Ashley – Sri Lanka Country Programme Coordinator (CPC).
• Daniel Simpson – Deputy CPC.
• Oscar De Soto – Subject Matter Expert and Team Lead for the Defence Ministry effort.
• Col. Tony Nelson – Defence Attaché, U.S. Embassy in Colombo.
• Cdr Sean Lin – Chief, Office of Defence Cooperation, U.S. Embassy in Colombo.

The meeting emphasised collaborative efforts between ISG and Sri Lankan counterparts, fostering trust and mutual understanding. These interactions provided valuable insights into Sri Lanka’s defence priorities and decision-making processes, laying a robust foundation for developing enhanced partnerships.

Future collaborative opportunities were also explored, focusing on the shared commitment to regional stability and security. The discussions highlighted the enduring partnership between Sri Lanka and the United States in fostering mutual growth and understanding in the defence sector.

The engagement reflects both nations’ strategic emphasis on institutional development and regional cooperation, aligning with their broader vision for security and stability in the Indo-Pacific region.

The Sri Lankan government has unveiled a comprehensive relief package aimed at supporting Small and Medium Enterprises (SMEs) struggling with loan repayments. The initiative, developed in collaboration with the Central Bank of Sri Lanka (CBSL), the Sri Lanka Banks’ Association (Guarantee) Ltd. (SLBA), SME sector representatives, and relevant government agencies, seeks to provide financial breathing room for SMEs while safeguarding the banking sector’s stability.

Eligibility Criteria

1. SMEs with credit facilities classified as Non-Performing Loans (NPL) on or after April 1, 2019, by licensed banks.
2. SMEs initiating discussions with Relief Banking Units and submitting required documentation before March 31, 2025.

The relief measures include the suspension of Parate Execution until March 31, 2025, allowing SMEs to engage in revival plans. Eligible SMEs may also receive working capital loans based on repayment capacity and a credible business revival plan. Credit Information Bureau (CRIB) reports will not be the sole basis for loan rejections, and banks must provide a breakdown of capital, interest, and other charges upon request.

Specific relief measures include reasonable interest rates for restructured loans, extended repayment terms up to 10 years, and the suspension of legal actions during the relief period. The government has also introduced a grievance handling mechanism to ensure fair property valuations for auctions.

The government will establish an Advisory Committee for SMEs under the Ministry of Industries to coordinate policy development and stakeholder activities. Additionally, a scorecard mechanism will be introduced to improve SME access to finance, and the National Credit Guarantee Institution Limited (NCGIL) will provide credit guarantees starting January 2025.

With SMEs contributing over 50% of Sri Lanka’s GDP, this package addresses challenges from the Easter Sunday attacks (2019), COVID-19 pandemic, and the economic crisis of 2022, which resulted in 494,000 NPLs worth Rs. 886 billion. These measures aim to revive the SME sector while ensuring economic stability and growth, reaffirming the government’s commitment to long-term development.

MP Ravi Karunanayake strongly opposed devaluing the Sri Lankan Rupee to facilitate vehicle imports, citing economic instability and undue strain on the population. Speaking at a press conference on January 16, he emphasized the need for prudent economic policies to sustain the country’s growth.

Key Points from His Address:

• Rupee Stability: Karunanayake highlighted that devaluing the Rupee for the satisfaction of a few would harm the broader economy.
• Economic Policy: He called for a strategy that generates state revenue without currency depreciation and criticized reliance on imports over exports, which could lead to Rupee depreciation.
• Tax Burden: The MP cautioned against imposing excessive taxes on the public, arguing it would distort the economy and leave citizens unable to cope financially.
• Unkept Promises: He pointed out that the government must address promises made to voters, including offering vehicles at Rs. 1.2 million and reducing fuel prices.
• Revenue and Investment: With the state revenue requirement for 2025 set at Rs. 5,000 billion, Karunanayake stressed the importance of investment promotion to achieve this target.
• Cargo Challenges: He warned about the economic impact of ships departing without unloading, reflecting inefficiencies that could hurt trade and revenue.

Karunanayake’s remarks underline the urgency of adopting sustainable economic policies that balance public needs with national revenue goals while safeguarding the currency’s stability.