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Numerous ex-MPs opt to retire amidst shifting of political landscape

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October 07, Colombo (LNW): A significant number of Members of Parliament (MPs) from Sri Lanka’s now-dissolved ninth Parliament have chosen to step away from politics, citing reasons ranging from age, health concerns, and the shifting political environment.

This decision, affecting veteran political figures, comes in the wake of a drastically altered political landscape following the recent Presidential election.

For the first time in Sri Lanka’s post-independence history, the National People’s Power (NPP), a party outside the traditional political establishment, secured the presidency.

This result signals a potential shift in parliamentary power as the country approaches its General Election on 14 November.

The rise of the NPP has unsettled long-standing political dynamics, leading several MPs to reconsider their futures in politics.

The Sri Lanka Podujana Peramuna (SLPP), which previously held a parliamentary majority, has refused to offer nominations to MPs who distanced themselves from the party ahead of the Presidential election.

As a result, many of these MPs are now seeking alternative political alliances as the election approaches.

In addition, some prominent figures from the SLPP, including former President Mahinda Rajapaksa, his brother Chamal Rajapaksa, Gamini Lokuge, and Ali Sabry, have decided not to contest this time.

Chamal Rajapaksa has confirmed his retirement, with his son, Shasheendra Rajapaksa, standing as a candidate for the SLPP from the Moneragala District.

Meanwhile, Ali Sabry explained that he had always intended to serve only one term and would now return to his legal practice.

Other long-serving MPs, such as Vasudeva Nanayakkara, have opted out due to health reasons, whilst Bandula Gunawardane also announced his decision to step back.

Former Justice Minister Wijeyadasa Rajapakshe remains uncertain about whether to contest in the upcoming election.

The trend extends beyond the SLPP, with Lakshman Kiriella, a representative of the Samagi Jana Balawegaya (SJB), likely to pass the political baton to his daughter, Chamindrani Kiriella, who intends to contest in the Kandy District.

Veteran politicians such as Prof. Tissa Vitharana and A.H.M. Fowzie have also decided to withdraw from the parliamentary race, marking the end of an era for many familiar faces in Sri Lankan politics.

Security detail for ex-President RW to remain Unchanged, review pending

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October 07, Colombo (LNW): The Police Spokesman, DIG Nihal Thalduwa, confirmed that the security detail assigned to former President Ranil Wickremesinghe, which includes 50 Special Task Force (STF) personnel, will remain intact for the time being.

The arrangement, designed to ensure the former president’s protection, will not see any immediate adjustments despite ongoing evaluations.

Thalduwa further explained that a review of the specific security requirements for Wickremesinghe is currently underway.

Based on this assessment, the necessary number of personnel required to provide adequate security will be allocated in due course.

Government suspends statutory body meetings as new leadership awaits appointment

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By: Isuru Parakrama

October 07, Colombo (LNW): The government has temporarily halted board meetings across statutory bodies and other state institutions.

The announcement came from Prime Minister’s Secretary, Pradeep Saputantri, who clarified that the suspension is part of an ongoing process to appoint new leadership to these entities.

Saputantri urged the current heads of these institutions to refrain from making any administrative decisions during this interim period, emphasising the need for careful oversight as the transition unfolds.

Whilst some institutions have already seen the appointment of new chairpersons, other boards remain without leadership until relevant ministers finalise their appointments.

The decision to suspend board meetings marks a period of reorganisation within these bodies, with Saputantri highlighting that the responsibility now falls on the newly appointed ministers to ensure competent and effective leadership is placed at the helm of these organisations.

By taking the aforementioned action, the government aims to maintain administrative neutrality whilst the government undertakes a broader restructuring of key public sector institutions.

Ex-SIS Chief assures Supreme Court of compensation settlement for Easter Attack victims

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By: Isuru Parakrama

October 07, Colombo (LNW): Former Director of the State Intelligence Service (SIS), Nilantha Jayawardena, has pledged to finalise the payment of compensation owed to victims of the 2019 Easter Sunday attacks.

His legal counsel informed the Supreme Court that the outstanding amount will be paid, with the necessary documentation to be submitted later today (07).

Jayawardena, who served as Senior Deputy Inspector General (DIG) and headed the SIS at the time of the attacks, appeared in court due to contempt charges.

These charges arose from his failure to complete the court-ordered compensation of Rs. 75 million for the victims of the tragic bombing, which claimed hundreds of lives.

The case was heard before a seven-member Supreme Court panel, led by Chief Justice Jayantha Jayasuriya. During the proceedings, Jayawardena’s legal representative, President’s Counsel Chandaka Jayasundara, explained that the former intelligence chief had faced financial difficulties in meeting the compensation order.

Given that he remains in active police service, Jayasundara noted that Jayawardena could not independently raise the necessary funds.

However, the counsel revealed that friends of the former SIS director had stepped in to help cover the remaining amount.

The court was assured that the outstanding compensation would be paid into the Office for Reparations through a bank transaction later in the day.

On this basis, the President’s Counsel requested the court not to pursue further contempt charges, as Jayawardena intended to comply fully with the compensation order.

Despite these assurances, Chief Justice Jayasuriya remarked that the deadline for the compensation payment had already passed. The court issued an instruction for the submission of proof of payment by 1:30 p.m. today.

If the required documentation is not produced, the contempt of court proceedings will continue as planned.

NBRO issues landslide warnings for several districts amidst heavy rainfall

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By: Isuru Parakrama

October 07, Colombo (LNW): The National Building and Research Organisation (NBRO) has issued landslide warnings across multiple regions as heavy rainfall continues to affect several parts of Sri Lanka.

These alerts, covering both Amber and Yellow levels, urge residents to remain vigilant in areas deemed vulnerable to landslides.

An Amber (Level 2) warning has been declared for specific regions within the Galle and Kalutara districts.

In Galle, this includes the Nagoda and Elpitiya Divisional Secretariat Divisions (DSD) and their surrounding areas.

Meanwhile, in Kalutara, the Walallawita DSD and nearby regions have also been identified as high-risk zones for potential landslides.

In addition to the Amber warnings, a Yellow (Level 1) advisory has been issued for several other districts. These include the Niyagama DSD in Galle, Dehiovita DSD in Kegalle, and Pitabeddara DSD in Matara.

Residents in these areas are encouraged to monitor the situation closely and take necessary precautions, as these regions may experience landslide activity due to persistent heavy rains.

The NBRO has urged all individuals in the affected areas to stay alert and follow instructions from local authorities.

Residents in vulnerable zones have been advised to be prepared for possible evacuations and to ensure their safety by avoiding risky locations like hillsides and steep slopes.

Landslides pose a serious threat during periods of intense rainfall, often causing destruction to homes and infrastructure while putting lives at risk.

Authorities have requested the public to remain informed and take precautions to ensure their safety during this period of adverse weather conditions.

Intertropical Convergence Zone affects weather, prompting showers, thundershowers (Oct 07)

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By: Isuru Parakrama

October 07, Colombo (LNW): The Intertropical Convergence Zone (where winds from the Northern Hemisphere and Southern Hemisphere converge) is affecting the island’s weather, and showers or thundershowers, therefore, will occur at most places in the island during the afternoon or night, the Department of Meteorology said in its daily weather forecast today (07).

Heavy showers above 100 mm are likely at some places.

Showers or thundershowers will occur in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Mannar and Mullaittivu districts during the morning too.

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 may occur at several places in the sea areas around the island during the afternoon or night.  Showers or thundershowers will occur at several places in the sea areas from Trincomalee to Hambantota via Kankasanthurai, Mannar, Colombo and Galle during the morning too.
Winds:
Winds will be South-westerly in direction and wind speed will be (25-35) kmph. Wind speed can increase up to (40-45) kmph at times in the sea areas off the coasts extending from Mannar to Hambanthota via Colombo and Galle.
State of Sea:
The sea areas around the island can be slight to moderate. The sea areas off the coasts extending from Mannar to Hambanthota via Colombo and Galle can be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 07/10

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  1. President Anura Kumara Dissanayake pledges to expedite investigations into the Easter Sunday bomb attacks and ensure justice for the victims: also vows to prevent such tragedies from recurring: The President made these assurances during a discussion with families of those affected at St. Sebastian’s Church, Katuwapitiya, where he laid floral tributes at the victims’ memorial: The President also answered the questions raised by the victims’ families who attended the event, guaranteeing that justice will be served.
  2. The Election Commission declares six political parties’ ineligibility to contest the upcoming General Election due to their failure to resolve issues surrounding party secretaryships: These parties are Eelawar Democratic Front, United Peoples Freedom Alliance, Eksath Lanka Podujana Party, Eksath Lanka Maha Sabha Party, Lanka Peoples Party, and Sri Lanka Progressive Front: The Commission stressed discussions to resolve the aforementioned issues had been undertaken, only to meet dead ends.
  3. Police Spokesman DIG Nihal Thalduwa confirms former President Ranil Wickremesinghe’s security detail, comprising 50 Special Task Force (STF) personnel, will remain unchanged: However, the number of personnel required for his security will be reviewed and adjusted accordingly in the near future.
  4. Former State Minister of Finance Shehan Semasinghe expresses support for the current government’s continuation of the vehicle import resumption policy initiated by the previous administration: clarifies that this policy, aligned with IMF guidelines, was carefully staged to protect foreign reserves and stabilise the economy: criticises false claims about the policy’s origins and praises its responsible implementation for economic recovery.
  5. Sri Lanka’s Department of Census and Statistics will begin collecting personal and housing data for the 15th population census today (07): Director General Anoja Senevirathne says around 50,000 officials will visit households nationwide: The census, typically conducted every 10 years, was delayed due to COVID-19 and the economic crisis, with the last one held in 2012.
  6. Sri Lanka’s Business Process Outsourcing (BPO) industry is set to achieve $3 billion in exports by 2024, driven by high-value services like financial analysis and IT: Supported by government policies, cutting-edge technology, and a skilled workforce, the sector is growing 20% annually: Advanced technologies and a shift to hybrid work models are further boosting Sri Lanka’s global outsourcing leadership.
  7. Acting Inspector General of Police Priyantha Weerasooriya directs all police stations to address pending minor complaints lodged by the public within the next two weeks: Police Spokesman DIG Nihal Thalduwa announced the directive on 6 October, emphasising the need for timely action on unresolved matters.
  8. The Inland Revenue Department (IRD) launches a programme to recover unpaid taxes by visiting defaulters’ premises following the September 30 deadline: Despite collecting 70% of its Rs.2,024 billion target, the IRD aims to recover the remaining dues: Commissioner General Sepalika Chandrasekera confirms legal measures will be pursued for unpaid taxes, emphasising the department’s focus on meeting its highest-ever revenue target.
  9. Police arrest 40 foreigners involved in online financial scams, including 30 Chinese, 4 Indian, and 6 Thai nationals: The arrests took place in a Gampaha hotel and a private institution in Hanwella: Seized items including 499 mobile phones, 25 laptops, and 29 desktop computers have been sent for forensic examination: The group was apprehended yesterday (06) morning.
  10. A team of Sri Lankan students from Dharmapala College, St. Sebastian’s College, and Elizabeth Moir School won the prestigious Zhang Heng Award for Engineering Design at the 6th Global Challenge Robotics Competition 2024 in Athens, Greece: Competing against 193 countries, they placed sixth overall: Their innovation secured first place, followed by Colombia and India: The team was welcomed home recently.

BPO Sector Targets $3Bn in Exports: Driving Growth with Innovation and Skilled Talent

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By: Staff Writer

October 06, Colombo (LNW): Sri Lanka’s Business Process Outsourcing (BPO) industry is poised to become a major force in the nation’s economy, setting an ambitious goal of $3 billion in exports by 2024.

The sector has evolved from traditional services to offering high-value solutions such as financial analysis, IT services, and advanced analytics. This growth is fueled by strong investments in skills development, cutting-edge technology, and supportive government policies.

SLASSCOM reports a 20% annual growth in the IT-BPO sector, thanks to a highly educated, multilingual workforce, with over 30,000 graduates entering the job market each year, particularly in IT and business administration. English proficiency is a key asset, ensuring Sri Lanka meets the demands of international clients.

Government initiatives, including tax breaks and investments in infrastructure, have created an ideal environment for BPO growth. Sri Lanka’s modern telecommunications network, including 4G and early adoption of 5G, further boosts its appeal as a global outsourcing hub.

The adoption of advanced technologies like AI, automation, and blockchain is reshaping the industry, increasing efficiency and positioning Sri Lanka as a leader in innovation. BPO firms are expanding into new sectors like healthcare, education, and e-commerce, which is expected to drive future growth.

The COVID-19 pandemic accelerated the shift to remote and hybrid work models, allowing BPO companies to remain agile and responsive to client needs.

With competitive pricing, a skilled workforce, and strategic location, Sri Lanka is emerging as a preferred destination for both near shore and offshore outsourcing, surpassing regional competitors. By focusing on data security and forming global partnerships, the country’s BPO sector aims to strengthen its leadership in the global market.

Ceylon Chamber of Commerce commends the agreement with bond holders

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By: Staff Writer

October 06, Colombo (LNW): The Ceylon Chamber of Commerce has welcomed Sri Lanka’s progress in securing an agreement in principle (AIP) with the International Monetary Fund (IMF) and the Official Creditor Committee (OCC) regarding the restructuring of its external debt.

This agreement includes a key deal with private bondholders and signals an important step towards achieving long-term fiscal stability for the nation.

On Friday, Sri Lanka announced that both the IMF and the OCC had approved the latest adjustments to the proposed debt restructuring plan.

The plan involves issuing two types of bonds: GDP-linked upside/downside bonds and plain vanilla bonds tied to governance indicators, though the specifics of these bonds are still under consideration.

The Ceylon Chamber of Commerce praised this development, emphasizing that the successful restructuring of the country’s external debt is vital for Sri Lanka’s economic recovery.

According to the Chamber, this marks significant progress towards fiscal stability, which aligns with the organization’s recommendations to the new government.

The Chamber noted that external debt restructuring was its top priority out of ten key areas proposed to the current administration.

The statement from the Chamber further highlighted that the completion of the OCC and IMF consultation process is a strong indicator that Sri Lanka is on track for successful reviews under the IMF’s Extended Fund Facility (EFF) arrangement.

These reviews and future disbursements will be crucial to the nation’s journey toward financial recovery and economic transformation.

The Chamber also emphasized the importance of the Comparability of Treatment (CoT) principle, which has guided Sri Lanka’s broader economic reform agenda. The government’s commitment to adhering to the CoT principle has been instrumental in gaining international cooperation and advancing the debt restructuring process.

In its statement, the Chamber expressed appreciation for the swift response from the IMF and the OCC. It acknowledged the efforts of the Sri Lankan government, the Governor of the Central Bank, the Secretary to the Treasury, and other key stakeholders who have been involved in these critical negotiations. Their collective work has helped drive this milestone in the country’s financial recovery.

Looking ahead, the Chamber is optimistic about the completion of the debt restructuring process and the positive implications it will have for Sri Lanka’s economic future. The alignment with IMF’s EFF program is seen as a significant step toward ensuring the country achieves fiscal stability, which is a core component of its ongoing economic reform and transformation efforts.

This development offers hope for the nation, as it continues to navigate its economic challenges with the support of international financial institutions and creditor bodies.

IMF Expresses Debt Sustainability Concerns Risking Sri Lanka’s Bailout

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By: Staff Writer

October 06, Colombo (LNW): The International Monetary Fund (IMF) has raised alarms over the potential risks of disputing Sri Lanka’s current debt sustainability assessment (DSA), cautioning that such challenges could jeopardize the country’s bailout program and delay crucial financial support by months or even years.

The IMF requires countries seeking assistance to prove their debt is sustainable. Should Sri Lanka’s debt be deemed unsustainable, the IMF would be unable to proceed with the bailout, highlighting the need for the country’s debt restructuring efforts to adhere to IMF guidelines to secure necessary relief and achieve debt targets.

Sri Lanka has made significant strides under the current IMF program, though its recovery remains fragile. IMF Senior Mission Chief Peter Breuer emphasized the importance of continuing reforms to promote stable, inclusive growth, cautioning that failing to do so could lead to a relapse into crisis.

A major hurdle lies in achieving the primary fiscal balance—excluding interest payments—needed to restore debt sustainability. By 2025, this balance must reach at least 2-3% of GDP based on realistic budget projections, Breuer stated.

However, some economic experts, including a former Treasury Secretary who chose to remain anonymous, have criticized the IMF’s DSA methodology.

They argue that the projected reduction in external debt is insufficient and that restructuring domestic debt places undue burden on the working population by causing pension funds, which hold sovereign debt, to bear losses.

These critics argue that efforts should be directed toward reducing foreign currency-denominated debt to provide the necessary relief.

Recent reports suggested that Sri Lanka had not conducted its own DSA during debt restructuring negotiations. In response, the Finance Ministry clarified that while amendments to IMF agreements have been made in the past, the current situation is different due to the central role of debt restructuring in the ongoing IMF-backed economic reform program.

Sri Lanka is now part of the IMF’s Market Access Sovereign Risk and Debt Sustainability Framework (MAC SRDSF), a model used to assess the debt sustainability of middle-income countries. This framework has stringent debt targets that can only be adjusted in the event of significant changes in circumstances.

Sri Lanka, with the help of debt advisors, has developed its own internal DSA to guide its negotiating strategy, but the IMF’s DSA remains the independent standard to ensure any agreements with creditors meet required debt relief targets.

The opposingof  the IMF’s DSA could cause severe delays in obtaining financial support, which would have devastating effects on Sri Lanka’s fragile economy. The Ministry advocates for a pragmatic approach, stressing the importance of timely action to safeguard the country’s economic future.