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Sixteen Chinese Nationals Held in Colombo Over Suspected Online Fraud Ring

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February 24, Colombo (LNW): Sixteen Chinese men have been taken into custody in Colombo on suspicion of operating an illicit online investment scheme while remaining in the country beyond the terms of their visas.

Officers from the Cinnamon Gardens Police carried out the arrests following intelligence suggesting that a group of foreign nationals were conducting questionable financial activities from rented properties in the capital. The suspects had been living temporarily in residences along Jawatta Road in Colombo 05 and Don Carolis Road.

Police sources said a specialised team from the Crimes Division moved in after receiving credible information from the Officer-in-Charge. During coordinated raids on the properties, officers detained all sixteen individuals without incident.

A substantial quantity of electronic equipment was seized from the premises, including more than twenty laptop computers, several mobile telephones, internet routers and voice-altering devices believed to have been used to conceal identities during online communications. Authorities also confiscated thousands of foreign-manufactured cigarettes reportedly brought into the country under duty-free concessions.

Preliminary inquiries indicate that the suspects are alleged to have maintained contact with associates overseas while operating from Sri Lanka. Investigators believe they may have targeted individuals in multiple countries through sophisticated pyramid-style schemes, promising high returns on investments that never materialised.

Immigration officials have been notified, and further investigations are under way to determine the full extent of the operation, including possible financial links abroad. The suspects are expected to be produced before court as inquiries continue.

Customs Officers Begin Trade Union Action Over Long-Delayed Promotions

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February 24, Colombo (LNW): The Customs Trade Union Alliance has commenced trade union action from today (24), citing a series of long-standing grievances that remain unresolved, including stalled promotions that members say have been pending for more than six years.

Union representatives stated that repeated appeals to the relevant authorities have failed to yield meaningful progress, prompting officers to take symbolic industrial action. As an initial step, Customs personnel across the island will report for duty wearing black armbands in protest, signalling their dissatisfaction while continuing essential services.

The Alliance has warned that if discussions do not produce tangible outcomes, further measures could follow, potentially disrupting certain administrative functions within the Customs Department. However, it emphasised that the present action is intended as a measured response aimed at drawing attention to their concerns rather than halting operations entirely.

A high-level meeting involving the Ministry of Finance, the Public Service Commission and other key stakeholders has been scheduled for February 26, 2026 in an effort to resolve the impasse.

Union leaders are expected to reconvene on February 27 to assess the outcome of those talks and determine whether to escalate their campaign or suspend further action. They have expressed hope that constructive dialogue will prevail, enabling a swift and equitable settlement to the dispute.

US President Trump’s Trade Offensive Puts Colombo on Edge

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By: Staff Writer

February 24, Colombo (LNW): The fallout from Donald Trump’s aggressive tariff strategy is reverberating far beyond Washington, sending tremors through Sri Lanka’s fragile export economy.

After the Supreme Court of the United States invalidated Trump’s emergency tariffs, the former president criticized the justices and vowed to pursue alternative legal avenues. His administration is now eyeing Section 122 and Section 301 of the Trade Act of 1974—mechanisms that could once again ensnare trading partners like Sri Lanka.

At issue is not just legality, but economic fallout.

Legal Limits, Political Resolve

The Supreme Court warned that unilateral tariffs represented a “transformative expansion” of presidential authority over tax policy powers constitutionally reserved for Congress. However Trump’s readiness to pivot to other statutes signals a determination to maintain trade pressure.

Under Section 301, investigations could target countries accused of unfair practices, including digital taxation, pharmaceutical pricing controls, and alleged labor violations. Sri Lanka’s policy landscape shaped by IMF-backed fiscal tightening could attract scrutiny.

Apparel Exports at Risk

Sri Lanka’s apparel exports to the US form the backbone of its manufacturing sector. Factories operating on tight margins cannot easily withstand sudden tariff hikes. Buyers in the US retail market are notoriously price-sensitive and quick to reallocate sourcing.

A 10 percent surcharge, even if temporary, could disrupt contracts negotiated months in advance. Smaller manufacturers may struggle to renegotiate terms, while larger firms might accelerate automation or workforce reductions.

The apparel industry’s interconnectedness with global brands means decisions taken in Washington boardrooms ripple swiftly to Colombo’s factory floors.

Broader Economic Consequences

Sri Lanka is still emerging from a balance-of-payments crisis. Foreign exchange reserves remain delicate. Any sustained decline in US-bound exports would weaken dollar inflows, potentially pressuring the rupee and complicating macroeconomic stabilization.

Moreover, uncertainty dampens investment. Exporters hesitate to expand capacity when trade policy appears volatile.

While some US industries such as steel retain protectionist backing, many American firms are deeply embedded in global supply chains and may oppose sweeping tariffs. Yet political calculus often trumps economic orthodoxy.

For Colombo, the message is stark: dependence on a single dominant market amplifies exposure to geopolitical shifts.

If Washington proceeds with new tariffs, Sri Lanka’s apparel sector could become collateral damage in a broader trade confrontation testing the resilience of an economy still on the mend.

Coal Tender Controversy Sparks Rs. 100 Billion Loss Fears

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By: Staff Writer

February 24, Colombo (LNW): From Fertilizer Files to Energy Firestorm: Past Disciplinary Ruling Resurfaces as Coal Tender Controversy Engulfs Power Ministry

A past disciplinary investigation at the Lanka Fertilizer Corporation has resurfaced in Parliament, intertwining with the escalating controversy over the 2025/2026 coal procurement process and intensifying scrutiny on Minister of Power and Energy Eng. Kumara Jayakody.

The renewed political storm was triggered by allegations raised during a parliamentary session on the 20th, concerning Jayakody’s tenure as Procurement and Import Manager at the Lanka Fertilizer Corporation during 2014–2015. The accusations relate to the procurement of carpets for the Hunupitiya Central Warehouse Complex.

An internal investigation report submitted to the corporation’s Board of Directors on February 21, 2019 outlined five charges.

The first alleged that Jayakody caused a loss of Rs. 8,859,708 by failing to adhere to contract condition No. 51.01, particularly in relation to advance payment guarantees and execution standards. The second accused him of acting adversely to the company by not extending the contract period or requesting an extension of the contractor’s bank guarantee when required.

The third charge focused on the failure to obtain a mandatory five percent performance bond within 28 days after completion of the contract. The fourth noted that a performance bond valued at Rs. 2,214,927 was maintained at the People’s Bank branch in Yakkala from February 6 to May 5, 2014, even though the project’s completion date was May 10, raising oversight concerns. The fifth alleged neglect of duty and conduct contrary to disciplinary regulations.

According to findings cited in Parliament, Jayakody was found guilty of two of the five charges and subjected to disciplinary action. Critics argue that the consequences did not result in long-term political repercussions.

The controversy has expanded into questions surrounding cabinet appointments. Opposition voices claim that President Anura Kumara Dissanayake later exempted Jayakody from certain penalties, clearing the path for his elevation to ministerial office. These claims remain politically contested, and no legal finding has established wrongdoing in connection with the appointment.

The resurfaced disciplinary case now intersects with the ongoing coal procurement debate. Allegations surrounding the Lakvijaya tender including shortened bidding periods, reduced eligibility thresholds, substandard coal imports with reported GCV levels of 5520, and potential losses estimated by some opposition members at up to Rs. 100 billion have reignited questions about procurement oversight and ministerial accountability.

At the same time, the Ceylon Electricity Board faces acute financial stress. A proposed 13.56 percent tariff hike seeks to offset a Rs. 15.8 billion revenue deficit in the second quarter of 2026. The Public Utilities Commission of Sri Lanka has scheduled public consultations, having already rejected an earlier tariff increase this year.

Minister Jayakody continues to reject all allegations related to the coal tender, citing compliance with 2023 procurement guidelines, competitive participation by 26 registered suppliers and 10 valid bidders, a USD 2.79 million penalty clause, and the retention of a 10 percent performance bond.

As parliamentary oversight intensifies, the broader debate is shifting beyond individual accusations. It now centers on whether Sri Lanka’s procurement systems from fertilizer warehouses to power plants have developed sufficient transparency, safeguards, and enforcement mechanisms to prevent financial leakages in high-value state contracts.

With electricity tariffs rising and public trust in state institutions under strain, the convergence of past disciplinary findings and present-day procurement allegations has placed the Power Ministry under its most sustained scrutiny in years.

Whether this episode results in institutional reform, legal proceedings, or political fallout will depend on the evidence that emerges in the months ahead.

From Default to Discipline: Inflation target Revisited in Sri Lanka

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By: Staff Writer

February 24, Colombo (LNW): The battle over Sri Lanka’s inflation target is not merely contemporary—it echoes centuries of monetary debate. As policymakers reconsider the 5 percent benchmark in 2026, historical parallels offer stark warnings about liquidity excess and currency fragility.

Sri Lanka’s 2022 default exposed vulnerabilities common to reserve-collecting central banks that extend credit cycles beyond global conditions. When rates fail to adjust in tandem with tightening abroad, forex shortages quickly materialize. Exchange controls then substitute for credibility, constraining economic freedom while masking underlying imbalances.

With inflation in 2026 near 3 percent and growth gradually resuming, the debate now centers on prevention. Should the target become a strict 2 percent ceiling, limiting discretionary stimulus? Or should policymakers retain flexibility under the oversight of the Cabinet of Ministers of Sri Lanka?

The answer may determine whether the next decade resembles East Asia’s stability or repeats past cycles of depreciation and austerity. Inflation control is no longer theoretical—it is the linchpin of sovereign resilience.

In the 1970s, the United States experienced the “Great Inflation,” eventually subdued under Federal Reserve Chair Paul Volcker through aggressive rate hikes. That decisive tightening restored credibility and stabilized the dollar. Sri Lanka, by contrast, moved toward greater exchange-rate flexibility in the 1980s, a shift that coincided with recurrent depreciation cycles.

Analysts note that before the early 1980s, inflation trends broadly mirrored advanced economies. The divergence began when liquidity management increasingly targeted domestic rates over external stability. The pattern resembles episodes in 19th-century Britain, when the Bank of England fueled credit booms after suspending gold convertibility.

During the 1825 crisis, Parliament refused to permit further sterling depreciation. The bank was compelled to secure gold from the Banque de France to restore convertibility an early demonstration of institutional accountability. Influential thinkers like David Ricardo argued that excessive note issuance inevitably weakened currency value, while financiers such as Alexander Baring understood the operational mechanics behind credit cycles.

Contrast this with the stimulus philosophy advanced centuries earlier by John Law, whose expansionary experiments ended in collapse. Modern critics argue that contemporary liquidity injections—particularly sterilized interventions and single policy-rate targeting echo Law’s flawed assumptions more than Ricardo’s discipline.

East Asia presents a different trajectory. Economies such as Singapore, Taiwan, Hong Kong, and South Korea prioritized exchange stability and conservative monetary frameworks during their high-growth decades. Their lower and more predictable inflation rates fostered export competitiveness and investor confidence.

President Macron Factor: Can French Backing Save GSP+ for Sri Lanka?

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By: Staff Writer

February 24, Colombo (LNW): Sri Lanka’s campaign to secure continued access to the European Union’s GSP+ trade concession has taken a distinctly diplomatic turn. During bilateral talks on the sidelines of the AI Summit in New Delhi, President Anura Kumara Dissanayake sought the support of French President Emmanuel Macron a move that could reshape Colombo’s strategy in Brussels.

Why France Matters

France is a key actor within the European Council and European Parliament, institutions central to decisions on trade preferences. Support from Paris could strengthen Sri Lanka’s case when compliance assessments are reviewed.

According to officials, President Macron assured Sri Lanka of France’s fullest backing in retaining GSP+ and signaled willingness to expand bilateral trade concessions. Beyond political endorsement, France can provide technical expertise to help Sri Lanka implement the 27 required international conventions.

This matters because the GSP+ process is not purely political; it is procedural and evidence-based. Demonstrable progress on repealing the PTA, reforming the OSA, and strengthening reconciliation institutions must be documented and verified.

Diplomatic Leverage vs. Structural Compliance

However, diplomatic backing has limits. Even a major EU power cannot override institutional compliance mechanisms. The European Commission’s monitoring process assesses measurable progress in human rights, labour standards and governance reforms.

Sri Lanka’s leadership appears aware of this. At the EU-Sri Lanka Joint Commission meeting in Colombo, the government outlined steps toward repealing controversial legislation and reinforcing bodies such as the Office on Missing Persons and the Office for Reparations.

However scepticism lingers within segments of the European Parliament, where human rights concerns have previously shaped debates on Sri Lanka’s trade status.

France’s support could soften political resistancebut it cannot substitute for legislative reform.

The Broader Trade Strategy

President Dissanayake has also engaged with Britain’s Deputy Prime Minister David Lammy, thanking the United Kingdom for including Sri Lanka in its Developing Countries Trading Scheme (DCTS). This parallel diplomacy signals a broader effort to hedge against uncertainty in the EU process. The strategy is clear: diversify diplomatic backing while accelerating domestic reforms.

High Stakes for a Fragile Economy

The economic stakes are considerable. GSP+ offers preferential access for key Sri Lankan exports, particularly apparel. Losing it would weaken competitiveness in a crucial market at a time when the country is still rebuilding from financial crisis.

Macron’s pledge of support provides political momentum. It signals to EU partners that Sri Lanka’s reform trajectory deserves encouragement rather than isolation.

But the ultimate verdict will rest not in Paris, nor even in New Delhi where the leaders met—but in Brussels, where compliance reports and parliamentary debates will determine whether Sri Lanka’s promises translate into continued preferential access.In the end, France can open doors. Only sustained reform can keep them open.

Former Police Inspector Arrested Over 2023 Weligama Hotel Shooting

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February 24, Colombo (LNW): A former Inspector of Police, Jagath Nishantha, who had been evading arrest in connection with a controversial 2023 shooting in Weligama, was taken into custody yesterday (23) upon his return to Sri Lanka, police confirmed.

The arrest follows an earlier order issued by the Matara Magistrate’s Court directing authorities to detain eight former officers attached to the Colombo Crimes Division (CCD), including former Inspector General of Police Deshabandu Tennakoon, and to list them as suspects in the case.

The incident occurred on December 31, 2023 outside the W15 Hotel in the Pelena area of Weligama, Matara. Investigations have revealed that a team of CCD officers had travelled to the southern coastal town reportedly to apprehend individuals believed to have links to the organised crime figure Nadun Chinthaka Wickremeratne.

According to police accounts, officers dressed in civilian clothing came under fire from within the hotel premises, prompting them to return fire. In the ensuing confusion, a mobile patrol unit from the Weligama Police Station arrived at the scene and discharged their weapons at a van used by the CCD team, reportedly mistaking it for a vehicle carrying suspects.

The misunderstanding led to a chaotic exchange of gunfire. Although the van eventually departed the area, two CCD officers had already sustained serious injuries. One of them, Police Sergeant Upul Chaminda Kumara, aged 47, later died while undergoing treatment.

The shooting sparked widespread debate over inter-unit coordination, operational planning and communication failures within law enforcement. Authorities have indicated that further legal proceedings and internal reviews are ongoing as the investigation continues to unfold.

Government Unveils Ambitious Plan to Build 31,000 Homes in 2026

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February 24, Colombo (LNW): Sri Lanka is set to embark on an expansive housing drive next year, with 31,000 new homes planned under a nationwide programme, according to Housing, Construction and Water Supply Minister Susil Ranasinghe.

The initiative, branded the 2026 National Housing Programme under the theme “A Place to Belong – A Beautiful Life”, is due to commence tomorrow (25).

The scheme will initially be rolled out across 13 districts, targeting low- and middle-income families in both rural and semi-urban communities.

Minister Ranasinghe said the majority of the proposed homes — nearly 25,000 — will be constructed through direct assistance schemes aimed at empowering beneficiaries to build on their own land. The National Housing Development Authority has earmarked Rs. 10 billion to support approximately 10,000 families in the first phase.

Each selected household will receive a non-repayable grant of Rs. 1 million to construct a dwelling, enabling families to design and oversee the building of their own homes while receiving technical guidance from housing officers. Authorities expect the approach to stimulate local employment in the construction sector and promote community-based development.

The programme will be formally launched with the distribution of Rs. 1.5 billion in cheques to 1,500 families across the 13 districts, marking the start of construction on the first 1,500 houses.

The Minister added that the broader objective of the scheme is not only to address housing shortages but also to uplift living standards, strengthen social stability and encourage sustainable settlement planning. Further phases of the programme are expected to expand coverage to additional districts later in the year.

Sri Lanka Reaffirms Disarmament Pledge at Geneva High-Level Forum

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February 24, Colombo (LNW): The high-level segment of the Conference on Disarmament opened in Geneva yesterday under the presidency of Omar Zniber of Morocco, with proceedings set to continue until February 25, 2026.

Delivering a video address on the opening day, Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, underscored the urgent need to strengthen multilateral cooperation in the face of mounting geopolitical instability.

He stressed that a resilient and inclusive international system is essential to preserving lasting peace and safeguarding future generations.

Reaffirming Sri Lanka’s longstanding engagement in global disarmament efforts, the Minister noted that, as a developing island nation from the Global South, the country has consistently advocated balanced and equitable approaches to international security challenges.

He reiterated Colombo’s commitment to preventing an arms race in outer space and to advancing the total elimination of nuclear weapons.

Minister Herath also voiced continued support for the creation of Nuclear-Weapon-Free Zones, particularly in the Middle East, describing such initiatives as confidence-building measures that contribute to regional and global stability.

Addressing the implications of rapidly evolving technologies, he highlighted Sri Lanka’s concern over the humanitarian and legal challenges posed by emerging weapons systems. He called for the early launch of negotiations on a legally binding international instrument to prohibit Lethal Autonomous Weapons Systems, arguing that clear global norms are necessary to ensure compliance with international humanitarian law.

In his remarks to the forum, António Guterres, Secretary-General of the United Nations, appealed for renewed dedication to multilateralism, warning that escalating global tensions threaten collective security gains achieved over decades.

Foreign ministers and senior representatives from several countries, including Armenia, Cuba, Indonesia, Iran, Kyrgyzstan and Norway, addressed the gathering in person, alongside senior officials from the United States and the Comprehensive Nuclear-Test-Ban Treaty Organization. Numerous other leaders participated via recorded messages.

Sri Lanka was represented in Geneva by Sumith Dassanayake, its Permanent Representative to the United Nations and other international organisations in Switzerland.

Established as the sole multilateral disarmament negotiating forum of the international community by the UN General Assembly’s landmark 1978 special session on disarmament, the Conference comprises 65 member states, including the five recognised nuclear-weapon states. Sri Lanka has been a member since its inception, maintaining an active voice in negotiations on arms control and non-proliferation.

CEB Reports Rs. 7.6 Billion Loss Linked to Inferior Coal Supplies

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February 24, Colombo (LNW): The Ceylon Electricity Board (CEB) has informed a Parliamentary Sectoral Oversight Committee that the use of substandard coal in power generation has resulted in estimated direct losses amounting to Rs. 7,672 million.

The disclosure relates to coal consignments delivered to the Norochcholai Lakvijaya Power Plant, the country’s largest coal-fired facility with a capacity of 900 megawatts. The plant plays a central role in meeting national electricity demand, particularly during peak periods.

Recent laboratory analyses reportedly found that coal supplied through eight separate shipments did not meet the required quality specifications, including calorific value and ash content. The findings have triggered renewed scrutiny over procurement procedures and quality control mechanisms.

In a written communication to the parliamentary committee, the CEB outlined the estimated financial impact of generating electricity using the lower-grade fuel. According to the breakdown provided, the projected losses from each shipment vary considerably, with the highest single consignment accounting for more than Rs. 1.5 billion in losses. Combined, the eight shipments are estimated to have cost the utility in excess of Rs. 7.6 billion in direct losses alone, excluding potential long-term operational impacts.

Energy sector analysts warn that burning inferior coal not only reduces efficiency but can also increase maintenance costs, strain machinery and elevate emissions, placing further pressure on the plant’s operations.

Meanwhile, Opposition Leader Sajith Premadasa stated yesterday (23) that additional data suggests a ninth shipment of coal imported under the current administration may also have failed to meet the prescribed standards. He called for a comprehensive investigation and greater transparency in future fuel procurement processes.

The controversy has intensified calls for stronger oversight of strategic imports, given their direct implications for electricity tariffs, public finances and energy security.