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Prime Minister calls for collective effort to drive overhaul of education system

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July 13, Colombo (LNW): Prime Minister Dr Harini Amarasuriya has emphasised the importance of broad-based support for the government’s upcoming overhaul of the national education system, stating that successful reform requires the active involvement of educators, administrators, and parents alike.

Speaking at the launch of a new series of awareness sessions focused on education reform, Dr Amarasuriya underlined that the existing model is no longer adequate for the needs of a modern society. She pointed to longstanding structural issues—such as unfilled teaching and leadership positions, outdated infrastructure, and gaps in educational administration—that must be tackled head-on in order to achieve meaningful change.

“Transforming education cannot be approached as a standalone initiative,” the Prime Minister remarked. “It must be part of a wider effort to ensure that every child, regardless of location or background, has access to quality learning and a supportive school environment.”

The inaugural session of the reform awareness series took place at the North Central Provincial Council and was attended by education officials across provincial, zonal, and divisional levels. These sessions aim to prepare stakeholders for the sweeping changes planned for implementation in 2026.

Dr Amarasuriya stressed the importance of building consensus and promoting shared responsibility. She noted that while policy changes are essential, the success of reforms ultimately hinges on the daily commitment of those on the ground—teachers in classrooms, principals managing schools, and parents guiding their children’s learning.

With educational reform positioned as a national priority, the government is expected to roll out a series of regionally focused discussions and workshops, ensuring that input from local communities is reflected in both planning and execution.

The Prime Minister concluded by reaffirming the government’s determination to make the country’s education system more equitable, resilient, and future-ready.

Controversial Rs. 73 Billion Power Deal Sparks Conflict-of-Interest Allegations

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By: Staff Writer

July 13, Colombo (LNW): A recent power purchase agreement (PPA) between the Ceylon Electricity Board (CEB) and Sahasdhanavi Limited—a fully-owned subsidiary of LTL Holdings—has ignited fierce debate, with critics warning it could result in an annual public loss of up to Rs. 73 billion.

Signed in April 2025, the PPA commits the CEB to purchasing electricity from a proposed 350MW combined-cycle power plant at a tariff of Rs. 37 per kilowatt-hour (kWh)—a rate more than twice the CEB’s benchmark cost of Rs. 16–17/kWh for similar technology. In addition, the CEB will pay a fixed annual capacity charge of Rs. 15 billion, regardless of whether the plant is fully operational.

Energy analysts and civil society organizations, including the Electricity Consumers’ Association (ECA), have slammed the deal for violating the country’s least-cost generation principle, warning that it places an undue financial burden on taxpayers and electricity consumers. With the plant expected to operate at high capacity, overpayments on energy alone are projected to exceed Rs. 50 billion annually.

ECA General Secretary Sanjeewa Dhammika has raised serious allegations of conflict of interest, pointing out that the agreement was signed during the tenure of former CEB Chairperson Dr. Tilak Siyambalapitiya, who simultaneously held the post of Chairperson at Sahasdhanavi’s parent company, LTL Holdings.

“This is a blatant violation of the Anti-Corruption Act No. 9 of 2023,” Dhammika said. “Dr. Siyambalapitiya approved a deal to purchase electricity from a company he was also heading. That’s a clear conflict of interest. He should have recused himself.”

Adding to the controversy, Dhammika questioned the actual fuel source of the plant. “Although the deal was presented as an LNG-based power project, Sri Lanka currently lacks infrastructure for LNG import or storage. It’s running on diesel, not LNG, and that could continue for at least five more years. This benefits only those profiting from diesel dependency.”

The ECA has filed a formal complaint with the Commission to Investigate Allegations of Bribery or Corruption, seeking an inquiry into the matter.

In response, Dr. Siyambalapitiya, who recently stepped down from his post at the CEB, defended the agreement, stating that the power plant is part of Sri Lanka’s Long-Term Generation Expansion Plan, endorsed by the CEB, the Public Utilities Commission of Sri Lanka (PUCSL), and the Government.

He emphasized that the procurement process began in 2022 and was conducted through a competitive bidding process managed by a Cabinet-appointed committee. “The contract was awarded in 2023 after thorough scrutiny and approvals from the Attorney General’s Department, the PUCSL, and other regulatory agencies,” he said.

On the conflict of interest allegations, Dr. Siyambalapitiya clarified, “The CEB Chairperson also serves ex officio as the Chairperson of LTL Holdings. This is publicly known and disclosed to all relevant authorities. The procurement and signing processes are handled within the framework of governmental procedure, with full transparency and legal compliance.”

He added that the 350MW combined-cycle plant is a critical infrastructure project aimed at ensuring energy reliability, especially during low solar and wind output. The plant, which uses regasified liquefied natural gas (R-LNG), is scheduled to operate on open-cycle mode within 30 months, and switch to combined-cycle mode 12 months later.

According to the CEB, the project will eventually reduce dependency on diesel and cut fuel costs by about 50% by 2028, when similar plants are expected to fully transition to R-LNG, improving both cost-efficiency and environmental impact.

Despite the CEB’s assurances, concerns about financial prudence and governance remain, with watchdogs calling for an independent review of the agreement. The issue continues to stir debate over energy policy, transparency, and the need for reform in Sri Lanka’s state-owned utilities.

Govt to Probe X-Press Pearl Legal Irregularities Amid Environmental Fallout

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By: Staff Writer

July 13, Colombo (LNW): The government is set to appoint a special committee within the next month to investigate alleged corruption and irregularities surrounding the legal proceedings linked to the X-Press Pearl maritime disaster, which caused one of the worst environmental crises in Sri Lanka’s history. This move was announced by Environment Minister Dhammika Patabendige.

The proposed committee will delve into the legal aftermath of the 2021 disaster, scrutinizing agreements made by the government and the effectiveness of compensation claims lodged on behalf of affected communities and the environment. It will also evaluate the controversial decision to permit the vessel’s entry into the Port of Colombo shortly before the incident.

The Singapore-flagged container ship X-Press Pearl caught fire and sank off the coast of Negombo on May 20, 2021, while carrying a cargo of hazardous chemicals including nitric acid and plastic pellets. The disaster caused widespread damage to marine ecosystems, polluted coastal waters, and devastated local fishing communities.

In its wake, thousands of complaints have been made regarding the government’s management of legal procedures and recovery of damages. Compensation efforts have been criticized for being inadequate. While the ship’s insurer has disbursed over Rs. 3,068 million for the fishing sector, only Rs. 1,463 million has been distributed so far across three rounds. A fourth round involving Rs. 1,605 million is expected soon, according to the Ministry of Fisheries.

However, environmental groups and legal experts argue that the insurance payout falls significantly short of the actual damages suffered. Legal action is still ongoing in Singapore and Australia, where Sri Lanka continues to push for a larger settlement.

In addition to economic losses, the ecological toll has been profound. Over 200 dead sea turtles were found along Sri Lanka’s coastline in the months following the incident. While some officials initially pointed to seasonal patterns during the ‘warakan’ monsoon period, investigations by the Department of Wildlife Conservation (DWC) confirmed that the deaths were directly linked to the toxic pollutants released from the burning and sinking vessel. Post-mortem reports showed traumatic brain injuries and other signs consistent with chemical exposure.

Former Coast Conservation Minister Nalaka Godahewa had initially downplayed the turtle deaths, citing the need to compare seasonal mortality statistics. However, expert findings have strongly implicated the maritime disaster.

The long-term environmental consequences remain a pressing concern. The incident led to the destruction of coral reefs, contamination of fishing areas, and significant marine biodiversity loss. More than 20,000 fishing families suffered livelihood disruptions, bringing renewed attention to the need for stronger maritime disaster preparedness and enforcement of environmental safeguards.

Environmentalists and maritime experts argue that Sri Lanka’s current legal and regulatory frameworks were ill-equipped to handle a disaster of this magnitude. The upcoming special committee is expected to recommend reforms to prevent similar disasters in the future and ensure transparency and accountability in legal proceedings.

With pressure mounting from civil society, legal circles, and affected communities, the government’s latest move may mark a crucial step toward justice and environmental restoration—if followed through with transparency and decisive action.

Raw Material Ban Drains Sri Lanka’s Palm Oil based product Forex Earnings

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By: Staff Writer

July 13, Colombo (LNW): Sri Lanka’s palm oil based industry, once a promising foreign exchange earner under the Indo-Sri Lanka Free Trade Agreement (ISFTA), continues to suffer heavy losses due to lingering policy confusion and bureaucratic red tape stemming from the crude palm oil (CPO) imports ban imposed by the Gotabaya Rajapaksa regime in 2021–2022.

At the heart of the issue is the continued restriction on crude palm oil imports, which has disrupted the operations of a BOI-approved companies that manufactures and exports hydrogenated palm oil, bakery shortening, margarine, and specialty fats.

Policy flip-flops and bureaucratic delays derail hydrogenated palm oil and bakery shortening exports under ISFTA costing country valuable foreign exchange earnings.

These products   exported at zero duty under the ISFTA with Sri Lanka entitled to export up to 250,000 tonnes annually, bringing in around US$32 million in value-added foreign earnings.

Therefore it has become an urgent need for the government to take a policy decision to remove the Former President Gotabya Rajapaksa’s ban on major raw material for manufacturing Palm based products as local companies in the industry are still facing  Palm Oil fiasco.

A reputed BOI registered company operating since 20O4, which holds a valid export quota of over 100,000 MT, recently placed an import order for 1,000 mt of Malaysian crude palm oil along with another 4000mt of palm based oil to meet growing demand from Indian clients.

This, follows favorable adjustments to India’s import duty re structure in 2024. The shipment, aboard the vessel MT Sheng Hang 002, arrived at the Colombo Port on May 19, 2025.

However, due to bureaucratic indecision and outdated policy interpretation, the cargo has been denied clearance.

The company first submitted its approval request to the BOI on April 29, 2025, with BOI recommending approval to the Controller of Import and Export Control by May 2, and further clearance sought from the Secretary, Ministry of Finance on May 15.

Despite these steps and follow-ups on May 7, 21, and 22, no directive was issued to Customs for release this parcel 

The company has already brought this matter to the notice of deputy finance minister and the Indian high commission in Sri Lanka to prevent the reoccurrence of such incidents damaging the best trade practice image of Sri Lanka  

This delay has incurred US$145,000 in vessel demurrage and an additional US$100,000 in re-shipment costs to India, leading to a total loss of around US$300,000 for the company.

The vessel was eventually to leave Colombo without offloading, severely damaging the firm’s reputation with international suppliers and jeopardizing future trade relationships—thereby undercutting valuable foreign exchange inflows.

Ironically, this same company had been granted special import permissions and issued a license during the ban period of 2021–2022, based on recommendations from both the BOI and Finance Ministry

These exceptions were granted by a committee comprising Secretary to the Finance Ministry, Controller Import and Export Department, DG .Trade and Investments, and Controller of Customs in recognition of the use of this raw material for manufacturing 100 percent export-oriented value added products  

The current impasse, therefore, reflects not a lack of precedent but a failure in policy clarity and administrative action.

U.S. Diplomat Eric Meyer tapped for Ambassadorial Post in Sri Lanka

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July 13, Colombo (LNW): Eric Meyer, a seasoned American diplomat, has been nominated to serve as the next Ambassador of the United States to Sri Lanka.

The nomination, announced by the White House, marks the latest diplomatic appointment by President Donald Trump, who has formally submitted Meyer’s name to the U.S. Senate for confirmation.

Meyer, a native of California and a long-serving member of the Senior Foreign Service, currently leads regional policy efforts as the Senior Bureau Official in the Bureau of South and Central Asian Affairs.

In this capacity, he plays a central role in steering U.S. foreign policy across a diverse and strategically significant region that includes countries such as India, Pakistan, Bangladesh, and Sri Lanka, among others.

Over the course of his diplomatic career, Meyer has held several high-profile overseas assignments. His recent postings include acting as the Chargé d’Affaires at the U.S. Embassy in Norway, and earlier, holding the same role while also serving as Deputy Chief of Mission in North Macedonia.

His tenure in Almaty, Kazakhstan, as the U.S. Consul General, saw him managing a broad range of diplomatic and interagency efforts in a key Central Asian post.

Within the State Department in Washington, Meyer has served in senior advisory roles where he was tasked with shaping regional strategy and ensuring cohesive policy execution across South and Central Asia.

Sri Lanka and China reaffirm strategic ties in high-level diplomatic meeting

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By: Isuru Parakrama

July 13, Colombo (LNW): Foreign Minister Vijitha Herath held bilateral talks with his Chinese counterpart, H.E. Wang Yi, during a diplomatic gathering on the sidelines of the ASEAN Foreign Ministers’ Meetings in Kuala Lumpur yesterday (12).

The meeting served to further consolidate the longstanding and multifaceted partnership between Sri Lanka and China, built over decades of mutual trust and strategic collaboration.

Minister Herath expressed Sri Lanka’s sincere gratitude for China’s continued support, particularly during times of national difficulty. He acknowledged Beijing’s steadfast backing in defending Sri Lanka’s sovereignty and territorial integrity, as well as its role in helping the island nation navigate recent economic headwinds.

He highlighted that China’s consistent cooperation has not only assisted in stabilising Sri Lanka’s internal affairs but has also significantly advanced infrastructure, trade connectivity, and development across key sectors.

From large-scale investments to capacity-building projects, the bilateral relationship has been instrumental in Sri Lanka’s growth trajectory.

Reaffirming Sri Lanka’s adherence to the one-China policy, Minister Herath noted the importance of aligning ongoing collaboration with the shared strategic vision established by the leaders of both nations. He pointed in particular to flagship Belt and Road Initiative (BRI) projects—such as the Colombo Port City and Hambantota Port—as cornerstones of future economic expansion and regional integration.

The discussions also explored potential partnerships in future-oriented sectors, including renewable energy, digital technology, agriculture, and maritime industries. Minister Herath welcomed China’s interest in broadening the scope of engagement to encompass innovation and sustainability, noting the potential benefits for both nations.

As the meeting concluded, both sides reaffirmed their mutual commitment to fostering a resilient and forward-looking partnership, underpinned by respect for national sovereignty and a shared vision for regional peace and prosperity.

President pursues deeper trade engagement with the US following revised tariffs

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July 13, Colombo (LNW): President Anura Kumara Dissanayake has affirmed his administration’s commitment to strengthening trade relations with the United States, emphasising that ongoing talks are aimed at securing further economic advantages for Sri Lanka.

Speaking during a high-level meeting with representatives from the export sector at the Presidential Secretariat this morning, the President highlighted recent progress achieved through diplomatic engagement.

He noted that negotiations with U.S. counterparts had already borne fruit, resulting in a significant reduction of a previously imposed reciprocal tariff—from 44 per cent down to 30 per cent.

This adjustment, he said, marks a meaningful step towards easing the burden on Sri Lankan exporters and enhancing the country’s competitiveness in international markets.

President Dissanayake underscored the government’s intention to continue policy reforms that deliver tangible benefits to local enterprises, while also safeguarding the broader interests of the national economy and improving quality of life for citizens.

“Our goal is to create an environment where Sri Lankan businesses can thrive globally,” he stated, adding that sustained dialogue with strategic international partners is essential in achieving long-term economic resilience.

The meeting also addressed key concerns raised by stakeholders regarding the anticipated shifts in U.S. trade policy, including the possible implications of the revised tariff framework. Participants explored strategies to adapt to emerging challenges while maximising new opportunities for growth in exports.

The President concluded by reaffirming his administration’s openness to feedback and collaborative decision-making, assuring the export community that their insights would play a central role in shaping future trade negotiations and economic reforms.

Severe weather alert issued for southern and western coastal waters

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July 13, Colombo (LNW): The Sri Lanka Meteorological Department has issued a high-level weather warning, cautioning of turbulent sea conditions and powerful winds expected to impact southern and western maritime regions over the next 24 hours.

The advisory applies in particular to coastal stretches between Galle and Pottuvil, passing through Matara and Hambantota, where sea conditions are anticipated to become extremely rough, with gusts ranging between 55 to 65 kilometres per hour.

Winds are also expected to intensify along sea areas from Galle to Puttalam via Colombo, where waters will likely be fairly rough, accompanied by wind gusts peaking between 50 and 55 kilometres per hour. Mariners are being urged to exercise heightened caution, as the adverse conditions could pose significant dangers, especially for small and medium-scale fishing vessels.

Forecasters warn of the potential development of strong swell waves along affected coastal belts, particularly from Puttalam to Pottuvil via Colombo, Galle and Hambantota. These swells may reach heights of 2.5 to 3 metres, bringing the risk of coastal surges and wave inundation in nearshore areas.

In light of the prevailing conditions, the Meteorological Department has strongly advised fishing and naval communities to suspend all activity in sea zones from Galle to Pottuvil, as the combination of gusty winds and large waves could threaten both vessels and crew.

Those operating in other parts of the island’s western and southern seas, particularly between Galle and Puttalam, have been urged to remain alert and monitor further weather updates.

Sri Lanka launches nationwide campaign to combat fraudulent investment scams

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July 13, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) is set to roll out a comprehensive, week-long public awareness initiative from tomorrow (July 14), aimed at tackling the growing threat of pyramid investment scams across the country.

Branded as the ‘Anti-Pyramid National Awareness Week’, the campaign will run until July 18 and is spearheaded by the Financial Consumer Relations Department of the CBSL.

Under the slogan “Pyramid is a trap – don’t get into the wrong track”, the campaign seeks to inform and educate the public on the dangers of illicit financial schemes disguised as legitimate investment opportunities.

These deceptive operations, which often promise quick returns, have ensnared thousands of unsuspecting individuals in recent years, leading to financial hardship and loss of trust in the broader financial system.

The awareness drive is expected to reach a broad demographic, including students, educators, public sector workers, police personnel, military and civil defence officers, and everyday citizens.

In an ambitious outreach effort, awareness sessions will be conducted through more than 6,000 schools and over 14,000 Grama Niladhari divisions, ensuring deep penetration into both urban and rural communities.

Participants will be educated on the legal framework that prohibits such schemes, the tell-tale signs of fraudulent investment models, and the harsh consequences faced by those who fall victim. Real-life stories from individuals affected by these scams will be shared to highlight the human and financial toll.

To maximise engagement, the campaign will be supported by a wide-ranging media strategy that spans traditional and digital platforms. This includes advertisements in print media, targeted social media messaging, informative posters, live-streamed discussions, as well as dedicated radio and television programmes. Public seminars and community meetings will also form a core part of the outreach.

The CBSL has called on citizens to stay informed and take an active role in the campaign, emphasising that public awareness is the most effective tool in curbing financial fraud.

Surge in overseas remittances bolsters Sri Lanka’s foreign income

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July 13, Colombo (LNW): Sri Lanka witnessed a notable rise in remittances from citizens working abroad, with foreign inflows reaching US$ 635.7 million in June 2025 alone.

This marks a substantial 22 per cent increase compared to the same month in the previous year, according to figures published by the Central Bank of Sri Lanka (CBSL).

From January through June this year, the total amount sent home by Sri Lankan migrant workers climbed to US$ 3.7 billion. This represents an 18.9 per cent year-on-year growth, reflecting a steady upward trend in foreign currency earnings through worker remittances.

These transfers remain a critical pillar of the nation’s external income, helping to stabilise the economy amid ongoing fiscal challenges.

For the entirety of 2024, remittances totalled US$ 6.57 billion, highlighting the consistent and vital contribution of Sri Lanka’s overseas workforce. The country’s labour migration continues at a significant pace, with 312,836 individuals officially recorded as having left Sri Lanka for employment opportunities abroad in 2024.

Officials attribute the rise in remittance flows to a combination of policy incentives, improved transfer mechanisms, and a gradual recovery in global labour markets, particularly in the Middle East and parts of Europe.