Top Defence officials hold talks on Jaffna land release

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A high-level meeting to evaluate the progress of releasing privately owned lands in the Jaffna and Palali areas currently under military use took place at the Parliament Complex on Tuesday (11).

The meeting was jointly chaired by Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar, Deputy Minister of Defence Major General Aruna Jayasekara (Retd) and Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku.

According to a Ministry of Defence statement, the discussion was held to accelerate the government’s efforts in resolving land-related issues, a cornerstone of the national reconciliation process.

Key matters discussed included finalizing boundary re-alignments, expediting the compensation process, prioritizing land plots for release, and overcoming administrative bottlenecks.

The Chairpersons stressed the importance of a transparent and equitable process that ensures rightful land owners regain access to their property without compromising vital defence infrastructure.

Members of Parliament, the Secretary to the Ministry of Defence, Tri-Forces Commanders, the Inspector General of Police, and other senior officials from the defence and administrative sectors also took part in the session.

Drug Mafia Debate Explodes in Parliament

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A heated debate erupted in Parliament today over the growing influence of drug mafias in Sri Lanka, with explosive allegations pointing to the involvement of security forces and political networks.

Minister of Fisheries Ramalingam Chandrasekar opened the discussion with a blunt warning: “Drug mafias are ruling the North today. The North is in turmoil. No politician has acted to resolve this situation. Even if you take Sajith’s group and everyone here, this mafia was created not yesterday, but since 1978, causing devastation.”

Gajendrakumar Ponnambalam, MP (Tamil National People’s Front) countered: “The main reason for drugs in the North and East is the military. When will you withdraw the military?”

Chandrasekar responded with alarming details:
“In the past two months, over a hundred children have been sent abroad because of this drug mafia. No evidence is needed—you’ll understand if you live in Jaffna. This is the reality on the ground. You said the military is responsible. You also said the police are involved. There’s truth in that. The police and military are not separate—they are linked with the mafia. And Tamil politics is also tied to this mafia.”

Ponnambalam welcomed the admission but pressed further: “Minister, I appreciate your acknowledgment that the military and police are involved. Previous governments never admitted this. You spoke of a mafia—until accountability is ensured within the military, this mafia will not disappear. You know in the North, there are two soldiers for every two civilians.”

Chandrasekar clarified: “We cannot accuse the entire military or police. There are individuals involved, yes. But don’t forget—your political parties, your allies, and even members of your own party are backing these mafia groups.”

Deputy Minister of Defense, Major General (Retired) Aruna Jayasekara, defended the government’s strategy: “It’s a professional task requiring a strategic approach. That’s why we launched the national anti-drug operation on October 31. Every sector is covered, and Rs. 1,500 million has been allocated in the budget for drug control programs. Last year, we saw results. This year alone, through these operations, we seized 20,000 kilograms of drugs. If these drugs had circulated, the impact on governance, peace, and society would have been catastrophic.”

The debate intensified when MP Rishad Bathiudeen alleged direct collusion: “You said the police and military are involved—let me give you proof. The OIC of Norochcholai called a drug dealer and said, ‘Six more people are coming, get everything ready. Don’t pay the monthly fee, just give Rs. 50,000.’ There’s an audio recording. In that area, he’s the one responsible for all drug operations. Full support. No action has been taken against him yet. Investigate and act.”

Jayasekara assured: “We will investigate and take action. Thank you for the information.”

What is the Real Reason PayPal Isn’t Available in Sri Lanka?

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Sri Lanka’s inability to fully integrate global payment gateways like PayPal stems directly from a failing within the country’s own regulatory framework, according to prominent economist Dr. Weerakoon R. Wijewardena.

Speaking on a recent podcast with Sanjaya Elvitigala, Dr. Wijewardena argued that the fault for PayPal’s limited operation rests squarely with the Central Bank of Sri Lanka (CBSL) and its Monetary Board.

The core issue, he explained, is that while the CBSL has approved the receipt of funds (inflows) via PayPal, it continues to block outgoing payments (outflows). PayPal has reportedly indicated it is unwilling to operate a one-way system and will only launch full services in Sri Lanka if both inflows and outflows are permitted.

Dr. Wijewardena attributed the Central Bank’s reluctance to its critical concerns over the nation’s low foreign exchange reserves.

“The Central Bank’s fear is that fully opening PayPal could lead to a sudden high outflow of foreign currency, similar to the issues created when vehicle imports were permitted,” he noted.

Sri Lanka’s current Net Foreign Assets (NFA) stand at approximately USD 1.9 billion. According to the analysis presented, Sri Lanka would ideally require reserves of at least USD 20 billion, based on IMF criteria, to ensure economic robustness and allow for free transactions without risking instability.

This regulatory impasse creates a significant hurdle for local freelancers and small businesses, who are often the primary users of such gateways.

Dr. Wijewardena highlighted that even with inflows technically approved, PayPal itself often blocks transactions with Sri Lankan banks because it cannot conduct “free transactions.”

He contrasted PayPal’s high efficiency and low-commission model with current alternatives, such as using credit cards for foreign payments, which typically incur high fees of around 3%.

The economist also pointed to a policy inconsistency, noting that Sri Lankans already use other online platforms, such as AliExpress and Daraz, to make payments abroad.

Dr. Wijewardena dismissed any notion that the integration is technically complex. He clarified that PayPal acts merely as a facilitator or “payment gateway” and does not require registration as a separate financial institution in Sri Lanka or bespoke agreements with local banks.

Citing PayPal’s successful deployment in other developing nations like the Philippines, he insisted integration is entirely feasible.

The authority to resolve the issue, he stressed, lies exclusively with the Central Bank and its Monetary Board and does not require approval from Parliament.

The discussion concluded with a strong recommendation for citizens and industry stakeholders seeking change: “The public should lobby directly to the independent Central Bank, specifically the Monetary Board, rather than appealing to politicians, to push for this policy change.”

Committee report on repeal of PTA submitted to Justice Minister

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President’s Counsel Rienzie Arsecularatne, chair of the committee appointed to review and make recommendations on the repeal of the Prevention of Terrorism Act (PTA), has officially handed over the committee’s report and recommendations to Minister of Justice Harshana Nanayakkara.

The Ministry of Justice and National Integration announced on April 13 that the committee had been established to study the repeal of the PTA and propose appropriate legislative measures.

The committee was also tasked with obtaining input from civil society organizations and feedback from international institutions and communities to ensure a broad and inclusive reform process.

A preliminary discussion regarding the repeal of the PTA was held on April 11 under the leadership of Minister of Justice and National Integration, Attorney-at-Law Harshana Nanayakkara, at the Ministry premises.

During the discussion, Minister Nanayakkara reiterated that the repeal of the Prevention of Terrorism Act is a policy priority of the current government.

He emphasized that any new legislation introduced must be capable of addressing contemporary global terrorism challenges while upholding constitutionally guaranteed human rights and freedoms of expression, in line with international standards.

The Ministry of Justice further stated that past governments have not acted with due diligence in bringing about these legal reforms, and that the appointed committee has been instructed to concretely identify the relevant matters for repealing the Act within a short timeframe.

SLPP and UNP hold talks ahead of anti-Govt. rally

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Key leaders of the Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP) met yesterday to discuss coordination and participation for the Opposition-led protest rally scheduled for 21 November in Nugegoda.

The rally is aimed at holding the National People’s Power (NPP)-led Government accountable and urging it to fulfill its election promises.

The meeting, held at former President Ranil Wickremesinghe’s party office in Flower Road, focused on the objectives of the rally, expected public participation, and the coordination among opposition parties.

Following the meeting, speaking to the media, SLPP MP Namal Rajapaksa said the rally is intended to remind the Government of its commitments to the people and address grievances arising from policies. “Several opposition parties are participating in the discussions. In the past, discussions were held only within the SLPP, but today we met with the UNP to ensure the success of the rally,” he said.

Rajapaksa added that the event will serve as a platform for citizens affected by government policies to express their concerns. “Many people affected by government policies will join the rally,” he noted.

The SLFP and UNP have confirmed their participation, while other opposition parties are expected to announce their involvement following internal consultations. The rally is anticipated to be one of the major opposition-led demonstrations in recent months.

Millions of plantation funds misused by politicians – Minister

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Plantation and Community Infrastructure Minister Samantha Vidyarathna told Parliament yesterday that funds provided through the World Bank-funded Agriculture Sector Modernisation Project (ASMP) to develop Sri Lanka’s plantation sector have been misused and given to relatives, secretaries and friendly government officials of former Ministers.

The Minister said the funds distributed through this project have been disbursed to followers.Rs.14 million to former Minister Daya Gamage’s wife Anoma Gmage owned company, Rs.8 million to former Minister Daya Gamage’s Secretary Bandula Wickramaarachchi’s son, Rs. 18 millon to former Minister Roshan Ranasinghe’s wife, Rs.18 million to former Navy Commander Wasantha Karannagoda, Rs. 37 million to former Minister Lakshman Seneviratne’s son and Rs. 48 million to former Minister Mahinda Amaraweera’s brother.

Later, during the follow-up conducted by the World Bank, it was proven that those who received the money had not carried out any estate development project.

Since this money was misused, the World Bank instructed us to pay the money back.

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India extends grant assistance for Sri Lanka’s community development projects by five years

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A Memorandum of Understanding (MoU) for implementation of High Impact Community Development Projects (HICDPs) in Sri Lanka through grant assistance from the Government of India was signed and exchanged by High Commissioner of India to Sri Lanka, Santosh Jha, and Secretary of the Ministry of Finance, Planning and Economic Development, Harshana Suriyapperuma, on Tuesday (11), extending the existing framework for another five years.

The HICDP framework has been designed to contribute to the developmental aspirations and needs of Sri Lanka through relatively small but highly impactful developmental initiatives implemented in coordination with the Government of Sri Lanka, while maintaining the funding of large and medium scale developmental projects, as well as special financial assistance packages.

The capital cost of a project covered under the HICDP framework is capped at SLR 600 million and the total capital cost of all such projects taken up for implementation at any time is capped at LKR 10 billion. Projects under the framework are entirely based on the requirements of the people and the priorities of the Government of Sri Lanka.

The Governments of India and Sri Lanka first entered into a MoU for implementation of such a framework for a period of five years in June 2005.

Noting the high utility of the implemented projects for socio-economic development in Sri Lanka, particularly in the education, health and community development sectors, and based on request from the Government of Sri Lanka, the framework has been extended thrice to date, in 2010, 2015 and 2020.

The MoU signed on 11 November is thus the fourth extension of the framework for a period of another five years.

Over 50 HICDPs have successfully been implemented in Sri Lanka until now with Indian grant assistance.

Some notable instances include construction of a new surgical unit at Teaching Hospital Batticaloa, construction of 115 houses and infrastructure facilities at Ven. Sobitha Nahimigama in Anuradhapura, construction of Mahatma Gandhi Community Centre in Matale, supply of 110 buses to educational institutions across Sri Lanka, renovation of Duraiappah Stadium in Jaffna, upgrading 70 crèches in the estate sector to assist mothers employed in tea estates, construction of buildings of faculties of Engineering and Agriculture at University of Jaffna, Killinochchi campus, construction of buildings for Department of Kandyan Dance at Pallekele under Sri Dalada Maligawa, establishment of Rabindranath Tagore Memorial Auditorium at Ruhuna University, among others.

A total of 21 HICDPs are currently under implementation with a total outlay of over SLR 7 billion.

Notable instances include construction of model villages each of 24 houses in every district of the island, establishment of smart classrooms and computer labs in 200 schools in the Southern Province, supply of single cabs for use in police stations in Sri Lanka, among others.

Most recently committed projects under the scheme include establishment of 60 smart classrooms in selected schools in plantation areas, rehabilitation of Karainagar boatyard, and construction and supply of medical equipments for Accident and Emergency Unit at District General Hospital, Mannar.

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Sri Lanka’s budget sticks to fiscal consolidation path: Fitch

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The Sri Lankan government’s latest budget indicates that the authorities remain committed to reducing government debt/GDP over the medium term after beating their targets in the 2025 budget. Fitch Ratings believes sustained strong revenue performance will remain key to meeting the government’s fiscal goals.

The budget, unveiled on 7 November, targets a deficit of 5.1% of GDP in 2026, wider than the 4.5% that the government expects in 2025. The original deficit target for 2025 in last year’s budget was 6.7% of GDP, but in March the IMF projected a lower figure of 5.4%. The latest budget forecasts the primary balance before interest payments will remain in surplus at 2.5% of GDP in 2026, down from an expected 3.8% in 2025, but still above the 2.3% target under Sri Lanka’s IMF programme. The government aims to reduce the fiscal deficit to 3.8% of GDP by 2030 under its medium-term fiscal framework.

Continuing to meet the key fiscal markers laid out in the IMF programme would help the authorities to improve Sri Lanka’s policy-making record. Macroeconomic stability would also benefit. The official budget deficit projection for 2026 is wider than the 4.6% of GDP that we anticipated when we affirmed Sri Lanka’s rating at ‘CCC+’ in October 2025, and the primary surplus is marginally lower. However, the effect on Sri Lanka’s debt trajectory could be more than offset by the over-performance in 2025, when we had expected a budget deficit of 5.4% and a primary surplus of 2.4%.

The government expects revenue/GDP to decline to 15.4% in 2026, from 15.9% in 2025, although this is still above Fitch’s projection for 2026 of 15.3%. Failure to maintain growth in tax revenue in line with GDP could over time add to the fiscal stresses on Sri Lanka’s credit profile.

The government assumes taxes from external trade will drop 1.2% in 2026 after a surge in vehicle imports lifted revenues this year. It also projects goods and services taxes will rise just 3.5%, with income taxes up 8%. We view the goods and services tax projection as conservative, given that the authorities expect nominal GDP to increase by over 7% and new measures such as a lowering of the threshold for VAT registration and improvements to the tax auditing process could support revenue growth. Upside surprises to import growth could also result in higher tax inflows, although Sri Lanka’s external balances could face additional pressure under such a scenario.

The outperformance in 2025 was partly driven by underspending, with the public investment/GDP ratio significantly below target, at 3.2% against the original goal of 4%. Shortfalls in implementing planned investment spending could weaken the economy’s growth potential, making longer-term fiscal consolidation more challenging. That said, the latest budget highlights several measures that have the potential to lift investment and benefit growth. These include the resumption of an expansion of Colombo’s international airport, a LKR342 billion (1% of 2026 Fitch-estimated GDP) allocation towards road development, tax incentives for the construction of digital infrastructure, and planned legislation to increase the use of public-private partnerships in infrastructure projects.

Sri Lanka’s high government debt remains a key weakness for the sovereign credit profile. In our October assessment, we projected that gross general government debt/GDP would fall to about 96% in 2027, from 100.5% in 2024, remaining well above the median of 74% for sovereigns in the ‘CCC’ rating category. The scheduled end of the IMF programme in 2027 and our expectation that debt repayment obligations will step up from 2028 add to the risks facing the debt outlook over the medium term.

Two suspects including Aava Gang’s leader ‘Vinod’ arrested

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Two suspects including ‘Vinod,’ believed to be the leader of the notorious criminal gang operating in the Northern Province, known as ‘Aava Gang’, have been arrested by Chunnakam Police.

According to police, ‘Vinod’ was found in possession of 2 grams and 400 milligrams of heroin at the time of arrest yesterday (11).

His accomplice was arrested with a hand grenade and a sword, police said.

The arrests were made during a special raid conducted by the Chunnakam Police.

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SLPP and SLFP reunite for November 21st rally

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Former Ministers Namal Rajapaksa, Johnston Fernando and D. V. Chanaka today visited the Sri Lanka Freedom Party (SLFP) headquarters for discussions with the party leadership.

SLFP Chairman Nimal Siripala de Silva, along with Duminda Dissanayake, Lasantha Alagiyawanna, Anura Priyadarshana Yapa, and Chamara Sampath Dassanayake, were also present at the meeting.

Following the discussions, Namal Rajapaksa told reporters that talks focused on the opposition rally scheduled for November 21. “After several years, we returned here for discussions about the upcoming rally that will expose the government’s lies to the public,” he said.

Rajapaksa added that despite policy differences, opposition parties are uniting to reveal what he described as government deception. “We have discussed with all opposition parties and expect everyone to join. Let’s see what happens on the 21st,” he remarked.

Criticizing the government’s performance, he said that many of the promises made during the last budget remain unfulfilled. “The President spoke for four and a half hours, but nothing he said has been delivered. Who requested the import of double cabs? From which ministry? Our MPs don’t need those vehicles—we’re giving them to the Health Ministry,” he said.

Meanwhile, SLFP National Organizer Duminda Dissanayake said the discussion centered on the November 21 opposition rally. “The government is misleading the public. We are coming together not to ask for an election, but to expose falsehoods and injustice. Regardless of our policy differences, we are united for the people,” he said.

He added that the government had failed to fulfill its promises and predicted a setback at future elections. “They are the same people who once brought youth and students to the streets with promises. Now they say no one should protest. Let’s see how they face the next election,” Dissanayake said.

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