Chinese envoy hails ‘multi-faceted’ bilateral exchanges between Sri Lanka and China

Chinese Ambassador to Sri Lanka Qi Zhenhong has reaffirmed their enduring friendship with Sri Lanka, highlighting strong bilateral cooperation in development projects, public welfare initiatives, and crisis response.

The two countries have stood together through challenges such as the Covid-19 pandemic, economic crises, kidney disease, and flood relief efforts, Ambassador Qi Zhenhong said.

Ambassador Qi made these remarks in a statement of commemorating the 76th anniversary of the founding of the People’s Republic of China. He noted that earlier this year, President Anura Kumara Dissanayake’s visit to China resulted in significant understandings with President Xi Jinping, including jointly building a China-Sri Lanka community with a shared future and elevating bilateral relations to a new level.

Ambassador Qi highlighted that cooperation between the two countries spans major infrastructure and livelihood projects from the Colombo Port City and Hambantota Port improvements to the Central Expressway Project, integrated water supply schemes, school donations, free cataract surgeries, and refurbishment of public institutions.

“Our bilateral exchanges are multi-faceted. From daily people-to-people engagement to frequent high-level visits on state governance, from the new progress of the Colombo port city to the improved performance of the Hambantota port, from the full resumption of the Central Expressway Project Section one to the Gampaha, Attanagalla, and Minuwangoda Integrated Water Supply Scheme, from the donation of stationery and fabric for school uniforms to the free cataract surgeries, and from the Out-Patient Department building of the Sri Lankan National Hospital to the refurbishment of the Superior Courts Complex, among many others, these vivid examples of both major and livelihood projects showcase the all-round advancement of our bilateral relations,” he said.

He concluded his statement with a message of goodwill: “We wish China and Sri Lanka greater prosperity and everlasting friendship.”

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Wasantha Karannagoda & Gotabaya Rajapaksa: Free For How Long? By S. Ratnajeevan H. Hoole

The Office of the High Commissioner for Human Rights (OHCHR) based on the mandate it received established “OHCHR Investigation on Sri Lanka (OISL).” As a part of this, on 21 July 2025, there was a 15-page report on enforced disappearances in Sri Lanka released. The relevant Mandates werebreceived by 1) The Special Rapporteur on the promotion of truth, justice, reparation and guarantees of non-recurrence; 2) The Working Group on Enforced or Involuntary Disappearances; 3) The Special Rapporteur on extrajudicial, summary or arbitrary executions and 4) The Special Rapporteur on the independence of judges and lawyers.

The report is a good reminder of what the Sri Lankan state does and gets away with. It also reminds us how horrid our state is, and how many important reports like this in the English language tend not to force their attention upon us the public.

The report’s purpose is to “bring to the attention of your Excellency’s Government [I,e., the government of President A.K. Dissanayake [AKD]] “information [the authors of the report] received concerning the prolonged failure to investigate effectively, prosecute and punish those responsible for gross human rights violations, including extra-judicial executions and enforced disappearances, within the context of the Sri Lankan civil war.”

In particular, the report highlights the following high-profile cases: Trinco 5, ACF, Navy 11, White flags, Channel 4, Mullaitivu mass grave and the Chemmani mass graves each of which involves multiple victims.

Wasantha Karannagoda and Gotabaya Rejapaksa: Consistency?

Today under AKD, many are being investigated, charged and jailed for their crimes against the people of Sri Lanka.

Unfortunately, there is no consistency on who is jailed upon conviction. While all who are credibly accused and arrested, like Ranil Wickremesinghe, must face the music, some who are being prosecuted appear to have the system on their side. Gotabaya Rajapaksa seems happily free while Karannagoda has seen feeble efforts against him to bring him to book. Both seem to be heroes among the Sinhalese for the murders they are accused of, as if the accusation of killing Tamils even for the venal purpose of collecting ransom makes one great in Sri Lanka.

To be sure, even these two men who are accused of the brutal murder of Tamils, have been sanctioned by the US and Canada. As a Tamil, I firmly believe that we as a community will never receive justice through investigations under the Sri Lankan state. I have seen obviously planted press stories on the Chemmany massacre claiming that facts leading to conviction will be brought out only when Sinhalese soldiers are in charge of investigations, devoting to such stories far more column-inches well above the norm. The Bar Association condemned Darusman’s 2011 Report to the UN Secretary General on the Mulllaitivu massacre even before it was released, with eminent Tamil lawyers present at the meeting allowing the condemnation to be unanimous!

Sri Lankan justice does not exist for Tamils. Credible justice will come only when foreign participants play a strong and moderating role.

The OISL Report

As seen in the report, “14 individuals including Naval Commander Karannagoda were indicted in 2019. The charges against Karannagoda were dropped in 2021.

In 2023, the Attorney-General decided not to implement the decision of a Commission of Inquiry to drop charges and went ahead with prosecutions. In March 2025, two Supreme Court judges [namely Dilip Nawaz and Priyantha Fernando], recused themselves from a case involving former Sri Lankan Navy Commander Wasantha Karannagoda, citing “personal reasons”. The UNP Protested that Mr. Jaywardene “was Basil Rajapaksa’s [that is Mahinda Rajapaksa’s. brother’s] personal lawyer at the time he was appointed to the Supreme Court in 2014 A newly appointed bench is expected to re-hear the case on 15 September 2025.”

That recusal in March 2025, led to a further six-month delay in a trial already delayed by the AG’s inconsistent and unexplained flipflops. On 15 Sept. when the Supreme Court took up the case, it postponed the hearing to 30 Jan. 2026. Karannagoda seems well-looked after, comfortably ensconsed in impunity.

While the Report cites a Commission of Inquiry for why the AG Charged Karannagoda, no major newspaper seems to have carried it. The Asian Mirror with little known of who owns it, waffles a little (15 Sept. 15) and says that “In 2019, the Attorney General filed indictments before the Colombo Permanent High Court Trial-at-Bar against 14 individuals, including former Navy Commander Wasantha Karannagoda and members of the Navy’s intelligence unit, [and that] during proceedings, the Attorney General decided to drop Karannagoda’s name from the list of accused, despite previously naming him a suspect based on what the petitioners say was sufficient evidence.”

Since when does the AG file charges based on what private individuals say? To frame charges initially the AG must have had evidence against Karannagoda. It stinks of a coverup by the Deep State in collusion with the weaker sections of the press and the judiciary, increasingly being tools of Sinhalese nationalism.

The Commission of Inquiry

Interestingly, we discern a dirty nexus between Karannagoda and Gotabaya Rajapaksa. The unnamed Commission that made the charges by the Attorney General to be dropped suddenly on grounds of lack of evidence after concluding there was sufficient evidence to charge Karannagoda, was none other than “The Presidential Commission on Political Victimization.” This commission was appointed (that is its members hand-picked) by Gotabaya in January 2020, “to investigate ‘political victimization’ under the previous government.

The irony is that Gotabaya himself is cited by the OISL Report as ordering the army to shoot surrendering LTTE personnel who were indeed shot dead following his orders. He therefore had much at stake in founding this Godforsaken, evil Commission to ensure that he himself is not charged based on the precedent set by Karannagoda’s acquittal!

The Commission’s mandate was used to intervene in ongoing court cases, particularly those involving military officials accused of human rights abuses and corrupt practices in military and aircraft purchases, wrote Human Rights Watch (30 April 2021). The Commission effectively blocked the prosecution against Karannagoda and other military figures.

The three members of the Commission bathed in everlasting ignominy flowing fm their report are Retired Supreme Court Judge Upali Abeyratne (chairman), Retired Court of Appeal Judge Daya Chandrasiri Jayatilleka, and Retired Inspector General of Police (IGP) Chandra Fernando.

That tar brush of shameful ignominy resulted from August 2024 when the Supreme Court nullified the findings of the report. For that cover-up report by the 3 Commissioners, one is reminded of Sir (Saint) Thomas More’s rebuke to his protégé Richard Rich who was made Attorney for Wales for the false witness he provided to Henry VIII against More. Asked More of Rich, “It profits a man nothing to give his soul for the whole world… but for Wales?”

Where are the three commissioners today? What was their Welsh post if any?

It is equally edifying to Sri Lanka as a nation to do a parallel inquiry into why the two supreme court judges recused themselves, keeping in mind that Attorney-at-law Nagananda Kodituwakku has formally charged most SC judges with corruption, and when he demanded that they recuse themselves from his cases, they all refused. A thick judicial skin indeed!

As if in vengeance, Kodituwakku’s ability to practice law has been curtailed, just the way Justices Sarath Silva and Shiranee Tilakawardane suspended the late Elmore Perera citing his rude body language. It is on record that Tilakawardane with N.E. Dissanayake signed “I do” to the vulgar and contemptible “Helping Hambantota” judgement in which Chief Justice Sarath Silva effectively boasted of doing Mahinda Rajapaksa a favour and thereby demeaned the judiciary at the highest levels. As CIABOC goes after bribery and corruption in the judiciary, it has its work cut out or it.

In August 2021, the Attorney General’s Department announced it would not proceed with the charges against Karannagoda, leading to his acquittal.

In 2023, the United States sanctioned Karannagoda for gross human rights violations and prohibited him and his wife from entering the US.

In 2025, the UK also sanctioned Karannagoda for serious human rights violations. Pictured here are Admiral Karannagoda and his protectors, the Rajapaksa brothers. These two also have been sanctioned with travel bans.

Onus on President AK Dissanayake to Put Big Criminals behind Bars

People like Mahindananda Aluthgamage and Nalin Fernando, S.M. Chandrasena , Sathasivam Viyalenderan , Rajitha Senaratne, Shasheendra Rajapaksa, Keheliya Rambukwella , A.H.M. Fowzie et al. have already faced the courts. President

AKD is doing right. Let him proceed.

However, while Arjun Aloysius is being dealt with, prosecuting Ranil Wickremesinghe seems a lukewarm effort when we know little about the Central Bank Scandal and CIBOC’s going after Minister of Finance Ravi Karunanayake seemingly paying for an apartment involving Aloysius. And Arjuna Mahendran?

Charging Ranil, it seems to me is tokenism when there are far bigger crimes to investigate and bigger fish to net.

Everything Fortuitous or Divinely Providential for Karannagoda

AKD needs to explain honestly unlike his sixers about an immediate boat service from Mannar to Talaimannar and a stadium in Jaffna with no funds or water or environmental clearance clearance.The tendency to hit boundaries and sixers, is seen in his hit about the stadium on 1 Sept 2025 just a week before the UNHRC hearings on Sri Lanka – not to mention the prividential date of 15 Sept for Karannagoda’s trial also in the middle of the UNHRC which then again fortuitouly gets postponed to 30 January with no loss to Karannagoda! But AKD himself seems to be pulling wool over our eyes. What is happening to the Central Bank scandal? To his minister of finance and UNP colleague Ravi Karunanayake for a case filed on 17th May 2024 for accepting an apartment from Arjun Aloysius, a director of a primary dealer company.

And the really big fish, the Rajapaksa brothers against whom there seems to be much evidence for those who care to look; not least in diverting an aircraft to carry a puppy, the misuse costing a lot more than what Ranil is accused of misusing on his stop-over in London, however wrong that was. And the OISL report’s contention that Gotabaya ordered surrendering LTTE people to be shot and that they were?

Justice must be blind and its decisions repeatable – not saying enough evidence one day and the opposite the next. Let us get these investigations behind us and move on to building a nation where equality is the most supreme value that we cherish.

Source:ColomboTelegraph

US tariffs bite into SL growth, says ADB

The Asian Development Bank (ADB) said yesterday that growth in Sri Lanka will be held back in 2026 by new US tariffs on key exports, even as momentum remains intact this year.

“These developments will likely tamp down the impact on the economy this year from a 20% tariff imposed on Sri Lankan exports to the US, mostly garments and rubber. But the tariffs will be more of a headwind, holding back external sector performance and consumption in 2026 because of possible job losses, both directly and indirectly,” the ADB said in its latest report released yesterday titled ‘Asian Development Outlook: Growth Slows as New Global Trade Environment Takes Shape’.

It said that US tariffs have soared to historic heights amid continued elevated trade policy uncertainty. Though generally lower than announced on 2 April, the additional tariffs that took effect in August are historically high. From 2.4% in 2024, the average effective US tariff rate has surged to 17.4%, the highest since the Great Depression of the 1930s.

Trade policy uncertainty remains at very high levels, despite easing from April’s peak, the ADB said.

“Uncertainty is fuelled by announcements of several bilateral US trade agreements without finalised terms, the prospect of new US sectoral tariffs on pharmaceuticals and semiconductors, and possible revisions to tariffs already in place”.

For Sri Lanka, ADB said growth in 2025 is forecast to remain unchanged at 3.9%, supported by manufacturing, construction and services, after the economy expanded by 4.8% year on year in the first quarter. It forecasts growth to slow down to about 3.3% in 2026.

Industrial production rose 5.1% in the first half, approaching pre-crisis levels, while private credit grew 19.6% in July, driven by vehicle imports, low interest rates and a favourable business outlook.

Inflation returned in August after months of deflation, though price pressures remain subdued. Headline inflation fell 1.7% year on year in the first eight months of 2025, compared with a 0.5% increase a year earlier, as transport and energy costs declined.

The Central Bank cut its policy rate by 25 basis points in May and held it at 7.75% in July. Average inflation for 2025 has been revised down significantly to O.5% while the 2026 forecast is unchanged at 4.5% on expectations of gradually rising food and energy prices.

The current account surplus grew by 30.2% in the first half of 2025 on the back of strong remittances and steady tourism earnings. Imports rose 12.4% during the period, reflecting a surge in vehicle imports, while exports grew 5.7%.

Workers’ remittances rose 19.3% and tourism earnings increased 8.4%. Gross official reserves stood at $ 6.2 billion at end-August, covering 3.7 months of imports, only slightly higher than December 2024, as debt service payments resumed.

The IMF completed Sri Lanka’s fourth Extended Fund Facility review in July, with disbursements totalling $ 1.74 billion so far. Debt restructuring moved forward with agreements reached with France, India, Hungary, Japan, Saudi Arabia and the United Kingdom in 2025.

The ADB said risks remain elevated. These include a stronger-than-expected impact from the US tariffs, volatility in the Middle East affecting remittances, swings in energy prices, and a potential global slowdown that could weaken tourism and external demand. Domestically, weather-related disruptions could weigh on agriculture and food prices.

In August, economic think tank Institute of Policy (IPS) warned that the 20% reciprocal tariff unilaterally imposed by the Trump administration could lead to export losses of $ 634 million and put nearly 16,000 jobs at risk, mostly female workers in the apparel industry.

With a quarter of Sri Lanka’s total exports facing at least a 20-percentage-point increase in tariffs, the trade-weighted effective tariff rate will be 29.9%, compared to 10.20% in April 2025. Sri Lanka’s main exports to the US, apparel and rubber products, will face effective tariff rates of 36.8% and 20.2%, respectively, it said.

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Institutional corruption persists even under new Govt: U.S

Institutional corruption persists, particularly within sectors protected by entrenched vested interests, even under the current government, though high-level political bribery solicitation appears to have diminished, according to the U.S. statement on Sri Lanka’s investment climate.

The report, released recently, said endemic corruption and a lack of transparency in public procurement have historically inflicted significant economic losses on Sri Lanka, and these factors deter foreign direct investment, particularly in large infrastructure sectors where top global companies often remain absent.

The statement on Sri Lanka says that despite legal prohibitions, practices such as accepting unsolicited project proposals and tailoring tender specifications to favour specific companies reportedly remain common.

The government strengthened its anti-corruption framework by passing comprehensive legislation in July 2023 aimed at enhancing enforcement capabilities.

The President has publicly committed to eradicating corruption and enhancing governmental transparency. Provisions addressing conflicts of interest remain vague, and enforcement mechanisms are ineffective.

Listed companies generally have codes of conduct to prohibit bribery of public officials. However, privately owned companies – especially those involved in infrastructure projects and imports – do not generally adhere to these guidelines. Sri Lanka is a party to the United Nations Convention Against Corruption (UNCAC), according to the report.

Colombo inflation climbs to 1.5% in September

The overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI) on Year-on-Year basis, has increased to 1.5% in September 2025, compared to 1.2% in August 2025, according to the latest data released by the Department of Census and Statistics.

The CCPI for all items for the month of September 2025 was 193.7 and it records an increase of 0.4 index points compared to the month of August 2025 for which the index was 193.3.

The Y-on-Y inflation of Food Group increased to 2.9% in September 2025 from 2.0% in August 2025 and the Y-on-Y inflation of Non Food Group decreased to 0.7% in September 2025 from 0.8% in August 2025.

For the month of June 2025, on Y-on-Y basis, the contribution to inflation by food commodities was 0.94%.

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Sri Lanka reaffirms commitment to UN Committee on Enforced Disappearances

Sri Lanka has reiterated its commitment to tackling enforced disappearances and strengthening democratic institutions during the country’s first presentation to the UN Committee on Enforced Disappearances (CED) in Geneva, the island nation’s Foreign Ministry said.

Minister of Justice and National Integration Harshana Nanayakkara, led the Sri Lankan delegation to last week’s 29th Session of the CED.

The Minister underscored that engaging with the Committee on Enforced Disappearances was not merely a reporting obligation, but an opportunity to strengthen national frameworks, uphold accountability and ensure that the rights and dignity of all persons are safeguarded in line with international standards.

The Minister highlighted the work of the Office on Missing Persons (OMP), Office for Reparations (OR) and the Office for National Unity and Reconciliation (ONUR), stressing that these institutions remain central to ongoing efforts to address grievances and restore public trust.

“The Minister further elaborated the vision of the Government to make democratic institutions stronger to enhance public trust, and to bring political, economic and social stability,” the Foreign Ministry said in the statement.

“In this respect, he underscored that engaging with the Committee on Enforced Disappearances was not merely a reporting obligation, but an opportunity to strengthen national frameworks, uphold accountability and ensure that the rights and dignity of all persons are safeguarded in line with international standards.”

Sri Lanka signed the International Convention for the Protection of All Persons from Enforced Disappearance in 2015 and ratified it a year later, though the issue remains deeply sensitive following decades of civil conflict.

Nanayakkara reminded the Committee that Sri Lanka had a long-standing practice of investigating complaints of disappearances even before the Convention was formulated in 2006.

By reaffirming its stance before the UN, analysts note, Sri Lanka is seeking to balance international expectations on human rights with its domestic priorities, at a time when post-war reconciliation remains unfinished and politically contested.

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Tokyo Talks: Sri Lanka Secures UAVs, Backs Free Indo-Pacific Vision

Sri Lankan President Anura Kumara Dissanayake and Japanese Prime Minister Ishiba Shigeru reaffirmed their commitment to deepening bilateral security and strategic cooperation during high-level talks in Tokyo on Monday. The meeting marked a significant step in advancing defense collaboration and regional stability in the Indo-Pacific.

Both leaders emphasized the importance of enhancing Sri Lanka’s security and deterrence capabilities to safeguard peace in the Indian Ocean Region. In a landmark move, Japan announced the provision of advanced Unmanned Aerial Vehicles (UAVs) to Sri Lanka under its first Official Security Assistance (OSA) initiative. The UAVs will bolster maritime surveillance and disaster relief operations, reinforcing Sri Lanka’s role in maintaining regional security.

President Dissanayake expressed gratitude for Japan’s continued support in humanitarian and post-conflict initiatives, particularly its longstanding contribution to Sri Lanka’s mine action program. Japan’s assistance in demining has been instrumental in advancing national reconciliation and community development in former conflict zones.

The two leaders also exchanged views on regional and global issues, reaffirming their shared commitment to a Free and Open Indo-Pacific and a rules-based international order. Both sides underscored the importance of multilateralism, democracy, and adherence to international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS), to ensure freedom of navigation and overflight in maritime domains.

Harthal planned in Mannar today against wind power project: Archchuna

A harthal is set to be launched today in Mannar in protest against the government’s decision to continue with the Mannar wind power project, Jaffna District MP Ramanathan Archchuna said. He urged public participation in the protest.

Speaking to the media, Archchuna said local residents oppose the continuation of the project, which was initially proposed during the Ranil Wickremesinghe government.

“Before coming to power, the government promised to halt the existing Thambapawani Wind Power Plant, as well as the Adani Group’s wind power project in Mannar,” he said.

Archchuna added that several Mannar residents met with the President, requesting the cancellation of the wind power projects, which they claim have caused significant harm to the district. “The President asked for a month to discuss the matter with stakeholders and the people of Mannar, but no positive response was received,” he said, adding that the President had misled them.

He further said that protests began last Friday but were met with police action. “This harthal is not a political move against the government, but a protest reflecting the concerns of the people in Mannar. I personally do not participate in political hartals,” he said.

Archchuna warned that installing nearly 46 wind power plants could severely affect local livelihoods, disrupting traditional fishing activities and causing long-term ecological damage. “The wind power plants may collapse after 10 to 15 years, and disposing of the parts will require large land areas, further harming the environment and the local population,” he said.

He also claimed that no ecological study had been conducted prior to the installation of the wind power plants. “The current government, which initially opposed the project, has now granted permission to continue it, blaming its inception on the Ranil Wickremesinghe government,” Archchuna added.

“I was elected to parliament as an independent and have always stood with the people. I raise their concerns in parliament, and I firmly oppose the Mannar wind power project,” he said.

US flags investment hurdles in latest report on Sri Lanka

The United States has cautioned that Sri Lanka’s regulatory unpredictability, bureaucratic red tape and selective transparency are discouraging broader participation of American firms, despite strong interest in sectors such as ICT, energy, aviation and defence.

The U.S. Department of State’s 2025 Investment Climate Statement on Sri Lanka, released this week, paints a familiar picture of an economy with promise but weighed down by systemic obstacles. It notes that abrupt policy shifts, opaque procurement practices and delays in approvals continue to frustrate investors, undermining confidence in the stability of the investment environment.

Although Sri Lanka has pledged reforms under its IMF programme and announced plans to lure foreign capital, the report underscores that tangible progress has been slow.

“High-profile energy projects have already stalled amid disputes over tariffs, while aviation and defence firms cite complex licensing procedures and inconsistent enforcement as reasons for hesitation,” it said.

The statement comes at a time when the government is seeking to reignite growth and court foreign investment. Yet, according to Washington’s assessment, without greater transparency, streamlined processes and consistent rules, Sri Lanka risks missing out on deeper U.S. business engagement at a critical stage of its recovery.

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Japan to consider any fresh Yen loan project only after careful consideration: Embassy

Japan will consider any request by Sri Lanka for a fresh Yen loan project including Light Rail Transit (LRT) only after careful consideration of it in consultation with the Sri Lankan government, taking into account not only their priorities, but also the progress of the existing projects, feasibility of the proposed project as well as the country’s economic and fiscal conditions, according to the Japanese Embassy in Colombo.

The embassy, in response to a question by Daily Mirror ahead of the visit of President Anura Kumara Dissanayake, said so.

Asked about the current status of the Yen loan projects, the embassy stated that the Japanese government has decided to resume disbursements to the existing 11 projects.

“Since then, three of these projects have been completed, with construction and payments finalised. As of September 2025, eight projects are still ongoing,” the embassy said.

“If we receive a request for a new yen loan project from the Government of Sri Lanka, we will carefully consider it with close consultations with the Government of Sri Lanka, taking into account not only their priorities, but also the progress of the existing projects, feasibility of the proposed project as well as the country’s economic and fiscal conditions,” the embassy added.

Japan played a key role in restructuring Sri Lanka’s foreign debt as part of a $2.9 billion bailout from the International Monetary Fund (IMF), following the worst financial crisis in the post-independence period.

Former President Gotabaya Rajapaksa unilaterally cancelled the 1.5 billion US dollar LRT (Light Rail Transit) project to be financed by Japan in 2021. The project was meant to ease congestion in the city.

After the conclusion of his visit to the United States to attend the 80th session of the United Nations General Assembly (UNGA), President Anura Kumara Dissanayake has departed for Japan.

At the invitation of the Japanese government, President Dissanayake is set to undertake an official visit to Japan from September 27 to 30. During the visit, President Dissanayake will have an audience with the Emperor of Japan.