Category: Breaking News

President Anura Kumara Dissanayake has ordered the temporary suspension of two proposed wind power plants in the Mannar area a 20 MW facility and a 50 MW project despite tenders being called and contracts already awarded.

The decision was made yesterday during a meeting at the Presidential Secretariat on the proposed wind power projects and issues raised by local communities. The discussion focused on the country’s energy needs, the economic importance of renewable projects, and the grievances of residents in Mannar.

The President emphasised that energy is a national resource tied to domestic electricity costs, industrial competitiveness, foreign investment, and overall economic growth. He stressed that while development is essential to strengthen the economy, it must be carried out with consensus and solutions to address local concerns.

Religious leaders and residents from Mannar raised objections, citing environmental damage, livelihood disruptions, and non-implementation of environmental recommendations linked to both the wind farm and an ilmenite project in the area. In response, the President announced a one-month suspension to investigate these issues and provide prompt solutions.

It was noted that electricity from the project could be produced at 4.65 US cents per unit (around Rs. 13), significantly lower than the 8.26 US cents (Rs. 25) per unit proposed for purchase from Adani Company, aligning with the government’s aim to keep average generation costs at Rs. 13 per unit.

The meeting also addressed related infrastructure needs, with the President confirming budgetary allocations for the Kokilai Bridge reconstruction and the Mannar New Water Project.

Energy Minister Kumara Jayakody said the Land Reclamation Department will prepare a report on possible flooding due to the wind power plant. Additionally, several state agencies, including the Department of Wildlife and the Ministry of Lands, will jointly report on land issues in the Northern Province.

The discussion was attended by Northern Province religious leaders, parliamentarians from both government and opposition, Energy Minister Kumara Jayakody, Deputy Minister of Cooperative Development Upali Samarasinghe, Secretary to the Ministry of Energy Professor Udayanga Hemapala, government officials, and members of the Mannar Citizens’ Committee.

Sri Lanka’s bond auction on August 12, 2025 sent a stark warning to policymakers: despite macroeconomic stabilisation under IMF reforms as deep-seated investor skepticism remains.

The Central Bank of Sri Lanka (CBSL) sought to raise LKR 65 billion through bonds maturing in 2032 and 2035, but the market delivered a brutal verdict – zero uptake for the 2032 bond and tepid demand for the 2035 issue, leaving the auction LKR 46.5 billion short of its target.

Here is a summary of the bond market operations.

2032 Bond (8% coupon): Fully rejected, signaling investors see the return as inadequate for Sri Lanka’s lingering default risks and inflation.

2035 Bond (10.7% coupon): Only 74% of target met, underscoring persistent doubts over long-term debt sustainability, policy clarity and economic reforms.

“The bond market is flashing red,” a debt market analyst told the Island Financial Review on condition of anonymity. “Investors are saying, ‘Show us real progress on debt restructuring and economic reforms before we commit.”

“While short-term bonds (2027-2029) traded at 8.50%-9.39%, yields on longer-dated debt (2030-2032) climbed to 9.45%-10.25% which was a clear risk premium. Overnight liquidity also tightened to LKR 97.89 billion, hinting at growing caution. The rupee inched up to LKR 300.67/USD. Yet, traders appear to think that stability is fragile. In this context, if bond auctions keep failing, pressure on the currency will return,” he cautioned.

When asked what could be done to make the bond market more attractive for investors, he replied, “The Central Bank may be forced to sweeten terms, risking a reversal of recent rate cuts which will push borrowing costs higher though. Sri Lanka’s economy is stabilising, but the bond market’s cold shoulder reveals a harsh truth – investors still don’t trust the recovery. Without faster debt solutions and critical economic reforms, the Central Bank’s Road ahead would just get rougher,” he opined.

Rameswaram fishermen in Tamil Nadu have commenced an indefinite strike condemning frequent arrests by Sri Lanka Navy, according to India media reports.

A unanimous decision was reportedly taken by members at the Tamil Nadu’s All Mechanised Fishermen Consultation meeting.

Accordingly, over 700 mechanised boats remained anchored in fishing harbours in Rameswaram islet, demanding the Indian central government to secure release of fishers arrested by Sri Lanka.

Around 10,000 fishermen are taking part in the indefinite strike.

According to fishermen associations in Rameswaram, 61 fishers have been arrested by Sri Lankan navy since June 15. None of them has been released by the Sri Lankan government so far.

The fishers said the Indian central government must immediately start dialogue with Sri Lanka and secure the release of all the fishers along with their boats.

They also demanded that Katchatatheevu island must be taken back from Sri Lanka.

Further, fishermen have announced a protest in Thangachimadam today, hunger strike on August 15 and rail roko on August 19 to press for their demands.

The United States says there were no reports of enforced disappearances in Sri Lanka by or on behalf of government authorities in 2024.

The US State Department said the Office on Missing Persons (OMP) also reported it had not received any new complaints of missing persons or enforced disappearances in the past year.

This was highlighted in the 2024 Country Reports on Human Rights Practices issued by the US State Department.

Meanwhile, the US State Department stated Sri Lankan authorities continue to cite the Prevention of Terrorism Act (PTA), the International Covenant on Civil and Political Rights (ICCPR) act, and the penal code to arrest and punish critics of the government and deter criticism of government policies or officials.

According to the US State Department, there were reports of harassment and intimidation of Sri Lankan journalists covering sensitive topics.

The annual report by the US State Department stated, “Some journalists in the Northern and Eastern Provinces, including citizen journalists, reported harassment, threats, intimidation, and interference from members of state security services, especially when reporting on topics related to the civil war or its aftermath, including missing persons.”

The US State Department also noted that although the Online Safety Act (OSA) drew sharp criticism from civil society activists, who feared government restrictions on online speech would stifle dissent, as well as from tech sector professionals, no amendments have been made thus far by the government.

The US State Department report highlighted that although the present government made a commitment to making revisions to the OSA, it has not taken any initiatives.

Furthermore, according to the US State Department report there was little progress investigating allegations of alleged abuses from the 1983-2009 civil war or from the 1988-89 Marxist insurrection.

The 2024 Report on Human Rights Practices in Sri Lanka also said the government took minimal steps to identify and punish officials who committed human rights abuses.

The US State Department released its long-awaited reports on international human rights on Tuesday, and had drastically reduced the types of government repression and abuse that the United States under President Donald Trump deems worthy of criticism.

The agency said the “streamlined” human rights reports adhere more closely to what’s required to be in them by law. But critics say the reduced content lets authoritarians off the hook.

Since the 1970s, the U.S. has compiled these reports on every country in the world, highlighting abuses such as restrictions on free assembly, unfair elections and punishment of minority groups.

Army Headquarters yesterday (12) denied accusations regarding a person, Ethirmanasingham Kapilraj, found dead in the Muththaiyankaddu tank.Army spokesman Brigadier Varuna Gamage said that there was absolutely no basis for these accusations against the Army. Responding to The Island queries, Brig. Gamage said that troops, based at a camp, along the Oddusuddan-Muththaiyankaddu road, on the night of 07 August, had thwarted an attempt by a group of persons to enter an Army camp. “Troops apprehended one of them, while the rest fled. We didn’t pursue them,” Brig. Gamage said, adding that on the directions of Army Headquarters the camp fully cooperated with the police.

The spokesman said that three soldiers had been taken into custody and remanded till 19 August, pending further investigations. Contrary to claims, two of them had been arrested on the charge of cooperating with the intruders, while the other for assaulting them. The spokesman emphasised that none of them had been taken in regarding the recovery of Kapilraj’s body.

According to him, the camp is manned by the 12th battalion of the Sinha Regiment and the person, who had been apprehended on the night of 07 August, was later handed over to his parents. Brig Gamage said that various interested parties were seeking to exploit the incident but those living in the area maintained good relations with the 12 SR base.

The spokesman denied claims that troops attacked the group after asking them to come to take away some discarded items. That was nothing but a blatant lie, Brig. Gamage said, adding that the Army wouldn’t hesitate to deal with the wrongdoers. The officer was referring to the soldiers remanded for allegedly cooperating with the intruders. (SF)

A youth-led protest took place in Mannar on Wednesday under the rallying cry ‘Protect Black Soil’, as young people took to the streets to oppose proposed ilmenite mineral sand mining by multinational corporations in the district.

The demonstration, held on 6 August at 10:30 a.m. in the Mannar Bazaar area, comes amid growing concerns over the irreversible environmental damage posed by large-scale extraction projects, particularly those spearheaded by an Australian-based company that has long sought to exploit the district’s ilmenite-rich sands.

Protesters marched through the heart of Mannar town, carrying placards and chanting slogans as they moved from the town circle past the local police station, district hospital road, and public grounds, before returning to their starting point. The procession marked the latest escalation in a rising grassroots campaign determined to halt the destruction of ancestral Tamil lands.

For years, local communities have resisted the encroachment of mining corporations, warning of the dire consequences such projects would have on the environment, livelihoods, and water security. Experts and residents have sounded the alarm that ilmenite mining could result in seawater intrusion into freshwater aquifers within the next decade, potentially devastating farming and drinking water sources across the region.

Although mining operations had previously stalled due to delayed permits, it has now emerged that the Sri Lankan government is preparing to greenlight the project. An Environmental Impact Assessment (EIA) submitted by the Australian firm received a favourable response from the Central Environmental Authority, paving the way for permit approvals.

In response, Mannar’s youth have launched a wider awareness campaign to educate the public and resist what they describe as an existential threat to their future. A petition campaign was launched at the protest, with signatures being collected to be delivered to Sri Lankan president Anura Kumara Dissanayake, demanding an immediate halt to the project.

Ilmenite mining has become one of the latest flashpoints in the Tamil North-East, where resource exploitation, militarisation, and land grabs continue to threaten the Tamil homeland.