Sri Lanka evaluating 19 proposals for loss-making Mattala airport

Sri Lanka is currently evaluating 19 proposals to operationalize the Mattala Rajapaksa International Airport (MRIA), with a Request for Proposals (RFP) expected to be issued within the next two months, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku told EconomyNext.

“We have received 19 proposals. So, it’s being evaluated right now. I think within the next one to two months, we’ll be able to float an RFP once the qualified bidders are selected,” Kodithuwakku said.

The fresh push to commercialize the state-owned facility comes after a previous attempt to manage the airport failed.

The government had earlier entered into a management agreement with an Indian and Russian joint venture to operationalize the facility under a 30-year lease.

The deal aimed to convert the facility into a profitable entity through transit flights and specialized cargo operations, but was later cancelled after both firms were blacklisted by the US State Department.

Inaugurated in March 2013 as Sri Lanka’s second international gateway, the airport was constructed with an investment of approximately 209 million US dollars, largely funded by loans from the Export-Import Bank of China.

Designed to handle one million passengers annually and featuring a 3,500-meter runway capable of accommodating large aircraft such as the Airbus A380, the facility was envisioned as a regional catalyst to support a tourism surge in the Southern province, a logistics hub, and a sea-air transshipment link with the nearby Magampura Mahinda Rajapaksa Port, which is leased to China under a 99-year tenure.

Despite its high-tech infrastructure, the facility has consistently incurred financial losses, earning the moniker of the world’s emptiest international airport.

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Election Commission Officials Summoned Again Before Special Committee on Provincial Council Elections

Election Commission officials have once again been summoned before the special committee appointed to examine the conduct of Provincial Council elections.

Commissioner General of Elections Rasika Peiris said the discussion is scheduled to be held on the 20th of August.

Further discussions will be held on the procedure under which the Provincial Council elections should be conducted.

The special committee, chaired by Minister Vijitha Herath, was appointed recently to study which electoral system should be used to conduct the Provincial Council elections and submit recommendations.

The committee has so far held discussions with several parties, including the Attorney General’s Department.

Election Commission was also previously summoned before the committee.

Minister Vijitha Herath serves as the chairman of the appointed Parliamentary Special Committee.

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OMP on missing persons: 16,966 missing, just 25 found

Despite maintaining 16,966 active files on missing civilians, the Office on Missing Persons (OMP) has so far found and verified only 25 missing persons, with another six believed to be alive but awaiting verification, OMP’s Executive Director Dr Jeganathan Thatparan said.

Speaking to the media yesterday (13) ahead of the International Day of the Victims of Enforced Disappearances, which will be commemorated in Jaffna and Matara on 25 August, he said that the OMP had so far established the fate of 31 missing persons, comprising 25 people whose whereabouts had been found and verified and another six known to be living but whose status still needs to be formally verified.

OMP Chairperson, attorney-at-law Mahesh Katulanda said the institution had inherited around 42,000 complaints when it was established, including complaints that had previously been submitted to various commissions, United Nations-affiliated bodies, the International Committee of the Red Cross and other State and non-State institutions.

He said that one of the OMP’s biggest initial challenges was identifying duplicate complaints and determining which complaints related to the same missing person. In some cases, he claimed that several complaints had been lodged about the same person, while different people had also filed complaints concerning the same disappearance.

“At that time, we didn’t have a database. During the 30-year war, the technology available was limited. Some people didn’t have National Identity Cards, while some didn’t have any documents at all. The periods of 1971 and 1988-1989 were also not technologically advanced. Records were maintained in books, and we had to begin this process relying heavily on human labour,” he said.

“We have now established a database containing 23,352 missing persons. Of these, 16,966 are active files concerning civilians who remain missing. Military and Police personnel who went missing during operations are handled separately by the OMP as a distinct category.”

Katulanda also said that the number of complaints had changed significantly as the OMP worked through historical records and duplicate cases. He said that the figure had once stood at around 62,000 before being reduced to about 42,000 by around 2021 after the complaints received from different organisations and institutions were consolidated.

“When we examined and analysed all the duplicate complaints, we were able to bring the figure down to around 14,982 genuine cases. From those 14,982 cases, the number increased to 23,352. This increase was due to public confidence in the OMP and the willingness of victim families to file new complaints. However, I believe that there’re still more people in society who may come to us.”

Speaking further, he said that the OMP had personally met around 9,072 families so far to gather information on the circumstances surrounding the disappearances, including external and direct information, the families’ needs and expectations, the relief that they require and the circumstances that may have contributed to the disappearances.

He also said that the Government currently provides a one-off payment to families of missing persons, known as a “revival allowance”, but stressed that it is not compensation. He said that the current Government is also working through a committee on a mechanism that could provide a more substantive form of reparations for victims.

Katulanda said that the Government had recently provided more than Rs. 375 million through a Cabinet paper to cover expenses associated with meeting the families of missing persons. “We can see that this Government has a very high level of political commitment to this matter. We can see that they are continuously looking into it,” he said, and added that the OMP had also received approval to recruit 69 additional staff members, including lawyers, personnel required for tracing work, psychosocial workers and staff for management functions.

He said that the OMP expected to use the additional resources and capacity to work with more than 5,000 families before the end of this year (2026). The planned outreach will focus on families in Mullaitivu, Kilinochchi, Mannar, Jaffna, Vavuniya and Batticaloa, he said.

Sri Lanka keeps US trade talks open as 10% tariff offers no lasting edge

The Government is continuing negotiations with the US for better competitive trade terms while strengthening its forced labour import controls, as officials cautioned that the current 10% additional tariff treatment would not by itself provide exporters a lasting advantage over regional competitors.

Trade Ministry and Commerce Department officials told Parliament’s Committee on Public Finance (CoPF) on 11 August that negotiations remained under a non-disclosure agreement (NDA) and a final agreement had yet to be reached.

“We are negotiating under the NDA. So, I can limit what we can tell,” an official said.

Officials said Sri Lanka initially faced a 44% country-specific tariff, which was brought down through negotiations, first to 30% and then to 20%. However, those country-specific rates were not implemented before a global 10% rate took effect.

The current 10% additional rate applies on top of existing Most-Favoured-Nation (MFN) duties, which vary according to the Harmonised System (HS) code of individual products. An average MFN rate of around 16.5% was cited during the CoPF discussion, though officials stressed that the actual rate varies by product.

Separately, the Office of the US Trade Representative (USTR) initiated proceedings under Section 301 of the Trade Act of 1974 covering 60 countries, including Sri Lanka, over controls on imports of goods produced using forced labour.

Officials said Sri Lanka initially fell into the 12.5% category as it lacked regulations and an enforcement mechanism to prevent imports of goods produced using forced labour, despite having domestic laws addressing the practice.

The Government subsequently appointed a technical committee, while Sri Lanka appeared at a US public hearing on 9 July and made its submission. Officials said the proposal was received positively, following which regulations were introduced to prevent imports of goods produced using forced labour.

Officials said Sri Lanka’s submission and regulatory measures were accepted by US authorities, enabling the country to move from the 12.5% category to 10% and maintain its competitiveness in the US market.

However, they cautioned that other countries were also moving to introduce similar forced labour controls, making Sri Lanka’s present advantage less durable. Of the 60 countries concerned, officials said 19 had received the 10% treatment, while others faced 12.5%. Most of Sri Lanka’s regional competitors were already at 10%.

Against this backdrop, the Cabinet has directed the same technical committee to develop a longer-term mechanism, including examining whether the existing legal framework is sufficient or requires amendments, new legislation, or further regulations. Customs is expected to remain the border enforcement agency.

The rules are also intended to prevent goods linked to forced labour from entering Sri Lanka as inputs, undergoing value addition, and subsequently being exported to the US. Officials said many exporters serving Western markets already undertake supply-chain verification, although small and medium enterprises (SMEs) dependent on third-party importers could face greater exposure.

EU calls for decriminalisation of same-sex relations among key GSP+ recommendations

The European Union, in its latest assessment of Sri Lanka’s situation for GSP+, has emphasised the need for the adoption of comprehensive anti-discrimination laws protecting ethnic and religious minorities and LGBTIQ+ persons, as well as the decriminalisation of consensual same-sex relations.

It is a joint report to the European Parliament and Council.

The report, which is now in the public domain, calls for addressing the targeted intimidation, harassment and surveillance of civil society by security forces; urgently addressing torture, police abuse and deaths in custody through effective accountability; and introducing a formal moratorium on the death penalty as a step towards abolition.

The EU has made recommendations covering a wide range of areas, including the repeal of the Prevention of Terrorism Act and reform of anti-terrorism legislation in line with international standards; protection of civic and democratic space; and ensuring freedom of expression by repealing the Online Safety Act.

It also calls for fostering gender equality and combating domestic, sexual and gender-based violence and child abuse, including by prohibiting child marriage.

The report says Sri Lanka has benefited from the EU’s Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) since 2017, when GSP+ was reinstated for the country. Sri Lanka is the third-largest GSP+ beneficiary.

In 2024, imports utilising GSP+ preferences amounted to EUR 1.5 billion, while the share of GSP+-eligible products in total imports remained at 83.5%, the report says.

Sri Lanka benefited from an estimated EUR 139 million in tariff exemptions in 2024. With a GSP+ utilisation rate of 68.9% in 2024, there is significant potential for the country’s economy to benefit further from GSP+.

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Colombo Port City: After Five Years, Where Are the Investments and Jobs?

The Colombo Port City project was promoted as the largest foreign investment initiative in Sri Lanka’s history. It promised to transform the nation’s economy by attracting $15 billion in foreign direct investment, creating more than 80,000 jobs and positioning Colombo as a leading international financial and commercial hub.

These promises formed the basis upon which Sri Lanka agreed to lease 116 hectares of strategically valuable reclaimed land for 99 years. Such an unprecedented concession was justified on the expectation that it would deliver exceptional economic benefits to the people.

Several years after the project commenced, it is time for an honest assessment. The question is no longer whether Port City has potential. The question is whether it has delivered the outcomes that justified granting such a long term lease over one of the country’s most valuable national assets.

Sri Lanka continues to experience a significant outflow of skilled workers. Thousands of graduates, professionals and young people leave the country because they cannot find adequate employment or economic opportunities at home.

If Port City was expected to become a major source of employment, the public deserves to know exactly what has been achieved. How many people are currently employed within Port City? How many are Sri Lankan citizens? How many are under the age of 35? How many are foreign nationals? Most importantly, how close is the project to delivering the promised 80,000 jobs?

Investment announcements alone do not strengthen an economy. Only actual foreign direct investment creates new businesses, generates employment and contributes to national income.

The government should publish annual figures showing the actual foreign direct investment received through Port City, the source countries, the sectors involved and the number of completed projects now in operation. Only verified investment figures – not projected values or future commitments – can demonstrate whether Port City has achieved its original purpose.

Of the 178 hectares of marketable land within Port City, 116 hectares were leased for 99 years. Taxpayers deserve complete transparency regarding how this nationally significant land is being utilised.

The government should disclose how much land has already been leased or transferred, the identity and nationality of investors, the duration and conditions of leases, the proportion occupied by Sri Lankan enterprises and the land that remains undeveloped.

Transparency must extend beyond land. The public deserves to know how much revenue has been generated through leasing and commercial activities, how much revenue has been received by the government, the taxes collected and the total economic return generated for the country.

These figures should be compared with the costs incurred in administering the project, including salaries, administration and capital expenditure. A useful indicator would be the amount of public money spent to generate each US dollar of actual foreign direct investment.

Investment figures, employment statistics, land allocations, revenue, expenditure and performance indicators should all be published regularly. Transparency is not a burden; it is a fundamental obligation when managing public assets on behalf of the nation.

Sri Lanka needs foreign investment to create jobs, introduce new technology, expand exports and stimulate economic growth. However, investment should never come at the expense of sovereignty, public revenue, employment opportunities or the long term interests of future generations.

Foreign investment should create shared prosperity, not simply transfer valuable national assets while providing uncertain economic returns.

Given the scale of the commitments originally made, the government should commission a comprehensive independent review of the Port City project. That review should evaluate actual investment received, employment created, revenue generated, land utilisation, governance, transparency and whether the project has achieved the objectives upon which the 99-year lease was granted. The findings should be tabled in parliament and released to the public.

If an independent assessment confirms that the project has failed to achieve the investment, employment and economic outcomes that justified the 99-year lease, the government should consider renegotiating the existing arrangements or if legally justified, terminating the lease and restructuring the project so that it better serves the national interest.

Colombo Port City remains one of the most ambitious development projects in Sri Lanka’s history. Its success should be measured not by promotional campaigns but by tangible outcomes: investment received, jobs created, revenue generated and opportunities provided to citizens.

The people deserve facts, transparency and accountability. If Port City has delivered on its promises, the evidence should be made public. If it has not, the government must have the courage to reconsider the existing arrangements and ensure that one of the country’s most valuable national assets genuinely serves the interests of Sri Lanka and future generations.

Source:groundviews.org

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Chemmani body count rises to 539

Two headless human skeletons have been unearthed at the Chemmani mass grave site in Jaffna over a 48-hour period, taking the total number of identified remains to 539 by Tuesday.

The two skeletons formed part of fifteen newly located sets of bones discovered at the site, which is recognised as the largest recorded mass grave in Sri Lanka.

The exhumation team is being led by archaeologist Prof. Raj Somadeva and Judicial Medical Officer Dr. Selliah Piranavan, which has now retrieved 524 distinct sets of remains since the operation began.

The discovery of the two skeletons beyond the originally mapped perimeter has raised concerns that the burial zone may extend over a wider area than first believed.

Attorney Ranitha Gnanarajah, who is monitoring the site on behalf of the families of missing persons, said that the remains of five infants had also been identified during Tuesday’s excavation work.

New Chinese Ambassador signals deeper economic cooperation with Sri Lanka

Newly appointed Chinese Ambassador to Sri Lanka Wei Huaxiang yesterday signalled a push for deeper economic cooperation between the two countries, saying China was ready to strengthen the alignment of development strategies and expand mutually beneficial cooperation.

Ambassador Wei, who arrived in Sri Lanka yesterday to assume office, said bilateral relations had entered a new phase following high-level engagements between the two countries in 2025.

“China is ready to walk side by side with Sri Lanka, strengthen the synergy of development strategies, and open up broad prospects for mutual success and shared prosperity,” he said in a written statement delivered on arrival.

He pointed to President Anura Kumara Dissanayake’s and Prime Minister Dr. Harini Amarasuriya’s respective visits to China in 2025 and meetings with Chinese President Xi Jinping, saying the engagements had provided “new strategic guidance” for bilateral relations.

“China always takes Sri Lanka as a priority in its neighborhood diplomacy,” Ambassador Wei said, describing the two countries as partners in development and “win-win cooperation”.

He said China-Sri Lanka cooperation under the Belt and Road Initiative and across other sectors had produced results benefiting both countries, while highlighting the longstanding economic relationship symbolised by the Rubber-Rice Pact.

Looking ahead, Ambassador Wei pledged to work towards expanding bilateral economic cooperation during his tenure.

“We will do our utmost to carry forward our traditional friendship, expand mutually beneficial cooperation, and safeguard the legitimate rights and interests of Chinese institutions and citizens,” he said.

His appointment comes ahead of the 70th anniversary of diplomatic relations between Sri Lanka and China and the 75th anniversary of the Rubber-Rice Pact in 2027.

India Sends a Message to Colombo — and to Tamil Leaders By M.R. Narayan Swamy

The Indian government has publicly raised a demand for early Provincial Council elections in Sri Lanka despite knowing that powerful interest groups in the country are arrayed against devolution of power.

During a hectic day-long visit to Colombo on Wednesday, Indian Foreign Secretary Vikram Misri urged President Anura Dissanayake to hold the much-delayed balloting to the Provincial Councils “at the earliest”.

It is the closest India has come to saying that the elections, last held in 2014, should not be subject to repeated postponements for various reasons, including a plan to reserve seats for women.

Provincial Councils with limited autonomous powers came into being in all nine provinces of Sri Lanka as a result of the 1987 India-Sri Lanka Agreement, which sought to end Tamil separatism.

In the context of the Tamil-majority northern and multi-racial eastern provinces, where a war raged for an independent Tamil Eelam, the provincial bodies were conceptualised as a political alternative to Tamil separatism.

But both the Tamil Tigers, who were finally crushed militarily in 2009, and Sinhalese-Buddhist hardliners turned against the 1987 pact, which birthed the Provincial Councils after the 13th amendment to the Sri Lankan constitution.

While Sri Lanka’s dominant ruling party, the Janatha Vimukthi Peramuna (JVP), has shed its long-standing anti-India posture, not everyone in the Marxist outfit is comfortable with the idea of devolution of power, which is what Provincial Councils are all about.

The JVP is not alone in this respect, say Indian official circles with intimate knowledge of Sri Lankan affairs.

“Influential people in the Sri Lankan landscape are opposed to the Provincial Councils,” said one source, adding that the fear was that any power-sharing arrangement could dent the country’s unitary form of governance.

This was stated more than once, even after the Liberation Tigers of Tamil Eelam (LTTE) was routed when Mahinda Rajapakse was the president.

The perennial argument given to Indian officials was that while the Indian landmass perhaps needed states for administrative convenience, an island nation like Sri Lanka did not need its provinces to have councils, even with limited power on subjects such as education, health, and agriculture.

Indian officials would remind their Sri Lankan interlocutors that India was also a unitary state with a cozy federal structure and that the division of powers between a strong Centre and the states had worked reasonably well despite some irritants.

After the then-northeastern province was split into two in 2008, the last Provincial Council elections were held in the Northern Province in 2013 and in the Eastern Province in 2012.

In recent times, the JVP-led Sri Lankan government has been accused by the opposition of sidelining elected representatives in areas of local governance – a development not viewed favourably in New Delhi.

Seen alongside the failure of successive governments to hold Provincial Council elections, a feeling gained strength in India that the limited autonomy granted to the provinces, including Tamil-majority areas, should not be allowed to be stifled by political opportunism.

India is aware that, notwithstanding what the Tamil parties in Sri Lanka may desire, the Northern and Eastern Provinces are unlikely to be merged again, largely because of opposition from the Muslim community.

Of the three districts which constitute the Eastern Province, Tamils are in a majority – and convincingly — only in Batticaloa. Muslims, who too speak Tamil but are counted as a separate ethnic group, form the single largest bloc in both Trincomalee and Amparai.

While Sri Lankan authorities did their best during the Tamil separatist war to cause fissures between Tamils and Muslims, the LTTE deepened the divide by massacring Muslim civilians in the East and forcibly expelling thousands of Muslims from the North. Muslim Home Guard units, for their part, were also implicated in grave atrocities against Tamil civilians in the East, including killings and massacres that further entrenched hostility between the two communities.

Although present-day Tamil and Muslim leaders have overcome the earlier bitterness between the two communities, Muslims have no desire to be ruled by Tamil politicians in any province where they live in substantial numbers.

The Indian foreign secretary made another important point, this time to Tamil leaders active in the north and the east.

He said that, on constitutional reforms, India could not advocate arrangements benefiting only a single ethnic community and would instead emphasise equality for all Sri Lankan citizens.

This amounted to an unstated affirmation that there was no stomach in India for issues like “federalism” and “internal self-determination” – concepts which are thrown up by Tamil leaders still tied to the Tamil Tiger ideology.

It was also noted that ahead of a meeting between Tamil and Muslim parties with President Dissanayake, a group called the North-East Civil Society raised the need for a federal set-up in Sri Lanka.

Indian officials are clear that federalism is a non-starter in Sri Lanka and that an overwhelming majority of the Sinhalese community view federalism as a dirty word, almost akin to separatism.

But sections of the Tamil diaspora linked to the erstwhile LTTE and some Tamil politicians in Sri Lanka with a similar view keep clamouring for federalism.

At times, they involve leaders in India’s Tamil Nadu state in their political machinations.

In his diplomatic style, Foreign Secretary Misri drew a red line for the Tamils as well — defining what India can support and what it cannot.

Source:jaffnamonitor.com

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Tilvin: Wrong excuse for PC election delay – it can’t be the money

On 24 May 2026, speaking at the opening of the NPP’s district office in Jaffna, General Secretary of the JVP Tilvin Silva made two linked claims: (a) money allocated in the previous budget for holding Provincial Council (PC) elections were reallocated to finance LKR 500 billion for Cyclone Ditwah recovery, and (b) therefore the election could not be held this year.

To check these claims, FactCheck.lk analysed the Constitution of Sri Lanka, Public Financial Management (PFM) Act No. 44 of 2024, Budget Estimates 2026, Supplementary Estimate 2026 and Supreme Court (SC) judgement SC.FR 69/2023.

Silva’s claim requires two propositions to be correct. First, that the funds allocated for Provincial Council elections were redirected towards Cyclone Ditwah recovery. Second, that this provides a valid basis for not holding the election this year.

On the first proposition, the available budget documents do not support Silva’s claim. The Budget Estimates 2026 allocated LKR five billion to the Election Commission for conducting elections. Separately, the Supplementary Estimate dated 19 December 2025 provided LKR 500 billion for Cyclone Ditwah recovery. However, the Supplementary Estimate identifies this LKR 500 billion as an “additional allocation.” This means that it was an allocation made in addition to the expenditure already approved through the 2026 Budget, and not a “reallocation” of the Election Commission’s election-related budget as stated by Mr. Silva.

On the second proposition, the legal position also does not support the claim that an election may be delayed merely on the basis of financial difficulty. The same argument was put forward by the executive branch of government in 2023 for delaying the local government elections and later adjudicated by the Supreme Court (SC) (See judgement SC.FR 69/2023). The Court held that ensuring the right to vote by the holding of elections is a fundamental right guaranteed under Article 14(1)(a); and that any action that restricted that fundamental right would be valid only if it was based on a constitutionally valid law adopted by parliament. The SC found that no existing law permitted the executive to postpone elections on the basis of financial difficulty. Neither did FactCheck.lk find any Act of Parliament, Emergency Regulation approved by Parliament, or other legally recognised instrument, since the decision of the court in 2023, that allows the postponement of PC elections on the basis of Cyclone Ditwah recovery expenditure.

Since this specific reasoning has been specifically adjudicated by the Supreme Court it is clear that even the executive cannot lawfully delay an election on the basis of lacking funds.

On that basis, Silva’s claim is incorrect on both grounds. First, the LKR 500 billion allocated for Cyclone Ditwah recovery was an additional allocation, not a diversion of the funds allocated to the Election Commission for the PC elections. Second, no legally recognised basis has been identified to conclude that the PC elections cannot be held this year due to financial constraints.

Therefore, we classify Silva’s statement as FALSE.

*FactCheck.lk’s verdict is based on the most recent information that is publicly accessible. As with every fact check, FactCheck.lk will revisit the assessment if new information becomes available.

FactCheck.lk is a platform run by Verité Research.

For more fact checks, visit our website at www.factcheck.lk.

Source:Dailymirror.lk