Category: News

Top EXIM Bank delegation here to finalise revised agreement on Kadawatha-Mirigama stretch; work to resume within weeks By Damith Wickremasekera
Sri Lanka and China are set to finalise an amended agreement to fund the Central Expressway’s Kadawatha–Mirigama stretch, with work expected to resume within weeks, a senior government official said.

A high-level China Export-Import Bank (China EXIM Bank) delegation led by Vice President Yang Dongning was in Sri Lanka this week to discuss the new agreement and met with senior government figures, including Deputy Finance and Planning Minister Anil Jayantha Fernando and Foreign Affairs Minister Vijitha Herath.

The talks centred on, among other matters, the modalities of the revised financing agreement for the China EXIM Bank-funded project. They include concessionary terms on which to pay the penalty fee for the delay in the project as well as the increased costs due to the depreciation of the rupee over the years.

“Due to the delay in the projects, the costs have increased, and we have to pay a penalty fee as well. These are being negotiated so that we can pay back in a concessionary manner,” a government source said.

He said the talks with the EXIM Bank representatives were successful, and hence the government is hopeful of the work resuming shortly. Another delegation from the EXIM Bank will visit the country at the end of the month along with the revised agreement containing repayment modalities discussed and finalised this week, the source said.

The project will resume with USD 500 million from China EXIM Bank and USD 438 million from the government. The project is expected to be completed by September 2028. Metallurgical Corporation of China (MCC) will remain as the contractor.

Work on the 37-kilometre stretch of the Kadwatha-Mirigama stretch of the Central Expressway has remained stalled since 2022. Around 51% of the project is completed by now, with 65% expected to be completed by the end of the year after the work resumes. About 90-95% is expected to be completed by the end of 2027 and the rest in 2028. Government sources said they are determined to resume the project as soon as possible and said the delay in finalising a new agreement was because it had to be thoroughly negotiated so as to cover all necessary aspects.

Sri Lanka must strengthen its National Preventive Mechanism and take concrete action to address persistent risks faced by people deprived of liberty, the UN Subcommittee on Prevention of Torture (SPT) said after its second visit to the country, citing concerns over prolonged pre-trial detention, overcrowding and inadequate conditions in detention facilities and other places where people are deprived of liberty. Beaches& Islands

“More than seven years after our initial visit, several of our previous recommendations have yet to be fully implemented, and people deprived of their liberty have yet to see any meaningful improvement in their situation,” said Aisha Shujune Muhammad, head of the SPT delegation.

The SPT delegation visited Sri Lanka from 14 to 25 June 2026 to assess progress in implementing the recommendations issued by the SPT following its first visit in 2019. The mission also aimed to engage directly with the local monitoring body, the National Preventive Mechanism (NPM), and to examine the treatment of detainees and the safeguards in place against torture and ill-treatment.

During the visit, the delegation conducted unannounced visits to a range of detention facilities, including prisons, police stations, remand centres, rehabilitation facilities and other places of detention, and held meetings with State officials, NPM members, civil society representatives and other UN agencies.

The SPT reiterated concerns that, despite existing legal safeguards, people deprived of liberty do not always benefit from them in practice, pointing to broader challenges in the justice system. The delegation also underscored that the lack of an independent investigative mechanism fosters a climate of impunity.

“An independent, adequately resourced and effectively functioning NPM is essential for the prevention of torture and ill-treatment. Further concrete steps are required to strengthen the NPM, as the obligation under the Optional Protocol extends beyond its mere designation and includes ensuring its continued independence, effectiveness, and operational capacity,” Muhammad added.

Following the visit, the SPT will submit a confidential report to the Government of Sri Lanka setting out its observations and recommendations. The report will remain confidential unless the State Party decides to make it public. In line with its practice regarding all States Parties, the SPT encourages Sri Lanka to publish this report, as well as its previous one, to help promote transparency, accountability, and public discussion on preventing torture and ill-treatment. Beaches& Islands

The SPT delegation was composed of Aisha Shujune Muhammad, head of delegation (Maldives), Jakub Julian Czepek (Poland), Nika Kvaratskhelia (Georgia), Anica Tomsic (Croatia) and two human rights officers from the Office of the High Commissioner for Human Rights.

Sri Lanka’s Cabinet of Ministers has appointed a special panel to protect lands in Eastern Province with an aim to stop illegal land grabbing and promote tourism while repossessing unutilized government lands, the government said.

Lands in Sri Lanka’s Eastern Province have increasingly become a flashpoint for intense social, economic, and administrative controversy, primarily driven by illicit land grabbing, unauthorized land reclamation, and illegal coastal developments that exploit political power and connections.

These irregular human activities have severely degraded the region’s sensitive natural ecosystems, triggering rapid and severe marine erosion along the Eastern coastline.

Geopolitical and social friction is further exacerbated by the fact that even sixteen years after the conclusion of the civil conflict, the state has failed to implement a systematic, permanent resettlement program for displaced populations.

“A number of social, economic, and administrative problems have arisen in the Eastern Province due to forced and illegal land grabbing, unauthorized land reclamation, and unauthorized coastal constructions achieved by misusing political power and political affiliations,” the government said in its Cabinet Decisions document.

“Consequently, the natural ecosystem of the region is severely endangered. These unregulated and illegal human activities have also become a primary driver behind rapid, severe marine erosion across the entire Eastern coastline.”

It also said that even though 16 years have passed since the end of the civil conflict, the absence of a systematic program to permanently resettle displaced populations and the deviation from standard criteria when structuring administrations have directly impacted regional development and national security.

The Cabinet of Ministers approved the proposals to appoint a committee named ‘Protection of Eastern Province Lands,’ comprising representatives from relevant institutions to find swift, permanent solutions to these problems, enforce legal measures, and strengthen institutional coordination, it said.

The Cabinet also approved proposals to immediately establish a special law enforcement unit headed by a Deputy Inspector General of Police (DIG) with full powers to the security forces to stop all unauthorized land grabbing and land reclamation carried out utilizing political power.

The Cabinet has also decided that Mahaweli Lands taken over five years ago or prior, where no project has been implemented to date, will be repossessed by the government immediately.

It has also proposed to redistribute land for Local Development activities for local residents under a structured program and to swiftly formulate a systematic plan to promote the tourism industry by utilizing the high potential of the Eastern coastline while simultaneously ensuring the protection of the coastal ecosystem.

“A mechanism will be designed to ensure that government officials enforce the law impartially and transparently regarding the operation of hotels along the Eastern coastline,” the government said.

Sri Lanka’s economic recovery faces fresh scrutiny this week, as the International Monetary Fund (IMF) checks whether the government has stuck to tough reform pledges under its USD 2.9 billion bailout — even after winning some breathing room following recent shocks.

A nine-member IMF team, led by Mission Chief Evan Papageorgiou, is in Colombo from 24-30 June for the seventh review of the Extended Fund Facility programme.

The talks cover emergency fiscal measures, customs reforms and a revised Medium-Term Revenue Strategy.

Officials also inspected Sri Lanka Customs to assess digitalisation efforts aimed at boosting transparency and revenue. Wellnessdestination guide

Why it matters:

The review will decide whether Sri Lanka gets its hands on the eighth tranche — roughly USD 335-350 million — strengthening the country’s fragile external finances.

The backdrop:

Sri Lanka’s outlook has darkened. The Middle East conflict and Cyclone Ditwah are pushing up inflation and fuel costs, weakening the current account and denting tourism earnings.

The IMF’s response:

Some flexibility, but with strings attached. A Rs.500 billion supplementary budget will help cyclone-hit families and rebuild damaged infrastructure.

The primary budget surplus target for 2026 has been eased — but Sri Lanka must return to 2.3% of GDP by 2027.

The Fund has been blunt: emergency spending is not a licence for fiscal indiscipline. Officials are combing through mid-year budget data to confirm spending stays within approved limits.

What to watch:

– Debt repayments – Staying current on restructuring obligations remains non-negotiable for restoring investor confidence.

– Money printing – Net monetary financing must stay at zero — no printing money to fund government spending.

– Reserves – The Central Bank must keep building reserves, even as it intervenes to prop up the rupee.

– Anti-corruption – CIABOC needs independent commissioners and proper funding for forensic investigations — still a work in progress.

– State enterprises – Loss-making SOEs remain a drag on the Treasury; the IMF wants visible progress on restructuring or divestment.

The bottom line:

The IMF has handed Colombo some short-term relief. Whether that translates into long-term funding depends on whether the government can show the reform momentum hasn’t stalled.

Tamil Nadu is set to introduce duty-free retail facilities at the international passenger terminal at THE Nagapattinam Port, marking a major upgrade to strengthen maritime passenger services between India and Sri Lanka.

The initiative aims to bring the port’s passenger experience closer to international airport and maritime terminal standards as ferry traffic on the India–Sri Lanka route continues to grow.

Developed by the Tamil Nadu Maritime Board (TNMB), the terminal serves the passenger ferry connection between Nagapattinam and Kankesanthurai. Since operations began in August 2024, the service has become an important travel corridor for tourists, pilgrims, business travelers and members of the Indian and Sri Lankan diaspora. Authorities said the route has already transported more than 25,000 passengers, reflecting increasing demand for cross-border maritime connectivity.

The proposed duty-free outlets will allow eligible international travelers to purchase selected goods exempt from applicable customs duties and taxes, in accordance with regulations prescribed by the Indian government.

Officials noted that growing passenger volumes have created opportunities to introduce premium retail experiences and value-added services within the terminal. The development and operation of the duty-free retail facilities will be handled by a private operator under an outsourcing model.

Implementation is expected to begin in July, with the stores targeted to become operational within the next six months. The move is expected to further improve passenger convenience while supporting tourism and maritime trade links between India and Sri Lanka.

The Vatican has appointed the Most Rev. Anton Ranjith Pillainayagam, the Auxiliary Bishop of the Archdiocese of Colombo and Apostolic Administrator of the Diocese of Batticaloa, as the new Bishop of the Diocese of Jaffna.

The appointment has been made following the resignation of Bishop of Jaffna Rev. Dr. Justin Bernard Gnanapragasam.

The resignation of Bishop Justin Bernard Gnanapragasam has been accepted by Pope Leo XIV, according to a statement issued by the Apostolic Nunciature in Sri Lanka.

Until the new Bishop takes possession of the Office of the Diocese of Jaffna, Rev. Dr. Justin Bernard Gnanapragasam will function as the Apostolic Administrator, the statement added.

A high-level delegation from China’s Peking University has underscored the depth and diversity of Sri Lanka-China relations following a series of discussions with government officials, business leaders, legal experts, members of the armed forces and think tanks in Colombo, highlighting economic cooperation, cultural affinity and knowledge exchange as key pillars of the bilateral partnership.

The delegation, led by Prof. Wang Weijia, Director of the Research Centre for Global Governance and International Communication and Dean of the Institute of International Communication at Peking University, held extensive consultations on opportunities for strengthening cooperation between the two countries.

Meeting the Presidential Special Envoy on Foreign Investments and Western Province Governor Hanif Yusoof, the delegation discussed Sri Lanka’s trade and investment outlook, with logistics, energy and tourism identified as priority sectors for foreign investment. Yusoof noted that Chinese enterprises have made substantial contributions to Sri Lanka’s infrastructure, telecommunications and energy sectors and stressed the importance of leveraging the island’s strategic location to build regional supply chains and expand export-oriented manufacturing.

Secretary to the Treasury and Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma described Sri Lanka-China relations as rooted in centuries-old historical, cultural and emotional ties that go far beyond commercial transactions. He cited Port City Colombo as a symbol of the enduring partnership and a platform capable of enhancing Sri Lanka’s long-term economic growth and global connectivity.

Acting Board of Investment Chairman Dr. Sulakshana Jayawardena highlighted the broader benefits of Chinese-backed investments, noting that projects such as Port City Colombo not only attract foreign capital but also create employment opportunities and facilitate technology transfer. He identified high-tech manufacturing, pharmaceuticals and textiles as promising areas for deeper cooperation.

Dr. Jayawardena also emphasized the importance of strengthening collaboration in research and education, expressing hope that institutions such as Peking University could serve as bridges for academic exchanges and help Sri Lanka benefit from China’s experience in special economic zone management, industrial development and workforce training.

Throughout the visit, Prof. Wang presented Peking University’s strengths in area studies and international communication and reaffirmed the university’s commitment to supporting research aligned with Sri Lanka’s development priorities. He also stressed the importance of enhancing scholarly and cultural exchanges to deepen mutual understanding and further strengthen the longstanding friendship between the two nations.

The discussions highlighted that Sri Lanka-China relations encompass not only trade and investment, but also social, cultural and educational cooperation, reflecting a multifaceted partnership aimed at promoting sustainable development and stronger people-to-people ties.