Category: News

Sri Lanka has unveiled a reform agenda aimed at unlocking long-term growth and resilience, as outlined in the latest International Monetary Fund (IMF) Staff Report released this July.

At the heart of the reform package is a renewed focus on trade liberalization and export competitiveness.

The government plans to rationalize para-tariffs with due consideration to revenue implications, streamline customs procedures in line with Trade Facilitation Agreement recommendations, and implement a National Export Strategy with a focus on expediting negotiations of Free Trade Agreements and entry into regional trade blocs.

These efforts are part of a broader National Export Strategy designed to integrate Sri Lanka into global value chains and elevate key sectors such as industrial manufacturing, information technology, business process outsourcing, and tourism.

The report emphasizes that private sector empowerment will be crucial to sustaining growth.

With support from international development partners, Sri Lanka aims to cut bureaucratic red tape, modernize its regulatory framework, and reduce electricity costs through a more efficient energy mix.

A significant shift is also underway to reduce the public sector’s footprint in the economy, thereby fostering competition and improving resource allocation. Additionally, the introduction of a digital land titling and registry system is expected to enhance property rights and facilitate investment.

In a forward-looking move, Sri Lanka is also prioritizing climate resilience amid escalating environmental threats. The report notes a sharp rise in climate-related disasters, which have jeopardized food security and livelihoods. To counter these risks, the government is ramping up investments in renewable energy, particularly solar and wind, with financing expected from both private and multilateral sources. Technical capacity-building initiatives are also underway to fast-track climate mitigation and adaptation strategies.

Kumaraswamy Pushpakumar, better known by his alias Iniya Bharathi, was arrested on 6 July alongside a close associate in a major breakthrough linked to a string of serious crimes committed during Sri Lanka’s post-war period. A prominent figure in Eastern Province politics and a former Eastern Provincial Council member, Bharathi also served as the Ampara District organiser of the Tamil Makkal Viduthalai Pulikal (TMVP), a party formed from a breakaway faction of the LTTE.

The arrest was carried out by the Criminal Investigation Department (CID) based on new information uncovered during the interrogation of TMVP leader and former State Minister Sivanesathurai Chandrakanthan, alias Pillaiyan, who has been in detention under the Prevention of Terrorism Act (PTA) since April this year.

Both suspects were taken into custody in Thirukkovil and Sandiveli by the CID’s Homicide and Organised Crime Investigation Unit. Investigations revealed that Bharathi, now 45, was a former LTTE member who defected in 2004 to join the Karuna Amman-led faction. He is believed to have operated an armed camp in Thirukkovil before moving into mainstream politics. In 2007 and 2008, he held the post of Presidential Coordinating Officer for the Ampara District and went on to serve as a Provincial Councillor from 2012 to 2015.

According to police, Bharathi and his associate are suspected of being involved in a series of grave crimes in the Eastern Province between 2005 and 2008. These include:

The murder of Tamil National Alliance (TNA) MP Ariyanayagam Chandranehru and five others in Pulliyankulam, Welikanda on 7 February 2005.
The killing of Johnson Jayakanthan, alias Sindhujan, on 9 May 2007.
The assassination of Thirukkovil Pradeshiya Sabha Chairman Pillainayagam Udayakumar on 28 June 2007.
The abduction of Pavie Sivananthan Alagurasah in Thirukkovil on 27 July 2007.
The double murder of Grama Niladhari officers Nagarasa and Kanaga Anandhi in Kalmunai on 20 April 2008.
The abduction and killing of Pandith Thirumal Thiruvelvam in Vinayagapuram on 25 September 2008.
The shooting and murder of Pachchi Rasaiya Kopulan on 21 November 2008 in Vinayagapuram, during which his mother was seriously wounded.
Iniya Bharathi and his accomplice are also suspected of involvement in an arson attack on the Akkaraipattu Magistrate’s Court Complex in December 2022.

The Police Media Division confirmed that Bharathi had been previously named in the Lessons Learnt and Reconciliation Commission (LLRC) report and other investigative records as having directly participated in killings, enforced disappearances, torture, and firearm-related crimes during the war-era in the Eastern Province.

The government, which scrapped the Adani renewable energy projects, is now under duress to reimburse a few million U.S. dollars incurred by the company here initially, Daily Mirror reliably learns.

India’s Adani Green Energy informed the Sri Lanka government earlier that it would withdraw from two proposed wind power projects. The company took that decision after Sri Lanka, under the new government led by the National People’s Power ( NPP) , sought to lower the cost of the power generated. The NPP government disagreed with the cost agreed upon by the last government which struck the project with Adani.The company was to build a wind power plant project in the Mannar and Pooneryn towns in the northern province, investing $442 million.

The project was expected to add at least 350 MW to the national grid by 2025.The company authorities sent a letter to the government authorities in May , this year asking for reimbursement of expenses it made initially for research and investigation along with the Sustainable Energy Authority (SEA) in Sri Lanka.

However, the company has not yet specified the exact amount which is to be assessed covering all expenses including US $ 3 million paid to the SEA.The Power and Energy Ministry is yet to make a decision on the reimbursement. Asked about the current status , a top official said that legal advice would be sought in this regard .

“If there is any payment, it will be done only through Cabinet approval,” he said.

The much-anticipated electricity grid connectivity project between Sri Lanka and India is progressing steadily, with the State-run Ceylon Electricity Board (CEB) set to make key policy decisions following the submission of the joint technical committee’s feasibility report.

According to CEB Chairman and Energy Ministry Secretary Prof. Udayanga Hemapala, technical experts from both countries have completed site visits and thorough evaluations, with the Government now awaiting the detailed findings.

As highlighted in the latest Long-Term Generation Expansion Plan (LTGEP) 2025-2044 issued by the CEB, the interconnection project has a long history of collaborative studies and planning.

The concept originated in 2002 with a pre-feasibility study by Nexant, supported by the United States Agency for International Development (USAID).

This was followed by an updated review by India’s PowerGrid in 2006 and a Memorandum of Understanding (MOU) signed by both Governments in 2010 to conduct an in-depth feasibility study.

Joint efforts by the CEB and India’s Power Grid Corporation have since analysed multiple technical, economic, and regulatory aspects, considering various route options including overhead lines and undersea cables.

The Asian Development Bank (ADB) also funded an economic and financial feasibility assessment to support the project.

While both synchronous and asynchronous grid interconnections were initially considered, the fourth Joint Working Group meeting had favoured an HVDC link for its controlled power flow and enhanced system stability.

The finalised plan includes a ±320 kV, 2×500 MW HVDC link using Voltage Source Converter (VSC) technology, running from Madurai to Mannar. The technology also provides dynamic reactive power support, critical for integrating renewable energy sources and maintaining grid stability.

In 2023, a significant decision was made to shift the HVDC termination point on the Sri Lankan side from New Habarana to Mannar, recognising the additional benefits of harnessing wind energy resources in the Mannar region. This change also prompted further analysis of undersea cable options due to the complexities of operating and maintaining overhead lines over the sea.

The project will be implemented in two phases, with the first phase targeting 500 MW capacity at an estimated cost of $ 1,225 million. This phase will use undersea cables designed to eventually support up to 1,000 MW.

The second phase, which will add a further 500 MW capacity, is planned based on future demand for power exchange between the two countries, as stated in the LTGEP.

The Department of Railways has taken steps to amend train schedules on the Northern Line following requests made by the public.

Due to the high demand, the Intercity Express train, which previously operated only on weekends, will now run daily between Mount Lavinia and Kankesanthurai starting tomorrow (07), according to the Department of Railways.

Furthermore, the departure time of the “Yaal Devi” train from the Colombo Fort station to Kankesanthurai, previously at 5:45 a.m., has been revised.
Accordingly, the Department of Railways announced that the new departure time from Colombo Fort will be 6.40 a.m. starting tomorrow.

Passengers who reserved seats on the “Yaal Devi” train a month in advance have also been advised to note the new departure time of 6.40 a.m.