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Former Minister Mervyn Silva today (17) pleaded not guilty before the Colombo High Court to the indictments filed against him by the Bribery Commission. The charges allege that he unlawfully accumulated assets during his tenure as a government minister.

Sri Lanka’s battered dollar bond market once defined by default, outflows, and collapsing investor confidence is beginning to show signs of renewed strength. The Ceylon Dollar Bond Fund (CDBF) has reported an impressive 12.3% return in U.S. dollars as of mid-September 2025, indicating a tentative revival in appetite for the country’s restructured debt.

Managed by Ceylon Asset Management (CAM) and supported by Deutsche Bank as Trustee and Custodian, the fund’s strong year-to-date performance highlights growing investor confidence following Sri Lanka’s December 2024 debt restructuring. A senior official at the Sri Lanka Insurance Corporation (SLIC)—a key stakeholder—confirmed that the uptick reflects improving sentiment across global markets toward Sri Lankan sovereign assets.

CDBF is an open-ended unit trust regulated by the Securities and Exchange Commission (SEC). It invests solely in Sri Lankan International Sovereign Bonds (ISBs) and selected dollar-denominated, bank-guaranteed securities listed overseas. For investors, the fund provides a shield against rupee depreciation and enables capital repatriation in foreign currency—attributes aggressively marketed on social media to attract diaspora and regional investors.

According to CAM Managing Director Dulindra Fernando, the surge in returns stems from rising ISB prices, improving macroeconomic indicators, and policy stability. “Sri Lanka’s improving macro fundamentals have underpinned the fund’s performance,” he said, citing the rebuilding of foreign reserves to US$ 6.2 billion, falling inflation, and a steadier rupee.

Tourism earnings, worker remittances, and early signs of foreign investment inflows have further strengthened confidence. The Central Bank’s policy direction has also supported the recovery, with Governor Dr. Nandalal Weerasinghe recently forecasting that Sri Lanka could secure a sovereign rating upgrade from CCC+ to B by 2027, potentially unlocking wider access to capital markets.

Over the past ten months, CDBF’s net asset value (NAV) has risen steadily, in line with the strengthening of restructured ISBs. Market analysts note that average yields on Sri Lankan sovereign bonds have dropped from 15% in January to around 10% by October, signalling reduced default risk and improved investor sentiment. Deutsche Bank added that the recovery in sovereign valuations reflects better fiscal discipline and progress in economic reforms.

SLIC acknowledged that the fund’s performance signals the potential of disciplined investment in restructured debt, but called for strict regulatory oversight to protect investors. Research from Verité further notes that Sri Lanka’s new GDP-linked Macro Linked Bonds (MLBs) could offer returns of up to 10.3% if GDP growth exceeds 3% between 2025 and 2027. Standard Chartered analysts estimate a 67.5% likelihood of meeting that threshold—supporting the upside case for funds like CDBF.

Still, regulators warn that risks remain. The Central Bank stressed that although such funds help attract foreign inflows, they are not without exposure to global interest-rate changes, market volatility, and geopolitical shocks. CBSL also reiterated that Personal and Business Foreign Currency Accounts cannot invest directly in CDBF, and banks have been instructed to enforce the rule.

For many, however, the Ceylon Dollar Bond Fund has become a symbol of Sri Lanka’s slow but deliberate return to credibility in international capital markets a recovery built not on exuberance, but cautious rebuilding, bond by bond.

At least seven individuals had received stab injuries during a confrontation with a psychiatric patient during an alms giving at a house in Medadumbara area off Kandy yesterday.The psychiatric patient was one of the occupants of the house. Police said two women and five men had received stab injuries and admitted to the Kandy National Hospital.

The suspect was taken into custody by the Ududumbara police.

(Source - DailyMirror)

The second day of the Committee Stage debate—also known as the Third Reading—of the 2026 Appropriation Bill, the 80th National Budget, commenced today (17) under the chairmanship of the Speaker.

The Third Reading debate began on November 15 and will continue for 17 days. According to the Parliament’s Department of Communication, the final vote on the Third Reading is scheduled for December 5 at 6.00 p.m.

Meanwhile, the Second Reading of the 2026 Appropriation Bill was passed in Parliament on November 14, 2025, with a majority of 118 votes.
A total of 160 Members of Parliament—including three from the opposition—voted in favour, while 42 voted against and eight abstained.

The Second Reading of the 2026 Budget was initially presented to Parliament on November 07 by President Anura Kumara Dissanayake, in his capacity as Minister of Finance.

A member of the Kandaketiya Pradeshiya Sabha representing the Samagi Jana Balawegaya (SJB) has been arrested by the Badulla Galauda Police in Pallewatte for possessing 86 grams of cannabis.

According to police, the suspect—who also works as a security assistant at the Hapathgamuwa electric fence—is a resident of Pallewatte, Hapathgamuwa in Hali Ela.

The arrest was made during a sudden raid conducted using a decoy, following a tip-off that the councillor was involved in selling cannabis. Officers found 86 grams of cannabis that had been prepared for distribution.

Further investigations are underway, and the suspect is expected to be produced before the Badulla Magistrate’s Court today (17).

Sri Lanka’s non-banking financial industry is bracing for one of the most sweeping regulatory overhauls in more than a decade as the Central Bank pushes forward with major amendments to the Finance Business Act (FBA) No. 42 of 2011.

The proposed reforms now open for public comments until 30 November 2025—aim to correct long-standing weaknesses in oversight, prevent institutional failures, and restore public trust in a sector damaged by repeated collapses.

The current FBA, introduced in 2011 as the main legal framework governing finance companies and deposit-taking institutions, has struggled to keep pace with an expanding and increasingly complex financial market. High-profile failures such as

The Finance Company and Bimputh Finance exposed deep cracks in governance, risk management, and supervisory enforcement. These failures eroded depositor confidence and highlighted the urgent need for stronger regulation.

The Central Bank says the proposed amendments are designed to modernise the law, strengthen supervisory powers, and align the sector with global standards.

Among the most significant changes are expanded investigative powers that will allow rapid action against unauthorised deposit-taking and illegal financial operations. Regulators will also be armed with new early-intervention tools to restructure, merge, or wind up failing institutions before they become systemically dangerous.

Governance is another central focus. The amendments propose stricter “fit and proper” requirements for directors and major shareholders, ensuring that only qualified and reputable individuals can oversee licensed institutions. Higher capital adequacy requirements, enhanced financial disclosures, and tighter advertising rules are also part of the package measures aimed at curbing misleading deposit campaigns and strengthening market discipline.

While the reforms are widely acknowledged as overdue, they have triggered significant concern among industry stakeholders, particularly smaller finance companies. CEOs warn that steeper compliance costs, higher capital thresholds, and tighter controls could force consolidation or drive weaker firms out of business.

Such an outcome, they argue, risks limiting access to credit for small and medium-scale enterprises (SMEs), which remain vital to economic recovery.

The Finance Houses Association of Sri Lanka has requested more time to review the proposals, emphasising the need for careful scrutiny to avoid destabilising the sector. Independent financial analysts echo this caution, pointing to the risk of over-regulation.

According to analyst Anuruddha Jayawardena, regulators face a delicate balancing act: “Strict oversight is essential to rebuild trust, but excessive rigidity could choke off legitimate credit flows, especially in under-banked rural areas.”

Despite concerns, many experts agree that if implemented sensibly—with phased timelines and clear transitional guidelines the amendments could strengthen investor confidence, attract foreign capital, and significantly reduce systemic risk in the non-banking financial sector.

The Central Bank’s decision to invite public feedback is widely seen as an important step toward a more transparent and participatory reform process. As Sri Lanka works to stabilise its economy, the fate of the new Finance Act will play a decisive role in shaping the resilience and credibility of the financial system for years to come.

Male-Dominated HIV Infections Rise Sharply in Sri Lanka as 2025 Records Highest Quarterly Cases Since 2009

Sri Lanka is experiencing a worrying surge in HIV infections, with new data confirming that men continue to account for an overwhelming majority of cases reported this year. The National STD/AIDS Control Programme says the trend has intensified in 2025, raising fresh concerns about public awareness and prevention.

A total of 200 new HIV cases were detected during the second quarter of the year (April–June), following 230 cases in the first quarter—the highest number recorded in a single quarter since 2009.

The gender distribution remains heavily skewed. The male-to-female ratio of reported HIV cases in 2025 stands at 7.6 to 1, underscoring that men are disproportionately affected. Among the latest detections, 21 individuals were aged 15–24—20 males and one female—while the majority were over 25.

Health officials also reported 23 HIV/AIDS-related deaths so far this year. In 2024, the country recorded 47 deaths, alongside more than one million HIV tests conducted nationwide.

Since 2009, Sri Lanka has documented 6,759 cumulative HIV cases, including 5,366 males and 1,573 females, highlighting the persistent gender imbalance in infection patterns.

In response to the rising cases, the National STD/AIDS Control Programme has proposed incorporating comprehensive HIV and STI prevention education into school curricula. The initiative would focus on condom use, Pre-Exposure Prophylaxis (PrEP), and Post-Exposure Prophylaxis (PEP). However, the proposal remains under review, and health authorities acknowledge it is facing criticism and resistance.

Sri Lanka’s worsening household financial distress is now reflected in an alarming surge in gold-backed lending, revealing the depth of economic hardship gripping the country.

Official data show that pawning loans have skyrocketed to an estimated Rs. 356.5 billion in the first half of 2025, marking one of the steepest increases in recent years and highlighting the struggle of families forced to pawn their last remaining assets to make ends meet.

According to the Central Bank’s Financial Stability Review 2025, lending by licensed finance companies reached Rs. 1.84 trillion by mid-2025, with nearly 19.4% of these loans backed by gold.

This represents one of the sharpest expansions in gold-collateralised lending since the economic collapse of 2022–23 an expansion many analysts link directly to a lack of policy urgency, weak governance practices, and the government’s slow implementation of essential economic reforms.

A senior Finance Ministry official, speaking anonymously, said the surge in gold pawning reflects “acute pressure on middle- and lower-income households struggling with rising prices and stagnant incomes.”

With inflation persisting and economic reforms moving at a sluggish pace, families increasingly rely on pawning jewelry to buy food, pay school fees, or cover medical expenses.

The depth of the crisis is further underscored by the sharp rise in pawn-advance arrears. Ministry data show an increase from Rs. 210 billion in 2019 to Rs. 571 billion by March 2024 a clear sign that more borrowers are unable to redeem their jewelry. For many, these loans were intended as short-term lifelines but have now become long-term traps.

Industry leaders warn that gold-backed loans are expanding faster than other credit categories, reflecting severe liquidity stress among households.

A CEO of a major finance company noted that gold loans now form the backbone of cash-flow survival for many families, saying, “This is not healthy credit growth it is distress lending.”

Economists also caution that the trend poses systemic risks. Fitch Ratings previously warned that excessive reliance on gold-collateralised lending exposes financial institutions to collateral price swings and simultaneous borrower defaults particularly dangerous in a fragile economic environment.

But beyond financial risks lies a deeply human tragedy. Losing gold jewelry in Sri Lanka is not merely a financial loss; it is the loss of wedding heirlooms, inherited pieces, and symbolic family security.

A researcher at a leading think-tank said, “When people begin losing their gold, it means they’ve lost their final safety net.”

Experts argue that immediate safeguards are urgently needed. Proposed measures include temporary interest-rate caps for vulnerable borrowers, grace periods for jewelry redemption, and restructuring schemes to convert pawn advances into longer-term, affordable repayments.

Yet the ultimate solution remains elusive. Without meaningful progress on economic reforms, improved governance, and decisive policy execution, analysts warn that the pawning surge will intensify.

 

Until then, Sri Lanka’s once-cherished gold reserves long symbols of stability have turned into collateral for survival, revealing a nation still struggling to rebuild amid uncertainty and policy drift.

A delegation from the Government Medical Officers’ Association (GMOA), which commenced trade union action this morning (17) over several demands, has arrived at the Presidential Secretariat for discussions.

The meeting is being held under the patronage of President Anura Kumara Dissanayake.
Several senior GMOA members are reportedly participating in the discussion, which is currently underway at the Presidential Secretariat.

Several crude bombs exploded in the Bangladesh capital Dhaka on Sunday, police said, heightening tensions ahead of a verdict on Monday in a case against ousted former Prime Minister Sheikh Hasina over violence during street protests last year.

No casualties were reported, but the blasts further unsettled a city already on edge after days of political unrest.

Hasina, 78, is being tried in absentia on charges of crimes against humanity for allegedly ordering a deadly crackdown on student protests in mid-2024. She denies any wrongdoing and has remained in India since fleeing there after her ouster in August last year.

The Dhaka Metropolitan Police Commissioner has instructed officers to open fire on anyone involved in arson or attempts to cause death by hurling crude bombs, local media reported.

Security has been tightened across Dhaka, in Gopalganj — Hasina’s ancestral home and a stronghold for her party — and in two neighbouring districts, with Border Guard Bangladesh personnel deployed to reinforce local authorities.

Police and Rapid Action Battalion teams have been positioned around key government buildings and major intersections, leaving parts of the capital unusually quiet.

“It’s very tense — hardly anyone is coming out,” said Ramjan Ali, an autorickshaw driver in Dhaka. “I’ve been on the road since morning, but I’ve barely earned anything today.”

In the days leading up to the verdict, authorities recorded more than 30 crude bomb explosions and reported dozens of buses torched in Dhaka and several other districts.

Dozens of Awami League activists have also been arrested in recent days over alleged involvement in explosions and acts of sabotage.

( Source : adaderana.lk)

Former Chairman of the Geological Survey & Mines Bureau (GSMB), Anura Walpola, has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

He was taken into custody over allegations that he appointed an employee without following the proper recruitment procedures.

The Government Medical Officers’ Association (GMOA) will launch trade union action from 8 a.m. today (17), citing several unresolved demands.

The decision comes in protest against the government’s failure to address long-standing issues within the health sector and concerns raised by doctors, which the 2026 Budget presented by President Anura Kumara Dissanayake did not resolve.

As part of the trade union action, doctors at all hospitals will restrict certain services, including issuing prescriptions that require patients to purchase medicines from external pharmacies and recommending tests that must be conducted at private laboratories.