News

Former minister Douglas Devananda has been remanded until January 9.

This was after he was produced before the Gampaha Magistrate's Court.

The former minister was arrested the day before yesterday when he appeared before the Criminal Investigation Department to give a statement regarding an incident in which he allegedly handed over an Army-issued firearm to organized criminal known, Makandure Madush.

The Criminal Investigation Department yesterday took steps to detain and question the arrested former Minister for 72 hours.

The police said that the detentions were obtained under the provisions of the Prevention of Terrorism Act.

The police said that investigations are ongoing regarding 20 firearms issued to former Minister Douglas Devananda.

Among them are fifteen T-56 firearms and five 9 mm firearms.

Investigations are currently underway regarding over 1500 T-56 bullets and over 100 9mm bullets issued to the former minister.

Investigations are underway under the direction of the Criminal Investigation Department.

The police also stated that it has been revealed that the firearms were issued to former Minister Douglas Devananda in 2001. Based on information provided by notorious organized criminal Makandure Madush, a pistol—which was among several firearms issued to Douglas Devananda by the Army in 2001—was discovered near a culvert in Weliweriya in 2019.

Douglas Devananda was arrested following an extensive investigation conducted by the Homicide Investigation Unit of the CID regarding this matter.

Sri Lanka’s economy faces one of its severest tests in recent memory following the destructive path of Cyclone Ditwah, prompting the government to secure $206 million in emergency financing from the International Monetary Fund (IMF).

The disaster has inflicted widespread economic losses, with the World Bank estimating initial damages at $4.1 billion and the International Labour Organisation placing the total impact at $16 billion. The IMF projects the country’s balance of payments deficit could widen by $700 million, underscoring the magnitude of the challenge.

In a Letter of Intent (LOI) submitted to the IMF, President and Finance Minister Anura Kumara Dissanayake and Central Bank Governor Dr. Nandalal Weerasinghe outlined the government’s immediate fiscal strategy.

The authorities emphasized that emergency reconstruction will be funded primarily through budget reallocations and contingency reserves, and that any supplementary budget in 2026 will strictly comply with transparency and public finance regulations.

The LOI reaffirmed Sri Lanka’s ongoing commitments under the IMF’s Extended Fund Facility (EFF), particularly the Central Bank’s pledge not to finance fiscal deficits through money creation.

The government also guaranteed an open external payments system, pledging to avoid new restrictions on international trade or currency flows a key condition for maintaining investor confidence and external stability.

Analysts caution that while the IMF’s Rapid Financing Instrument provides urgent liquidity, Sri Lanka’s fiscal and economic resilience will be tested in the months ahead.

The government must balance the immediate demands of disaster recovery with long-term commitments to structural reforms, debt sustainability, and financial sector stability. Any misstep could exacerbate inflationary pressures, further weaken reserves, and undermine growth.

The Fifth Review under the EFF is scheduled to begin early next year, a critical juncture for assessing whether Sri Lanka is on track to meet reform targets.

The government has reaffirmed its commitment to structural reforms, improved governance, and growth-oriented policies, signaling an intention to continue pursuing fiscal discipline despite the economic shock.

This emergency financing and reform engagement highlight both the international community’s confidence in Sri Lanka’s policy framework and the precarious balance the country must maintain.

As recovery efforts unfold, the effectiveness of budget reprioritization, adherence to fiscal rules, and timely implementation of reforms will determine whether Sri Lanka can navigate the dual crises of natural disaster and economic vulnerability.

Opposition Leader Sajith Premadasa on Sunday donated medical equipment worth Rs. 4.65 million to the Mahiyanganaya Base Hospital in the Badulla District under the Samagi Jana Balawegaya’s “Husma” programme.

The donation included a Dialog+ single-pump hemodialysis machine valued at Rs. 3.8 million and a Bluedot RO System 600Gpd water purification unit worth Rs. 760,000. The equipment was provided to strengthen treatment facilities for kidney patients at the hospital.

Addressing the event, Premadasa said access to quality healthcare is a fundamental right and stressed the need to ensure essential medical services are available to patients in regional hospitals.

The Sri Lanka Working Journalists’ Association strongly condemns the government’s attempt to suppress freedom of expression and press freedom through police action, including the unlawful summoning of journalist Tharindu Jayawardena to the Gampola Police Station in connection with his journalistic work, and the request made by the Sri Lanka Police to the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to cancel the broadcasting licence of the Hiru Media Network.

The police have instructed journalist Tharindu Jayawardena to appear at the Gampola Police Station at 11:00 a.m. on 26 December 2025 to provide a statement in relation to a complaint arising from his investigative reporting that exposed multiple instances of fraud and corruption connected to the Ambuluwawa Biodiversity Complex and its affiliated institutions. In a separate incident, the Hiru Media Network broadcast a news report on a cannabis raid, which revealed an alleged assault on a police officer involved in the operation, as well as reported links between the ownership of the cannabis plantation and parties connected to the National People’s Power (NPP) government. Claiming that the report constituted misinformation, the police have requested the TRCSL to revoke the broadcasting licence of the Hiru Media Network.

In both instances, it is evident that the police have intervened in the independent and lawful journalistic activities of both the journalist and the media institution with the intention of carrying out unlawful repression. If inaccurate reporting has occurred, there exist recognized professional standards, regulatory procedures, and legal mechanisms to address such matters. Instead, the government appears to be using the police to target journalists and media organizations that refuse to submit to political pressure.

These actions form part of a broader pattern of repression during the past 15 months of the NPP government, marked by increasing restrictions on media freedom and the constitutional right to freedom of speech and expression. The Sri Lanka Working Journalists’ Association expresses deep concern that the government, which came to power appearing to safeguard press freedom, is in fact a wolf in sheep’s clothing, demonstrating clear authoritarian tendencies.

We urge the government to refrain from these shameless attempts to enforce media repression through the expansion of a police-state approach, and instead to create an environment that genuinely protects press freedom, editorial independence, and journalistic ethics in Sri Lanka. Furthermore, we call upon all individuals and organizations who value freedom of expression to stand together against the growing pressure imposed on media freedom in Sri Lanka through repressive laws and state interference.

The final rites of veteran singer Latha Walpola will be performed on the 31st of December at the Independence Square in Colombo, with full state sponsorship. 

The Ministry of Public Administration said a special discussion on funeral arrangements is scheduled to be held this evening. 

The remains of the late singer will be placed at a private funeral parlour in Borella from 3.00 p.m. today, allowing the public to pay their final respects. 

Latha Walpola, fondly remembered as one of the most iconic voices in Sri Lankan music, passed away last night while receiving treatment at the Sri Jayewardenepura Hospital.

She was 91 years old at the time of her demise and leaves behind a legacy of golden memories that shaped generations of Sri Lankan music lovers.

A medical doctor drowned while bathing in the sea off Mirissa yesterday afternoon (25), police sources confirmed.

The deceased has been identified as the Chief Medical Officer of the Weligama Walana District Hospital.

According to reports, the doctor was rescued from the water by local residents after he encountered difficulty while swimming and was rushed to the Matara Teaching Hospital, where he was later pronounced dead.

The victim, aged 49, had reportedly assumed duties at the Walana District Hospital only about a month ago.

Sri Lankans observed a two-minute silence from 9:25 a.m. to 9:27 a.m. today (25) in remembrance of those who lost their lives in the devastating 2004 tsunami.

The disaster, which struck on 26 December 2004, killed over 35,000 people in Sri Lanka, left around 5,000 missing, and destroyed thousands of homes, livelihoods, and vital infrastructure.

Today marks 21 years since the tragedy, which was triggered by a powerful earthquake off northern Sumatra, Indonesia, sending massive waves across Sri Lanka and several other countries.

In honour of the victims, 26 December has been observed as National Safety Day since 2005. This year’s National Safety Day commemorations are being held today (26) from 8:30 a.m. to 11:00 a.m. at the Peraliya Tsunami Memorial in Galle, with multi-religious observances organised across districts, according to the Disaster Management Centre.

Meanwhile, to remember the victims of the Peraliya tsunami train disaster, the Department of Railways has arranged a commemorative train from Maradana to Matara at 6:30 a.m. today.

As Sri Lanka reels from the devastating impacts of recent cyclones and floods, the government has announced a bold initiative aimed at revitalizing the agricultural sector and safeguarding rural livelihoods. At a Cabinet meeting on Monday, ministers approved the launch of the “Sustainable Agriculture Program,” a concessional loan scheme set to begin next year, designed to strengthen agriculture’s contribution to national economic growth while promoting sustainability.

The program will operate through Participatory Finance Institutions, leveraging a revolving fund established under the ongoing Smallholder Agribusiness Partnerships Program. This fund, supported by both government resources and the International Fund for Agricultural Development (IFAD), will ensure that all recoveries from loans are reinvested exclusively into agricultural financing. Cabinet Spokesman and Minister Dr. Nalinda Jayatissa emphasized that this mechanism aims to guarantee long-term continuity of concessional support for farmers.

In 2026, the government plans to allocate Rs. 800 million from the Sustainable Agricultural Fund to implement the scheme. Loans will be offered under two categories: individual and bulk loans. Individual loans, up to Rs. 5 million, will be accessible via agricultural and Samurdhi banks with a five-year repayment period and a 2% effective interest rate, including grace periods for working capital and joint ventures. Bulk loans, capped at Rs. 500,000 per beneficiary, will also carry a 2% interest rate with a three-year repayment period.

The program is structured to cover the entire agricultural value chain, including cultivation, processing, value addition, input supply, crop procurement, facilitation, production, and exports. This comprehensive coverage reflects the government’s strategy to boost productivity, enhance incomes, and drive value addition while supporting rural resilience in post-disaster recovery.

Analysts note that the use of a revolving fund model could enhance the program’s sustainability, allowing future borrowers to benefit from recovered credit. By integrating concessional loans with targeted support for disaster-affected areas, the government signals a commitment to balancing economic growth with rural welfare and environmental sustainability.

However, the initiative’s success will hinge on effective fund management, rigorous monitoring, and outreach to smallholder farmers who have been disproportionately affected by recent climate shocks. As the agricultural sector adapts to increasingly unpredictable weather, such programs could become vital tools in safeguarding food security and rural economic stability.

Sri Lanka has secured $206 million in emergency financing from the International Monetary Fund (IMF) through its Rapid Financing Instrument (RFI), as the country reels from the devastating impact of Cyclone Ditwah. The government has formally assured the IMF that it will preserve fiscal discipline and maintain an open trade and payments regime, even as economic shocks threaten to undermine a fragile recovery.

The cyclone has caused widespread destruction across the country. According to the World Bank, initial damages are estimated at $4.1 billion, while the International Labour Organisation (ILO) places the broader economic impact at $16 billion. The IMF has forecast that Sri Lanka’s balance of payments deficit will widen by around $700 million, highlighting the urgent need for liquidity support.

In a Letter of Intent (LOI) dated 10 December, co-signed by President and Finance Minister Anura Kumara Dissanayake and Central Bank Governor Dr. Nandalal Weerasinghe, the government detailed its immediate response, the scale of fiscal needs, and its commitments under the IMF’s Extended Fund Facility (EFF). The LOI emphasized fiscal prudence, stressing that recovery and reconstruction will be funded primarily through spending reprioritization, reallocation of budget allocations, and contingency funds. The government noted that a supplementary budget in 2026 would only be considered if absolutely necessary.

The LOI further pledged full compliance with the Public Finance Management Act and international transparency standards, ensuring emergency spending is accountable and legally sanctioned. On monetary policy, the Central Bank reaffirmed its commitment to avoid financing the deficit through money creation, in line with IMF-supported reforms, and requested an expedited update to the Safeguards Assessment.

The government also assured the IMF that it will maintain an open external payments system. It committed not to introduce new restrictions on international transactions, trade, or currency practices, in line with Article VIII of the IMF’s Articles of Agreement, a measure crucial to restoring investor confidence and stabilizing foreign reserves.

While the RFI provides immediate liquidity, analysts warn that Sri Lanka’s fiscal resilience will be severely tested. The combination of disaster recovery needs and existing economic vulnerabilities could strain the government’s ability to maintain reform momentum, safeguard price stability, and protect the banking sector.

The Fifth Review under the EFF is expected early next year. Despite the challenges, the government reaffirmed its commitment to structural reforms, debt sustainability, financial sector stability, governance improvements, and growth-oriented initiatives, signaling to international partners that long-term economic stabilization remains a priority even amidst crisis.

More than 13,000 containers lying idle at the Port of Colombo is not merely a logistics issue—it is an unfolding economic risk at a moment when Sri Lanka can least afford inefficiency. As the country struggles to sustain fragile post-crisis growth, port congestion is quietly undermining trade competitiveness, revenue flows, and investor confidence.

A high-level meeting convened this week—with the Ports Minister, Customs leadership, Sri Lanka Ports Authority (SLPA) officials, and trade stakeholders—once again exposed a familiar pattern: extensive discussion, minimal decision-making. While operational suggestions were floated, no time-bound resolution emerged, reinforcing industry frustration that the port crisis has become institutionalised.

Colombo Port handles over 90% of Sri Lanka’s containerised trade and functions as a regional transshipment hub. Prolonged congestion increases demurrage charges, storage costs, and vessel delays, directly inflating import prices and eroding export margins. For an economy battling high inflation, weak consumer demand, and tight foreign exchange conditions, these inefficiencies translate into higher costs passed on to businesses and households.

One proposal at the meeting to convert a newly constructed parking yard into an additional Customs examination bay, particularly for foodstuff containers highlights a deeper structural issue: misaligned infrastructure utilisation. While physical capacity exists, regulatory and procedural bottlenecks prevent its effective deployment.

Customs officials suggested that containers awaiting clearance from Other Government Agencies (OGAs) be temporarily parked at the new yard. However, this merely relocates congestion rather than resolving it, unless OGA approvals themselves are streamlined. Multiple agencies operating in silos continue to delay cargo clearance, a problem repeatedly flagged but rarely corrected.

Another critical concern is the demand by the CHA Traders Association to permit outside-panel examinations at consignees’ warehouses. Such measures, already practised in competing regional ports, could drastically reduce yard congestion. Yet resistance persists, often due to outdated compliance frameworks and risk-averse administrative culture.

Perhaps most telling is the unresolved issue of 323 containers stalled due to objections raised at parliamentary and committee levels. The lack of clarity on this matter reflects a governance failure where political processes directly disrupt commercial logistics an alarming signal for international traders.

Sri Lanka’s ports must function as economic enablers, not choke points. Every day of delay weakens Colombo’s standing against regional competitors like India, Singapore, and emerging South Asian hubs aggressively modernising their clearance systems.

What the crisis demands is executive authority, digital integration, and inter-agency accountability not another cycle of meetings. Without immediate, decisive reform, port congestion risks becoming a silent drag on Sri Lanka’s recovery, undermining the very trade flows needed to stabilise the economy.