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v2025

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Crypto Earnings Taxable in Sri Lanka Despite Lack of Legal Recognition, Deputy Minister Says 

Income earned through cryptocurrency transactions and related activities will be treated as "other income" for tax purposes, despite cryptocurrencies not being recognised as legal tender in Sri Lanka, Deputy Minister of Finance and Planning Anil Jayantha Fernando told Parliament today (09).

Responding to questions raised by Member of Parliament Ravi Karunanayake, the Deputy Minister said that under the Central Bank of Sri Lanka Act, No. 16 of 2023, the Sri Lankan Rupee remains the country's only legal tender. He noted that cryptocurrencies and other virtual or digital assets are not accepted as a means of payment in Sri Lanka.

Fernando stated that crypto assets are not regulated in the country as an asset class or financial instrument. He added that the Central Bank of Sri Lanka has not licensed or authorised any cryptocurrency trading platforms, digital asset exchanges, mining operations or related service providers to operate within the country.

He further explained that cryptocurrency trading activities are neither formalised nor supported through Sri Lanka's regulated financial system. Since digital asset platforms are not licensed or supervised by any domestic authority, individuals who engage in such activities do so at their own risk.

The Deputy Minister said the Central Bank has repeatedly informed the public since 2018 that cryptocurrencies are not recognised as legal tender in Sri Lanka.

He also confirmed that the country's existing regulations do not recognise cryptocurrency or virtual asset investments. In addition, holders of residence cards in Sri Lanka are prohibited from making foreign exchange payments for virtual currency transactions.

Fernando emphasised that, under the current regulatory framework, Sri Lanka's formal financial system cannot be used to facilitate cryptocurrency-related transactions.

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Govt ignored advance intelligence on Negombo prison unrest - Harshana Rajakaruna

Samagi Jana Balawegaya (SJB) MP Harshana Rajakaruna said that government authorities failed to act despite receiving intelligence reports about the volatile situation at the Negombo prison three to four days before the unrest erupted.

Speaking in parliament yesterday (07), he stressed that the incident did not occur unexpectedly.

He pointed out that officials were fully aware of the rising tensions but failed to implement proper management or make decisive choices to prevent the violence.

According to the opposition lawmaker, the failure at Negombo prison reflects a weakness in current national leadership and management.

He drew parallels to what he described as the government’s inefficient handling of previous crises involving both the farming and business communities.

Noting that the government lacks the experience required to identify or address national problems effectively, he said that failing to prevent such destruction when intelligence was already in the hands of authorities indicates a serious administrative failure.

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Dengue Outbreak Affects University Students as Colombo Campuses Introduce Preventive Measures

A total of 71 students at the University of Colombo have contracted dengue fever, with five students currently receiving hospital treatment, Vice Chancellor Professor Indika Karunathilake said.

The Vice Chancellor stated that most of the reported dengue cases were identified among students of the Faculty of Arts. Due to the impact of the situation on students’ academic activities, the university administration has decided to conduct lectures of several faculties through online and hybrid methods for one week.

Professor Karunathilake said the university has introduced several measures to control the spread of dengue and is closely monitoring the condition of students who are undergoing treatment in hospitals.

He explained that the decision to shift lectures online was taken considering that adequate rest is essential for students recovering from dengue fever.

The Vice Chancellor added that the dengue situation within the university has now been brought under control. He also urged students experiencing fever symptoms to seek medical advice and follow guidance provided by health authorities.

Clarifying the situation, Professor Karunathilake said the University of Colombo has not been closed due to the dengue cases and there are no plans to suspend academic activities.

Meanwhile, the University of Moratuwa has closed all faculties for two weeks due to concerns over the spread of dengue fever.

The University of the Visual and Performing Arts in Colombo has also announced a temporary closure of its premises following a dengue and fever outbreak. The university is scheduled to reopen on July 13.

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Are govt bigwigs ‘high caste’ to call farmers ‘low caste’? – Marikkar

The government that swept to power on the back of farmers' struggles is today insulting those very farmers by branding them as "low caste", SJB MP S.M. Marikkar said.

He recalled that prior to the election, government leaders had declared that once the mud is washed off, a farmer is fit even for kingship.

Marikkar further noted that by denigrating the farming community as "low caste", government leaders are behaving as though they themselves belong to the "high castes".

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Negombo Prison Inmates Relocated as Investigations Continue into Three Prison Deaths 

A group of female inmates who were previously held at the Negombo Prison have been transferred to other correctional facilities as authorities continue measures to manage the situation following recent unrest at the prison.

According to the Department of Prisons, the inmates were transferred yesterday (08) to the Wariyapola and Bogambara prisons. The group included several foreign female inmates who were also detained at the Negombo Prison.

The transfers come after a protest was staged by female inmates at the Negombo Prison earlier this week. However, the Prisons Department said the protest has now ended and the relocation of inmates is being carried out in a phased and orderly manner.

Prisons Media Spokesperson A.C. Gajanayake said arrangements are also underway to transfer male inmates from the Negombo Prison to other correctional facilities.

He stated that the transfers are being conducted after assessing the available space and capacity of other prisons to accommodate the inmates.

Meanwhile, around 1,000 inmates are reported to remain at the Negombo Prison.

In a related development, police have launched investigations into the deaths of three inmates at the Agunukolapelessa, Boossa and Welikada prisons.

The Police Media Division said the investigations are being handled by the respective police stations responsible for the areas where the prisons are located.

Two inmates who had recently been transferred from Negombo Prison to Agunukolapelessa Prison and Boossa Prison died after being admitted to hospitals following sudden health complications.

Another inmate at the Welikada Prison was reported to have died by suicide.

Police said the relevant authorities have been informed of the incidents, and investigations are currently underway to determine the circumstances surrounding the deaths.

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Negombo prison clash a planned underworld operation - Justice Minister

A major clash at the Negombo Prison was a planned operation driven by deep-seated rivalries between underworld figures and drug gangs, Parliament was told yesterday.

Justice and National Integration Minister Harshana Nanayakkara, addressing the House, revealed that the violence specifically targeted an inmate who had tipped off security authorities about illicit drugs inside the facility.

During the targeted unrest, which broke out on 5 July, rioting prisoners systematically destroyed internal security infrastructure, including the prison's CCTV cameras and the scanning machines used to detect contraband.

The initial clashes left 35 people injured and resulted in the deaths of two prisoners. Although guards managed to bring the situation under control over the weekend, tensions flared again on Monday.

Minister Nanayakkara detailed how prisoners attacked two guards, leading to fatal injuries when other officers attempted a rescue.

The rioters managed to break through iron doors to escape their immediate holding area, prompting security forces to open fire to ensure public safety and regain control.

Investigations are now underway to determine how firearms were smuggled into the hands of the inmates.

Expressing deep regret over the loss of life, the Minister stated that the government fully understands the tragedy and accepts responsibility for the incident.

He rejected opposition claims of government inaction, confirming that 734 prisoners have already been transferred to other facilities to defuse the situation, while security measures across all national prisons have been heavily fortified.

A special committee, chaired by Justice Priyantha Fernando, has been appointed to conduct a thorough investigation, and the Prisons Department has formally lodged a complaint with the Criminal Investigation Department (CID).

The Minister highlighted severe systemic challenges contributing to the crisis, noting that the country's prisons are critically overcrowded, holding 27,000 inmates despite only being designed for 10,000. He blamed previous administrations for failing to address the capacity crisis early on.

The overcrowding is further exacerbated by lengthy judicial delays caused by a massive backlog at the Government Analyst’s Department.

Suspects routinely spend months in remand waiting for laboratory reports. Minister Nanayakkara explained that the department was inherited with 118 vacancies, though 78 positions have recently been filled to expedite the process.

Compounding the issue is a severe staffing shortage within the prison system itself, driven by low recruitment interest among young people.

The government is currently reviewing a proposal to extend the service periods of active prison officers to manage the personnel deficit.

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Skin Diseases Emerging as a Growing Public Health Concern: Dermatologist 

Skin diseases are becoming an increasingly serious public health concern, with a noticeable rise in the number of people seeking medical treatment for skin-related conditions, according to dermatology specialists.

Consultant Dermatologist Dr. Nayani Madarasinghe said there has been a significant increase in patients visiting dermatology clinics for various skin diseases.

She made the remarks during a media briefing held at the Health Promotion Bureau.

Dr. Madarasinghe noted that the growing number of patients requiring dermatological care reflects the increasing burden of skin diseases on the country's public health system. She emphasized that the trend highlights the need for greater attention to skin health as the number of affected individuals continues to rise.

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Negombo Prison unrest exposes Govt's security failure, says Opposition Leader

Opposition Leader Sajith Premadasa on Tuesday (07) said the recent deadly unrest at Negombo Prison exposed the Government's failure to ensure national security, questioning how it could protect the public if it could not guarantee security within prisons.

Speaking during the adjournment debate in Parliament on the Negombo Prison incident, Premadasa said the Government bore full responsibility for the deaths and injuries sustained during the violence.

"How can a Government that cannot ensure security inside a prison guarantee the national security of 22 million people?" he asked.

Premadasa said all prisoners and remand detainees remained under State custody regardless of their legal status, which meant the Government was responsible for ensuring their safety.

He recalled that President Anura Kumara Dissanayake had made the same argument while he was in the Opposition.

He also questioned whether the Ministry of Justice and National Integration had adequately addressed longstanding issues in the prison system, including overcrowding, prison reforms and rehabilitation programmes.

Premadasa said media reports had indicated that nearly 40,000 inmates were being held in facilities designed to accommodate only around 10,000 prisoners, and questioned whether the Government had carried out any proper risk assessment despite the severe overcrowding.

He further accused the Government of failing to learn lessons from previous incidents at the Welikada and Mahara prisons, and criticised the continued absence of a permanent Commissioner General of Prisons.

Premadasa also alleged that the Government had failed to deliver on its pledge to reform the prison system, despite commitments made in its election manifesto.

He went on to criticise Minister of Justice Harshana Nanayakkara, alleging that the Minister was focusing on proposals to extend the retirement age of Supreme Court judges instead of addressing urgent issues within the prison system.

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Opposition Leader says govt blocked his questions on Negombo unrest

Opposition Leader Sajith Premadasa has accused the Government of blocking questions he sought to raise in Parliament regarding the Negombo Prison unrest, claiming this amounts to a violation of Standing Orders.

Speaking in parliament yesterday (08), Premadasa said the Opposition needs to know whether the Government has established the cause of the clash at Negombo Prison, and if so, what that cause was.

He also sought clarity on who authorised the intervention of the Police Special Task Force (STF), the legal provisions under which that order was given, and whether the order was issued in a timely manner.

He further asked for details on the loss of life and damage to property reported so far, and whether an independent and impartial investigation would be carried out with its findings presented to Parliament.

*Compensation and prison conditions raised*

The Opposition Leader said information is also required on the compensation the Government intends to provide to injured and deceased inmates, as well as to the families of prison officers who lost their lives.

He raised concerns over the extended period during which the Prisons Department functioned without a permanent Commissioner General, and asked whether existing overcrowding and security weaknesses in the prison system had contributed to the incident.

He called on the Government to present a national programme aimed at protecting the lives of inmates and preventing similar incidents in the future.

*"Privilege has been violated"*

Premadasa said denying him the opportunity to raise these questions amounted to a violation of his privilege, stressing that his questions were not intended as political debate but as an effort to gather factual information on the incident.

He said the rejection of his question to the subject minister during the previous day's Adjournment Debate, along with the absence of specific information provided during that debate, amounted to a violation of the public's right to know the truth and, by extension, a violation of freedom of speech.

He noted that a prisoner transferred from Negombo to Boossa Prison following the unrest had since died, and said it remains unclear what conditions prevail in other prisons across the country. He said this must be investigated and appropriate action taken.

He accused the Leader of the House of presenting a misleading interpretation of the matter and called for accurate data and information to be tabled before Parliament.

*Standing Orders*

The Opposition Leader referred to Standing Order 27 (2), noting that except where the Speaker rules a question unruly, all questions submitted to the Secretary General must be placed on the Order Book for reply no earlier than seven full days from the date of notification.

He noted that under the same provision, a question of general importance may be raised by the Leader of the Opposition or the leader of a recognised political party following formal notice to the relevant minister.

He said he was denied the opportunity to raise his question on the Negombo Prison unrest in the House on July 08, 2026, under this provision.

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Court Adjourns Case Against Ranil Wickremesinghe Over Alleged Misuse of Public Funds 

The Colombo Fort Magistrate’s Court has adjourned until September 30 the case filed against former President Ranil Wickremesinghe and former Presidential Secretary Saman Ekanayake over allegations of misappropriating public funds.

Colombo Fort Magistrate Pasan Amarasena, who heard the case today (08), ordered that the Attorney General’s position on the legal action to be taken against the two respondents be presented to court at the next hearing.

During the proceedings, Senior State Counsel Samadari Piyasena informed the court that investigations into the matter had been completed and that the relevant files had been forwarded to the Attorney General. She requested a date to communicate the Attorney General’s stance on the case.

Accordingly, the Magistrate directed that the complaint be recalled on September 30, when the Attorney General’s position is expected to be notified to court.

The case was filed over allegations that Wickremesinghe misused government funds to travel to the United Kingdom in 2023 to attend a ceremony held in honour of his wife, Professor Maithree Wickremesinghe, at a British university while serving as President.

The former President was arrested on August 22, 2025, after appearing before the Criminal Investigation Department (CID) to provide a statement. He was later produced before court and remanded until August 26, 2025.

Following consideration of medical reports, Colombo Fort Magistrate Nilupuli Lankapura released him on three surety bails of Rs. 5 million each, and the case was subsequently scheduled for October 29, 2025.

According to the case, the CID arrested Wickremesinghe over allegations that he misused Rs. 16.6 million in public funds during a one-and-a-half-day visit to the United Kingdom, which had been presented as an official visit.

However, lawyers appearing for the former President argued that the visit was made following an invitation from a British university and that there is no clear distinction between official and private visits undertaken by a sitting President. They maintained that no misappropriation of state funds had taken place.

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Sugeeshwara Bandara further remanded till July 22; police reveal conflicting statements from ex-president

Sugeeshwara Bandara, the former private secretary to former President Gotabaya Rajapaksa, has been further remanded by the Colombo Fort Magistrate’s Court following his arrest over allegations of receiving two salaries from two separate government institutions.

During the court proceedings today (08), Colombo Fort Magistrate Pasan Amarasena rejected the bail application filed on behalf of the suspect.

The Magistrate stated that no exceptional circumstances had been presented by the defence to justify releasing Bandara on bail.

The Central Crime Investigation Bureau presented a further report on the case, informing the court that two statements have been recorded from former President Gotabaya Rajapaksa.

According to the police, the former President initially stated that he used money from a presidential expenditure head for his private secretary's salary, but later claimed in a second statement that the funds were actually handed over to another individual.

Investigators also revealed that statements have been taken from three directors of the Special Projects division who claimed they did not know each other.

The police requested the court to deny bail because releasing the suspect could lead to witness intimidation, noting that it will take considerable time to record statements from more than 120 employees attached to the Special Project.

The Magistrate questioned the police on whether a definitive list of tasks carried out under the Special Project exists, to which investigators replied that inquiries are ongoing.

The court also questioned the police regarding allegations that project funds had been deployed for politicians, prompting the Magistrate to order a detailed report on that matter for the next hearing before remanding the suspect until 22 July.

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NWSDB Announces Water Supply Disconnection Week to Recover Outstanding Bills 

The National Water Supply and Drainage Board (NWSDB) has announced that a special ‘Water Supply Disconnection Week’ will be conducted from July 13 to 19, 2026, to recover outstanding water bill arrears.

The programme will cover customers in Colombo 01 to Colombo 15, as well as the Maharagama and Kotte areas.

The NWSDB has requested consumers with overdue water bills to settle their outstanding payments on or before July 13 to avoid having their water supply disconnected.

The Water Board further urged all customers to make their payments on time to ensure uninterrupted water supply services.

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