News

The International Monetary Fund (IMF) says Sri Lanka’s economic reform program continues to make “impressive progress,” with the country showing strong signs of recovery under the Extended Fund Facility (EFF) arrangement.

Speaking at a press briefing in Washington on October 2, IMF Communications Director Julie Kozack said Sri Lanka’s inflation remains low, government revenue collection has improved, and international reserves continue to rise.

She noted that the post-crisis economic rebound has been significant, with growth reaching 5 percent in 2024.

“The revenue-to-GDP ratio in the budget improved to 13.5 percent of GDP from 8.2 percent in 2022, which is also a significant increase, although still work to be done,” Kozack stated, adding that the country’s debt restructuring process is “nearly complete.”

The IMF Board completed the Fourth Review of Sri Lanka’s EFF arrangement on July 1, releasing US$350 million in support and bringing total disbursements to US$1.74 billion.

Kozack confirmed that an IMF mission is currently in Sri Lanka conducting the Fifth Review of the EFF.

“Given that the team is now currently in discussions with the authorities, I won’t say more other than to say that, of course, the team will communicate at the end of the mission,” she said.

She added that program performance remains strong and that the Sri Lankan government is “committed to the program’s objectives,” which include restoring macroeconomic stability, ensuring debt sustainability, and promoting structural reforms to boost growth.

Former President Mahinda Rajapaksa’s chief security officer, Neville Wanniarachchi, has been remanded until the 17th of this month.

This is followed his appearance before the Colombo Magistrate’s Court a short while ago.

He appeared before the Commission to Investigate Allegations of Bribery or Corruption this morning to provide a statement.

Following lengthy questioning, officials of the Bribery Commission took him into custody on charges of failing to cooperate with an investigation into his assets.

The bulletproof vehicle assigned for the protection of former President Mahinda Rajapaksa has been officially returned, according to a statement issued by his media spokesperson, Attorney-at-Law Manoj Gamage.

Gamage said the vehicle was handed back to the relevant company on Thursday (3), following instructions from the Presidential Secretariat. He explained that, after the Presidents’ Entitlements (Repeal) Act came into effect, the Presidential Secretary had informed on September 24 that all official assets — including vehicles and the official residence — belonging to the fifth Executive President must be surrendered.

He added that the support vehicle used by Rajapaksa’s security personnel was also returned.

Gamage warned that the move has compromised the former President’s security, noting that discussions will be held next week with the Inspector General of Police, the Defence Secretary, and heads of the security forces to request the necessary vehicles to ensure Rajapaksa’s safety.

Former President Rajapaksa’s Ex-Security Chief Presented in Court Following Bribery Commission Arrest

Neville Wanniarachchi, the former Chief Security Officer of ex-President Mahinda Rajapaksa, was presented before the Colombo Magistrate’s Court today (02) after being arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Officials from the Bribery Commission escorted Wanniarachchi to court shortly after his detention. He had been taken into custody earlier in the day, following a statement he provided to the Commission this morning, according to Ada Derana’s correspondent.

Justice Minister Harshana Nanayakkara has issued a statement clarifying that the proposed amendment to the Penal Code (Section 19) concerning corporal punishment of children has not been enacted into law.

The Minister said that while Parliament held a second reading debate on the Penal Code Amendment Bill on September 24, it was only a discussion and not a passage into law.

He further noted that in order for such an amendment to take effect, a corresponding change would also have to be made to the Code of Criminal Procedure. Since that has not yet been done, the Bill remains pending.

Nanayakkara added that changes to the Bill could still be taken up during the committee stage in Parliament where amendments can be brought forward.

The Minister reiterated that the amendment regarding corporal punishment remains at the debate stage and has not been passed as legislation.

BYD’s Sri Lanka steering into electric mobility Shadowed by Nepal CG Corp Tax Issues

Sri Lanka’s biggest blue-chip, John Keells Holdings PLC (JKH), is steering into electric mobility through a high-profile partnership with Nepal’s Chaudhary Group (CG Corp Global) to distribute Chinese automaker BYD. The joint venture, John Keells CG Auto (JK CG Auto), launched BYD showrooms in Colombo in 2024 and is preparing expansions in Kurunegala, Ratnapura, and Ampara.

The partnership unveiled BYD’s Sealion 6 SUV last year, with the first deliveries expected in March 2025. Union Bank of Colombo acquired by the Chaudhary Group in 2023 has signed on to provide financing for BYD purchases.

Yet the initiative has come under legal spotlight. In Colombo, JK CG Auto is currently facing proceedings in relation to BYD vehicle imports. According to court filings, the issue concerns the classification of vehicles under customs regulations and the corresponding duties.

The matter is ongoing before the judiciary, and no outcome has yet been determined. The case resonates with earlier controversies in Nepal involving Chaudhary Group’s auto arm, CG Motors.

In 2023, the company imported 30 King Long minibuses under HS code 8702.40.30, paying a 10 percent duty.

Months later, 50 identical vehicles were brought in under HS code 8702.40.20, classified as “15-seater minibuses,” slashing the duty to 1 percent. Nepali regulators said the move, which added auxiliary seats to exploit a loophole, resulted in tax shortfalls of nearly NPR 14.5 million.

CG Motors has previously been ordered to repay duties over the misclassification of KYC-branded electric vans. Regulatory scrutiny in Nepal has also extended to other EV brands it distributes, including XPENG, Neta V, and GAC Aion.

Meanwhile, CG’s financial dealings in Sri Lanka have raised governance concerns. Its 70.8 percent acquisition of Union Bank of Colombo in 2023 was carried out through a Dubai-based entity.

The deal was executed in Singapore, placing it outside Sri Lankan jurisdiction. Following the acquisition, Nirvana Chaudhary was appointed chairman of Union Bank, while also serving as a director of Nepal’s Nabil Bank.

For JKH, the BYD partnership combines brand value with global EV technology, potentially placing Sri Lanka at the forefront of the broader region's going green. But with ongoing events in Colombo and a track record of overseas regulatory challenges, the initiative also calls for investor and regulatory scrutiny.

As Sri Lanka steers towards electric mobility to decrease the importation of fuel and reach climate targets, the success of BYD's venture will not just lie with the automobiles it sells but with the safeguards surrounding the administration of the companies bringing them in.

Bandula Sirimanna

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A wild elephant was struck and killed by a fuel train near the 137 ½ Mile Post on the Eastern Railway Line, between Habarana and Hatares Kotuwa stations, today (03).

Officials from Kaudulla National Park reported that the train, travelling from Colombo to Batticaloa, hit the elephant at around 12.55 a.m.

The deceased elephant was around 12 years old and stood five feet seven inches tall, said Ada Derana reporter.

The elephant had collided with the train and was dragged on for nearly 100 meters before coming to a stop.

Wildlife officials and local residents suggested that the accident may have been caused by careless operation of the train, despite the visibility of the track from a distance.

Investigations indicate that the wild elephant was crossing from Hurulu Forest Reserve to Gal Oya National Park when the collision occurred.

A post-mortem examination is scheduled to be conducted by officials of the Giritale Veterinary Unit this afternoon. The elephant’s body was severely damaged in the incident.

Further investigations into the accident are being conducted by officials of Kaudulla National Park.

(adaderana.lk)

Police have recovered another large cache of empty weapon magazines from the Veheragala Reservoir, continuing a major search operation launched yesterday based on military intelligence.

According to police, the latest discovery includes:

214 empty T-56 magazines
38 LMG drum magazines
11 MPMG 200-round magazines
9 MPMG 100-round magazines
6 T-81 magazines
One 100-round drum for 12.7mm anti-aircraft guns

The search operation, which began yesterday afternoon with the assistance of divers, was initiated following information provided by an Army Intelligence officer.

Police have launched an investigation to identify those responsible for dumping the magazines into the reservoir. 

The case will be reported to the Wellawaya Magistrate’s Court, according to a statement from the Police Media Division.

Domestic Air Travel Resumes Between Colombo and Katunayake via Beira Lake Water Aerodrome

A new domestic air travel service between Colombo and Katunayake was officially launched today (October 3) under the patronage of Minister of Transport, Highways, Ports and Civil Aviation, Bimal Rathnayake, by using the Beira Lake as a water aerodrome.

This initiative marks another step in the government’s program to promote domestic air travel as part of its broader plan to develop the tourism industry.

Cinnamon Air, currently the only operator of water aerodrome services in Sri Lanka, will operate these flights. The service is expected to provide tourists and business travelers arriving at the Bandaranaike International Airport with a convenient and time-saving option to reach Colombo city efficiently.

The inaugural flight, operated by a Cinnamon Air Cessna 208 aircraft, flew from Katunayake Airport to Cinnamon Lakeside Pier in Colombo, carrying several dignitaries including Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodituwakku, Deputy Minister of Tourism Prof. Ruwan Ranasinghe, and Chairman of the Civil Aviation Authority Sunil Jayaratne. The flight was piloted by Captain Indika Premadasa, assisted by First Officer Isuru Munasinghe.

Speaking at the event, Minister Bimal Rathnayake stated:
“As a government, we are committed to developing domestic aviation. We invite airlines like Cinnamon Air to expand their services to regional airports such as Palaly, and we will extend our fullest support.”

Cinnamon Air, a subsidiary of the John Keells Group, currently operates flights to 10 domestic tourist destinations including Kandy, Batticaloa, Sigiriya, Koggala, Weerawila, Hatton, and Trincomalee, providing valuable connectivity for the tourism sector.

SriLankan Airlines had earlier introduced water aerodrome services in 2011/2012, but these operations were discontinued due to strict security regulations at the time. With the change of government and the relaxation of regulations, a favorable environment has now been created for such services to resume, contributing positively to the tourism industry.

The Civil Aviation Authority confirmed that 22 water aerodromes across Sri Lanka have now been approved for operations following inspections. Plans are also underway to introduce similar water aerodrome services to Colombo Port City and to establish two new helicopter landing sites in Colombo.

Today’s event was attended by Minister Bimal Rathnayake, Deputy Minister of Ports and Civil Aviation Eng. Janitha Ruwan Kodituwakku, Deputy Minister of Tourism Prof. Ruwan Ranasinghe, Defence Secretary Air Vice Marshal (Retd.) Sampath Thuiyakontha, Chairman of the Civil Aviation Authority Sunil Jayaratne, Chairman of John Keells Group Krishan Balendra, and senior officials from the Civil Aviation Authority, the Ministry of Defence, the Ministry of Tourism, and Cinnamon Air.

From November 1, 2025, will no longer receive plastic shopping bags free of charge, as the government plans to introduce a regulation requiring a fee for such bags. This was informed to the Supreme Court today (01) by the Minister of Environment and other responsible authorities.

The announcement came during the hearing of a fundamental rights petition filed by the Centre for Environmental Justice, which requested a court order to introduce measures to reduce the environmental damage caused by polythene use.

The case was heard before a three-judge bench of the Supreme Court comprising Chief Justice Priyasath Dep, Justice Kumuduni Wickramasinghe, and Justice Sampath Abeykoon.

The Centre for Environmental Justice had earlier pointed out that although the Minister of Environment agreed on March 28, 2024, to impose a levy on plastic bags issued by supermarkets and other retail outlets, no steps had been taken to implement it.

Appearing for the petitioners, Attorney-at-Law Dr. Ravindranath Dabare argued that the government’s failure to act on its earlier commitment made the petition necessary.

Deputy Solicitor General Dr. Avanti Perera, representing the respondents, informed the court that a gazette notification would be issued to enforce a fee on plastic shopping bags from November 1.

Following this undertaking, the Centre for Environmental Justice agreed, and the case was accordingly concluded.

The Sri Lankan Department of Excise has announced that all licensed wine stores and liquor outlets across the country will remain closed today (October 3) in observance of World Temperance Day.

Marked globally each year on October 3, World Temperance Day is dedicated to promoting public awareness on the values of moderation and, in many cases, abstinence from alcohol consumption.

Excise Commissioner General confirmed that liquor sales were suspended from closing time on October 2 and will resume only from opening hours on October 4, 2025.

The Colombo Marathon, which had been on hold for seven years due to unavoidable reasons, will take place again on October 5, starting in front of the Bandaranaike Memorial International Conference Hall (BMICH).

The race will begin at 6:00 a.m. near the BMICH traffic lights and conclude at the Negombo Beach Park.

Runners will start from BMICH, proceed along Bauddhaloka Mawatha, turn at the Borella Cemetery roundabout, and continue through Dematagoda, Peliyagoda, and Wattala. From there, they will pass through Hekitta, Hamilton Canal, Pamunugama, Thalahena, Pitipana, and Duwa, before reaching Negombo Beach Park for the finish.

The 19th Colombo Marathon is organized by Lanka Sports Reisen (LSR) with the support of the Ministry of Sports and the Ministry of Tourism, under the full supervision of the Sri Lanka Athletics Association.

First launched in 1998 by LSR as an international marathon, the event became widely known as the Colombo Marathon. It was held continuously until 2018, but had to be canceled in 2019 due to the Easter Sunday attacks and again in 2020 because of the COVID-19 pandemic.

With Sri Lanka’s tourism sector now recovering, LSR has decided to relaunch the Colombo Marathon along with other international sporting events.