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Sri Lanka will regulate cryptocurrency and virtual asset trading for the first time following Cabinet approval of a proposal to establish a comprehensive legal framework for digital assets and service providers.

The regulatory initiative, presented by President Anura Kumara Dissanayake in his capacity as Minister of Digital Economy, was sanctioned on Tuesday to bring informal online trading under direct state oversight.

The government move aims to eliminate a critical supervisory gap created by local investors accessing digital assets through unregulated offshore exchanges and peer-to-peer platforms.

Under the recommendations of a special sub-committee chaired by the Deputy Minister of Digital Economy, the Securities and Exchange Commission of Sri Lanka will be appointed as the primary regulatory authority for virtual asset service providers.

To mitigate risks associated with money laundering and terrorism financing, the regulatory body will operate within a joint supervisory network alongside the Central Bank of Sri Lanka, the Financial Intelligence Unit, and the Department of Inland Revenue.

The introduction of mandatory registration, reporting standards, and compliance obligations will formally integrate virtual assets into the national financial architecture while establishing tax monitoring mechanisms.

The Government has taken steps to introduce amendments to the Anti-Corruption Act, No. 9 of 2023, with a proposed amendment Bill officially published in the Gazette.

President Anura Kumara Dissanayake has submitted the proposed Anti-Corruption (Amendment) Bill, which was published in an Extraordinary Gazette issued yesterday (27).

The proposed legislation aims to introduce several amendments to the existing Anti-Corruption Act, according to the gazetted document.

The Bill will now be presented to Parliament for consideration and approval.

The move marks the Government’s latest step towards revising the legal framework established under the Anti-Corruption Act, which was enacted in 2023. Further details on the specific amendments will be considered during the parliamentary process.

Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa said that the government will not hold a referendum to implement its decision to extend the retirement age of judges, rejecting opposition claims that a public vote is constitutionally mandated.

Speaking at the weekly Cabinet media briefing at the Department of Government Information in Colombo on Tuesday (28), the Minister clarified that the Constitution contains no provisions requiring a referendum for the proposed statutory changes.

The announcement follows Cabinet approval for a legislative package submitted by the Minister of Justice and National Integration, which instructs the Legal Draftsman to prepare amendments to both the Constitution and the Judicature Act No. 2 of 1978.

Government officials explained that increasing the retirement age is necessary to retain experienced judicial officers as the state expands court infrastructure and establishes regional sittings for the Court of Appeal under Article 146 of the Constitution.

The reform plan also includes increasing the total bench count for both the Court of Appeal and provincial High Courts to tackle rising caseloads and eliminate systemic delays in criminal and civil appellate matters.

However, the decision directly clashes with the Bar Association of Sri Lanka (BASL), whose President Rajeev Amarasuriya recently asserted in a television interview that any constitutional modification to judicial tenures across all court levels must be submitted to a referendum.

Opposition Leader Sajith Premadasa has rejected allegations that he entered into a political deal with Bar Association of Sri Lanka (BASL) President Rajiv Amarasuriya to oppose the government plan to extend the retirement age of superior court judges.

Premadasa issued the denial via a statement on X following accusations made in Parliament by National People’s Power (NPP) MP Asitha Niroshana, who alleged that the opposition leader had bribed the legal body to resist the proposed judicial changes.

Challenging the ruling coalition lawmaker to repeat the claims outside the legislative chamber where parliamentary privilege does not apply, Premadasa described the assertion as a baseless attempt to defend an unpopular policy.

Further defense of the legal body emerged from Free Lawyers Association Convenor Maithri Gunaratne (PC), who similarly challenged government members to make their accusations publicly.

Addressing the media, Gunaratne said that the BASL chief had maintained consistent opposition to extending the judicial retirement age since the proposal was first introduced.

He warned that any parliamentarian repeating the bribery allegations outside the House would face legal action and multi-million-rupee compensation claims for defamation.

Police arrested several members of Kavadi dance groups participating in the annual Devinuwara Uthpalawanna Sri Vishnu Maha Devalaya procession for alleged possession of narcotics during a special security operation in Matara on Tuesday (28) morning.

The crackdown occurred just hours ahead of the traditional parade, which is scheduled to commence at 2.00 p.m. today under heavy law enforcement surveillance.

The targeted inspections follow escalating safety concerns triggered by a rivalry between two underworld criminal syndicates over the control and participation of local performance troupes.

Tensions culminated in a recent shooting incident targeting a residence located near the Devalaya premises, forcing law enforcement authorities to re-evaluate safety measures.

The Acting Inspector General of Police initially advised the Matara District Secretary on 26 July to temporarily ban all Kavadi dance groups from this year's cultural event.

However, state officials overturned the recommended suspension during a high-level summit held on Monday at the Matara District Secretariat.

Following deliberations involving the Minister of Public Security, the Ministry Secretary, and senior police officers, authorities granted approval for traditional troupes with a history of participation to take part.

To mitigate security risks, police deployed approximately 1,500 security personnel to safeguard the procession route while subjecting all participating performers and supporting crews to mandatory physical searches.

Sri Lanka has recorded 22 shooting incidents since the start of the year, leaving 15 people dead and 12 injured, with police confirming that nearly half of these attacks occurred within a single fortnight between July 11 and 25.

Police figures show that ten of the 22 incidents took place during the two week period ending July 25 alone, resulting in three deaths and five injuries.

Some of the attacks targeted homes and property without causing casualties, while others appeared aimed at intimidating specific individuals. Several suspects have already been arrested in connection with the incidents, and investigations into the remaining cases continue.

Police Spokesman Assistant Superintendent of Police (ASP) F.U. Wootler stated that every case investigated thus far had revealed links to organised crime and the illicit narcotics trade.

He explained that rival gangs were increasingly resorting to armed attacks in order to eliminate competitors, settle financial disputes and curb the expansion of opposing groups.

Wootler noted that many individuals believed to be orchestrating the attacks were currently based overseas, while the intended victims were often relatives or close associates of rival gang members, with such attacks designed to intimidate rival organisations as much as to eliminate specific targets.

He added that police, acting under the direction of the Inspector General of Police, had intensified intelligence led operations, including detailed analysis of telephone records and other communications, in order to trace both those organising the attacks and those carrying them out.

Discussing the fatal shooting near the Bellanwila walking track on July 25, in which a 55 year old restaurant owner was killed, Wootler said police had arrested two suspects within an hour of the attack, one believed to be the gunman and the other allegedly the rider of the motorcycle used in the crime.

He noted that preliminary investigations suggested both suspects were heavily dependent on narcotics.

The Police Spokesman further disclosed that investigators were increasingly uncovering cases in which contract killers were being paid in narcotics rather than cash, with some suspects reportedly willing to carry out killings in exchange for relatively small quantities of drugs, underscoring the extent to which the narcotics trade was fuelling violent crime.

He said organised criminal groups typically waited until they had tracked a victim's movements and identified moments when police visibility was reduced before launching an attack.

While acknowledging that it was not feasible to station officers at every location, Wootler said law enforcement agencies remained committed to preventing such violence through intelligence gathering, surveillance and targeted operations, and would continue to act firmly against organised criminal networks and those involved in drug related violence.

The wave of violence recorded between July 11 and 25 spanned several parts of the country.

Attacks included a shooting at a house in Neboda, Matugama on July 11, a suspected drug trafficker seizing and firing an officer's weapon in Katunayake on July 15, the fatal shooting of a 26 year old man in Navagamuwa on July 16, gunfire injuring a security guard at a Dehiwala cemetery on July 19, a police shooting of a sword wielding suspect in Piliyandala the same day, an attack on a fisherman's home in Devinuwara on July 21, gunfire at a police sergeant's residence in Beliatta on July 22, the fatal shooting of a 39 year old man at a birthday function in Wattala on July 23, a serious injury caused by gunfire near a cemetery in Dematagoda the same day, and finally the fatal shooting in Bellanwila on July 25.

The Bar Association of Sri Lanka (BASL) says that a referendum is needed if the government moves ahead with a constitutional amendment to extend the retirement age of judges across all courts, including the Supreme Court and Court of Appeal.

BASL President Attorney-at-Law Rajeev Amarasuriya made these remarks during an interview on a private media channel following Cabinet approval of the controversial proposal.

He raised concerns over existing administrative delays within the judicial sector, pointing out that eight vacancies currently remain unfilled across the Supreme Court and the Court of Appeal.

Amarasuriya urged the President to address these critical appointments without further delay rather than pushing through structural changes to judicial tenures.

The opposition from the BASL adds to growing resistance across the legal sector, where judicial unions and regional lawyer groups have already warned that altering retirement ages risks eroding public trust and stalling career progression for junior judicial officers.

Altering the constitutional framework governing judicial tenure carries profound implications for the rule of law and the independence of Sri Lanka's judiciary.

With Cabinet approval secured, the draft amendment is expected to head to parliament for debate, setting up a major legislative and legal showdown over the necessity of a public referendum.

Mounting institutional friction between the Central Bank of Sri Lanka (CBSL) and the Finance Ministry over regulatory accountability has come to the fore following revelations of an alleged USD 715 million foreign exchange fraud.

The dispute surfaced during recent proceedings before Parliament's Committee on Public Finance (COPF), where lawmakers examined how 105 shell companies managed to transfer vast sums overseas through 13 commercial banks between January 2023 and March 2026 without delivering physical goods to the country.

Both institutions have engaged in mutual blame over legislative loopholes, while public scrutiny intensifies regarding how such large-scale capital flight continued undetected through the formal banking sector.

CBSL officials defended their regulatory stance before the parliamentary committee by pointing to enforcement constraints created by the Foreign Exchange Act of 2017.

They argued that the repeal of the previous Exchange Control Act removed criminal sanctions for major foreign exchange violations, forcing law enforcement officers to pursue cases indirectly through money laundering and organised crime legislation.

In response to these claims, the Finance Ministry confirmed that it is drafting legislative amendments to restore criminal penalties for deliberate foreign exchange fraud involving false documentation.

Meanwhile, details presented by the Criminal Investigation Department (CID) revealed a highly sophisticated network encompassing 55 individuals, 227 bank accounts, and nearly 24,300 telegraphic transfers.

Investigators alleged collusion among commercial bank officers and traced international links to Dubai-based narcotics syndicates, noting that a single primary suspect controlled 43 entities responsible for remitting USD 43 million abroad.

The policy clash between the central bank and the treasury underscores severe systemic vulnerabilities in state oversight mechanisms at a time when Sri Lanka is attempting to rebuild its foreign reserves.

The Finance Ministry is expected to present the proposed legal amendments to Parliament in the coming months, while law enforcement authorities continue tracing overseas assets and preparing formal indictments against the primary suspects.

The Gampaha Lawyers' Association has requested President Anura Kumara Dissanayake to abandon a plan to increase the statutory retirement age of superior court judges over fears of compromising judicial independence.

In an official communication sent on 22 July 2026 from Gampaha, Association President Chandima Wijerathna and Secretary Sudarshani Rathnayake cautioned the head of state that altering constitutional tenure rules risks eroding public trust in the administration of justice.

Concerns raised by the regional legal organisation focus on the structural friction an extended tenure would create within the legal system.

Prolonging the service of sitting Supreme Court and Court of Appeal judges would directly choke the promotion pipeline for lower court officials, leaving High Court judges, district judges, and magistrates unable to advance through established career channels.

The legal body warned that such delays would severely demoralise serving judicial staff and discourage promising young legal practitioners from seeking appointments on the bench.

The association stressed that judicial tenure is an essential element of the constitutional architecture that must remain entirely shielded from executive influence.

Rather than modifying tenure limits, the lawyers urged the government to focus immediately on filling current vacancies in the higher courts through transparent constitutional channels to tackle case backlogs.

The lawyers insisted that any future constitutional changes concerning the judiciary must only proceed following comprehensive consultation with key stakeholders, including the Bar Association of Sri Lanka, civil society representatives, and sitting judicial officers.

Upholding an uncompromised separation of powers remains vital to preserving institutional stability and reinforcing public faith in Sri Lanka's democratic system.

The government is expected to face mounting pressure from legal bodies across the country as parliament considers upcoming judicial reforms and cabinet deliberations continue over the proposed constitutional amendments.

The owner of a private tuition centre in Horana has been arrested for allegedly possessing the narcotic drug known as "Ice" (crystal methamphetamine), police said.

The suspect, a 44-year-old resident of the Narthanagala area in Horana, was taken into custody during a police raid carried out at his residence.

Police said officers recovered 15g 250mg of crystal methamphetamine from the suspect's possession. A mobile phone, a SIM card believed to have been used in drug trafficking activities, and an electronic weighing scale were also seized during the operation.

According to investigators, the suspect attempted to flee when police arrived at the residence but was apprehended following a brief pursuit.

Preliminary investigations have revealed that the suspect is the son of a well-known businessman in the Horana area. Police also stated that he has previously faced several drug-related charges.

Further investigations are underway to determine whether the suspect had links to organized drug trafficking networks, operated a wider drug distribution network, and whether narcotics were supplied to students attending his tuition classes.

Sri Lanka and China reaffirmed their commitment to deepening bilateral cooperation as outgoing Chinese ambassador Qi Zhenhong held farewell talks with opposition leader Sajith Premadasa on Monday (27) at the Opposition Leader’s Office in Colombo.

The high level engagement served as a platform to review diplomatic progress and establish priorities for future bilateral relations.

Discussions focused heavily on key areas of economic cooperation, including investment, trade, and financial assistance for national development.

Premadasa conveyed his gratitude to the departing ambassador for his active role in advancing diplomatic relations throughout his stint in Colombo.

Both parties agreed that continuous dialogue remains essential for maintaining long term strategic partnerships, while Premadasa highlighted the need to build a mutually beneficial framework that serves the economic interests of both nations.

The opposition leader also offered his well wishes for the ambassador in his upcoming diplomatic roles.

Five suspects, including Anuda Janadith Bandara, the son of former State Minister Shantha Bandara, have been granted bail by the Fort Magistrate's Court in connection with the alleged robbery of Rs. 20 million belonging to a Chinese national.

Fort Magistrate Pasan Amarasena ordered that the suspects be released on personal bail of Rs. 500,000 each. The court also imposed a travel ban preventing all five suspects from leaving the country.

The suspects, including Bandara, were arrested on July 21 over allegations that they robbed a Chinese national of Rs. 20 million.

The case is being heard before the Fort Magistrate's Court.