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The Cabinet of Ministers has approved an additional foreign exchange adjustment allowance of up to Rs. 2.5 million annually for students selected under the government’s overseas scholarship programme.

The decision was taken following the depreciation of the Sri Lankan Rupee against major global currencies, which has increased the cost of overseas education-related expenses for scholarship recipients.

The additional allowance is intended to help students pursuing undergraduate programmes at internationally ranked foreign universities manage higher costs caused by exchange rate fluctuations.

The overseas scholarship programme was introduced under the 2025 Budget to support Sri Lanka’s highest-performing students from the 2024 GCE Advanced Level Examination by providing opportunities to pursue first degree programmes at foreign universities.

Under the scheme, each student is eligible to receive financial assistance of up to Rs. 20 million per year, with total support limited to Rs. 80 million over the four-year duration of the degree programme.

A total of 32 students were selected based on their Advanced Level examination results. Of them, nine students have already departed Sri Lanka to commence their studies, while arrangements are being made for the remaining scholarship recipients to travel overseas.

Officials said the depreciation of the Rupee had increased foreign currency payment requirements, resulting in the originally allocated funds becoming insufficient to cover certain expenses faced by students.

The proposal to introduce the foreign exchange adjustment allowance was submitted by Prime Minister Dr. Harini Amarasuriya in her capacity as Minister of Education, Higher Education and Vocational Education, and was subsequently approved by the Cabinet.

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.

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.

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.

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.

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.

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.