v2025 (2)

v2025

News

Lack of Grazing Lands Forces Dairy Cattle into Meat Supply, MP Tells Parliament 

Opposition MP Chamara Sampath Dassanayake has raised concerns in Parliament over the growing challenges faced by cattle farmers, alleging that cattle kept for milk production are being slaughtered for meat due to a shortage of suitable grazing lands.

The MP claimed that cattle owners are facing difficulties as the Wildlife Department has taken legal action against them, alleging that their cattle consume grasslands needed for wild elephants.

According to Dassanayake, the issue has become particularly serious in areas including the Maduru Oya forest reserve, creating hardship for cattle owners who depend on dairy farming.

He warned that the decline in dairy cattle could further affect domestic milk production, forcing Sri Lanka to spend billions of rupees on importing milk powder to meet local demand.

Responding to the concerns raised in Parliament, Deputy Minister of Agriculture Namal Karunaratne said the matter should be addressed through careful discussions with all relevant stakeholders.

He stressed the need for a practical solution developed through dialogue and cooperation among authorities, farmers and other parties involved.

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India amends tax treaty with Sri Lanka to seal evasion loopholes

India has officially notified a crucial amendment to its double taxation avoidance agreement with Sri Lanka to eliminate tax evasion and curb revenue leakage resulting from treaty abuse.

The newly introduced bilateral protocol was brought into force on 19 June and notified by the Indian Ministry of Finance, establishing enhanced measures designed to prevent non-taxation and aggressive tax-avoidance strategies such as treaty shopping.

Under the updated framework, the agreement incorporates the internationally recognized Principal Purpose Test, an anti-avoidance tool that empowers tax authorities to scrutinize the true commercial intent of cross-border investments.

Tax officials will now have the authority to deny treaty benefits if it is reasonably concluded that obtaining a tax advantage was a main objective of a corporate structure or transaction, shifting the standard for investors from simple legal documentation to proving genuine economic rationale.

These structural adjustments incorporate OECD Multilateral Instrument mandates into the bilateral relationship, ensuring relief applies strictly to legitimate trade and capital movements while aligning with broader global efforts against base erosion and profit shifting.

The provisions of the amended protocol will formally apply to all income derived in India starting from 1 April 2027.

By preventing multinational tax exploitation, this bilateral agreement secures national revenue bases while fostering a more transparent and legally sound commercial environment for cross-border investments between India and Sri Lanka.

Industry stakeholders and cross-border businesses will closely monitor further regulatory guidance from fiscal authorities in both nations as corporate entities begin restructuring their operational setups to comply ahead of the 2027 enforcement deadline.

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Man Arrested in Negombo with Over 56 Litres of Illegal Liquor 

A 32-year-old man has been arrested with 56 litres and 250 millilitres of illegal liquor during a raid conducted by the Negombo Divisional Criminal Investigation Bureau.

Police said the suspect was taken into custody last evening (20) during an operation carried out in the Dalupotha area within the Negombo Police Division, based on information received by officers.

During the raid, police recovered 56 litres and 250 millilitres of illegal liquor stored in 75 bottles.

The arrested individual has been identified as a resident of the Kochchikade area, according to police.

Further investigations into the incident are being conducted by the Negombo Police.

 
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Past differences can't be ignored purely to topple government - Marikkar

Samagi Jana Balawegaya (SJB) parliamentarian S.M. Marikkar has rejected calls for an unconditional opposition alliance aimed solely at removing the ruling government, pushing back against growing momentum for a joint political front.

Speaking to journalists in Colombo, the opposition lawmaker clarified the main opposition party's position regarding resurfaced unification talks with the United National Party (UNP) and broader coalition proposals across opposition factions.

The stance comes amid renewed debate over merging opposition resources to challenge the current government on critical legislative issues.

Responding to recent comments from Sri Lanka Podujana Peramuna Organiser (SLPP) MP Namal Rajapaksa advocating a broad anti-government front, Marikkar said that past political differences and grievances cannot be erased simply to achieve power.

He noted that while joint opposition action is acceptable on specific national concerns, such as opposing proposed changes to the retirement age of judges, an overarching alliance created purely to bring down the NPP government remains unacceptable.

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Government to Introduce Laws Against Toxic Chemicals Used for Artificial Fruit Ripening 

The government is preparing to introduce legal provisions to prevent the use of toxic chemicals for artificially ripening fruits, Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe said.

The Minister said the move follows a number of complaints received by the Consumer Affairs Authority (CAA) regarding the sale of fruits ripened using harmful chemicals.

He made these remarks during a discussion held with officials of the Consumer Affairs Authority, where concerns over the practice and possible measures to address the issue were discussed.

Minister Samarasinghe said the use of toxic chemicals to ripen fruits including bananas, mangoes and papayas has emerged as a serious public health concern.

He further stated that authorities will conduct raids at locations where such chemicals are being used for fruit ripening.

The Minister warned that traders who continue the practice despite being informed of the regulations will face legal action. The government is expected to move forward with the proposed legal measures to strengthen consumer protection and prevent the distribution of chemically ripened fruits.

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India approves its first dengue vaccine

India has approved its first dengue vaccine, with the Drug Controller General of India (DCGI) granting market authorisation to vaccine QDENGA, developed by Takeda Biopharmaceuticals India.

The vaccine is approved for people aged 4 to 60 years and can be given regardless of whether a person has previously been infected with dengue. Unlike some dengue vaccines, QDENGA does not require pre-vaccination screening, allowing eligible individuals to receive the vaccine without first being tested for past dengue infection.

Takeda said the approval marks a major step in India's fight against dengue, a mosquito-borne disease that affects millions of people every year. 

"Since its launch in 2022, QDENGA has been approved in 43 countries, with more than 32 million doses distributed globally. This approval marks an important step forward in strengthening dengue prevention in India," said Mahender Nayak, Head of Intercontinental Markets at Takeda. 

The company said long-term data collected over seven years showed that the vaccine continues to protect against dengue infection and hospitalisation caused by all four dengue virus serotypes.

The Indian approval is based on findings from Takeda's global clinical development programme, which included 19 Phase I, II and III clinical trials involving more than 28,000 participants in countries where dengue is common as well as regions where it is not. The decision was also supported by results from the Phase III DEN-302 clinical trial conducted in India, which assessed the vaccine's safety and immune response in people between 4 and 60 years of age. QDENGA is given as two injections of 0.5 ml, administered under the skin three months apart.

Takeda said India carries one of the world's highest dengue burdens, with all four virus serotypes circulating simultaneously in several parts of the country. "QDENGA is designed to protect against all four serotypes, regardless of prior exposure. Its approval represents an important step in strengthening India's comprehensive approach to dengue prevention, alongside vector control, surveillance, community awareness and other public health measures," said Goh Choo Beng, Medical Affairs Head for Takeda's Southeast Asia and India Cluster.

The company added that the World Health Organization (WHO) recommends QDENGA for use in dengue-endemic regions and supports its inclusion in public immunisation programmes in high-transmission areas without requiring pre-vaccination screening. QDENGA has also received WHO prequalification, confirming that it meets international standards for quality, safety and effectiveness. This also makes the vaccine eligible for procurement by global agencies such as UNICEF and the Pan American Health Organization (PAHO). Dengue is a mosquito-borne viral disease reported in more than 125 countries. According to the company, India accounts for nearly one-third of the global dengue burden, with rapid urbanisation, climate change and widespread mosquito breeding continuing to increase the risk of infection across the country.

Source: Times of India

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SriLankan Airlines Suspends Kuwait Flights Amid Middle East Conflict 

SriLankan Airlines has temporarily suspended its flight operations to Kuwait due to the worsening security situation in the Middle East, the Civil Aviation Authority of Sri Lanka (CAASL) announced.

Accordingly, the national carrier has suspended flights operating to Kuwait from July 20 until July 26, 2026, as authorities continue to monitor developments in the region.

The decision comes amid escalating tensions and ongoing conflict in parts of the Middle East, which have raised concerns over the safety and operational challenges faced by international airlines.

SriLankan Airlines has advised affected passengers seeking further information or assistance to contact the airline through its customer service channels.

Passengers within Sri Lanka can reach the airline by calling 1979, while international callers may contact +94 11 777 1979. Assistance is also available through WhatsApp at +94 74 444 1979 (chat only), through respective travel agents, or via the official SriLankan Airlines website.

The airline stated that further updates regarding the resumption of services will be communicated based on the security situation and operational assessments.

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Govt. paving way for single-party rule through constitutional changes - Opposition Leader

Opposition Leader Sajith Premadasa has accused the government of attempting to dismantle the independence of the judiciary and establish autocratic single-party rule through its proposed changes to judges' retirement ages.

Premadasa made these remarks while addressing a public dialogue on the protection of democracy, the rule of law and judicial independence, organised by the Samagi Lawyers' Association at the Sri Lanka Foundation Institute on Saturday.

The Opposition Leader questioned why the government, led by President Anura Kumara Dissanayake, had proposed raising the retirement age of Supreme Court judges from 65 to 67 and that of Court of Appeal judges from 63 to 65, while making no move to abolish the Executive Presidency through a constitutional amendment, despite having campaigned on such a promise.

He noted that when this inconsistency was raised in Parliament, the government had denied any such commitment existed, a response he characterised as an attempt to erode democracy entirely.

He said that the manoeuvre would not only damage the independence of the judiciary but also undermine public confidence in it.

Premadasa further pointed to the government's failure to fill several outstanding vacancies in the superior courts, describing this as both a violation of fundamental rights and a form of undue pressure exerted upon the judiciary.

He observed that political actors often invoked international principles on judicial independence and the separation of powers while in opposition, only to abandon them once in office and begin consolidating power instead.

Placing these developments in a longer historical context, the Opposition Leader traced the evolution of legal and democratic principles from the Mesopotamian, Egyptian, Greek and Roman civilisations through to the Magna Carta, the development of common law in medieval England, the 1787 American Constitution, the 1948 Universal Declaration of Human Rights, the 1966 covenants on civil and political rights, and the 1985 basic principles on the independence of the judiciary.

He said that governance rooted in this democratic tradition depended on a strong separation of powers between the legislature, the executive and the judiciary, supported by a functioning system of checks and balances, adding that judicial independence and the strength of democracy were directly linked.

Premadasa also warned of potential economic repercussions, cautioning that pressure from institutions such as the IMF could follow the government's course of action, and that facilities such as the European Union's GSP+ trade concession could similarly come under threat.

He said it was necessary to establish the IMF's position on the proposed amendments, and called on the public to unite across class, colour and political lines to resist what he described as an anti-democratic programme, stressing that past periods of judicial interference must not be allowed to recur.

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Election Commission Proposes Framework to Boost Women, Youth Representation in Provincial Council Polls 

The National Election Commission has proposed a technical framework aimed at increasing the representation of women and youth at Provincial Council Elections while retaining the existing Proportional Representation (PR) electoral system.

The proposal was presented to the Parliamentary Select Committee appointed to study and recommend an electoral system for future Provincial Council Elections.

The Committee, chaired by Minister Vijitha Herath, reviewed the Election Commission’s report during a meeting held in Parliament. Minister Saroja Savithri Paulraj, Chairperson of the Women Parliamentarians’ Caucus, and members of the Caucus also participated in the discussions.

According to the report, the proposed framework seeks to improve opportunities for women and youth candidates without altering the current method used to calculate election results under the PR system.

Committee members also examined the legal and practical implications of introducing measures to ensure greater representation for women and youth. According to a statement issued by the Department of Communication of Parliament, further discussions on the proposals are expected at a future meeting.

Meanwhile, the Women Parliamentarians’ Caucus unanimously proposed that women's representation in both Provincial Council and Local Government Elections be increased to a minimum of 33 percent. The Caucus urged that this target be considered when finalizing the proposed electoral reforms.

The meeting was attended by Deputy Ministers Arun Hemachandra and Sunil Watagala, MPs R. M. Ranjith Madduma Bandara, Mano Ganesan, Shanakiyan Rasamanickam, Dharmapriya Wijesinghe, Samanmali Gunasinghe and Lakshman Nipuna Arachchi.

Election Commission Chairman R. M. A. L. Ratnayake and other members of the Commission were also present.

 
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Supreme Court dismisses FR petition against gender change circular

The Supreme Court has dismissed without hearing a Fundamental Rights petition that sought an order to invalidate an official circular allowing individuals in the country to legally alter their gender identity.

The petition was filed by retired disabled Sri Lanka Air Force Warrant Officer Shantha Jayathilake.

The named incumbent President Anura Kumara Dissanayake alongside former Presidents Maithripala Sirisena and Ranil Wickremesinghe among its respondents.

This decision reinforces existing state policy on legal identity recognition, safeguarding human rights protections and preventing legal regressions that could impact Sri Lanka's standing on fundamental rights indicators.

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Operational deficits risk undermining Sri Lanka’s tax reform progress

Sri Lanka’s Inland Revenue Department faces critical structural hurdles that threaten to derail the sustainability of its recent tax administration gains unless institutional capacity is urgently rebuilt.

According to a July 2026 solution brief published by economic policy think tank Arutha Research in Colombo, state tax collection has rebounded remarkably to 16.7 percent of gross domestic product in 2025 from a low of 8.3 percent in 2021.

However, the report cautions that despite these revenue improvements, the state revenue body remains constrained by chronic staff shortages in specialized information technology, incomplete digitalization, and a heavy reliance on inefficient manual processes.

Structural challenges hindering long-term progress

Modernization efforts within the revenue body are being severely impeded by legacy operational practices and suboptimal resource allocation.

The policy brief highlights that the department continues to rely on broad traditional checking rather than modern risk-based compliance systems, while the Large Taxpayer Unit remains burdened by legal disputes from past assessments instead of focusing on active audits.

Furthermore, procedural bottlenecks persist across key administration areas, including unrecoverable tax arrears requiring write-offs, an uncleaned taxpayer registry following the 2023 expansion, and manual final-stage processing for Value Added Tax refunds that currently absorbs 40 full-time officers.

The think tank also criticized street-level business surveys in Colombo as resource-intensive distractions from large-scale evasion, warned against proposed taxpayer privilege schemes that could reward past non-compliance, and cautioned that expanding third-party data access without robust governance risks compromising taxpayer information security.

Positive milestones and institutional outlook

Despite these vulnerabilities, significant institutional improvements have taken root over the past two years, including enhanced staff morale, the recruitment of 100 officers in early 2026, leadership stability, upgraded digital infrastructure, and effective joint inter-agency investigations with the Customs Department.

Resolving these operational defects is essential to safeguarding Sri Lanka's fiscal trajectory and achieving the state target of raising government revenue to 20 percent of gross domestic product.

Broad administrative updates, policy evaluations, and capacity-building measures are expected to take center stage as fiscal authorities assess the think tank's strategic recommendations in the coming months.

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Cardinal Ranjith Warns Churches Could Face Closure Amid Declining Religious Practice

Archbishop of Colombo Cardinal Malcolm Ranjith has warned that churches could face closure in the future as more Christians, including Catholics, appear to be moving away from practising their religion.

Speaking during a service over the weekend, Cardinal Ranjith said many Christians are increasingly attracted to events and activities focused on enjoyment, rather than religious practices and spiritual growth.

He cautioned that even large cathedrals and basilicas could eventually face closure if the trend continues.

The Cardinal said the issue reflects a wider shift towards materialism, with people placing greater emphasis on acquiring material possessions instead of focusing on spiritual and moral development.

According to Cardinal Ranjith, the situation is particularly visible in European countries that are considered developed nations. He noted that while some people view development through the availability of material comforts, true development should also include spiritual and moral progress.

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