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The Ministry of Health has suspended the official responsibilities of Dr. Rukshan Bellana, the Acting Deputy Director of the Colombo National Hospital, according to an official letter dated 18 December 2025.

The letter states that initial investigations conducted by the Ministry found that Dr. Bellana, while functioning as a government medical officer in a senior role, had issued comments to the media without prior approval. These statements are said to have led to controversy and caused public concern.The Ministry further noted that disciplinary proceedings will be initiated in due course in connection with the matter.

The Department of Meteorology says intermittent showers are expected today in the Eastern, Uva and Central provinces, as well as in the Polonnaruwa and Hambantota districts. Rainfall of around 75 mm may occur in some locations within these areas.Meanwhile, the North-Western Province and the Anuradhapura district are likely to experience several spells of rain during the day. Showers or thundershowers are also expected in many areas of the Western and Sabaragamuwa provinces and in the Galle and Matara districts after 1.00 p.m.

Fairly strong winds, reaching speeds of about 40 kmph, may occur at times over the eastern slopes of the central hills, the Northern, North-Central and North-Western provinces, and in the Trincomalee, Hambantota and Monaragala districts.In addition, misty conditions are expected during the early morning hours in parts of the Sabaragamuwa, Western and Central provinces, as well as in the Galle and Matara districts.

The Meteorology Department urges the public to take necessary precautions to reduce potential damage caused by localized strong winds and lightning associated with thundershowers.

Cyclone Ditwah has laid bare the fragility of Sri Lanka’s MSME sector, raising concerns that rebuilding may prove harder than the initial clean-up. Fresh data from the Industrial Disaster Support Centre show that tens of thousands of businesses have sought assistance, underscoring the breadth of the impact.

Micro and small enterprises dominate the affected pool, reflecting their exposure to flooding, power outages and transport disruptions. While some firms have resumed activity, many are operating below capacity, struggling with damaged equipment, depleted inventories and weakened demand.

The recovery challenge is not just financial. Delays in restoring utilities, supply-chain interruptions and labour displacement are slowing restarts, particularly for enterprises outside major urban centres. Medium-sized firms, though better capitalised, also face rising repair costs and uncertain cash flows.

Officials say relief schemes will be prioritised using IDSC data, but business groups argue that speed is critical. Without rapid disbursement of funds and flexible credit terms, the risk of closures and job losses will rise. The cyclone, they warn, could become a turning point for the MSME sector either accelerating reform and resilience, or deepening long-standing structural weaknesses.

The Centre for Policy Alternatives (CPA) has been alerted to the draft Protection of the State from Terrorism Bill (Bill) published on the website of the Ministry of Justice, which invited public comments within a month of its publication. Whilst the government publicly announced in August its intention to publish a draft Bill for public comments, the publication at the present moment, when Sri Lanka is confronted with multiple challenges in the aftermath of Cyclone Ditwah, raises serious concerns. Such a context limits meaningful public engagement of any proposed legislation, and the limited time further impedes an inclusive and transparent law reform process. Whilst CPA appreciates the decision of the government to place the Bill in the public domain for comment, we urge for further time for comments and discussion.

With the hope that more time is provided for a fuller comment on the Bill, CPA shares these initial comments with the view of constructive engagement and public awareness of key areas requiring attention. At the outset, CPA emphasises that the benchmark against which this Bill must be assessed is not merely whether it represents an improvement over the Prevention of Terrorism Act (PTA), but whether the Bill, in and of itself, complies with the Fundamental Rights guaranteed under the Constitution of Sri Lanka and with Sri Lanka’s international human rights obligations. It must be borne in mind that the PTA was never constitutional, nor did its drafters claim that it was. No meaningful effort was made to ensure compliance with fundamental rights standards and due process safeguards, as it was taken as granted that the legislation could be enacted with a special two-thirds majority in Parliament. The result has been a draconian law that has been used for decades to target and suppress the rights of citizens, with limited debate as to what is meant by terrorism and the need for extremely broad terror laws in a post war context.

It is within this broader context that CPA sets out these initial observations on the draft Protection of the State from Terrorism Bill. The following are several clauses that raises concerns:

The Offence of Terrorism and Other Offences

• The definition of the offence of Terrorism remains broad, seemingly designed in a manner that can be used to suppress dissent, rather than being limited to actual acts of terrorism. One of the main criticisms of the Anti-Terrorism Bill of 2024 was that it may have been used against those who protest against the Government, and while the present Bill contains a provision that seems to exclude protestors in clause 3(4), this clause is vague as to what will and will not be defined as terrorism in the course of a lawful protest.

Arrests made by Members of the Armed Forces or Coast Guard

• Clause 24 of the Bill provides that when a suspect is arrested by the armed forces or the coast guard, then they shall ‘without unnecessary delay, and in any event within a period not exceeding twenty-four hours’ be produced before the Officer – in – Charge of the nearest police station. When contrasted with clause 23, which requires a police officer making an arrest to produce the suspect before the OIC ‘forthwith’, it raises the question as to why the same urgency is not seen with the armed forces. This perpetuates the norm of militarising the powers of arrest and detention.

Pre-Trial Detention and Detention Orders

• As per clause 28(1), a person can be held in remand for up to a year. As per clause 28(2), if there is a Detention Order made against the person, then in combination, the period of remand and detention can extend up to two years. This means that a person can languish in detention for up to two years without being charged with a crime. Such a long period again raises questions of the power of the State to target individuals, exacerbated by Sri Lanka’s history of long periods of remand and detention, which has contributed to abuse and violence.

Proscription Orders

• Clause 63 gives sweeping powers to the executive to proscribe an organisation, similar to what was seen in the 2024 Bill. Coupled with the wide power of the President to impose restrictions on such an organisation, the criminalisation of acts related to the organisation in terms of clause 6 gives the State a wide power to use this law to restrict freedom of association and crackdown on dissent.

Curfew Order and Prohibited Places

• The Bill provides power under clause 65 for the President to issue a curfew order and under clause 66 for the Secretary to the Ministry of Defence to issue a direction that a place is a prohibited place. These clauses are broad and vague, thus making them susceptible to abuse.

The above are some clauses that raise concerns, though CPA notes that a fuller and in-depth study of the Bill is required for a comprehensive review and comment, which we hope to do in 2026. In the spirit of constructive engagement, CPA urges the authorities to provide greater time for public comments and consultation, enabling the citizens to be aware of proposed laws and facilitate a law-making process that is transparent, inclusive and contributes to upholding the rule of law and democracy in Sri Lanka.                     

(Source - Cpalanka)                                                           

Sri Lanka’s recovery from Cyclone Ditwah has opened a critical debate over how the country should finance large-scale reconstruction at a time of tight public finances. With damaged railways, roads and utilities demanding urgent attention, regulators and policymakers are increasingly looking to the capital market specifically infrastructure bondsas a way to bridge widening funding gaps.

 The Securities and Exchange Commission (SEC) has confirmed discussions with the Ministry of Finance on mobilising long-term capital through infrastructure bonds to support post-cyclone rebuilding. The urgency is stark. Restoring damaged railway tracks alone is estimated to cost around Rs. 200 billion, a figure that far exceeds the Government’s immediate fiscal capacity. Against a backdrop of debt restructuring and constrained budgets, traditional Treasury funding is no longer sufficient.

Infrastructure bonds offer clear advantages. By tapping institutional investors such as pension funds, insurance companies and long-term savers, the State can spread reconstruction costs over time while avoiding heavy short-term budget pressure. Well-structured bonds can also improve transparency by linking funds to specific projects, reassuring investors that proceeds are ring-fenced for rebuilding efforts.

However, the approach is not without risks. Issuing large volumes of bonds could increase contingent liabilities if projects fail to generate expected economic returns. Poorly designed instruments may crowd out private sector credit or push up domestic interest rates. Investor appetite will also depend on confidence in governance, project selection and repayment capacity areas where Sri Lanka’s recent economic history has made markets cautious.

Beyond bonds, the SEC is examining broader capital market reforms to support development financing. One proposal under consideration is the listing of well-managed State-owned enterprises on the Colombo Stock Exchange (CSE), which could unlock equity capital while improving transparency and accountability. Yet such listings require strong political commitment and corporate governance reforms to succeed.

The cyclone has also highlighted structural weaknesses in Sri Lanka’s capital market. Fewer than 1% of citizens currently hold stock market accounts, and market capitalisation remains around 20% of GDP—far below regional peers. Without expanding investor participation and deepening the market, infrastructure bonds alone may struggle to attract sufficient demand.

As Sri Lanka charts its recovery path, infrastructure bonds could become a vital tool in turning disaster into an opportunity for modernisation. But success will hinge on credible frameworks, disciplined execution and restoring investor trust without which the cost of rebuilding could rise even further.

The Mahaweli Authority has commenced regulated water discharge operations at three key reservoirs after persistent heavy rainfall raised water levels in their catchment areas.According to the Authority, the sluice gates were opened at 10.20 a.m. today  as part of routine flood control measures. At the Victoria Reservoir, six sluice gates were lifted by 70 centimetres each to release excess water.

At the Randenigala Reservoir, two gates were opened, with one raised by 2.5 metres and the other by 1 metre. Meanwhile, at the Rantembe Reservoir, two sluice gates were adjusted to 2 metres and 2.5 metres, respectively.

The Mahaweli Authority stated that the controlled releases were necessary to manage rising reservoir levels caused by recent rainfall. Members of the public, particularly those residing in downstream and low-lying areas, have been advised to remain alert and take necessary safety precautions.

The Permanent Mission of Sri Lanka to the United Nations in New York marked seven decades of the country’s UN membership on December 11 through a range of events that emphasized Sri Lanka’s continued dedication to global cooperation and principled multilateralism.Under the leadership of Sri Lanka’s Permanent Representative to the UN, Ambassador Jayantha Jayasuriya, Sri Lanka joined 15 other Member States at UN Headquarters to observe the milestone. The group included Albania, Austria, Bulgaria, Cambodia, Finland, Hungary, Ireland, Italy, Jordan, Lao PDR, Libya, Nepal, Portugal, Romania and Spain.

A high-level discussion held as part of the commemoration brought together ambassadors from the 16 countries along with a panel of political analysts to examine the achievements of the multilateral system, the challenges it faces, and its future direction. The discussion was streamed live on UN WebTV.

Addressing the gathering, Ambassador Jayasuriya noted that while the United Nations celebrates its 80th anniversary this year, such milestones also provide an opportunity for reflection. He stressed the importance of strengthening and improving the organization without undermining its founding principles, in order to advance a more just, equitable and prosperous global order.

As part of the joint observance, the ambassadors unveiled a commemorative stamp representing unity, cooperation and the equal standing of all Member States within the UN framework.

Earlier in June 2025, during UN Open Source Week, Sri Lanka’s Mission partnered with the Permanent Mission of Italy and Wikimedia to host an “Edit-A-Thon,” underscoring the value of open, accurate information in safeguarding the institutional history of the United Nations. Ambassador Jayasuriya said the initiative aimed to enrich the UN’s historical record while amplifying diverse perspectives, including those of youth, vulnerable communities and the Global South.

In October 2025, the Mission also organized a fellowship event to recognize Sri Lankan nationals who have served across the UN system. Ambassador Jayasuriya paid tribute to their contributions, highlighting the legacy built by Sri Lankans who have distinguished themselves as diplomats, jurists, scholars, peacekeepers and international civil servants.

Through these commemorative activities, Sri Lanka reaffirmed its enduring support for the United Nations and its commitment to working closely with other Member States to strengthen multilateralism and advance shared global objectives in the years ahead.

Speaker of Parliament Dr. Jagath Wickramaratne informed the House today that he formally endorsed the certificates for three important amendment Bills yesterday , completing the legislative process required for them to become law.The certified Bills are the Social Security Contribution Levy (Amendment) Bill, the Betting and Gaming Levy (Amendment) Bill, and the Strategic Development Projects (Amendment) Bill, according to a statement issued by the Department of Communications of Parliament.

The Social Security Contribution Levy (Amendment) Bill was introduced to amend the Social Security Contribution Levy Act, No. 25 of 2022. The Bill was presented to Parliament on October 9, 2025, and subsequently approved on December 5, 2025.

The Betting and Gaming Levy (Amendment) Bill, also passed on December 5, seeks to revise Section 2 of the principal law. The amendments limit the application of the ten per cent gross collection levy to the period from April 1, 2023, to October 1, 2025, increase the levy on bookmakers and gambling businesses to 18 per cent from October 1, 2025, and raise the casino entrance fee for Sri Lankan citizens to USD 100.

Meanwhile, the Strategic Development Projects (Amendment) Bill, tabled in Parliament on November 14, 2025, introduces major reforms to the Strategic Development Projects Act, No. 14 of 2008. The changes include reducing the maximum tax holiday period from 25 years to 10 years, introducing a structured project evaluation process requiring the Board of Investment (BOI) to refer projects to the Ministry of Finance for a mandatory ex-ante cost-benefit analysis, and strengthening post-approval monitoring.

Under the amended framework, the BOI will have authority to conduct ex-post performance monitoring, impose administrative penalties, or suspend or revoke concessions in cases of non-compliance with key performance indicators. The amendments also require beneficiaries to file tax returns and mandate the Ministry of Finance to publish an annual report on tax expenditures linked to strategic development projects.Following the Speaker’s certification, the three Bills have now come into force as the Social Security Contribution Levy (Amendment) Act, No. 24 of 2025, the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025, and the Strategic Development Projects (Amendment) Act, No. 26 of 2025

Sri Lanka’s vehicle import surge delivered a short-term fiscal jackpot in 2025, but the policy choices that enabled it now threaten to destabilise the country’s emerging automobile manufacturing base. Analysis by Parliament’s Public Finance Committee (PFC) shows that nearly Rs. 600 billion of the roughly Rs. 1 trillion increase in total tax revenue last year stemmed from vehicle imports overshooting official targets by more than Rs. 200 billion. While the inflow eased budget pressures, the momentum is fading, and industry leaders warn the aftershocks could be severe.

The government’s decision to reopen vehicle imports and layer new taxes was designed to bolster revenues as pent-up demand returned. Yet the same move has exposed local assemblers to intensified competition without transitional protection. Over the past few years, Sri Lanka quietly built a domestic assembly ecosystem, with 17 operational plants producing motorcars, SUVs and electric three-wheelers, and a further 17 investors preparing to enter the market. The sector supports more than 15,000 direct and indirect jobs and has been positioned as a cornerstone of industrialisation.

That progress is now at risk. Imported vehicles enjoy powerful cost advantages global economies of scale, mature production processes and integrated supply chains allowing them to land at prices domestic assemblers struggle to match. Local assembly, by contrast, bears higher labour and input costs that are ultimately passed on to consumers. Without a tax regime that recognises value addition at home, industry executives argue that investment plans will stall and existing operations could downsize.

The debate is not limited to conventional vehicles. Sri Lanka is weighing pathways to cleaner mobility, including electric vehicles and the longer-term promise of hydrogen fuel cell vehicles (FCVs). FCVs offer fast refuelling and extended range, but global hydrogen infrastructure remains nascent and production costs are high. Developing such technology locally would require substantial policy backing, infrastructure investment and patient capital conditions that are difficult to meet if the domestic industry is weakened.

Ironically, the country’s auto component manufacturing segment is gaining traction. Sri Lankan firms have earned a reputation for quality, embedding themselves in regional supply chains. The ambition is to lift component exports from about US$800 million to US$2 billion within five years and generate an additional 45,000 jobs. This opportunity hinges on a stable automotive ecosystem at home.

As import-led revenues cool in 2026, policymakers face a trade-off: rely on volatile tax windfalls or recalibrate policy to protect local assembly while still meeting fiscal goals. The choices made now will determine whether Sri Lanka converts a temporary boom into durable industrial growthor watches it unwind.

Sri Lanka’s technology services industry is entering a phase of recalibration, as companies adjust compensation and talent strategies to align with a more competitive and evolving global environment, according to the latest Compensation and Benefits Survey released by SLASSCOM.

The study recorded a strong participation rate, with 72% of organisations from the 2024 survey returning this year, reflecting both continuity and growing confidence in the survey as a benchmark for industry decision-making. The findings point to a sector that is moving beyond crisis-driven responses and towards more structured, performance-oriented reward frameworks.

One of the most notable trends is the stabilisation of salary increments. During the height of Sri Lanka’s economic crisis, IT and BPM companies implemented unusually high salary increases to support employees facing inflationary pressures and currency volatility. In 2025, however, increment budgets have normalised, indicating a shift towards sustainability rather than short-term relief.

Looking ahead to 2026, IT companies are planning differentiated salary adjustments, with higher increases targeted at top performers compared to regular performers. BPM companies, meanwhile, are projecting relatively higher overall increments. This reflects a broader transition toward performance-linked compensation and a growing emphasis on measurable contribution rather than uniform pay hikes.

The survey also highlights a gradual transformation in organisational structures. Skill-based models are gaining traction, allowing companies to align rewards more closely with critical capabilities rather than traditional job titles. Alongside this, organisations are expanding their focus beyond basic pay to include career development opportunities, continuous learning, and skills enhancement as key components of total rewards.

Despite the growing availability of flexible and non-monetary benefits, total cash compensation remains the most important factor for employees. However, companies are increasingly offering personalised benefit options to cater to a multi-generational workforce with varying expectations around work-life balance and career progression.

Employee migration, while still a concern, has declined in urgency, dropping from the top issue in 2024 to second place in 2025. Nonetheless, outward mobility continues, particularly among skilled professionals pursuing higher education and international exposure.

From a global perspective, the report underscores intensifying competition among outsourcing and Global Capability Centre (GCC) destinations. While Sri Lanka remains a key player, two new countries have emerged in 2025 as attractive alternatives for GBS operations and GCC expansion. This development highlights the need for Sri Lanka to strengthen both talent quality and cost competitiveness to protect its position.

 The survey also reveals that 52% of participating organisations operate as GCCs, reinforcing the sector’s importance to Sri Lanka’s export services economy. SLASSCOM Chairperson Shehani Seneviratne noted that the report provides critical insights to help organisations make forward-looking decisions and sustain Sri Lanka’s role as an innovative technology hub.

The Disaster Management Centre (DMC) reported that Ududumbara experienced the highest rainfall during the 24-hour period ending at 6.00 a.m. today (19), with nearly 201 millimetres recorded. The second-highest rainfall was measured in the Ududumbara Poththapitiya area, which received about 155 millimetres.

As a result of the continuous heavy rains, 34 major tanks and reservoirs across the country are currently spilling, the DMC said. In the Anuradhapura District, spillages have been reported from the Kala Wewa, Rajanganaya, Nachchaduwa and Angamuwa reservoirs.

Several reservoirs in the Kandy District, including Polgolla, Victoria, Randenigala and Rantembe, are also overflowing. In addition, the Deduru Oya reservoir in Kurunegala District and the Senanayake Samudraya in Ampara District have reached spill levels.

To manage rising water levels, two spill gates of the Kala Wewa have been opened by six feet each. At the Rajanganaya reservoir, four spill gates have been raised by five feet, while two others have been opened by four feet. Meanwhile, four spill gates at the Nachchaduwa tank have been opened by four feet, with three additional gates raised by two feet. Two spill gates at the Angamuwa reservoir have also been opened by two feet each.

The DMC further noted that landslides and related incidents have led to the complete closure of several roads in the Badulla, Matale, Kilinochchi, Kegalle and Anuradhapura districts. Flooding has also blocked sections of the Sungawila–Somawathiya Road in the Polonnaruwa District.

Authorities urge the public to remain vigilant and follow safety instructions issued by local officials as adverse weather conditions persist.

Sri Lanka’s technology services industry spanning information technology (IT), business process management (BPM), and tech-enabled services is moving into a phase of salary normalisation after several years of crisis-driven wage escalation. According to the SLASSCOM Compensation and Benefits Survey Report 2025, companies are gradually stepping away from emergency-era pay hikes and refocusing remuneration policies on productivity, skills, and performance.

The survey, which covers a broad cross-section of IT and BPM firms, indicates that incremental salary budgets are stabilising at more sustainable levels. This marks a shift from the aggressive compensation adjustments seen during the economic crisis, when firms struggled to retain talent amid currency depreciation, high inflation, and large-scale labour migration.

While demand for specialised digital skills remains intense, employers are increasingly selective, rewarding high-impact roles rather than across-the-board increases.

This recalibration is taking place against a challenging global economic backdrop. Between July 2019 and September 2025, the US Consumer Price Index for All Urban Consumers (CPI-U) climbed from 255.21 to 324.36 points an increase of roughly 27 percent. Inflationary pressures surged particularly in 2021 and 2022 following sharp interest rate cuts under the US Federal Reserve’s floor system.

 Rising inflation has since become a politically and socially sensitive issue in the United States, coinciding with growing economic nationalism, tighter immigration policies, and increased import tariffs.

Global inflation has had cascading effects on public finances worldwide. High and volatile cost environments have complicated budgeting processes, turning long-term projects into fiscal risks as costs continuously outpace original estimates. Economists note that in earlier low-inflation eras, fiscal deficits could often be corrected through modest tax adjustments.

In contrast, sustained inflation now forces governments to rely on complex statistical modelling as expenditures chase rising revenues.

Sri Lanka has not been immune to these dynamics. Persistent currency depreciation since the early 1980s has undermined fiscal stability, particularly as global inflation cycles diverged from domestic monetary conditions. These structural vulnerabilities have indirectly shaped the operating environment for export-oriented sectors such as IT-BPO.

Despite these pressures, the sector remains one of Sri Lanka’s most resilient foreign exchange earners. Computer and IT/BPO-related services exports reached US$671.6 million in the first ten months of 2025, according to the Central Bank of Sri Lanka, though this represented a 3.8 percent decline compared to the same period in 2024. For the full year 2024, export earnings stood at US$848 million, reflecting a 6.7 percent annual increase.

Industry analysts say the current wage normalisation reflects a maturing sector adjusting to global cost realities rather than a contraction. Firms are prioritising efficiency, automation, and value-added services, signalling a strategic shift aimed at preserving competitiveness while navigating tighter global margins.