News

The annual revision of private bus fares is expected to take effect from July 1, but its implementation now depends on Cabinet approval, according to the National Transport Commission (NTC).

The Lanka Private Bus Owners' Association (LPBOA) says the fare adjustment due under the annual bus fare revision policy should be introduced from tomorrow. Association Chairman Gemunu Wijeratne stated that the NTC had already been informed of the revision required under the existing policy.

However, Wijeratne alleged that the Commission has not held discussions with private bus associations regarding the proposed fare adjustment. He warned that the association would consider legal action if the expected revision is not implemented.

Responding to an inquiry by Ada Derana, an NTC spokesperson confirmed that the proposal for the annual bus fare revision has already been submitted to the Cabinet for approval.

According to the spokesperson, the revised bus fares will come into effect once Cabinet grants its approval. Until then, the implementation of the annual fare revision remains pending.

The Asian Development Bank (ADB) on Friday said it has approved a USD-57.4-million (EUR 50.4m) financing package for a solar aggregation and virtual net metering project in Sri Lanka.

The project will support two government-owned utilities in establishing a utility-led rooftop solar aggregation and virtual net metering model that pools electricity from large rooftop solar installations and virtually distributes credits to eligible consumers. It will involve the installation of about 25 MWp of rooftop solar capacity. 

The project will also help modernise and digitalise the distribution networks of the two utilities.

The project aims to lower electricity costs for eligible micro, small and medium-sized enterprises and community organisations, including such unable to install rooftop solar, through allocations under a social compensation mechanism.

The financing comprises a USD-35-million concessional loan, grants of USD 16.9 million from the EU and USD 5.5 million from the Japan Fund for the Joint Crediting Mechanism. Together with counterpart funding from implementing agencies, the total estimated project cost is USD 80.5 million.

Source: Renewables Now

Stocks of ​crude oil in the U.S. ‌Strategic Petroleum Reserve fell by 5.5 million barrels to 325.7 million barrels, ​the lowest level since May ​1983, according to data from the ⁠Department of Energy.

The drawdowns are ​a part of a U.S. ​agreement to release 172 million barrels from the facility to plug a gap in ​global inventories after the Iran ​war and help push down fuel prices.

U.S. ‌crude ⁠stocks have rapidly declined in recent weeks due to strong export and refining demand for American ​oil.

Since the ​war began ⁠at the end of February, overall U.S. inventories, ​including commercial and SPR stocks, ​have ⁠fallen by 111.4 million barrels to 743.3 million barrels as of ⁠June ​19, the lowest ​since 1984.

Source: Reuters

South Korea’s former First Lady Kim Keon Hee was sentenced on Friday to seven years in jail for receiving bribes, after a court found her guilty of ​accepting luxury items such as jewellery and a Dior handbag in exchange for political favours.

The wife of ​ex-President Yoon Suk Yeol - who was ousted in 2025 following his failed attempt to ⁠impose martial law - received the bribes before and during his presidency, the lead judge at the Seoul ​Central District Court said.

“She exercised her power as first lady to offer jobs and business favours,” the judge ​said, citing her willingness to use her influence to help people obtain key government or parliamentary posts.

“She received without any hesitation those bribes, which ordinary people would hardly encounter during their lives.”

The list of bribes included jewellery such as a Van ​Cleef & Arpels necklace, a Tiffany brooch and a pair of Graff earrings, the judge said.

Kim also received a ​gold turtle, a Dior handbag, a Vacheron Constantin watch worth 39 million won ($25,349.86) and a painting worth 140 million won, ‌he ⁠said.

The judge said the actions of the former first lady seriously hurt public trust in the fairness of public appointments.

Those who gave her bribes included a construction company owner who sought a government post for his son-in-law, a pastor seeking to expand his network with high-ranking officials, the former head of a private university ​and the chief executive of ​a robotic dog retailer ⁠who wanted to supply products to the presidential security team, the judge said.

The court also fined Kim 64.8 million won and ordered the confiscation of items given ​as bribes if they could be located.

Kim has denied all the charges. Her ​lawyer told ⁠reporters she would appeal the ruling, accusing the judge of exaggerating evidence unfavourable to Kim, the Yonhap News Agency reported.

The former first lady is currently in jail after being found guilty on charges of stock manipulation and receiving ⁠bribes from ​South Korea’s Unification Church. She was sentenced to four years in ​jail on these charges in April.

Her husband Yoon was sentenced to life in prison in February for masterminding an insurrection tied to his ​short-lived imposition of martial law in 2024.

Source: Reuters

President Anura Kumara Dissanayake has unveiled a roadmap to generate up to $6 billion in foreign exchange by expanding four key export industries: coconut, food and beverage, rubber, and tea.

Under the plan, coconut-based exports are expected to double to $2 billion within two years, while food and beverage exports are projected to reach $1 billion in the same period.

Over the longer term, value-added rubber exports are expected to approach $3 billion, supported by reforms under the National Export Development Plan (2026–2030).

President Dissanayake has pledged incentives, regulatory reforms, streamlined import procedures, and stronger policy support to encourage investment and expand value-added manufacturing.

The President's focus on increasing net foreign exchange earnings, rather than simply boosting gross export values, reflects an emphasis on minimising imported inputs while strengthening domestic production.

However, industry leaders say policy support alone will not be sufficient.

The rubber industry, despite its strong export potential, currently produces only half the raw material required by domestic manufacturers.

Expanding cultivation requires land, investment, labour, and several years before new plantations become commercially productive.

Tyre manufacturers have also warned that rising imports continue to erode the competitiveness of local producers.

The tea industry faces its own challenges. Geopolitical instability in the Middle East has increased shipping costs and delivery times, particularly affecting exports to Iran, one of Sri Lanka's traditional tea markets.

Meanwhile, more than 480,000 smallholder tea growers require greater access to fertiliser, quality planting material, and productivity-enhancing support if export volumes are to increase sustainably.

Across all sectors, exporters identified persistent delays in VAT refunds, regulatory bottlenecks, slow commercialisation of research, labour shortages, and inconsistent policy implementation as major obstacles undermining competitiveness.

A proposal to encourage industries to establish operations in the Northern Province could support regional development and expand production capacity. However, infrastructure development, skilled labour availability, and efficient logistics will ultimately determine whether such investments succeed.

Sri Lanka's export ambitions are seen as necessary as the country seeks to reduce its debt burden and strengthen foreign exchange earnings.

Even so, the success of the Government's strategy will depend on translating commitments into measurable reforms and creating a stable policy environment that gives investors confidence. Without addressing these underlying challenges, the targets may remain aspirations rather than achievable milestones.

Australia and Paraguay played to a 0-0 draw Thursday night in a result that clinched a spot in the knockout round of the World Cup for the Socceroos and will likely be enough for the Paraguayans to advance.

The expanded tournament to 48 teams that provides a spot in the knockout round for eight of the 12 third-place teams in the group stage led to the cautious approach for both teams in their final Group D match after they each entered with three points thanks to wins over Turkey.

The winner of this game was assured second place behind the United States in the group with Australia also clinching that spot with a draw thanks to a better goal differential than Paraguay. But the draw that gave Paraguay four points in the group also was likely to be enough barring a string of bad results in the final two days of group play.

This marks the third time that Australia has advanced to the knockout round after losing in the round of 16 in 2006 and 2022. The Socceroos will play in the round of 32 on July 3 in Arlington, Texas, against the second-place finisher from Group G that will be determined Friday night.

Paraguay must wait to learn its fate, but is in good position to advance to the knockout round for the fifth time.

The Socceroos had the best chances in the first half, but Paraguay goalkeeper Orlando Gill stopped an early attempt from Jackson Irvine and then made another save in stoppage time against Cristian Volpato.

The cautious play continued in the second half when Paraguay did have more possession than in the opening 45 minutes but neither team came close to scoring. Jordan Bos had the best chance for Australia in the 90th minute, but his shot went wide from the right side of the box.

Patrick Beach then made a save for Australia on a low shot by Mauricio that lacked power in stoppage time.

Australia coach Tony Popovic made six changes to his lineup for the game, including giving 18-year-old Lucas Herrington his first World Cup appearance. Herrington, who plays for the Colorado Rapids in the MLS, became the youngest Aussie to appear in a World Cup game.

Paraguay midfielder Diego Gomez got his second yellow card of group play and will miss the round of 32 if the team advances.

Source: AP

The government-appointed Cricket Transformation Committee says it has completed its task of drafting a new constitution for Sri Lanka Cricket, and is now preparing to hand over the document to the Legal Draftsman's Department before it proceeds through Parliament.

Committee Chairman Eran Wickremaratne confirmed that the panel's primary assignment had been accomplished within weeks of its appointment, and said he was confident the legislation could be tabled in Parliament as early as July.

Sources familiar with the draft say the existing administrative structure will undergo sweeping changes. The proposed model is expected to replace the traditional power base with a professionally managed Board of Governors or Board of Directors, with half the members elected through the existing cricket structure and the rest appointed from among respected corporate leaders with proven professional credentials and clean public records.

The reforms aim to tackle one of Sri Lanka Cricket's longest-standing problems. v

Vote-buying and politically motivated election campaigns that have repeatedly overshadowed the administration of the game.

If enacted, the new constitution is expected to remove many of the incentives that drive expensive election battles for board positions.

Legal adviser Dinal Philips said the draft had been prepared in line with International Cricket Council governance standards and benchmarked against constitutions adopted by several leading cricket nations. He said ICC President Jay Shah had expressed surprise at the speed with which the committee completed its assignment.

Former ICC legal adviser David Becker, who recently reviewed the draft after discussions with Sri Lanka Cricket's interim administrators, is understood to have endorsed the overall direction of the reforms, lending further confidence that the proposed constitution meets international governance expectations.

Transformation Committee Secretary Prakash Schaffter said stakeholder concerns had been carefully considered throughout the drafting process, with the committee seeking to balance the interests of clubs, provincial associations and the broader cricket community while building a governance structure capable of restoring public confidence.

Allegations of political interference, financial irregularities and administrative instability have undermined Sri Lanka Cricket for years, despite the country's proud cricketing tradition.

Whether the proposed constitution succeeds or fails could determine if the sport finally moves towards transparent, professional administration, or remains trapped in its turbulent past.

(Lankanews.lk)

The Department of Meteorology has forecast showery conditions across several parts of the country, with intermittent rainfall expected in the Western, Sabaragamuwa, and North-Western provinces, as well as the districts of Galle, Matara, Kandy, and Nuwara Eliya.

According to the latest weather advisory, isolated showers or thundershowers may also develop in parts of the Uva Province and in the Ampara and Batticaloa districts after 2.00 p.m.

In addition to the rainfall, fairly strong winds reaching speeds of 30 to 40 kmph are expected at times over the western slopes of the Central Hills. Similar windy conditions are also likely across the Northern, North-Central, North-Western, and Southern provinces, as well as the Trincomalee district.

The Department of Meteorology has urged the public to remain vigilant and take necessary precautions to reduce the risk of damage caused by temporary localized strong winds and lightning associated with thundershowers.

A nine-member IMF delegation, headed by Sri Lanka Mission Chief Evan Papageorgiou, is holding staff-level discussions in Colombo from 24th to 30th June, as part of the seventh review of the country's Extended Fund Facility programme.

The talks focus on the implementation of emergency fiscal measures, customs reforms, and preparations for a revised Medium-Term Revenue Strategy.

The review will determine whether Sri Lanka has honoured a series of demanding reform commitments, with officials under pressure to show that momentum has not weakened, even after receiving temporary flexibility following recent economic shocks.

One of the IMF's key concerns is Sri Lanka's commitment to honour its debt restructuring obligations without slipping back into external payment defaults. Maintaining the agreed repayment schedule has become a critical benchmark for restoring international confidence following years of financial instability.

The country's economic outlook has, however, become increasingly complicated.

The conflict in the Middle East and the impact of Cyclone Ditwah are expected to push inflation higher, increase fuel import costs, weaken the current account, and reduce tourism earnings.

In recognition of these extraordinary circumstances, the IMF approved a temporary relaxation of fiscal targets for 2026.

The concession includes a Rs.500 billion supplementary budget to assist cyclone-affected families and finance the reconstruction of damaged infrastructure.

The IMF also agreed to lower Sri Lanka's primary budget surplus target for the year, on condition that authorities return to the original target of 2.3 percent of GDP in 2027.

Despite this flexibility, the IMF has made clear that emergency spending cannot become an excuse for fiscal indiscipline. Officials are reviewing the government's mid-year budget performance to ensure expenditure remains within the approved emergency allocation.

The Central Bank also faces strict monetary restrictions. Under programme conditions, net monetary financing must remain at zero, effectively prohibiting money printing to finance government expenditure.

At the same time, Sri Lanka must continue building net foreign reserves, even as the Central Bank intervenes in currency markets to stabilise the rupee.

Governance reforms remain another major area under review.

The IMF expects the Commission to Investigate Allegations of Bribery or Corruption to become fully operational, with independently appointed commissioners and adequate funding for financial forensic investigations.

Attention is also focused on restructuring or divesting loss-making state-owned enterprises that continue to burden public finances, with the government expected to show measurable progress in reducing their dependence on Treasury support.

During the visit, IMF officials also inspected Sri Lanka Customs to assess ongoing digitalisation initiatives designed to improve transparency and strengthen revenue collection.

Successful completion of the review is widely expected to pave the way for the release of the eighth EFF tranche, worth SDR 254 million, or approximately US$335-350 million.

The funding would further strengthen Sri Lanka's external finances, but only if the government continues to demonstrate commitment to the difficult reforms demanded under the IMF programme.

The Samagi Jana Balawegaya (SJB) has suspended the party membership and all official positions held by its Horana Constituency Organiser, Charith Abeysinghe, with immediate effect after he was arrested and remanded over an alleged bribery incident.

In a statement issued by SJB General Secretary Ranjith Madduma Bandara, the party said the decision follows Abeysinghe's remand on June 25 in connection with a bribery allegation linked to an incident that reportedly took place in 2023.

The SJB clarified that Abeysinghe was not affiliated with the party at the time of the alleged offence. According to the statement, he was neither a member nor the Horana organiser of the party and did not hold any position within the SJB during 2023.

Reaffirming its position against corruption, the party stated that it fully supports the enforcement of the law against individuals accused of bribery or any other unlawful activities. The SJB also stressed that it does not oppose legal proceedings being carried out against those facing such allegations.

The suspension will remain in effect as legal proceedings related to the case continue.

The demand for accountability has become one of the defining features of post-crisis Sri Lanka. In the aftermath of the 2022 economic collapse, there is a strong and understandable belief that corruption, political patronage, and mismanagement were the primary drivers of national failure.

Citizens who endured shortages, inflation, currency depreciation, and a collapse in living standards are right to demand answers—and, in many cases, punishment.

Politicians have therefore become the central focus of public anger. Not without reason. Successive governments contributed to the conditions that led to the crisis. Corruption existed. Patronage existed. Policy mistakes were made. Public resources were often misused. Those entrusted with public office must be held accountable.

But accountability, while necessary, is not a development strategy.

And it is certainly not a substitute for reform.

Sri Lanka risks believing that it can rebuild itself simply by prosecuting the failures of its past. It cannot.

Because the roots of the crisis run far deeper than the misconduct of individuals. They lie in the structure of the post-independence state and the cumulative weight of history since 1948.

A Country Shaped by Shocks and Strain

Since independence, Sri Lanka has lived through repeated political instability, two southern insurgencies, nearly three decades of separatist war, the devastation of the 2004 tsunami, the Easter Sunday attacks, and the unprecedented shock of COVID-19.

Each of these events placed extraordinary pressure on the state—on its finances, institutions, and capacity to plan for the long term. None of them alone caused the economic crisis. But together they narrowed fiscal space, weakened buffers, and repeatedly disrupted development trajectories.

Against this backdrop, successive governments—across political divides—continued to expand the role of the state in the economy.

The Expansion of the State and the Logic of Dependency

Over time, the state became not only regulator but employer, producer, distributor, and allocator of opportunity.

Public employment expanded steadily. The state became the employer of first and last resort. State-owned enterprises multiplied, many becoming persistent fiscal burdens. Subsidy systems widened. Welfare commitments increased. Political competition increasingly revolved around who could promise more from the state.

For decades, Sri Lanka lived beyond its means.

When revenue was insufficient, borrowing filled the gap. When borrowing became constrained, reforms were postponed. Short-term political survival consistently outweighed long-term economic adjustment.

The result was a slow accumulation of vulnerabilities that remained hidden until a moment of systemic stress. Eventually, the arithmetic caught up.

The economy simply did not generate enough productivity, exports, or investment to sustain the obligations accumulated over time.

Corruption: Cause, Symptom, and Consequence

It is important to be clear: corruption contributed to this trajectory. But it did not define it.

Many countries with higher perceived levels of corruption than Sri Lanka have continued to grow, attract investment, and reduce poverty. What distinguishes successful economies is not the absence of corruption alone, but the presence of strong institutions, credible macroeconomic management, and an economic structure that rewards productivity rather than proximity to power.

Corruption becomes most damaging when it is embedded in a system where the state controls a large share of economic opportunity.

In Sri Lanka, that condition existed.

Employment, contracts, land, licences, permits, and access to state resources were heavily mediated by political authority. In such a system, political influence inevitably acquires economic value.

Patronage becomes embedded in governance.

Corruption follows as a systemic outcome. This does not excuse it. It explains why it became persistent.

The Limits of the Anti-Corruption Moment

There is today strong public support for investigations and prosecutions. After years of hardship, this sentiment is entirely understandable. Across history, societies under economic stress often channel frustration toward political elites.

But there is a deeper risk that must be acknowledged.

Sri Lanka’s political culture has long been shaped by the expectation that the state must solve every major problem—employment, welfare, subsidies, opportunity, and crisis response. Political competition evolved around promises of ever greater state intervention.

When that model collapsed in 2022, the expectation that the state must solve everything did not disappear.

It simply changed form.

Today, many believe that if enough politicians are prosecuted, the country will recover.

This is a misconception.

Economic crises also tend to blur important distinctions. Citizens under severe financial pressure naturally scrutinise public expenditure more closely than before. Spending that may once have been viewed as legitimate, necessary, or merely inefficient can come to be seen through the lens of corruption. This reaction is understandable. However, corruption, waste, poor judgment, and unsustainable policy are not always the same thing. A country that fails to distinguish between them risks misdiagnosing the causes of its difficulties and prescribing the wrong remedies.

Politicians are elected representatives, and over time they respond to the incentives created within the political system. In a society where voters understandably valued employment, subsidies, and state protection, political competition increasingly revolved around the expansion of the state. In that sense, patronage was not only imposed from above; it was also reinforced by expectations from below. This mutual reinforcement helped entrench a model that eventually became unsustainable.

Even if every corrupt official were removed tomorrow, Sri Lanka would still face the same fundamental questions:

How large should the state be?

How many state-owned enterprises can realistically be sustained?

How much public employment can the economy afford?

How can exports be expanded and diversified?

How can productivity be improved across sectors?

How can investment—domestic and foreign—be increased and protected?

How can Sri Lanka compete in a global economy that rewards efficiency and scale?

These are not legal questions. They are structural ones. And they will determine the country’s future far more than any set of prosecutions.

The Risk of Administrative Paralysis

There is another consequence of excessive politicisation of accountability that deserves attention.

In highly polarised environments, extensive reliance on anti-corruption enforcement can produce unintended behavioural changes within the state.

Public officials, regulators, and administrators may become increasingly reluctant to take decisions if they fear that future political transitions could reinterpret those decisions as wrongdoing.

The result is a culture of caution that gradually becomes a culture of inaction.

Approvals slow. Projects stall. Decisions are delayed. Responsibility is avoided.

What begins as accountability can evolve into administrative paralysis.

This matters because economic recovery depends on the state’s ability to act. Investors require predictability. Infrastructure requires execution. Reforms require implementation. A state that cannot act cannot enable growth.

Accountability Without Fear

None of this is an argument against accountability.

Sri Lanka needs strong mechanisms to investigate wrongdoing and enforce the law without fear or favour.

But accountability must strengthen institutions—not weaken them. It must build confidence in governance, not erode it. And it must never become a substitute for the deeper reform agenda. Because the uncomfortable truth is this: Sri Lanka’s crisis was not merely a crisis of corruption or mismanagement. It was a crisis of the post-independence state.

The Structural Problem We Avoid Talking About

For decades, successive governments promised more than the economy could sustainably deliver. Borrowing filled the gap. Patronage became the mechanism for distributing opportunity. Political incentives rewarded short-term expansion of state responsibilities while postponing reform.

Over time, the state became larger, more expensive, and less efficient. This model reached its limits. Not because any one government failed. But because the underlying structure was unsustainable. Corruption was part of this story—but not its foundation. The foundation was an economy and a state that consistently consumed more than it produced.

What Real Reform Requires

If Sri Lanka is serious about avoiding a repetition of its crisis, it must move beyond the politics of blame and toward the economics of reform. That means: A state that focuses on core public goods rather than economic dominance.

Serious restructuring of loss-making state enterprises. A professional, merit-based public service insulated from political cycles. Greater space for the private sector to drive employment and innovation.

A growth model anchored in productivity, exports, and competitiveness rather than redistribution.

And a recognition that sustainable development requires living within means—not periodically exceeding them until crisis forces adjustment.

These are not ideological prescriptions. They are practical necessities for a country with limited fiscal space and high development ambitions.

Conclusion: The Lesson of the Crisis

Sri Lanka’s tragedy is not simply that corruption existed. Corruption exists in many societies.

The tragedy is that for decades, the country built a state that promised more than it could deliver, borrowed to bridge the gap, and repeatedly postponed reform when it became politically inconvenient.

Today, there is a belief that accountability alone will resolve this.

It will not.

Accountability is essential. But unless Sri Lanka also addresses the structure of the state, the incentives within the economy, and the long-standing culture of dependency that has shaped political life since independence, the cycle will repeat—regardless of who is in power.

One set of leaders will replace another. And the underlying constraints will remain. The question before Sri Lanka is therefore not simply who should be punished for the past. It is whether the country is prepared to build a different future.

A nation can prosecute wrongdoing. It cannot prosecute its way to prosperity.

By Milinda Moragoda

(Milinda Moragoda is the founder of the Pathfinder Foundation, and can be contacted  via This email address is being protected from spambots. You need JavaScript enabled to view it.)

The Officer-in-Charge (OIC) of the Kundasale Police Training School has been arrested by the Nuwara Eliya Police in connection with the murder of the physiotherapist whose body was discovered inside a car in Theldeniya.

Police stated that the OIC was arrested on allegations of aiding and abetting the crime.

He was taken into custody by officers of the Walana Central Anti-Corruption Unit.

According to police, the arrest was made on suspicion that the officer assisted the main suspect and his wife in evading arrest by helping them remain in hiding.

Meanwhile, the Nuwara Eliya Magistrate’s Court has granted approval to detain and interrogate the previously arrested main suspect, his wife, and another suspect for a period of 48 hours.

The body of the female physiotherapist was discovered inside a motor vehicle near Theldeniya Hospital on June 17. A post-mortem examination revealed that the cause of death was strangulation.

Investigations into the incident are ongoing, said police.