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Can the EU take on Musk over AI “undressing” feature?

“I was involuntarily undressed by Elon Musk’s Grok on X,” Swedish Deputy Prime Minister Ebba Busch said in a recent video on the platform. She is one of countless victims of a feature on X’s AI chatbot, Grok, that allows users to digitally strip women and children of their clothing. In less than two weeks, Grok generated three million sexualized images, including tens of thousands that appear to depict children.

Now, the European Commission, the EU’s executive arm, has launched an investigation into Grok under the Digital Services Act, or DSA. The Commission said it would “assess whether the company [X] properly assessed and mitigated risks associated with the deployment of Grok’s functionalities into X in the EU.”

The investigation could set an important precedent in confronting US tech firms and protecting citizens from privacy violations. “If they can go up against Musk, that is huge,” Joanna Bryson, professor of ethics and technology at the Hertie School university in Berlin, told DW. “It tells everybody the EU is serious.”

EU has the laws to protect from AI harm

But how much power does the EU have? Under its laws, the bloc can regulate digital services much like physical products. Just as unsafe toys or appliances can be banned from the European market, online platforms that break EU rules can be forced to change — or be shut out entirely.

“The DSA is arguably the most powerful platform regulation in the world,” said Philipp Hacker, professor of law and ethics at the Viadrina University in Frankfurt an der Oder. Rather than targeting specific technologies, it addresses broad categories such as “systemic risks,” giving the European Commission flexibility to respond to new harms as AI evolves. Grok’s undressing function did not exist when the DSA entered into force in 2022.

The EU has two main enforcement tools. It can fine X up to 6% of its global annual turnover, a measure it already used in December, when it fined the platform €120 million ($143 million) for breaching DSA transparency rules. In cases of repeated violations, the Commission can also block the platform entirely within the EU. For now, a fine is seen as the more likely next step.

The EU’s leverage is strengthened by its market size. As one of the world’s largest consumer markets, it wields significant influence over global tech firms.

EU reportedly delayed start of Grok investigation

Still, experts question whether the Commission will push hard enough to set a lasting precedent. “We have a lot of provisions protecting fundamental rights. The problem is there enforcement, making sure they are not disregarded,” says Marco Bassini, assistant professor of Fundamental Rights and Articifical Intelligence at Tilburg University.

At a time of strained EU-US relations, Brussels has been cautious about fully deploying its regulatory power against American tech companies. According to reporting by the German newspaper Handelsblatt, the launch of the Grok investigation was delayed by the office of Commission President Ursula von der Leyen amid a tariff dispute between the EU and the US over Greenland. In the past, US Commerce Secretary Howard Lutnick linked tariff reductions to weakening EU tech regulation.

“I think a big mistake was made,” Member of the European Parliament (MEP) Alexandra Geese told DW. “There was a lot of fear about the reaction from the US administration.”

Experts doubt how far the EU is willing to go
While the eventual launch of the investigation is seen as a positive signal, doubts remain over how far the Commission is willing to go. “One has to distinguish between the legal position and the geopolitical position,” said Bryson. “The Commission looks at both.”

There is also skepticism over whether a 6% fine would be enough to change the behavior of the world’s wealthiest man. “We should increase this number so companies really pay attention to what the legislature expects in Europe,” MEP Axel Voss told DW.

There is no concrete timeline on the investigation. According to experts, it could take months for the Commission to reach a result.

(Source:newswire.lk)

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Showers and Thundershowers Expected Across Several Parts of the Island

The Department of Meteorology says that showers are expected at intervals in the Northern, North-Central and Eastern provinces, as well as in the Matale and Nuwara Eliya districts today (01).

According to the forecast, fairly heavy rainfall exceeding 50 millimeters may occur at isolated locations in the Northern Province and in the Trincomalee and Batticaloa districts.

Several rounds of showers are also anticipated in the Uva and North-Western provinces, while other parts of the island may experience showers or thundershowers after 2.00 p.m. Heavy rainfall above 50 millimeters is possible in some of these areas as well.

Meanwhile, misty conditions are expected during the early morning hours in parts of the Western, Sabaragamuwa and Central provinces, along with the Galle and Matara districts.

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

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Pakistan says 92 militants killed after attacks in Balochistan

At least 92 militants were killed on Saturday battling Pakistan’s security forces in multiple cities across the southwestern province of Balochistan, Pakistan’s military said.

The military said in a statement that 15 security personnel were also killed during clearance operations, while militants targeted civilians in several areas, killing at least 18 people, including women and children.

The attacks were carried out a day after Pakistan’s military said it killed 41 militants in separate raids in Balochistan, which borders Iran and Afghanistan and has faced a decades-long separatist insurgency.

The banned separatist group Baloch Liberation Army claimed responsibility for Saturday’s attacks, saying it had launched them simultaneously across the province.

The BLA said it had killed 84 Pakistani security personnel, and that the ongoing operation had continued for 15 hours.

The military’s media wing, ISPR, said the attacks were carried out by Indian-sponsored militants and that security forces had thwarted attempts to seize control of any city or strategic installation.

“Intelligence reports have unequivocally confirmed that the attacks were orchestrated and directed by terrorist ringleaders operating from outside Pakistan, who were in direct communication with the terrorists throughout the incident,” the statement said.

It said the attacks were launched across Quetta, Mastung, Noshki, Dalbandin, Kharan, Panjgur, Tump, Gwadar and Pasni.

Pakistan Interior Minister Mohsin Naqvi condemned the attacks and praised security forces for repelling them, saying in a statement they had killed dozens of militants.

Security officials said armed men launched attacks in several urban areas, including the provincial capital Quetta and the port city of Gwadar, prompting operations by the army, police and counterterrorism units.

Hospitals were placed on emergency footing in some districts, officials said.

MIGRANT WORKERS TARGETED IN GWADAR

In Gwadar, militants attacked a camp accommodating migrant workers, killing 11 people, Atta-ur-Rehman, a senior police officer, said. Those killed included five men, three women and three children.

Security forces killed six militants in Gwadar after responding to the attack, he said.

Officials said the situation was critical in Noshki, a district of Balochistan, after militants abducted the area’s top civil administrator. He said in a social media video that he was in the custody of the militants. Reuters could not independently verify the video.

Armed men briefly blocked roads in parts of Quetta and a blast was heard near a high-security area, authorities said, though they later said the situation had been brought under control.

Security officials said in text messages that forces had responded effectively to the attacks and that clearance operations were still underway.

Balochistan is Pakistan’s largest but poorest province and has faced a decades-long insurgency by ethnic Baloch militant groups. Pakistan says the violence is backed by foreign actors, a charge denied by India.

Source:adaderana.lk

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Andrew should testify to US Congress, Starmer suggests after new photos

Prime Minister Sir Keir Starmer has suggested that Andrew Mountbatten-Windsor should testify before the US Congress over his dealings with convicted sex offender Jeffrey Epstein.

"In terms of testifying, I have always said anybody who has got information should be prepared to share that information," he told reporters.

"You can't be victim-centred if you're not prepared to do that," he said. "Epstein's victims have to be the first priority."

The PM's comments come after the latest release of files related to Epstein, which include images appearing to show Mountbatten-Windsor kneeling over a female lying on the ground.

BBC News has approached the former prince for comment. He has repeatedly denied any wrongdoing.

Democrats in Congress asked Mountbatten-Windsor to answer questions as part of their Epstein investigation in November.

At the time, Starmer said the invite was a matter for Mountbatten-Windsor to consider "personally".

On Friday, the US Department of Justice released over three million pages of documents related to Epstein, six weeks after a deadline mandated in a law signed by US President Donald Trump.

No context is supplied for the photos of Mountbatten-Windsor kneeling over the unidentified woman.

In two of the images, he is seen touching the person, who is fully clothed, on her stomach. Another image shows him staring directly at the camera.

The photographs appear to match the interior of Epstein's New York City mansion. BBC Verify has found the decor seen in the photos appears to be consistent with other images of the townhouse's interior.

The pictures are likely to put further pressure on Mountbatten-Windsor, who has faced years of scrutiny over his past friendship with Epstein. He has repeatedly denied any wrongdoing.

Mountbatten-Windsor, formerly known as Prince Andrew and the Duke of York, was stripped of his royal titles in October after increasing scrutiny over his links to Epstein.

Separate emails released on Friday also suggest Epstein invited Mountbatten-Windsor to have dinner with a 26-year-old woman, in an email exchange between Epstein and "The Duke".

He says that the woman would be in London in August 2010.

"The Duke" replies that he would be in Geneva "until the morning of the 22nd but would be delighted to see her" before asking: "Will she be bringing a message from you? Please give her my contact details to get in touch."

He asks Epstein whether there is "any other information you might know about her that might be useful to know?"

Epstein replies that "she [is] 26, russian, clevere [sic] beautiful, trustworthy and yes she has your email".

The messages were exchanged in August 2010, two years after the billionaire Epstein pleaded guilty to soliciting a minor.

He was given an 18-month sentence after forging a deal with prosecutors where he was able to go on "work release" to his office for 12 hours a day, six days a week. He was released on probation after 13 months.

Mountbatten-Windsor has repeatedly denied all wrongdoing in relation to Epstein, and said he did not "see, witness or suspect any behaviour of the sort that subsequently led to his arrest and conviction".

The emails in the latest release of documents do not indicate any wrongdoing. The BBC has contacted Mountbatten-Windsor for a response.

The latest release of files also appears to suggest that Epstein had been helping Sarah Ferguson - Andrew's ex-wife and the former Duchess of York - financially for 15 years.

In 2009, Ferguson was in correspondence with Epstein, giving him details of business ideas she had.

Describing a series of meetings she had with well-known brands following "your lunch", she writes: "Thank you Jeffrey for being the brother I have always wished for."

In the same year, she also requested £20,000 ($27,384) for a rent payment, claiming she needed it "today."

"The landlord has threatened to go to the newspapers if I don't pay. Any brainwaves?" she asked.

Emails included in the latest release show that Epstein wanted Ferguson to release a statement saying he was "not a pedo" and that she had been "duped" into believing false allegations about him by civil plaintiffs' attorneys from Florida.

In the exchange in 2011, Epstein asks publicist Mike Sitrick to "draft a statement in an ideal world Fergie would put out".

"She knows what she was told was based on false hoods [sic]... She should out the newspapers on the offering of money for stories."

Sitrick responds to Epstein's request for the statement saying: "With pleasure."

Ferguson has been approached for comment.

Speaking to reporters, Starmer was also asked about Epstein sending £10,000 ($13,692) to Lord Mandelson's partner Reinaldo Avila da Silva in 2009, according to the documents released by the US Department of Justice on Friday.

Lord Mandelson was appointed as the UK's ambassador to the US in December 2024 but was sacked less than a year later, when it emerged he had sent supportive messages to Epstein following the conviction.

In an email to Epstein, da Silva sets out the costs of an osteopathy course, provides his bank details and thanks the financier for "anything you can help me with".

Epstein replies a few hours later saying: "I will wire your loan amount immediately" and the following day da Silva writes: "Just a brief note to thank you for the money which arrived in my account this morning."

Asked for a response, Lord Mandelson said he had been "very clear" about his relationship with Epstein in interviews with the BBC.

"I have nothing more to add," said the Labour peer.

Asked by reporters about Lord Mandelson, Starmer said he "was removed as ambassador in relation to the further information that came to light in September of last year".

"I've nothing more to say in relation to Peter Mandelson."

More than 2,000 videos and 180,000 images are included in the latest release. Many of the documents are heavily redacted, with some files showing pages which are entirely blacked-out.

Democratic members of the US House Judiciary Committee have asked the Department of Justice for immediate arrangements to view the full case files, according to the BBC's US media partner CBS.

The formal inquiry said the need to review the files is "urgent", partly due to a forthcoming public committee hearing with Attorney General Pam Bondi.

It says the panel has questions over why the justice department has only released half of the estimated pages related to Epstein.

Being named or pictured in the files is not an indication of wrongdoing. Many of those identified in other releases have denied any wrongdoing in relation to Epstein.

(Source:BBC)

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Fourteen Arrested Over Theft of Ancient Buddha Statue from Kahapathwala Temple

Mawathagama Police have taken 14 individuals into custody in connection with the theft of an ancient Buddha statue from a temple located in Kahapathwala.

Police said investigations were launched after receiving information on 28 January 2026 regarding the disappearance of a Buddha statue from the monks’ residence at the Kebilithigoda Purana Raja Maha Viharaya, which falls under the Mawathagama Police Division.

Further inquiries revealed that on the night of the incident, four suspects had arrived at the temple posing as officers from the Criminal Investigation Department (CID). Claiming that the statue was required for official investigations, they had allegedly removed the 1½-foot-tall gold-colored Buddha statue from the premises.

Following extensive investigations, Mawathagama Police arrested 14 suspects in relation to the incident yesterday (31). Authorities also recovered the stolen Buddha statue along with two vans believed to have been used during the operation.

Police noted that the suspects, aged between 22 and 56, are residents of Minigamuwa, Theldeniya, Monaragala, Matugama, Matale, and Rideegama.

The suspects were produced before the Pilessa Magistrate’s Court yesterday and were remanded until 13 February 2026. Further investigations are continuing.

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GMOA to Intensify Strike Action from February 2 Over Unresolved Demands

The Government Medical Officers’ Association (GMOA) has announced that it will escalate its ongoing trade union action from Monday, February 2, following what it describes as an unsatisfactory response from authorities regarding its key demands.

The GMOA first launched continuous trade union measures across all government hospitals on January 26 to highlight a series of unresolved issues presented to the government. At a Central Committee meeting on the same day, the association gave the Minister of Health a 48-hour deadline to provide concrete solutions.

However, the Ministry of Health has reportedly failed to offer satisfactory resolutions. In response, the GMOA’s Executive Committee held an emergency meeting on January 31 and confirmed that the intensified strike measures will go into effect from 8:00 a.m. on February 2.

The association has outlined the following actions:

  • Doctors will suspend issuing prescriptions or recommendations for medicines and medical equipment unavailable within the hospital.

  • Recommendations for patients to undergo external laboratory tests when such facilities are not available in the hospital will also be suspended.

  • Participation in health camps and clinics organized by political groups will be withdrawn.

  • Doctors will not be assigned to new hospital wards or units unless the officially approved number of medical officers is in place.

  • Examination of patients will be limited to settings with adequate facilities and support staff to ensure safety and privacy.

  • Specialist doctors will provide services only at the hospitals they are officially attached to, withdrawing coverage from other hospitals lacking specialist personnel.

The GMOA emphasized that these measures are being implemented to protect both medical professionals and patient safety, while pressing the government to address the ongoing concerns.

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Once inmates, now tourists? Bogambara Prison opens doors to investors

Sri Lanka is set to call for investment proposals to redevelop the historic Bogambara Prison, with plans to transform the former jail into a commercially viable project while preserving its architectural and historical heritage, officials said.

Authorities said investment opportunities will be invited shortly to redevelop the 135-year-old complex, potentially as a hotel or mixed-use development, in a manner that safeguards its original structure and distinctive architectural features. The prison comprises three floors, each containing 108 cells.

Bogambara Prison, constructed on reclaimed land after the filling of the Bogambara Lake, was officially closed on January 1, 2014. The building is noted in historical records as having been architecturally designed by F Vine.

The prison holds a significant place in Sri Lanka’s penal and political history. It is recorded as the country’s only prison equipped with a gallows capable of carrying out two executions simultaneously. Among those executed at the facility were W.A. Siripala, widely known as “Maru Sira,” and the famed outlaw Utuwankande Sura Saradiyel.

Historical accounts note that during executions, all entry gates to the prison were kept open to allow any last-minute reprieve orders to be delivered without obstruction, even at the final moment.

Several prominent political figures were also imprisoned at Bogambara, including Colvin R. de Silva, Philip Gunawardena, and William de Silva.

Officials said the proposed redevelopment aims to reimagine the historic site for modern use while ensuring its past is carefully preserved and interpreted for future generations.

(Source: Newswire)

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Govt. hard-pressed between disaster response and IMF programme

The government is encountering difficulties in funding its disaster response amid tight fiscal constraints, since the IMF stresses that spending must comply with the Public Finance Management Act (PFMA), Daily Mirror learns.

In its latest statement, the International Monetary Fund (IMF) emphasised the importance of transparent, well-prioritised expenditure in disaster recovery, as otherwise it could undermine hard-won gains in fiscal discipline under the ongoing reform programme.

“As Sri Lanka starts rebuilding, the authorities are committed to safeguard the gains that were achieved on fiscal and debt sustainability, strengthen public investment management, including project reprioritisation and implementation, and ensure spending is executed transparently and in compliance with the Public Financial Management Act. They are determined to continue strengthening social safety nets to protect the poor and vulnerable, who are disproportionately affected by the cyclone," IMF Mission Chief Evan Papageorgiou said after the recent visit.

However, the IMF has assured the fullest cooperation in rebuilding. Meanwhile, the government's efforts for an international donor conference have not yet yielded.

Asked for a comment, leading Economist Prof. Rohan Samarajeewa said that the cyclone poses difficult choices between debt sustainability and disaster response.

The massive infrastructure damage must be repaired quickly if the economy is not to stall. The approved supplementary estimate included Rs. 250 billion for infrastructure restoration. While the World Bank/GFDRR-supported Global Rapid Post-Disaster Damage Estimation is not yet available, it is unlikely that this sum will be enough to build back better, for example, to not just rebuild roads but also support the slopes to prevent repetition of landslides and road damage, he said in a written response.

(Source - DailyMirror)

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PM Modi meets Arab leaders, says India backs Palestinians, Gaza peace plan

Prime Minister Narendra Modi, who met the foreign ministers of Arab nations in New Delhi for the second India-Arab Foreign Ministers’ Meeting on Saturday, reiterated India’s “continued support” for the Palestinians and US President Donald Trump’s Gaza peace plan. 

PM Modi also conveyed his appreciation for the Arab League’s role in support efforts towards regional peace and stability, a statement by the Prime Minister’s Office (PMO) said.

“The prime minister reiterated India’s continued support for the people of Palestine and welcomed ongoing peace efforts, including the Gaza peace plan,” it said.

PM Modi also highlighted the deep and historic people-to-people ties between India and the Arab world, which have “continued to inspire and strengthen the relations between the two sides over the years”. 

The Prime Minister outlined his vision for the India-Arab partnership in the years ahead and reaffirmed India’s commitment to further deepen cooperation.

The PM posted a picture with the Arab ministers in a post on X, and wrote: “I was delighted to receive the Foreign Ministers and the delegations of the League of Arab States today. The Arab world is an integral part of India’s wider neighbourhood. We share deep civilisational bonds, vibrant people-to-people connections, strong fraternal ties, and a common commitment to peace, progress, and stability. I am confident that strengthening cooperation in the fields of technology, energy, trade, and innovation will open new horizons and elevate our partnership to even greater heights.”

PM Modi’s remarks on the Gaza peace plan came even as India is yet to take a call on joining the ‘Board Of Peace’ initiative, which aims to resolve global conflicts, starting with the Gaza conflict. Trump had sent an invitation letter to PM Modi that was shared on social media by the US Ambassador to India, Sergio Gor.

The US president had unveiled the ‘Board of Peace’ as part of the second phase of a ceasefire agreement between Israel and Hamas in the Gaza Strip, signed by both parties in October 2025. The board would reportedly be chaired for life by Trump and would start by addressing the Gaza conflict and then be expanded to deal with other conflicts. 

Member states in the board would be limited to three-year terms unless they pay $1 billion each to fund the its activities and earn permanent membership.

Palestinian Minister on India’s role in conflict

Palestinian Foreign Minister Varsen Aghabekian said India is “uniquely positioned to play a mediating role” in achieving lasting peace between Israel and Palestine amid a fragile ceasefire in Gaza and mounting global calls for a political solution.

Speaking exclusively to NDTV during her visit to New Delhi for the India-Arab Foreign Ministers’ Meeting (IAFMM), the Palestinian leader underscored that “there is no more time for wars” and called for dialogue, diplomacy, and respect for international law.

“India has been one of the first countries to send aid through Egypt. It has supported development projects in the West Bank and consistently stood for humanitarian principles,” she said.

Source:adaderana.lk

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Advisory issued for severe lightning

An ‘Amber’ advisory has been issued by the Department of Meteorology for severe lightning in the Western and Sabaragamuwa provinces, and in Galle and Matara districts.

The advisory issued at 12.00 noon today (31) will be effective until 11.00 p.m.

Accordingly, thundershowers accompanied with severe lightning are likely to occur at some places in the Western and Sabaragamuwa provinces and in Galle and Matara districts. 

There may be temporary localized strong winds during thundershowers, it added. 

The general public has been requested to take adequate precautions to minimize damages caused by lightning activity. 

(Source - Adaderana.lk)

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Traders Oppose Move to Place Key Economic Centres Under New State Company

Owners of trade stalls at several economic centres have expressed firm opposition to the government’s decision to bring five major centres under the control of a newly established company, warning that they will not accept sudden changes to a system that has operated for decades.

The concerns were raised during a discussion held yesterday (31) at the Dambulla Economic Centre, attended by Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe. The meeting was convened to brief traders on plans to form a new management board, appoint seven directors, and transfer five economic centres currently managed by a trust to the proposed company.

Deputy Minister Sunil Biyanwila, government officials, members of the Dambulla Economic Centre Traders’ Association, and representatives of the Economic Centre Management Trust also participated.

Tensions escalated during the meeting as traders directly challenged the Minister, pointing out that the economic centres have been managed by the trading community for more than 35 years. They objected to what they described as an attempt to impose a new management structure without prior notice or consultation.

Traders insisted that they would not allow new teams to take over their premises abruptly, emphasizing that the existing trust has successfully administered the centres for over three decades.

Responding to the concerns, Minister Samarasinghe said the new company was formed to regulate the economic centres and ensure fair pricing for the public. He announced that the Dambulla, Nuwara Eliya, Thambuttegama, Keppetipola, and Narahenpita economic centres would be brought under the new company, and that monthly tax revenues collected from these centres would be required to be paid to the company starting next month.

The Minister assured that the proposed changes would not undermine the rights of farmers or traders.

However, the trading community rejected the proposal, arguing that transferring long-standing businesses to a new institution without a proper inquiry was unacceptable. They stressed that the centres have been managed for over 30 years through a strong and established trust.

Traders also revealed that legal action had already been filed against a company previously approved by the Cabinet to manage the centres, alleging that the government had changed the company’s name after Cabinet approval and proceeded without obtaining fresh authorization.

They further highlighted that the Dambulla Economic Centre has independently carried out development activities for nearly 29 years without state funding and has accumulated savings of around Rs. 250 million under the trust. Traders added that they provide farmers with interest-free loans, seeds, and other support for cultivation, and stated they were unwilling to hand over control to an unfamiliar entity.

During the discussion, traders also reminded the Minister of a pledge made by President Anura Kumara Dissanayake during an election visit to Dambulla, promising a 30-year lease agreement for traders at the economic centre. The Minister did not respond to this claim at the meeting.

Addressing questions from journalists later, Minister Samarasinghe said the company name approved by the Cabinet had subsequently been changed and that he would seek Cabinet approval for the revised name at a later stage.

Amid strong opposition, the Minister said further discussions would be held on a future date to explore a possible agreement between the traders and the proposed company.

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Gold becomes less affordable as imports remain limited

In the wake of recent global market trends where gold prices climbed past the USD 5,500 per ounce mark, the Sri Lankan domestic gold market is currently sustained largely through auctions of pawned jewellery conducted by banks and financial institutions, as commercial gold imports have virtually halted due to prohibitive import duties, the Daily Mirror learns.

This change in the local supply chain comes amid significant fluctuations in the global market. Global gold prices, which had been on a record-breaking trajectory fuelled by intensifying U.S.-Iran tensions and ongoing global conflicts, experienced a sharp correction yesterday compared to earlier this week.

After climbing past the staggering USD 5,500 per ounce mark on January 29 and nearing USD 5,600, global spot prices took a sudden downturn. Market data indicate that prices dropped to USD 5,100 per ounce on January 30. Despite this dip, the overall trend remains historically high, driven by investors seeking safe-haven assets in a geopolitically unstable world.

In par with the global market movements, the local price of a 24-karat gold sovereign (8 grams) is currently priced at Rs. 400,000, while a 22-karat sovereign hovers between Rs. 368,000 and Rs. 370,000.

Speaking to Daily Mirror, Head of the Jewellery Segment of the Sri Lanka Gem and Jewellery Association (SLGJA), Sellakumar Kandasamy, said that prices have been rising steadily throughout January. This follows a sharp surge that began last December due to the rise of gold prices globally and instability in the US economy. However, he said that domestic prices decreased yesterday due to the volatility in the international market.

The volatility has been stark. By January 29, a 24-karat gold sovereign had reached a peak of Rs. 420,000, rising from Rs. 397,000 recorded on January 26 and Rs. 368,425 at the start of the month. Similarly, a 22-karat gold sovereign had climbed to Rs. 397,000, compared to Rs. 367,000 just three days earlier and Rs. 340,400 at the beginning of the year.

"The domestic gold market is currently sustained largely through auctions of pawned jewellery conducted by banks and financial institutions, as commercial gold imports have virtually halted. Steep import duties have rendered imports unviable," Kandasamy said.

He further warned that this dynamic could dampen retail demand, as gold becomes increasingly unaffordable for consumers.

Amidst this turmoil, last year, Sri Lanka’s gem and jewellery industry has renewed its call to the government to reduce the import duty on gold from 15% to 5%. The industry argues this is necessary to offset soaring world market prices that have fuelled local prices to unprecedented levels, disrupted supply, and left small jewellers struggling to survive.

The current duty, implemented in April 2018 to slow down a rapid spike in gold imports and discourage smuggling to countries like India, has reportedly hurt legitimate businesses while doing little to curb illegal movement, according to industry representatives.

(Source - DailyMirror)

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