News

Samagi Jana Balawegaya (SJB) MP S. M. Marikar has demanded the immediate resignation or dismissal of Colombo Mayor Vraie Cally Balthazar following severe urban flooding across the capital.

Speaking in his capacity as a member of the Disaster Management Council on Sunday (08), the opposition lawmaker asserted that President Anura Kumara Dissanayake must step in to remove the civic leader if she refuses to step down voluntarily.

He highlighted that the Department of Meteorology had issued advance warnings regarding heavy El Nino rainfall expected during October and November.

Marikkar said that timely maintenance of city drains and culverts would have entirely prevented Friday’s widespread inundation.

He pointed out that major public institutions, including the Colombo National Hospital, remained unaffected during historical weather events such as the record 400mm rainfall in 1992.

He noted that even the Mayor's own electoral ward of Jawatte had suffered flooding during the recent deluge.

Marikkar also said that the Colombo Municipal Council had failed to protect local business communities, drawing a contrast with the administration of former mayor Muhammed Uvais Emitiyas.

He further claimed that opposition members of the municipal council were completely excluded from recent post-disaster administrative meetings.

The Frontline Socialist Party’s Pubudu Jayagoda has alleged that President Anura Kumara Dissanayake is using superficial concessions to hide critical legal flaws in the Prevention of Organised Crimes Bill.

The FSP’s Education Secretary made these remarks in response to the President announcing minor amendments to the draft legislation during an interfaith convention last week.

Official revisions proposed by the government include shortening initial suspect detention limits from 72 to 48 hours, removing references to physical tattoos, and dropping offences linked to the Excise Ordinance.

Jayagoda warned that these statutory adjustments fail to protect basic constitutional rights and judicial independence.

Under existing criminal law, law enforcement officers require reasonable suspicion of an actual offense before making an arrest.

Jayagoda pointed out that the new draft replaces this safeguard with vague criteria involving physical appearance, personal associations, internet communications, and local slang.

Substantial concerns were also raised regarding clauses that allow executive authorities to enforce prolonged detentions without judicial oversight.

Provisions within the draft permit detention orders to be renewed for up to twelve months.

Magistrates would be stripped of their discretionary power to grant bail even when an arrest lacks sufficient legal grounds.

Furthermore, critics noted that while the administration agreed to engage with human rights organisations on select provisions, wider anti-terror laws and other non-violent statutory offences remain intact within the proposal.

The Supreme Court has already begun hearing 26 petitions challenging the constitutional validity of the bill.

A prison inmate undergoing rehabilitation at the Open Prison Camp in Weerawila has died after reportedly being gored by a deer while engaged in cleaning work within the camp premises.

According to the police, the incident occurred yesterday (08), when the inmate was attacked by a deer roaming freely within the prison camp.

Following the attack, he was admitted to Debarawewa Hospital for treatment but later succumbed to his injuries.

The deceased has been identified as a 30-year-old resident of Warapalana, police said.

His body has been placed in the mortuary of Debarawewa Hospital, and a post-mortem examination is scheduled to be conducted today (November 9).

Weerawila Police have commenced further investigations into the incident.

Sri Lanka’s upcoming 2027 Budget faces a formidable challenge in balancing household tax relief with the strict fiscal discipline required to safeguard economic recovery.

The National People's Power (NPP) government will present the financial proposals in Parliament on 12 November, setting out public spending plans amidst rising living costs and an approaching conclusion to the nation's 2.9 billion US dollar International Monetary Fund (IMF) bailout programme in March 2027.

Moving away from strict crisis-era consolidation, the Treasury plans to pivot towards targeted welfare programmes, job creation, and developmental investment.

Treasury Secretary Dr. Harshana Suriyapperuma indicated that corporate tax rates and the Social Security Contribution Levy would remain largely unchanged, with authorities relying instead on broader compliance, administrative digitisation, and the elimination of revenue leakages to prevent further tax increases.

Lower- and middle-income earners could see financial pressure ease through proposed adjustments to direct taxation, including an expected increase to the monthly Pay-As-You-Earn tax threshold beyond the current Rs. 150,000 baseline alongside potential raises to the Advance Personal Income Tax threshold up to Rs. 200,000.

Further relief measures under consideration include expanded cash transfers via the Aswesuma scheme, targeted energy subsidies for vulnerable sectors, concessionary financing for domestic solar installations, and increased funding for youth technical training.

These planned concessions must be delivered without undermining the target of maintaining a primary surplus of 2.6 percent of gross domestic product.

State revenue performance has recorded a substantial rise from 7.3 percent of gross domestic product in 2021 to 15.4 percent, yet experts stress that future sustainability requires tackling tax arrears, administrative inefficiencies, and unwarranted exemptions.

The government must now prove that public funds are being deployed effectively to generate measurable economic benefits while preserving long-term stability.

Sri Lanka Podujana Peramuna (SLPP) National Organizer and Member of Parliament Namal Rajapaksa said that the government has increased fuel taxes beyond previous levels, ultimately placing the financial burden squarely on the public.

He made these remarks during a discussion with a group of MPs in Parliament.

Elaborating further, Rajapaksa highlighted the growing cost of living, noting that while the government claimed to offer minor relief, fuel prices continue to rise due to increased taxation.

"The promise was to provide fuel at the landed import cost and to eliminate commissions. They pledged to reduce the practical fuel tax currently in place. Instead, they have increased fuel taxes beyond what they originally were, leaving the public to suffer the consequences," Rajapaksa said.

He further pointed out that the rising costs of milk powder and other essential food items have drastically inflated the overall cost of living, while wages remain stagnant.

Addressing claims by government ministers regarding the absence of queues, Rajapaksa asserted that discussions and visual evidence of fuel and gas shortages remain prevalent in rural and urban areas alike.

"What is the government's solution to this? Is it to impose yet another new tax, or to rely on their usual routine of conducting investigations under the guise of catching thieves? Are they trying to suppress the opposition and the public by fabricating false evidence? Whenever the government faces a problem, their only response is to imprison someone," he added.

Rajapaksa criticised the government's performance, stating that over the past two and a half years, no effective programme has been implemented to control the cost of living, reduce educational expenses for schoolchildren, or strengthen household economies.

He also noted that while reported inflation has crossed 8%, the actual financial strain on families continues to escalate month by month.

The government has spent Rs. 98 billion on fuel subsidies this year while evaluating whether to extend financial relief into the coming month, Labour Minister and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando said.

He made these remarks in parliament recently.

He said that State relief mechanisms have cushioned key power sectors alongside general consumers, with specific measures preventing electricity tariff hikes for households consuming under 180 units.

Financial relief has also been directed to the Ceylon Petroleum Corporation (CPC) and subsidiaries of the Ceylon Electricity Board (CEB) during monthly adjustments guided by the national pricing formula.

Addressing concerns over global market volatility, Minister Fernando stated that the government had acted to secure domestic fuel reserves and maintain domestic price stability following the outbreak of conflict in the Middle East.

Treasury allocations reserved for the final quarter of the year stand at Rs. 41 billion, forming part of the total expenditure incurred to cushion energy costs.

However, current funding for the fuel subsidy programme will be completely exhausted by 31 December, leading officials to examine the feasibility of extending treasury support into January if conditions require further intervention.

Sri Lanka's proposed USD 3.7 billion petroleum refinery investment in Hambantota faces a major setback after a Cabinet-appointed negotiating committee recommended terminating the existing agreement with Chinese petroleum giant Sinopec and inviting fresh international investment proposals.

The recommendation represents a significant development in the Government's efforts to balance the urgent need for foreign investment against the protection of national economic interests, public revenue and strategic energy infrastructure.

However, the final Cabinet decision on terminating the existing award and proceeding with a fresh investment process remains pending.

The project, originally awarded to China Petroleum and Chemical Corporation (Sinopec) following a Cabinet decision on November 27, 2023, was promoted as one of the largest foreign direct investments in Sri Lanka's history.

Valued at approximately USD 3.7 billion, the proposed facility was designed to process 200,000 barrels of crude oil daily, with most refined petroleum products intended for export markets.

The investment agreement was signed during President Anura Kumara Dissanayake's state visit to China in January 2025, raising expectations that Hambantota could emerge as a major regional petroleum processing and export centre.

But negotiations over the project's commercial conditions subsequently became increasingly difficult.

According to information surrounding the committee's deliberations, Sinopec presented ten major demands covering domestic petroleum sales, land allocation, tax holidays, foreign exchange arrangements, import exemptions, withholding taxes, electricity sales and preferential treatment for associated investors.

The Cabinet-appointed Negotiating Committee (CANC), chaired by Presidential Chief of Staff B. K. Prabhath Chandrakeerthi, rejected several significant demands.

Among the most contentious was Sinopec's reported request to secure access to up to 40 per cent of Sri Lanka's domestic petroleum market.

The committee rejected the proposal to supply petroleum products directly to local dealers or end consumers under the proposed refinery arrangement.

It also rejected the company's request for treatment equivalent to the State-owned Ceylon Petroleum Corporation's Sapugaskanda refinery, including future domestic sales provisions.

The taxation dispute was another major obstacle.

Sinopec reportedly sought Strategic Development Project status and tax holidays extending between 15 and 25 years. The committee rejected a proposed 25-year corporate income tax holiday and extensive exemptions covering dividends, interest, technical service fees and royalties.

Proposed personal income tax exemptions for expatriate employees were also rejected.

These demands assumed particular importance because Sri Lanka is implementing major revenue reforms under its US$2.9 billion International Monetary Fund-supported programme.

The Government faces continuing pressure to strengthen public revenue, maintain fiscal discipline and restore confidence following the country's economic crisis.

Granting extensive tax concessions to a major foreign investor would therefore require a careful assessment of the potential impact on national revenue.

Land allocation also emerged as a significant issue.

Although approximately 500 acres had initially been allocated in Arabokka, Sinopec reportedly sought another 200 acres near Hambantota Port.

The negotiating document identifies disagreements involving a proposed 99-year lease arrangement covering approximately 700 acres and the possible removal of a one per cent State royalty payment.

Environmental compliance and the financial responsibilities associated with controlling industrial emissions near southern coastal ecosystems also became matters of disagreement.

The committee did not, however, reject every investor request. It accepted certain proposals involving additional land, import exemptions, associated investors' rights and other concessions.

This indicates that the negotiations involved attempts to accommodate the investment while maintaining limits on conditions considered contrary to Sri Lanka's financial and strategic interests.

Following the communication of its earlier negotiating position in February 2026, Sinopec reiterated its position in a letter dated March 15, 2026.

The committee subsequently concluded that the project could not proceed under the prevailing conditions and recommended terminating the November 2023 award.

The recommendation could open the way for a fresh international Request for Proposals process, potentially attracting alternative investors and more competitive commercial arrangements.

The Government now faces a crucial decision: whether to proceed with termination and establish a new framework capable of securing the investment benefits originally expected from Hambantota.

For Sri Lanka, the outcome will have implications far beyond one refinery project. It will demonstrate whether the country can welcome major international investors while protecting its fiscal interests, domestic energy security and sovereign decision-making.

President Anura Kumara Dissanayake has announced that the Pay-As-You-Earn (PAYE) tax threshold will be revised through the 2027 Budget, which is scheduled to be presented to Parliament next week.

He made the announcement while addressing the National Trade Union Convention today.

Highlighting the private sector's significant contribution to the national economy, the President said the Government had given special attention to the economic well-being of employees in the sector.

He stated that the Government had taken steps to increase basic salaries following discussions with private-sector institutions and business associations. Attention had also been given to employees' additional allowances and PAYE tax deductions affecting higher-income earners.

President Dissanayake noted that the existing PAYE tax threshold had previously been increased from Rs. 100,000 to Rs. 150,000. He said the Government expects to raise it further through the upcoming Budget to provide additional tax relief to employees.

The President also emphasised that the Government has a responsibility to protect employees across all sectors, including the public, semi-government, plantation and private sectors.

Opposition Leader Sajith Premadasa said that Sri Lanka is facing a severe shortage of cancer treatment drugs and other essential medicines.

Rasing the issue in Parliament yesterday (6), he said the shortages are hitting patients in both government and private healthcare institutions.

He said several basic medicines remain out of stock, including Adrenaline, Atropine, Piriton, Ondansetron, Maxolon, Phenergan and Hydrocortisone.

He claimed some of these are unavailable even in private hospitals, which he said has created serious obstacles to essential treatment.

The Opposition Leader said the lack of cancer drugs and other critical medicines adds to the burden on patients who are already struggling to obtain care.

He urged the Government to give the matter urgent attention.

He said ministers must act without delay to guarantee an uninterrupted supply of essential medicines across the national healthcare system, a step he noted is vital for the safety of patients nationwide.

A special school holiday has been declared for all Tamil-medium schools in the Central, Uva, Western and Sabaragamuwa provinces on Monday (09), in view of the Deepavali festival, which falls tomorrow (08).

The decision was taken following a special request made by Deputy Minister of Plantation and Community Infrastructure Sundaralingam Pradeep.

The Governors of the respective provinces have issued instructions to the Provincial Directors of Education regarding the special holiday.

However, academic activities at the affected Tamil-medium schools will be conducted as usual on Saturday (14) to compensate for the holiday granted on Monday.

Thimbirigasyaya has recorded the highest rainfall in Sri Lanka, with 146.6 mm during the 24-hour period ending at 6.00 a.m. today (07), according to the Disaster Management Centre (DMC).

Mattakkuliya recorded the second-highest rainfall at 125.5 mm, followed by Bopagama with 117.6 mm.