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Mounting institutional friction between the Central Bank of Sri Lanka (CBSL) and the Finance Ministry over regulatory accountability has come to the fore following revelations of an alleged USD 715 million foreign exchange fraud.

The dispute surfaced during recent proceedings before Parliament's Committee on Public Finance (COPF), where lawmakers examined how 105 shell companies managed to transfer vast sums overseas through 13 commercial banks between January 2023 and March 2026 without delivering physical goods to the country.

Both institutions have engaged in mutual blame over legislative loopholes, while public scrutiny intensifies regarding how such large-scale capital flight continued undetected through the formal banking sector.

CBSL officials defended their regulatory stance before the parliamentary committee by pointing to enforcement constraints created by the Foreign Exchange Act of 2017.

They argued that the repeal of the previous Exchange Control Act removed criminal sanctions for major foreign exchange violations, forcing law enforcement officers to pursue cases indirectly through money laundering and organised crime legislation.

In response to these claims, the Finance Ministry confirmed that it is drafting legislative amendments to restore criminal penalties for deliberate foreign exchange fraud involving false documentation.

Meanwhile, details presented by the Criminal Investigation Department (CID) revealed a highly sophisticated network encompassing 55 individuals, 227 bank accounts, and nearly 24,300 telegraphic transfers.

Investigators alleged collusion among commercial bank officers and traced international links to Dubai-based narcotics syndicates, noting that a single primary suspect controlled 43 entities responsible for remitting USD 43 million abroad.

The policy clash between the central bank and the treasury underscores severe systemic vulnerabilities in state oversight mechanisms at a time when Sri Lanka is attempting to rebuild its foreign reserves.

The Finance Ministry is expected to present the proposed legal amendments to Parliament in the coming months, while law enforcement authorities continue tracing overseas assets and preparing formal indictments against the primary suspects.

The decomposed body of a 58-year-old man was discovered inside the bathroom of a house in Karapitiya, Galle.

Police said the deceased, who was unmarried, had been living alone at the residence.

The discovery was made after a group of university students residing in a nearby house informed the Karapitiya Police Post about a strong foul smell emanating from the premises.

Following the information, police officers visited the house and found the body inside the bathroom.

The remains have been placed at the morgue of the Galle National Hospital, where a post-mortem examination is scheduled to be conducted.

Galle Police have launched further investigations into the incident.

The owner of a private tuition centre in Horana has been arrested for allegedly possessing the narcotic drug known as "Ice" (crystal methamphetamine), police said.

The suspect, a 44-year-old resident of the Narthanagala area in Horana, was taken into custody during a police raid carried out at his residence.

Police said officers recovered 15g 250mg of crystal methamphetamine from the suspect's possession. A mobile phone, a SIM card believed to have been used in drug trafficking activities, and an electronic weighing scale were also seized during the operation.

According to investigators, the suspect attempted to flee when police arrived at the residence but was apprehended following a brief pursuit.

Preliminary investigations have revealed that the suspect is the son of a well-known businessman in the Horana area. Police also stated that he has previously faced several drug-related charges.

Further investigations are underway to determine whether the suspect had links to organized drug trafficking networks, operated a wider drug distribution network, and whether narcotics were supplied to students attending his tuition classes.

A 49-year-old Dutch tourist has reportedly drowned while swimming at Nilaveli Beach in the Kuchchaveli Police Division.

Police said they commenced investigations after receiving information yesterday (26) that a foreign national had drowned while swimming in the sea.

According to preliminary investigations, the victim had been staying at a tourist hotel in the Nilaveli area.

The deceased has been identified as a 49-year-old Dutch national.

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

Five suspects, including Anuda Janadith Bandara, the son of former State Minister Shantha Bandara, have been granted bail by the Fort Magistrate's Court in connection with the alleged robbery of Rs. 20 million belonging to a Chinese national.

Fort Magistrate Pasan Amarasena ordered that the suspects be released on personal bail of Rs. 500,000 each. The court also imposed a travel ban preventing all five suspects from leaving the country.

The suspects, including Bandara, were arrested on July 21 over allegations that they robbed a Chinese national of Rs. 20 million.

The case is being heard before the Fort Magistrate's Court.

The Maha Sangha Conference organized by the Sasanarakshaka Sangha Sabha is scheduled to be held in Colombo today (27), with the participation of Buddhist monks from across the country.

The conference will be conducted under the theme “Sukhā Sanghassa Sāmaggī” and will focus on addressing what organizers identify as challenges affecting the Buddha Sasana.

Coordinator of the Sasanarakshaka Sangha Sabha, Venerable Ulapane Sumangala Thera, said the event aims to strengthen unity among the Buddhist clergy while supporting efforts to protect and promote the Buddha Sasana, the country, and its cultural and religious heritage.

The conference is scheduled to commence at 2.00 p.m. at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo, with thousands of Buddhist monks expected to attend.

Venerable Ulapane Sumangala Thera said the organizers plan to adopt a series of proposals addressing issues affecting the Buddha Sasana and submit them to the relevant authorities for consideration.

Sri Lanka's minor court judges have urged the government to scrap a planned constitutional amendment to raise the retirement age for superior court judges, citing severe risks to judicial independence and institutional stability.

The Judicial Service Association (JSASL), which represents the country's District Judges and Magistrates, submitted its official opposition to Justice Minister Harshana Nanayakkara following a resolution adopted at its General Assembly on 11 July.

The association confirmed that it will also formally communicate its stance in writing to President Anura Kumara Dissanayake as the administration prepares to submit the proposal to the Cabinet.

The association highlighted that altering the existing retirement limits would freeze upward mobility across all tiers of the bench for roughly two years.

It noted that higher court promotions would grind to a halt, directly delaying appointments to the High Court and disturbing the long-established hierarchy of judicial career progression.

This stagnation threatens to alter the structural balance of the legal system by restricting opportunities for career judges to rise to the highest levels of the bench.

The proposed changes carry wider consequences for professional morale and future recruitment across the legal sector.

The JSASL warned that delaying advancement would demotivate serving judicial officers while simultaneously discouraging skilled young legal professionals from entering the bench.

This criticism mirrors concerns previously raised by the Bar Association of Sri Lanka (BASL), indicating broad opposition within the legal community against altering the constitutional provisions governing judicial tenure.

Undermining the structured progression of career judges poses a direct threat to the long-term integrity and public standing of the country's legal system.

A new Animal Welfare Bill has been introduced with proposals to strengthen the laws protecting animals and prevent acts of cruelty in Sri Lanka. The draft legislation, published in the Government Gazette dated 17 July 2026, sets out provisions aimed at ensuring proper care, protection and welfare of animals, while introducing stricter penalties for violations.

Under the proposed bill, denying animals essential needs such as food, clean water and suitable shelter would be considered an offence. The legislation also seeks to hold individuals accountable for causing unnecessary suffering through neglect, overworking animals, or keeping them in unsuitable conditions.

Those found guilty of animal cruelty could face a fine of up to Rs. 250,000, imprisonment of up to two years, or both. A person convicted of cruelly killing an animal could face a fine of up to Rs. 500,000, imprisonment of up to three years, or both.

The proposed law also includes provisions to take action against the abandonment of pets, the neglect of sick or injured animals, and allowing animals to suffer without necessary treatment. Animal fights and other activities involving animals that result in injury or death are proposed to be prohibited, along with the organising, promoting or facilitating of such events.

The bill further introduces regulations governing the transportation of animals, requiring measures to prevent unnecessary pain, injury or distress. Violators of these provisions could face a fine of up to Rs. 300,000, imprisonment of up to two years, or both.

A licensing system for pet shops and animal breeding centres has also been proposed, aimed at regulating the trade and breeding of animals across the country.

The draft legislation was prepared following recommendations made by a special expert committee appointed under a Cabinet decision. It was subsequently approved by the Attorney General and published in the Government Gazette ahead of being submitted for parliamentary approval.

Authorities said the proposed law was intended not only to punish cruelty against animals but also to promote a more responsible and humane approach to animal welfare within society.

Russia says it has found the bodies of five foreign climbers – believed to be Bosnian – on Mount Elbrus, authorities and state media say.

Authorities said earlier that out of a group of seven climbing Russia’s highest mountain, they had recovered two bodies and were searching for three more.

“According to investigators, on July 24 a group of seven climbers – foreign nationals – was climbing Mount Elbrus. The following evening, due to rapidly deteriorating weather conditions, the group strayed from the route,” the local prosecutor’s office said on Sunday.

It said one of the alpinists went down and told authorities that “two members of the group had fallen ill at an altitude of 5,100 metres and died”.

The statement added: “Subsequently, rescuers found another surviving climber and the bodies of three other climbers who had died.”

Bosnia’s foreign minister, Elmedin Konakovic, confirmed reports of the deaths, which he called “a major tragedy”.

Mount Elbrus, which rises to 5,642 metres just north of the border with Georgia, is infamous for sudden ⁠changes in weather and climbing conditions.

Bosnian media reported the seven ​members of ​the climbing expedition were residents ​of the central town of Zenica and included ​a married ‌couple and a ​female doctor ​who worked at the local hospital.

Russian media reported that adverse weather conditions including strong winds had complicated the search and recovery operations.

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Opposition Leader Sajith Premadasa has warned that the country's farmers will ultimately decide the fate of the government, accusing the NPP administration of neglecting the agricultural sector despite promises made at the last election.

Premadasa made the remarks while addressing a public rally in Anuradhapura.

He said the Agriculture Minister had himself acknowledged that the cost of producing one kilogram of paddy stood at around Rs. 137, even as the guaranteed price paid to farmers remained fixed at only Rs. 120.

He said farmers had continued to cultivate their lands despite this shortfall, and despite ongoing challenges such as the human elephant conflict, yet were still unable to secure a fair and stable price for their harvests.

The Opposition Leader alleged that many farmers had been forced to mortgage their property and borrow money at high interest rates simply to fund cultivation, only to then face shortages of quality seed paddy, delays in fertiliser subsidies, poor quality fertiliser, and rising costs for agrochemicals, fuel and farming equipment.

He noted that loan schemes previously available to farmers in past decades no longer existed, leaving cultivators dependent on informal lenders who charged excessive rates of interest.

Premadasa further alleged that the government had abandoned the farming community after coming into office, despite having promised relief, and claimed that farmers were seeing no meaningful benefit even as the Treasury's financial position had strengthened.

He said warehouses were being filled with imported rice while small and medium scale rice mill owners were being sidelined, and accused the government of insulting the farming community rather than supporting it.