News

Sri Lanka’s efforts to declare its external debt restructuring “99 percent complete” are now facing sharp scrutiny, as official disclosures and creditor communications reveal that the restructuring of the Government-guaranteed SriLankan Airlines (SLA) US$175 million bond is far from settled contradicting public claims of an imminent breakthrough.

 Treasury Secretary Harshana Suriyapperuma, in a statement issued alongside a filing on the Singapore Exchange (SGX), described the agreement-in-principle with SLA bondholders as a major step towards “full normalization” of relations with international creditors. He asserted that the deal would allow the country to claim that “99 percent of our external debt will now be settled.”

However, the SGX filing the only legally binding disclosure tells a more cautious story. The document clarifies that the restructuring plan is not finalized. Instead, it remains an “agreement-in-principle” subject to multiple layers of approval, including clearance from the Official Creditor Committee and confirmation from the International Monetary Fund (IMF) to ensure the proposal aligns with long-term debt-sustainability assessments. Only after those confirmations can authorities move to implement the plan, with hopes of completion by year-end.

The restructuring covers SLA’s defaulted US$175 million guaranteed bond, which slipped into arrears after the 2022 debt moratorium. According to the terms disclosed to investors, SriLankan Airlines and the Government will make US$60 million available for a cash tender at 85 percent of each noteholder’s claim. For those opting to exchange their notes, the Government will issue new bonds at a rate of US$0.85 for every US$1 of outstanding claims. Non-consenting creditors will be forced into a less favourable exchange US$0.75 for every US$1 owed.

These new Government bonds will be issued through a tap of the existing 2028 sovereign bond and amortised in three instalments: April 2026 (27.4%), April 2027 (27.4%), and April 2028 (45.2%).

But the transaction can only move ahead if at least 75 percent of bondholders vote in favour of the restructuring at a formal meeting. This threshold remains a major obstacle, given that an influential Ad Hoc Group of bondholders controlling more than half the notes has yet to fully agree to the terms. SLA’s own August cleansing notice underscored this challenge, bluntly noting that “despite constructive discussions,” no agreement had been reached at the time.

SLA Chairman Sarath Ganegoda has expressed measured optimism, calling the agreement-in-principle an important milestone and a chance for the company to approach the future with greater confidence. But rating agencies remain unmoved. S&P Global continues to classify Sri Lanka as being in Selective Default specifically because the SLA guaranteed bond remains unresolved.

Adding to the uncertainty is a US$250 million holdout creditor in the sovereign bond stock—another critical barrier to the Government’s “99 percent” completion narrative.

As the year draws to a close, Sri Lanka’s restructuring process is undeniably in its final phase. Yet the unresolved SLA bond remains the last major hurdle and the Government’s ability to maintain credibility now depends entirely on whether creditors approve the proposal in the months ahead.

Justice of the Supreme Court Anthony Lalith Shiran Gooneratne was sworn in as the Acting Chief Justice before President Anura Kumara Dissanayake this morning (22) at the Presidential Secretariat.

Due to Chief Justice Preethi Padman Surasena’s travel abroad from 22 November 2025 to 27 November 2025, the President has made this appointment effective until the Chief Justice’s return to Sri Lanka.

Sri Lanka Customs, the government’s key agency for import and export regulation, has recorded unprecedented collections in 2025, amassing over Rs. 2 trillion in the first ten months. Yet, a scathing National Audit Office report exposes systemic mismanagement and misuse of internal funds that divert billions away from the Treasury.

The audit highlights that several internal funds including the Reward Fund, Management & Compensation Fund, and the Overtime & Cargo Examination Fund operate without adequate oversight, clear policy frameworks, or legal sanctioning. Officers are incentivized to prioritize personal rewards over revenue collection, undermining national interests.

Shockingly, only 30% of net penalties from offences are sent to the Consolidated Fund, while Rs. 24.22 billion was distributed to officers and informants from 2012 to August 2023, with only Rs. 14.53 billion reaching the Treasury. Even routine operational detections are converted into “offence detections,” enabling staff to claim reward payouts for normal duties.

Discretionary reductions in penalties further erode government revenue. From 2017–2023, 17 major penalties totaling Rs. 7.61 billion were reduced to Rs. 481.69 million, leaving only Rs. 144.5 million for the Treasury. Administrative discipline remains weak, with handwritten attendance registers still in use despite biometric mandates, creating opportunities for ghost attendance and overpayment.

The overtime system is similarly flawed: 90% of the fund goes directly to officers regardless of extra work, while the government receives only 10%. In 2021–2022, officers were paid nearly Rs. 1.9 billion, while the state retained under Rs. 170 million.

Despite record collections, the audit underscores the urgent need for reform. With billions in potential revenue lost, Sri Lanka Customs must adopt transparency, discipline, and accountability, or risk eroding the integrity of one of its most critical revenue-generating institutions

The Colombo–Kandy main road at Ganethanna will remain closed until tomorrow afternoon following a landslide in the lower Kadugannawa area this morning (22), Kegalle District Secretary Jagath M. Herath said.

He told the media that the road cannot be reopened yet because a large rock remains lodged between concrete blocks at the site, posing a risk of further collapse.

Vehicles are being redirected through alternative routes to ensure smooth traffic flow.

“We have closed the road from both sides. We are trying to reopen it by Sunday afternoon, but a large rock is still unstable and could fall again. Therefore, it is not safe to open the road at this time. Police officers are guiding vehicles via alternative routes.” Herath added.

He also noted that on Monday, students traveling for the Advanced Level exams will need access. “We hope to reopen a section of the road and arrange buses from the Mawanella depot to ensure travel for students and teachers,” he said.

Anura Kumara Dissanayake, the 9th Executive President of Sri Lanka, marks his 57th birthday today . Born in 1968, President Dissanayake has been a key figure in Sri Lankan politics, contributing to national discourse and leadership for several decades.Dissanayake began his early education at Thambuttegama Primary School before moving to Thambuttegama Central College, where he excelled in the Mathematics stream at the Advanced Level Examination. He entered the University of Kelaniya in 1992 and completed his Bachelor of Science degree in 1995.

His political engagement took root during his university period. In 1987, he became involved with the Socialist Students’ Union and actively participated in islandwide demonstrations opposing the Indo-Lanka Accord.

With the revival of the Janatha Vimukthi Peramuna (JVP) in 1993, Dissanayake returned to full-time political activity. He was appointed National Organizer of the Socialist Students’ Union in 1997 and was elected to the JVP Central Committee the same year. In 1998, he advanced to the party’s Politburo.

His entry into electoral politics began in 1999 when he contested the Central Province Provincial Council election as the JVP’s Chief Ministerial candidate. He entered Parliament for the first time in 2000 through the National List.

In the 2004 parliamentary election, Dissanayake secured the highest number of preferential votes in the Kurunegala District and was appointed Minister of Agriculture, Lands, Irrigation, and Livestock under the United People’s Freedom Alliance (UPFA).He served as the JVP Parliamentary Group Leader in 2008 and returned to Parliament again in 2010 via the National List. In 2015, he was elected to represent the Colombo District.

Dissanayake became the leader of the JVP at its 7th National Convention on February 2, 2014. Five years later, in 2019, he played a central role in forming the National People’s Power (NPP), a broad coalition of political parties, civil groups, and activists.

On September 21, 2024, Anura Kumara Dissanayake reached a historic milestone by being elected President of Sri Lanka, marking the culmination of his extensive and influential political career.

Minister of Environment, Dhammika Patabendi, has informed pilgrims visiting the Adam's Peak, to refrain from taking water or other beverage bottles less than one liter.

Minister Patabendi, further advised pilgrims to avoid bringing food and beverages that are packaged with polythene wrappers.

This year's Sri Pada pilgrimage season has been named "Muni Siripa - Green Pilgrimage" under the program to minimize environmental pollution caused by plastic materials.

The Sri Pada pilgrimage season will officially commence on the Unduwap full moon poya day.

News 1st

Passengers travelling on selected bus routes will now be able to pay their fares using bank-issued debit and credit cards, as the Ministry of Transport launches a new digital payment system effective from today (25).The launch event is set to take place this morning at the Makumbura Multimodal Transport Center, marking a major step towards modernizing Sri Lanka’s public transport sector.

According to transport officials, this new card payment feature - available on buses equipped with electronic ticketing machines - aims to resolve a long-standing concern among commuters who often struggle to receive correct balance when paying with cash.

The initiative has been introduced through a collaborative effort between the Ministry of Transport and the Ministry of Technology. During the first phase, the system will be rolled out across nearly 20 bus routes, with plans for gradual expansion islandwide.

Authorities say the move is expected to improve convenience, enhance transparency, and encourage wider adoption of digital transactions in public transportation

The World Anti-doping Agency (WADA) has lifted the ban it imposed on Sri Lanka Anti-doping Agency, taking into consideration the amendments to the Act to be in compliance with the regulations of the international agency.

In its latest communication to the Director General, Sri Lanka Anti-doping Agency (SLADA), the international agency states that with the recommendations of the independent Compliance Review Committee, WADA’s executive committee has taken the decision to remove SLADA from the list of non-compliant signatories with immediate effect. The communication points out that the executive committee reached the decision following the steps taken by Sri Lanka to enforce the relevant amendments to the anti-doping legal framework to be inline with WADA’s Code. Earlier, on 19 August, WADA announced that SLADA is non-compliance with the international code highlighting several technical facts.

On 7 October, Sri Lanka Parliament passed the Bill to amend the Convention Against Doping in Sports Act No.33 of 2013. The amended Act, Convention Against Doping in Sports Act No.21 of 2025, aligns SLADA’s anti-doping legislation with international standards as stipulated by WADA.

“The International Anti-doping Agency, being responsible for maintaining uniformity in anti-doping standards in sports, does bring regulations on any country to comply with the international standards. Non-compliance to WADA standards may result in countries being non recognised at international sports competitions,” pointed out SLADA Director General (DG) Dr. Shiromi Pilapitiya. Non-compliance with the WADA Code does not restrict countries from participating and winning competitions. “Being in compliance with the world standards enables Sri Lanka sports personnel to be well-recognised internationally, giving them more scope for successful achievements,” Dr. Pilapitiya added, further commenting on the current situation. 

By Dhaneshi Yatawara

Sri Lanka is expected to experience continued rainy conditions as a low-level atmospheric disturbance in the surrounding region is likely to intensify into a low-pressure system by tomorrow (25), the Department of Meteorology announced.According to the Met Department, overcast conditions will prevail across much of the country. Frequent showers or thunderstorms are anticipated in the Northern, North-Central, and Eastern Provinces throughout the day.

Other regions of the island can expect afternoon and evening showers, particularly after 1:00 p.m.

The department warned that heavy rainfall exceeding 100 mm is possible in isolated areas of the Northern and Eastern Provinces. Meanwhile, fairly heavy showers above 75 mm may occur in several other parts of the country.

Authorities urge the public to take necessary precautions to reduce the risk of damage caused by strong gusty winds and lightning during thunderstorms.

Sri Lankan MP and Ceylon Workers’ Congress (CWC) leader Jeevan Thondaman’s wedding was held in Chennai today, with several prominent guests in attendance.

Former President Ranil Wickremesinghe was among those present at the ceremony, marking a notable moment at the high-profile event.

China has signalled a fresh expansion of its development presence in Sri Lanka, with Beijing now studying a proposal to supply a fleet of electric buses to the island.

Chinese Ambassador Qi Zhenhong, speaking at the 2025 China Aid Training Alumni Reception in Colombo, described the initiative as part of a “new starting point” in bilateral relations one shaped by recent high-level visits and renewed progress in stalled infrastructure projects.

But as Colombo weighs the offer, concerns are mounting over whether the country’s chronically loss-making public transport system particularly the Sri Lanka Transport Board (SLTB)—is structurally prepared to operate and maintain a modern electric-bus fleet without deep reforms.

According to the Ambassador, China is reviewing the electric-bus project at Sri Lanka’s request. The proposal aligns with Colombo’s long-term goals of cutting fuel imports, reducing urban pollution, and modernising an ageing bus fleet that is widely criticised for overcrowding, delays, and frequent breakdowns.

Electric buses would reduce operational fuel costsdiesel accounts for over 35% of SLTB’s recurrent expenditure and its efficiency could improve service reliability if managed under a disciplined maintenance regime.

China’s experience in clean-mobility technologies, from large-scale EV deployment to advanced battery systems, adds to the attractiveness of the offer.

Yet the numbers paint a stark picture.The SLTB has recorded annual operating losses exceeding Rs. 45–50 billion in recent years, burdened by overstaffing, outdated fleets, and politically driven fare controls.

The enterprise operates more than 6,000 buses, many well past their service lifespan, with availability rates frequently falling below 50%.

Introducing a fleet of high-value electric buses into an organisation with such structural weaknesses raises major risks. Electric buses require specialised charging infrastructure, battery-management systems, and trained technicians none of which the SLTB currently possesses. Without operational reforms, experts warn that Sri Lanka could end up with expensive assets underutilised or rapidly deteriorating, repeating past failures in donor-funded transport upgrades.

Ambassador Qi highlighted broader Chinese-supported progress, from the resumption of work on the Central Expressway to near-finalisation of the Sinopec energy project. He pointed to expanding human-resource exchanges, with nearly 1,000 Sri Lankans trained in China across sectors from agriculture to disaster management.

He also noted opportunities arising from China’s new Five-Year Plan, growing outbound tourism, and sustained technological advances in AI, hydrogen energy, and biopharmaceuticals. Beijing frames these developments as pathways for mutual gain especially for Global South partners navigating geopolitical uncertainty.

But for Sri Lanka, still grappling with debt restructuring, the key concern is whether acceptance of the electric-bus programme deepens long-term dependency or supports sustainable modernisation.

The Chinese proposal arrives at a moment when public dissatisfaction with transport services is at a peak. Buses are overcrowded, unreliable, and unsafe, especially for women and schoolchildren. Any move toward electric mobility could mark a turning point  if paired with governance reforms, transparent procurement, and a clear financial plan.

The real test will be whether Sri Lanka can leverage Beijing’s offer to fix its transport system—or whether it risks repeating a cycle of costly assistance without lasting reform.