News

In a decisive move to combat entrenched corruption and criminal profiteering, the Sri Lanka Police has established a powerful new investigative arm the Proceeds of Crime Investigation Division (PCID) to trace, seize, and recover wealth acquired through illegal means.

The PCID, set up under the newly enacted Proceeds of Crime Act, represents one of the most ambitious anti-corruption measures introduced by the new administration. It will operate directly under the Inspector General of Police (IGP) and collaborate with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and other enforcement bodies to target both public officials and criminal networks suspected of amassing illicit fortunes.

Officials say the new division will focus on the investigation, restraint, forfeiture, and disposal of assets linked to offences such as bribery, money laundering, drug trafficking, and organized crime. Importantly, the Act allows non-conviction-based forfeiture enabling the state to seize suspicious assets even before a criminal trial concludes, closing a loophole that has long shielded politically connected offenders.

The unit will be headquartered at the Old Police Headquarters in Colombo 01 and formally inaugurated by Public Security and Parliamentary Affairs Minister Ananda Wijepala, alongside IGP Priyantha Weerasuriya.

According to police data, over Rs. 4.5 billion worth of properties have already been seized in recent operations against organized crime, including luxury houses, vehicles, jewellery, and boats. A further Rs. 57 million in cash has been confiscated and placed under legal restriction in line with the Money Laundering Act.

The establishment of the PCID reflects a growing shift in the government’s anti-corruption strategy — away from reactive investigations and toward financial disruption of criminal empires. Analysts note that the move signals an intent to go beyond rhetoric and tackle the economic roots of corruption.

However, experts warn that the division’s success will depend on political will and transparency. “Laws are only as strong as their enforcement,” said a former senior investigator. “If the PCID can operate independently, it could mark a real turning point in Sri Lanka’s fight against illicit wealth.”

For now, the new government’s message is clear: corruption and criminal enrichment will no longer go unchallenged. Whether this latest initiative can finally bring accountability to powerful circles remains the country’s next crucial test.

Ten bidders have submitted proposals, marking one of the most closely watched tenders in recent years due to the controversies that surrounded earlier awards to supply coal for the 900MW Lakvijaya power plant.

The Lanka Coal Company (LCC) opened Term Tender No. LCC/25/TT/1   recently to procure 1.5 million metric tonnes (±10 percent) of coal for the power plant located at Norochcholai, covering the period December 2025 to May 2026. 

Attention has focused particularly on the participation of Potencia LLC FZ, which entered Sri Lanka’s coal supply chain under unusual circumstances. 

In 2022, the long-term contract had originally been awarded to Black Sand Commodities FZ LLC, a Dubai-registered company later identified as having links to Russia’s coal giant SUEK AG. 

That deal drew intense criticism after the Auditor General and a parliamentary committee found that procurement rules had been breached. 

Allegations included changes to bid documents after submissions, inadequate verification of the winning company’s registration, and questions over whether other bidders were treated equally.

Amid mounting scrutiny, the government suspended the Black Sand contract. However, rather than cancelling it outright, the agreement was novated a legal process by which contractual rights and obligations are transferred to Potencia LLC FZ. 

As a result, Potencia stepped in to handle the remaining consignments, including eight pending shipments from the original schedule and an additional five deliveries that became necessary due to delays in calling a fresh tender.

Potencia also proposed alternate delivery methods, suggesting the use of larger Capesize vessels supported by floating cranes at Puttalam jetty, in place of the standard 60,000-tonne parcels specified in LCC’s tender conditions. 

While this idea has not been formally adopted, it demonstrated the company’s interest in maintaining a long-term role in Sri Lanka’s coal supply.

With the new tender now open, industry analysts point out that Potencia’s entry through novation has placed it in a different category than the other bidders, who have all competed directly under the present process.

Some energy sector observers’ stress that this background should not prejudice the evaluation but underscores the importance of applying clear and uniform procurement standards. 

“What matters most is that every bid is assessed on equal terms,” one former procurement advisor noted, adding that transparency this time is critical for restoring public trust.

Coal still remains a significant contributor to Sri Lanka's energy security, with Lakvijaya supplying nearly 40 percent of national electricity needs.

Through this, the tender being released now is being viewed as something greater than a technical exercise: it is a challenge to see whether the country can put its past conflicts behind it and deliver a competitive, credible, and transparent procurement process.

After years of false starts and abandoned deals, the Government has launched a renewed effort to attract investors for a landmark mixed development project on a prime property at No. 40, D.R. Wijewardena Mawatha, Colombo 10, overlooking the Beira Lake.

The three-rood, 13.85-perch plot owned by the Urban Development Authority (UDA) has been opened for investment proposals on a 99-year lease, marking yet another bid to turn this central site into a vibrant commercial and leisure hub.

Approved by the Cabinet, the move is part of a broader plan to transform the Beira Lake region into a thriving district of high-rise developments, waterfront promenades, and cultural zones. UDA officials said proposals will be entertained for hotels, shopping malls, convention centres, and recreation facilities.

Plans include green corridors, a linear park stretching six to twelve metres, and spaces for children’s play areas and water-based leisure activities.

However, the project faces significant practical hurdles. The site is still occupied by several state institutions, including the Excise Department, CWE warehouses, and CW Mackie PLC.

These must be relocated before any construction begins. Additionally, while over 320 unauthorized settlements near the Gangarama Temple have already been removed, another 1,000 families await resettlement as part of the area’s clearing process.

Despite these obstacles, officials note that the site’s strong infrastructure and central location close to the Colombo Port, Fort railway station, schools, and financial centres make it an attractive investment. The UDA is offering flexible payment terms, combining upfront and installment options based on valuations from the Government Chief Valuer.

Still, the project carries the weight of its chequered past. A US$200 million luxury resort proposed by Queensbury Leisure Ltd. was cancelled in 2017 after failing to commence within the stipulated period, while Japan’s Belluna Co. Ltd. and Asia Capital withdrew their Rs. 4 billion investment in 2022 amid liquidity concerns.

Officials remain cautiously optimistic. “The potential to reshape Colombo’s skyline is immense,” one senior UDA source said. “But only consistent policy and investor confidence will determine whether this vision finally becomes reality.”

Sri Lanka’s inflation for September 2025 has officially been released based on the National Consumer Price Index (NCPI).

According to the latest data, inflation – which stood at 1.5% in August 2025 – has risen to 2.1% in September 2025.

The Department of Census and Statistics, in its statement issued today, further notes that food inflation, which was reported at 2.9% in August 2025, has climbed to 3.8% in September.

Meanwhile, non-food inflation has also seen an increase — moving up from 0.4% in August 2025 to 0.7% in September 2025.

Photograph

In a significant policy shift to drive renewable energy and sustainable industrial growth, the Government has introduced new regulations granting duty and tax exemptions on the import and local purchase of capital goods used in priority development projects.

The regulation, issued by Finance, Planning and Economic Development Minister Anura Kumara Dissanayake under Section 101(1) of the Customs Ordinance, was gazetted this week and will take effect on 15 October 2025. It updates the 2018 framework to include renewable energy storage among the eligible sectors under the bonded warehouse facility a move expected to accelerate investment in clean energy infrastructure.

Under the revised rules, companies registered for approved projects in five key industries—dairy manufacturing, pharmaceutical production, medical equipment manufacturing, solid waste management, and renewable energy generation or storage can now import or purchase capital goods free from selected duties and taxes.

To qualify, renewable energy projects must involve either the construction of new facilities or expansion of existing ones with at least 1 megawatt (MW) of generation capacity or 1 megawatt-hour (MWh) of storage capacity.

The amendment replaces sections of the 2018 Gazette (No. 2083/33), broadening the incentive scheme beyond manufacturing to include environmental management and clean energy sectors. This marks a strategic shift in Sri Lanka’s economic vision, aligning with its 2026 development roadmap that emphasizes energy security, sustainability, and industrial innovation.

Economists and industry analysts view the regulation as a timely intervention that could attract both local and foreign investors into Sri Lanka’s green economy. With global investors increasingly prioritizing low-carbon ventures, the new policy could enhance the country’s competitiveness in renewable energy and waste management.

Experts also note that the initiative supports the Government’s national target of generating 70% of electricity from renewable sources by 2030, while reducing dependence on imported fossil fuels.

“The inclusion of energy storage is particularly crucial,” an energy sector analyst noted. “It shows policymakers are thinking beyond generation to grid stability and long-term energy resilience.

”The regulation, therefore, represents more than a fiscal adjustment it signals a broader commitment to transforming Sri Lanka’s energy and industrial base through innovation, sustainability, and investment confidence.

A severe outbreak of coconut leaf caterpillars is currently wreaking havoc across several areas in Puttalam, causing extensive damage to coconut plantations.

The infestation is believed to have already spread across nearly 100 acres, posing a serious threat to coconut cultivation in the region.

In response, the Coconut Research Institute and the Coconut Cultivation Board have launched urgent and intensive measures to contain the outbreak.

Experts report that the larvae cling to the underside of the leaves from an early stage, extracting sap and eventually scorching the entire frond — leaving the trees visibly burnt and withered.

Authorities warn that unless swift action is taken, the situation could escalate further — and are actively deploying mitigation strategies to save the affected plantations.

The Government’s decision to proceed with the long-delayed Grand Hyatt Colombo divestiture, reappointing Deloitte as the transaction adviser, has rekindled cautious optimism while deepening anxiety among investors, state institutions, and apartment buyers who have waited more than a decade for closure.

Initially launched in 2006 under the Ceylinco Group led by businessman Lalith Kotelawala, the project was envisioned as Sri Lanka’s first Grand Hyatt-branded luxury hotels 47-storey landmark featuring 458 hotel rooms and up to 100 serviced apartments. However, the collapse of Ceylinco following the Golden Key credit scandal in 2008 brought construction to a halt.

In 2012, the property was taken over by the state and transferred to Canwill Holdings (Pvt) Ltd, a joint venture between Sri Lanka Insurance Corporation, Litro Gas, and the Employees’ Provident Fund (EPF). Despite multiple relaunches and promises, the project remains incomplete, its skeletal frame standing as a reminder of stalled ambition at the heart of Colombo’s skyline.

With costs now estimated to exceed US$120 million (Rs. 36 billion), the government has decided to sell its 75% stake in Canwill Holdings to a strategic investor capable of completing the venture. According to Finance Ministry sources, Deloitte has been tasked with preparing an Information Memorandum (IM) outlining the company’s assets, liabilities, and pending claims including those from long-waiting apartment purchasers. Once the IM is finalized, Expressions of Interest (EOIs) will be sought from potential investors.

For apartment buyers who paid deposits years ago, uncertainty looms large. There is no official record detailing how many units were sold or how much money was collected, and with no escrow or legal safeguards, many risk being treated as unsecured creditors in the divestiture process. Legal experts insist that their rights must be recognized in any new agreement to avoid further injustice.

Meanwhile, state stakeholders such as Sri Lanka Insurance and Litro Gas face pressure to recover public funds estimated between Rs. 18–21 billion already sunk into the project. The Auditor General’s 2023 report also flagged accounting irregularities, including a Rs. 2 billion share issue discrepancy, highlighting governance lapses.

Economists describe the sale as a necessary but delicate balancing act one that could finally bring closure or deepen mistrust. For hundreds of hopeful homeowners and taxpayers alike, the fate of the Grand Hyatt Colombo now rests on whether this latest revival can deliver on promises left unfulfilled for more than a decade.

The United National Party has decided to immediately appoint a new senior position. Accordingly, former Minister Harin Fernando has been appointed as the Deputy Secretary General of Political Mobilization.

The UNP announced that the responsibility of this position assigned to Mr. Harin Fernando is to unite all political parties in the country and bring them together under a common programme.

In addition, reports say that Mr. Harin Fernando will also be in charge of overseeing the 1,000 meetings organized by the United National Party.

Central Bank Governor Dr. Nandalal Weerasinghe has been recognized with the prestigious “A Grade” award by Global Finance magazine at the 2025 World’s Best Central Bank Governors awards, held alongside the IMF–World Bank Annual Meetings in Washington.

The recognition celebrates Dr. Weerasinghe’s prudent monetary policies, his leadership in stabilizing Sri Lanka’s financial system, and his strategic management amid challenging global conditions. Global Finance annually rates central bank governors based on policy credibility, inflation control, currency stability, and economic growth outcomes.

Under Dr. Weerasinghe’s stewardship, Sri Lanka’s Central Bank has implemented critical reforms to ensure monetary stability, strengthen the banking sector, and rebuild confidence in the domestic economy. The award reflects the global acknowledgment of these achievements and Sri Lanka’s steady progress toward economic recovery.

Sri Lanka’s exporters are once again battling rising costs, missed deadlines, and vanishing client trust as chronic congestion and red tape at the Port of Colombo disrupt trade flows through the nation’s most critical maritime hub. Once hailed as South Asia’s transshipment leader, the port now risks ceding ground to faster, better-managed regional rivals.

For exporters in garments, rubber, and electronics, the delays have been devastating. Vessels are reportedly arriving up to two weeks behind schedule, forcing companies to bear heavy penalty clauses, demurrage fees, and freight surcharges. Some shipping lines have already begun rerouting vessels to Indian ports such as Vizhinjam, Mundra, and Cochin, where quicker turnaround times and streamlined customs procedures offer more reliability.

The heart of Colombo’s crisis lies in terminal congestion and inefficient inter-terminal transfers. Exporters complain that containers must still be moved manually between terminals by prime movers an outdated process ill-suited for a port handling nearly 8 million TEUs annually, including 6.2 million in transshipments. While official figures show a modest 4% increase in throughput during the first half of 2025, insiders warn that those numbers conceal severe operational bottlenecks and mounting costs.

Adding to the strain, bureaucratic hurdles continue to plague the system. Importers of perishables and agricultural products often face clearance delays because authorities refuse to recognize international laboratory certifications, insisting on local retesting by overburdened agencies such as the Sri Lanka Standards Institute. The result: rotting food cargo, soaring demurrage, and frustrated traders.

Industry experts argue that accepting globally accepted certifications and adopting digital pre-clearance systems could drastically cut delays. Productivity gaps between state-run terminals and privately operated facilities such as SAGT and CICT also remain stark. Although the newly built West Container Terminal has the capacity to ease congestion, it remains underutilized due to poor operational integration.

Exporters and analysts warn that expanding capacity alone will not resolve the crisis. Without systemic reforms including harmonized berth allocation, digital customs, transparent scheduling, and infrastructure coordination the port risks transforming from a strategic asset into a costly chokepoint.

“Colombo stands at a crossroads,” said one industry leader. “Either we modernize now, or we watch our trade slip away to faster ports across the region.”

Astronomers say one of the year’s most prominent meteor showers will be visible tonight (20).

This celestial event, known as the Orionids, is expected to put on its best display between 3:00 a.m. and 5:00 a.m., offering ideal viewing conditions during those hours.