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Sri Lanka is aiming to boost its economic growth to up to 6% in 2026, partly through record government capital expenditure, though delays in passing the budget could drag on its performance this year, Labour Minister and Economic Development Deputy Minister Anil Jayantha Fernando said on Monday (15).

Fernando said Sri Lankans and investors should be “hopeful” as the island nation climbs out of the economic crisis that hit in 2022, its worst since independence.

Sri Lanka recorded economic growth of 5% in 2024. That would likely slow to 4-4.5% this year, as delays in passing the budget slowed government spending, Fernando told Reuters in an interview.

“Next year… we will need to go for 5-6% growth. We will aim for that,” he said. “In the long run, after five years, we target to maintain an average GDP growth that emerging countries are maintaining. That is around 6-7%.”

The government planned to increase its capital expenditure by 8% in 2026 to a record Rs. 1.4 trillion ($ 4.64 billion), he added.

The International Monetary Fund (IMF), which bailed out Sri Lanka in March 2023, has predicted GDP growth of 3.3% this year and 5.2% for 2026. The economy grew 4.9% year-on-year in the second quarter of 2025, official data showed on Monday.

“We should not really exaggerate (and say) that next year everything would be fantastic and your livelihood would be totally changed, but we are telling the people and the world and investors, be hopeful,” Fernando said.

The government projections will likely feature in the upcoming budget, Fernando added, and have not been previously reported.

Budget delay drags

Sri Lanka allocated Rs. 1.315 trillion for capital expenditure in 2025, but spending was delayed after the budget was approved later than usual in March by the new government of President Anura Kumara Dissanayake.

The country typically presents its budget to parliament in November, with approval in December, a cycle the government plans to resume this year.

Fernando said government ministries hesitated to initiate procurement without formal approval this year. Spending picked up in the second quarter, but remains below target, making it difficult to achieve 5% GDP growth unless the informal economy compensates.

At the end of July, only a fifth of the budgeted money had been spent.

"Next year will be really fine, because we will adhere to the normal budget cycle,” he said. “We have learned something because we have never been in government.”

Fernando said the country could also more than double foreign direct investment to more than $ 2 billion in 2026, driven by investments from China, India and the UAE.

He said Sri Lanka was prioritising strategic foreign loans tied to large-scale projects and technology transfer, rather than market-based borrowing to boost reserves or fund existing initiatives.

The country, burdened by high debt levels, is working within an IMF framework to reduce debt to 95% of GDP by 2032, with a target of 80-85% to preserve borrowing space. This year’s target is 109.6%.

Fernando said borrowing will be reserved for critical investments, while the government focuses on boosting reserves through export diversification and tourism.

Crucial remittances from expatriates have already topped $ 5.2 billion in the first eight months of the year and could hit a record $ 8 billion, compared with $ 6.57 billion last year, he added. The previous high was $ 7.24 billion in 2016.

(Reuters)

Inspector General of Police (IGP) Priyantha Weerasooriya has departed the country to participate in a police conference being held in China.

The IGP left for China last night (15th).

In his absence, Senior Deputy Inspector General of Police Lalith Pathinayake has been appointed to oversee the duties of the IGP, specifically managing the Central Province and the Police Administration Division.

According to the Police Media Spokesperson, IGP Weerasooriya is scheduled to deliver a lecture at the conference in China.

Upon completion of his visit, IGP Priyantha Weerasooriya is expected to return to the country on the 20th.

The National Water Supply and Drainage Board (NWSDB) has announced that water supply will be suspended for several areas in Colombo tomorrow (18th) for a duration of nine hours.

This interruption is due to a power outage affecting the main pump supplying water to the Ambathale Water Treatment Plant. Consequently, the plant will be unable to provide water during this period.

Water supply will be suspended from 10:00 a.m. to 7:00 p.m. in areas of Colombo 01 to 15. Additionally, supply will be interrupted in the following areas: Battaramulla, Pelawatta, Hokandara, Koswatta, Talawatugoda, Kotte, Rajagiriya, Mirihana, Madivela, Nugegoda, Nawala, Kolonnawa, IDH, Kotikawatta, Angoda, Wellampitiya, Orugodawatta, Maharagama, Borelasgamuwa, Dehiwala, Ratmalana, and Moratuwa.

The NWSDB expresses regret for the inconvenience caused to water consumers due to this disruption and requests their understanding.

A total of 598 individuals have been arrested on suspicion of being involved in criminal activities and also over illicit liquor and drug-related offenses during a special island-wide operation conducted yesterday (15).

As part of the operation, 27,580 people were subjected to inspection, the Police Media Division said.

Police have identified 24 individuals directly linked to criminal activities while 418 suspects with outstanding warrants were arrested during the operation, police noted.

According to the report, a total of 45 drunk drivers were apprehended while a further 16 reckless drivers and 3,857 persons who violated various other traffic offences were identified.

According to police, island-wide operations are conducted to apprehend small-, medium-, and large-scale drug traffickers, individuals involved in criminal activities, and those in possession of illegal firearms.

(adaderana.lk)

Employees of the Ceylon Electricity Board (CEB) have launched a sick leave campaign today (17) as part of their trade union action.

According to CEB Technical Engineers’ Union Chairman, Kosala Abeysinghe, this move signals the beginning of the second phase of their ongoing trade union activities.

The National Water Supply and Drainage Board (NWSDB) has announced that water supply will be suspended for several areas in Colombo on the day after tomorrow (18th) for a duration of nine hours.

This interruption is due to a power outage affecting the main pump supplying water to the Ambathale Water Treatment Plant. Consequently, the plant will be unable to provide water during this period.

Water supply will be suspended from 10:00 a.m. to 7:00 p.m. in areas of Colombo 01 to 15. Additionally, supply will be interrupted in the following areas: Battaramulla, Pelawatta, Hokandara, Koswatta, Talawatugoda, Kotte, Rajagiriya, Mirihana, Madivela, Nugegoda, Nawala, Kolonnawa, IDH, Kotikawatta, Angoda, Wellampitiya, Orugodawatta, Maharagama, Borelasgamuwa, Dehiwala, Ratmalana, and Moratuwa.

The NWSDB expresses regret for the inconvenience caused to water consumers due to this disruption and requests their understanding.

The Government of Japan has agreed to provide a grant of 500 million Japanese yen to Sri Lanka under the Official Security Assistance Project, aimed at enhancing the surveillance, investigation, and monitoring capabilities of the Sri Lanka Navy.

As part of the initiative, drones will be provided for the investigation, surveillance, and monitoring activities of the Sri Lanka Navy under the Official Security Assistance Project to the Sri Lanka Navy.

The relevant exchange documents and agreements are scheduled to be signed by President Anura Kumara Dissanayake during his upcoming official state visit to Japan.

The Cabinet of Ministers has approved the proposal submitted by the President authorizing further action on the project.

The Department of Meteorology reports that today (16th), a few showers are likely in the Northern, North-Central, Eastern, and Uva Provinces, as well as in the Western and Sabaragamuwa Provinces, and in the districts of Galle, Matara, Kandy, and Nuwara Eliya.

After approximately 1:00 p.m., isolated showers or thundershowers may also occur in the Uva and Eastern Provinces, as well as in parts of the Mullaitivu District.

The Department of Meteorology urges the public to take necessary precautions to minimize risks associated with temporary strong winds and lightning that may accompany thundershowers. 

The Colombo Permanent Trial-at-Bar High Court has officially indicted former Health Minister Keheliya Rambukwella along with 11 other individuals in connection with the distribution of unapproved antibody vaccines within Sri Lanka’s hospital system.

The indictments relate to a high-profile investigation into the alleged circulation of substandard or unauthorized vaccines, which were reportedly distributed without proper regulatory clearance, raising serious concerns about public health and safety.

The court scheduled the indictment proceedings on July 11.

The Colombo Magistrate’s Court has ordered that former Senior Police Superintendent Sathish Gamage, who is in custody by the Bribery Commission under the Anti-Money Laundering Act, be remanded in custody until the 30th of this month.

The court issued this order while rejecting the suspect’s bail application.

Cabinet approval has been granted to appoint a committee comprising officials from several ministries to prepare the necessary legal amendments enabling Sri Lankans residing overseas to exercise their right to vote.

At present, under the existing five types of elections, there is no legal mechanism or procedure in place to facilitate voting by Sri Lankans abroad. The government has, however, taken note that many Asian countries such as India, Bangladesh, and the Philippines have already established legal frameworks allowing their expatriate citizens to cast their votes.

With the objective of safeguarding the voting rights of Sri Lankans living overseas, Cabinet approval was obtained for the proposal submitted by the Minister of Public Administration, Provincial Councils, and Local Government to appoint a committee. This committee, consisting of officials from the Election Commission, the Ministry of Foreign Affairs, the Ministry of Foreign Employment and Tourism, the Ministry of Public Administration, Provincial Councils and Local Government, as well as other relevant ministries and institutions, will be tasked with studying the necessary measures to amend the existing laws or draft new legislation.

A politician who is not emotionally connected with the people can never be a true leader of the people, former President Mahinda Rajapaksa says.

Posting a note on his official Facebook page, the former President further stated that from the moment he arrived at Carlton House until now, he offers his respectful gratitude to the venerable Maha Sangha who have continuously come to bestow their blessings upon him.

"I have spent most of my life among the people. Even today, it remains the same. An official term of office may come to an end, but the love of the people goes beyond such terms. It never ends. Both in times of power and in times without power, the people have stood with Mahinda Rajapaksa.

Friendship and bonds are familiar to us in the village. The conversations of little children bring me joy. Since children do not converse with me as a former President, those conversations are especially delightful. That is why I cherish them.

A politician who is not bound with the people through emotions can never be a true leader of the people.

From the day I came to Carlton House until this moment, I respectfully extend my gratitude to the venerable Maha Sangha who have come to bless me. Likewise, I express my thanks to the dear people who visited to inquire after my wellbeing, to my political colleagues, and to various professionals.

Without distinction of race or religion, I have had the honor of becoming not only a people’s leader centered on public strength, but also your neighbor and your closest companion. For that, I remain humbly proud."