News

Sri Lanka must enforce critical economic measures even if they lack public support to avoid severe long-term financial damage, Central Bank Governor Dr. Nandalal Weerasinghe said.

Speaking during an academic address at the University of Kelaniya, the Governor outlined the necessity of maintaining strict policy discipline to safeguard national economic stability.

He said that the Central Bank had already implemented difficult decisions and would not hesitate to introduce further measures whenever required.

He noted that delaying or avoiding essential economic adjustments simply because they proved unpopular would ultimately inflict serious harm on the country as a whole.

The Governor acknowledged that tax rates sometimes had to be increased to meet national financial requirements, even though higher taxation faced widespread public opposition.

He said that such unpopular decisions could trigger public protests and create temporary instability in the country.

However, he stressed that the government held a clear responsibility to communicate the economic impacts of tax revisions transparently to help the public understand the underlying necessity.

Proper communication was vital to securing public understanding and ensuring the successful execution of fiscal policies, he added.

The Governor emphasised the importance of introducing tax adjustments at the appropriate moment while anticipating resistance from various segments of society.

He pointed out that despite the severe political and economic crises facing Sri Lanka in recent years, timely implementation of difficult policies had successfully preserved relative economic stability.

Leader of the Opposition Sajith Premadasa has urged decisive legal action and a unified national response to curb wildlife crimes following the discovery of a dead wild tusker in North Central Sri Lanka.

The statement followed the discovery by wildlife officials of an elephant carcass with its left tusk missing in a forested area near a paddy field adjacent to Kayangollawa Wewa in Kahatagasdigiliya.

A joint team comprising the Kahatagasdigiliya Wildlife Office, Divulwewa Police, and the Sri Lanka Army has initiated a full inquiry into the case.

Investigators believe the animal had been dead for a considerable period before discovery and suspect illegal poachers forcibly removed the tusk.

Labelling those responsible as environmental terrorists, Premadasa urged all national stakeholders to unite in bringing the perpetrators to justice under the strictest legal provisions.

The incident occurs less than four weeks after the death of the famous tusker Kavantissa, intensifying widespread public alarm over the safety of the country's dwindling wild elephant population.

The latest tragedy underscores the urgent need for a comprehensive national strategy to combat poaching and secure critical elephant habitats across Sri Lanka.

The Colombo Magistrate’s Court has postponed further proceedings in the case against former Member of Parliament Hirunika Premachandra and several other female suspects over a street drama that allegedly obstructed public roads in the Cinnamon Gardens Police Division on International Women’s Day.

The case was taken up before Colombo Additional Magistrate Lahiru Silva today (02).

During the hearing, Cinnamon Gardens Police informed the court that they had not yet received instructions from the Attorney General regarding the incident.

After considering the submissions, the Magistrate ordered that the case be called again on January 25.

The police were also directed to update the court on that date regarding progress in obtaining the Attorney General’s instructions.

Sri Lanka's opposition is taking its dispute with the government over a blocked parliamentary debate to international legislative bodies.

The decision to report the matter to the Inter-Parliamentary Union (IPU) and the Commonwealth Parliamentary Association follows a ruling by the government preventing a vote on a no-confidence motion against Speaker Dr. Jagath Wickramaratne in Parliament on 3 November.

Leader of the House Bimal Rathnayake announced that Parliament will conduct an adjournment debate instead on 3 November because the opposition failed to amend the motion under Standing Orders by 28 October.

He said that the motion could still be considered before the upcoming budget debate if the opposition resubmits a revised version.

Chief Opposition Whip Gayantha Karunathilaka said that the opposition has no intention of amending, resubmitting, or withdrawing the motion already placed on the Order Paper.

He said that neither party leaders nor the government possess the legal authority to force the alteration or removal of a submitted motion.

He noted that removing an entry from the Order Book requires specific formal steps, such as a withdrawal by the movers, a parliamentary resolution, or a majority vote to suspend Standing Orders.

Karunathilaka accused the government of trying to keep the motion listed without allowing time to debate it, while refusing to draft the document according to government preferences.

He pointed out that the Secretary-General of Parliament is responsible for listing items on the Order Paper and noted that the Speaker raised no initial objections to this motion.

He added that the government initially suggested seeking the advice of the Attorney General before subsequently abandoning that plan.

School transport fares across the country will remain unchanged for the time being despite the recent increase in diesel prices, the All-Island School Children Transportation Association has announced.

Association President Malshree de Silva said that the increase in fuel costs has created difficulties for school transport operators in maintaining their services.

However, he stressed that the Association has no plans to increase fares at present, as it does not wish to impose an additional financial burden on parents.

De Silva also expressed hope that diesel prices could be reduced, noting that any relief from a fuel price reduction would be passed on to parents of schoolchildren.

“We have no intention of increasing school transport fares despite the diesel price hike. If possible, we request that diesel prices be reduced by any amount. If that happens, we will be able to pass that relief on to parents,” he said.

Sri Lanka’s energy import costs surged by over half during the first nine months of 2026 as foreign exchange outlays for petroleum products expanded significantly.

Official central bank trade data showed total fuel import expenditure reached USD 4,487.2 million between January and September, up from USD 2,961.3 million recorded during the corresponding period of 2025.

The overall escalation reflects an additional foreign exchange drain of USD 1,525.9 million over the nine-month period, despite a temporary easing of monthly import costs toward the end of the third quarter.

Fuel import spending for September alone declined by 5.8 per cent year on year to USD 415.1 million.

Parallel state energy sector figures highlight strong domestic revenue growth, with the Ceylon Petroleum Corporation (CPC) generating Rs 576.6 billion in net sales revenue over the first six months of 2026, marking a 40.4 per cent increase compared to the previous year.

The requirement to produce a valid Taxpayer Identification Number (TIN) when carrying out eight specified transactions will come into effect from tomorrow (01), the Inland Revenue Department has announced.

Under the new requirement, individuals will have to provide their TIN when opening accounts at banks or financial institutions, obtaining building plan approvals, registering motor vehicles and renewing vehicle licences.

The requirement will also apply to land registration and ownership transfers, business registration, transfers of shares in companies incorporated in Sri Lanka and applications for credit cards.

The Department has instructed the relevant officials to verify the validity of the TIN before proceeding with these transactions.

Individuals who have not yet registered for a TIN can do so through the Inland Revenue Department's e-Services portal. The same platform also provides facilities to verify existing TINs.

According to the Commissioner General of Inland Revenue, individuals whose verification is successful will be able to view their TIN on the portal. A printed copy of the verification result displaying both the individual's National Identity Card (NIC) number and TIN will be accepted instead of the official TIN certificate when completing the specified transactions.

Meanwhile, the Inland Revenue Department has dismissed reports suggesting that everyone who obtains a TIN is required to pay income tax.

The Department clarified that although obtaining a TIN is compulsory for individuals above the age of 18, income tax is payable only by those whose annual income exceeds Rs. 1.8 million.

Meanwhile, sources at the Department revealed that approximately 13 million Sri Lankan citizens aged above 18 have obtained TINs so far.

Uncollected tax debts at the Inland Revenue Department reached nearly Rs 2.1 trillion at the end of 2025 as legal disputes stalled recovery efforts across Sri Lanka.

The scale of the financial shortfall was detailed in a technical assistance report released by the International Monetary Fund (IMF), which highlighted severe structural bottlenecks within the national tax administration.

The bulk of the outstanding debt remains locked in litigation, with approximately Rs 1.6 trillion currently subject to formal appeals or administrative disputes.

The problem marks a sharp escalation from 2024, when total tax arrears stood at nearly Rs 1.1 trillion, including Rs 947 billion tied up in legal challenges.

Uncontested tax debts have also continued to accumulate over extended periods due to persistent staff shortages, weak task prioritisation, and the absence of a risk-based assessment framework. Under current legislation, the tax department lacks statutory authority to write off uncollectable debts directly under the Inland Revenue Act and the Value Added Tax Act, requiring all write-off requests to be submitted to the Ministry of Finance instead.

The multilateral lender noted that enforcement action had been inadequate even for undisputed arrears older than five years.

To resolve the backlog, the report advised establishing a risk-based management system to categorise arrears by age, dispute status, recoverability, and collection cost.

This framework would enable tax authorities to focus resources on high-value, recoverable debts while separately handling low-value or uncollectable balances.

Canadian lawmakers have gathered in Ottawa to demand an international investigation into mass graves in Sri Lanka.

Members of Parliament, Tamil advocacy organisations, and student activists assembled on Parliament Hill on 20 October for a parliamentary event examining justice for victims of mass atrocities in Chemmani.

Addressing the assembly, Member of Parliament Gary Anandasangaree stated that the ongoing discovery of mass grave sites demands international attention, justice, and accountability.

He accused Sri Lanka of routinely evading the rule of law regarding gross human rights violations and affirmed Canada’s commitment to pursuing accountability through its position in the Sri Lanka Core Group at the United Nations Human Rights Council.

The gathering follows Canada’s formal recognition of the Tamil genocide in 2022 and its subsequent imposition of sanctions against former Sri Lankan presidents Mahinda Rajapaksa and Gotabaya Rajapaksa in 2023.

Delivering the keynote address, SOAS University of London research associate Dr. Mario Arulthas characterized Chemmani as a symbol of unaddressed state violence.

He stressed that mass graves reflect deliberate state intent rather than accidental remnants of conflict.

Arulthas argued that Sri Lankan authorities lack both the technical expertise and political will to conduct credible domestic investigations, urging Ottawa to support independent international oversight.

He warned that prioritizing internal mechanisms over global justice tools signals to authoritarian regimes worldwide that international law will eventually collapse into quiet accommodation.

To enforce compliance, Arulthas encouraged Canada to exercise universal jurisdiction and utilize its national war crimes legislation to investigate accused perpetrators.

Summarizing parliamentary sentiment, Member of Parliament Juanita Nathan asserted that families of the disappeared have waited decades and deserve definitive answers from responsible authorities.

Expressing similar concern online, Member of Parliament Salma Zahid posted that the heartbreaking discovery of human remains underscores the urgent need to preserve evidence and deliver justice to grieving families.

Sri Lanka’s electricity tariffs could be cut by 20 per cent in the fourth quarter of this year as high reservoir levels and growing solar power generation lower generation costs., the Electricity Consumers’ Association said.

ECA Secretary Sanjeewa Dhammika made these remarks during a press briefing in Divulapitiya, ahead of submitting engineering data to the Public Utilities Commission of Sri Lanka (PUCSL) today.

He said that hydropower reservoirs are currently operating at 95 to 100 per cent capacity, generating low-cost electricity at unit rates between Rs 2 and Rs 4. Solar power has simultaneously expanded to meet approximately 27 per cent of the national electricity demand.

Detailed engineering data demonstrating the feasibility of the rate reduction will be presented at the regulator's public consultation scheduled for 5 November.

The association warned of critical grid vulnerabilities, projecting a national requirement of 450 megawatts in battery storage capacity by April next year.

Proposed solutions involve developing dual storage networks to enable rooftop solar operators to supply night-time demand while strengthening key grid points to reduce reliance on expensive diesel power.

Progress remains hampered by significant procurement delays, as a tender for an initial 160 megawatts of battery capacity scheduled for December remains unawarded 14 months past deadline.

A further 150 megawatts is slated for installation by April next year, leaving an anticipated deficit of 140 megawatts. Additional operational challenges stem from curtailing solar production and shutting down small hydropower plants during peak daylight generation.

Expanding net metering and net accounting schemes offers a cost-effective pathway to scale solar adoption without adding financial strain to state coffers.

Retired Supreme Court Judge Vijith Malalgoda has been appointed as the new Chairman of the Human Rights Commission of Sri Lanka (HRCSL) by President Anura Kumara Dissanayake.

Alongside Malalgoda, four other members have also been appointed to the Commission. They are S.Y.M. Gomes, former diplomat A.L.A. Azeez, Dr. S.S.S.B.D.H. Jayawardena and Professor T. Jayasingam.

The appointment letters were formally handed over to the newly appointed members by Secretary to the President Dr. Nandika Sanath Kumanayake at the Presidential Secretariat this afternoon (30), according to the President’s Media Division.

The new appointments were made to fill the vacancies created following the completion of the previous members' terms of office.