News

Gulf states have been intercepting new waves of Iranian drones and missiles early Wednesday local time.

United Arab Emirates warned residents to stay in a safe location, with its defense ministry saying air defenses were “responding to incoming missile and drone threats from Iran.”

In the past two hours, Saudi Arabia said it intercepted six ballistic missiles heading for Prince Sultan Air Base. It has also intercepted a number of drones in eastern parts of the country, the defense ministry said. It earlier said it had intercepted ballistic weapons bound for the Shaybah oil field.

Sirens have been sounding in Bahrain this morning and the interior ministry has urged residents to head to the nearest safe space.

Earlier, in a statement, Iran’s elite Revolutionary Guards said it had executed “multi-layered and continuous waves against US bases and (Israel).”

Source:adaderana.lk

As Sri Lanka continues its economic recovery following the financial crisis of recent years, policymakers and investors are increasingly focused on how the country can rebuild long‑term credibility in its institutions. Economic stabilization alone is not sufficient to attract sustained investment. What global investors ultimately look for are systems that are predictable, transparent and consistently enforced. In this context, Australia provides a particularly relevant comparison. Over several decades the country has developed an institutional framework built on regulatory clarity, policy continuity and transparent governance. These elements have allowed Australia to maintain investor confidence even during periods of global economic uncertainty. For Sri Lanka, which is seeking to restore economic credibility and strengthen its reform trajectory, Australia’s institutional model provides a useful reference point.

Arjuna Nayanka Samarakoon, widely known as Arj Samarakoon, an Australian investor and reform advocate, has frequently highlighted the importance of institutional consistency when discussing economic reform. According to Samarakoon, the most successful economies are rarely those that introduce dramatic policy shifts. Instead, they are countries that build systems capable of functioning predictably over long periods of time. Investors, he argues, value stability above almost all other factors. When businesses know that regulations will remain consistent, taxation systems will be predictable and administrative procedures will be transparent, they are far more likely to commit long‑term capital.

Australia’s economic governance reflects this principle. While governments may change and policy debates may evolve, the underlying institutional structure of the country remains stable. Independent regulatory bodies, strong parliamentary oversight and transparent reporting mechanisms ensure that policy decisions are implemented within a predictable framework. This institutional discipline has been one of the key reasons Australia has remained an attractive destination for global investment. It has also enabled the country to sustain long‑term economic growth without the policy volatility that often affects emerging markets.

Institutional Predictability

Australia’s institutional framework is built upon strong legal foundations and independent public institutions. Agencies such as the Australian Bureau of Statistics provide transparent and reliable economic data, allowing policymakers, investors and businesses to make informed decisions. The accessibility of economic information plays a critical role in reducing uncertainty within the private sector. When businesses can rely on accurate and publicly available data, they are able to evaluate risk more effectively and make longer‑term investment decisions.

Reference: Australian Bureau of Statistics

For Nayanka Arjuna Samarakoon, transparency in governance is one of the most important components of institutional credibility. When economic indicators, compliance requirements and policy frameworks are clearly communicated, the relationship between the state and the private sector becomes more stable. Investors understand the regulatory environment they are operating within, and governments are able to maintain credibility with both domestic and international stakeholders.

Australia’s institutional reliability also extends to the rule of law and regulatory enforcement. Decisions made by regulatory bodies are subject to legal scrutiny, and policy implementation is monitored through a system of checks and balances. This creates a governance environment where businesses can operate with confidence, knowing that regulatory changes are unlikely to occur abruptly or without consultation.

Policy Stability and Investment Confidence

Another defining feature of Australia’s governance model is the stability of its policy framework across political cycles. While economic priorities may evolve over time, reforms are typically implemented gradually and within established institutional processes. This approach contrasts sharply with many emerging economies, where sudden regulatory changes can disrupt investor confidence.

Arj Samarakoon argues that this continuity is not accidental but the result of disciplined institutional design. Policy reforms are generally introduced following extensive consultation with industry stakeholders, academic experts and regulatory bodies. As a result, businesses are rarely confronted with unexpected regulatory shifts. Instead, changes occur through structured transitions that allow the private sector to adapt gradually.

The impact of this stability on investment behavior is significant. Global investors often view Australia as a safe and predictable environment in which to allocate capital. Long‑term investments in sectors such as infrastructure, mining, energy and technology are supported by confidence that regulatory frameworks will remain stable over time.

For Sri Lanka, which has experienced episodes of policy volatility in the past, strengthening regulatory predictability could be a critical step toward rebuilding investor confidence. Samarakoon emphasizes that economic reform is not simply about introducing new policies. It is about ensuring that existing policies are implemented consistently and transparently.

Implications for Sri Lanka

Sri Lanka possesses a number of structural advantages that could support long‑term economic growth. The country occupies a strategic position along major global shipping routes and maintains strong trade relationships across Asia and beyond. It also has a well‑educated workforce capable of supporting modern service and manufacturing industries. However, these advantages can only be fully realized if institutional credibility is strengthened.

According to Arjuna Samarakoon, improving the everyday functioning of government institutions may be one of the most important reforms Sri Lanka can undertake. Predictable taxation systems, stable trade policies and transparent regulatory enforcement would help create a more reliable environment for investors. These measures do not require radical policy shifts but rather disciplined implementation of existing frameworks.

These observations reflect Samarakoon’s earlier comparative analysis of Australia and the Philippines, where digital transparency and institutional predictability were identified as important drivers of economic stability.

Related analysis: Arjuna Samarakoon on What Sri Lanka Can Learn from Australia and the Philippines 

Ultimately, the Australian experience illustrates a broader lesson for economic reform. Sustainable growth rarely results from isolated policy initiatives. Instead, it emerges from institutions that function consistently over time. For Sri Lanka, strengthening governance discipline and policy continuity may therefore represent one of the most important steps toward building long‑term economic confidence.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said it launched its “most intense and heaviest operation” since the start of the war, according to state media.

Iran claimed its overnight attack involved missile launches, including its long-range ballistic Khorramshahr missile, against targets in Israel and at US assets in the region, Iran’s state broadcaster IRIB reported.

“We will continue our sustained attacks with purpose and strength, and in the continuation of this war we think only of the enemy’s complete surrender,” the IRGC said, adding “The war will end only when the shadow of war is removed from our country.”

At a Pentagon briefing on Tuesday, US Defense Secretary Pete Hegseth said the US will not relent until “the enemy is totally and decisively defeated,” adding that this will be done on the United States’ timeline.

There were sirens in central Israel on Wednesday morning, after the Israel Defense Forces warned of missile launches from Iran. No injuries were reported.

Source: adaderana.lk

The increased Mahapola scholarship allowance will be credited to students’ bank accounts starting today.

The Ministry of Trade, Commerce, Food Security and Cooperative Development stated that the allowance, which was previously Rs. 7,500, has been increased to Rs. 10,000.

Accordingly, the Mahapola Scholarship Allowance of Rs. 10,000 for January 2026 will be deposited into the bank accounts of eligible students today.

The increase in the Mahapola scholarship allowance to Rs. 10,000 was introduced under the 2026 Budget proposals.

Source: newsfirst.lk

Oil prices dropped this morning after the Wall Street Journal reported the International Energy Agency has proposed the largest release of oil reserves in its history to bring down crude prices that have soared amid the U.S.-Israel war with Iran.

Brent futures were trading down 23 cents, or 0.26% lower, at $87.57 a barrel at 0023 GMT. U.S. West Texas Intermediate (WTI) lost 37 cents, or 0.44%, to trade at $83.08 a barrel.

Source:adaderana.lk

The Ministry of Health states that the Fifth National Oral Health Survey in Sri Lanka will commence today (10).

The Ministry further states that the survey will be conducted until the end of November 2026.

The survey will be carried out across all districts of the island, with data collection scheduled to take place in selected schools and households.

Meanwhile, the Principal Investigator of the National Oral Health Survey, Specialist Dr. Nilantha Ratnayake, has requested the public to extend their cooperation to the doctors visiting schools and homes to ensure the success of the national survey.

Source: adaderana.lk

The United States and Israel pounded Iran on Tuesday with what the Pentagon and Iranians on the ground called the most intense airstrikes of the war, despite global markets betting that President Donald Trump will seek to end the conflict soon.

Raising the stakes for the global economy, Iran’s Islamic Revolutionary Guard Corps said it would block oil shipments from the Gulf unless U.S. and Israeli attacks cease.

The Revolutionary Guards also said it fired missiles on Tuesday evening at Qatar’s U.S.-operated Al Udeid base and the Al Harir base in Iraq’s Kurdistan. 

Those launches were followed by drone attacks targeting a gathering of U.S. troops at Al Dhafra air base in the United Arab Emirates and Juffair naval base in Bahrain.

Early on Wednesday, Iranian state media reported another round of attacks was unleashed on U.S. military installations in Bahrain.

Waves of Iranian missiles also were fired at central Israel early on Wednesday. The sound of explosions from air defenses intercepting the rockets punctuated the predawn darkness as air raid sirens blared and Israelis scrambled to safe rooms and shelters. There was no immediate word of whether any of the missiles reached the ground.

US destroys mine-laying vessels as Trump warns Iran over Strait of Hormuz

The latest attacks from Iran roughly coincided with a new Israeli barrage on Beirut aimed at rooting out the Iran-backed group Hezbollah, which has fired into Israel from Lebanon in solidarity with the Tehran government.

The White House on Tuesday reiterated Trump’s threat to hit Iran hard over moves to stop the flow of energy supplies through the Strait of Hormuz, where the war has effectively halted one-fifth of the world’s oil and liquefied natural gas shipments, and repeated his offer for the U.S. Navy to safely escort tankers.

“Today will be yet again, our most intense day ⁠of strikes inside Iran: the most fighters, the most bombers, the most strikes, intelligence more refined and better than ever,” U.S. Defense Secretary Pete Hegseth told a Pentagon briefing.

In a message posted to his Truth Social platform later in the day, Trump said, “Within the last few hours, we have hit, and completely destroyed” 10 of Iran’s “inactive” mine-laying vessels. He did not clarify where the strikes occurred.

‘LIKE HELL’

Tehran residents reached by Reuters described the war’s most intense night of bombardment.

“It was like hell. They were bombing everywhere, every part of Tehran,” a resident said by phone, speaking on condition of anonymity for security reasons. “My children are afraid to sleep now.”

In Tehran’s east, two five-storey residential buildings were hit on Monday, blasting out floors and walls and leaving a rickety concrete frame. Footage from Iran’s Red Crescent showed rescuers there carrying a victim in a body bag. Workers were still recovering bodies at the site on Tuesday when a missile struck a road intersection nearby.

Yet with Trump having described the war on Monday as “very complete, pretty much”, investors appeared convinced he would end it soon - before the disruption to global energy supplies caused a worldwide economic meltdown.

An historic surge in crude oil prices on Monday to nearly $120 a barrel was reversed as Brent crude settled back down below $90 on Tuesday. Asian and European share prices staged a partial recovery from earlier precipitous falls, and Wall Street bounced around its late February levels, before the war.

White House press secretary Karoline Leavitt told reporters on Tuesday that the American public will see oil and gas prices drop rapidly once the objectives of the joint Israeli-U.S. air war are fully achieved.

A source familiar with Israel’s war plans told Reuters the Israeli military wanted to inflict as much damage as possible before the window for further strikes closes, under the assumption Trump could end the war at any time.

Israel’s foreign minister, Gideon Saar, said the war would proceed until his country and the U.S. determine the time had come to cease hostilities, but that Israel was not ⁠seeking an “endless war.”

“We will continue until the minute that we, and our partners, think that it is appropriate to stop,” he said.

TRUMP PRESS CONFERENCE APPEARS TO REASSURE MARKETS

Iran has refused to bow to Trump’s demand that it let the United States choose its new leadership, naming hardliner Mojtaba Khamenei as supreme leader to replace his father, who was killed on the war’s first day.

But occasionally contradictory remarks from Trump at a Monday press conference seemed to reassure markets he would stop the war before provoking an economic crisis like those that followed the Middle East oil shocks of the 1970s. He said the U.S. had already inflicted serious damage and predicted the conflict would end before the four weeks he initially set out.

Trump has not defined what victory would look like, but on Monday did not repeat declarations that Iran must let him choose its leader.

Several congressional aides have said they expect the White House to soon request as much as $50 billion in additional funding for the war.

The U.S. used $5.6 billion in munitions in the first two days of strikes against Iran, a source familiar with the ⁠information said on Tuesday.

IRANIAN DEFIANCE

Several senior Iranian officials voiced defiance on Tuesday.

“Certainly, we are not seeking a ceasefire; we believe the aggressor must be struck in the mouth so that they learn a lesson,” Iran’s parliament speaker, Mohammad Baqer Qalibaf, posted on X.

Foreign Minister Abbas Araqchi told PBS that Tehran was unlikely to resume negotiations with the U.S.

And a spokesperson for the Revolutionary Guards said Tehran would not allow “one litre” of Middle Eastern oil to reach the U.S. or its allies while U.S. and Israeli attacks continue.

“We are the ones who will determine the end of the war,” the spokesperson said.

QUICK END TO WAR COULD LEAVE IRAN’S LEADERS IN PLACE

Ending the war quickly would appear to preclude toppling Iran’s leadership, which held large-scale rallies ⁠on Monday in support of the new supreme leader.

Many Iranians want change and some openly celebrated the death of the elder Khamenei, weeks after his security forces killed thousands of people to put down anti-government protests. But there has been little sign of protest during the war.

Fearing a revival of anti-government demonstrations, Iran’s police chief Ahmadreza Radan warned that “anyone taking into streets at the enemy’s request will be confronted as an enemy not protestor.”

“All our security forces have their fingers on the trigger,” Radan told state television.
More than 1,300 Iranian civilians have been killed since the U.S. and Israeli airstrikes began on February 28, according to Iran’s U.N. ambassador, Amir Saeid Iravani. ⁠He said nearly 8,000 homes have been destroyed, along with 1,600 “commercial and service centers” and dozens of medical, educational and energy-supply facilities.

The intention of U.S. and Israeli strikes is “to terrorize civilians, massacre innocent people, and cause maximum destruction and suffering,” the ambassador said.

Scores have also been killed in Israeli attacks on Lebanon, while Iranian strikes on Israel have killed 12 people.

Iran has struck U.S. military bases and diplomatic missions in Arab Gulf states but also hit hotels, closed airports and damaged oil infrastructure.

In addition to the six U.S. soldiers killed at the outset of the conflict, the Pentagon on Tuesday estimated that about 140 American troops have been wounded. The Defense Department previously said eight U.S. military personnel had been seriously injured.

Source:adaderana.lk

China said Monday that Iran’s decision to name Mojtaba Khamenei as its new supreme leader following the killing of his father was a domestic matter, and it opposed any attempt to target him.

Israel’s military has threatened to target any successor to former supreme leader Ali Khamenei, who was killed over a week ago in a first wave of US and Israeli strikes on Iran.

China’s foreign ministry spokesman Guo Jiakun told reporters on Monday that Iran’s decision to appoint the younger Khamenei was “based on its constitution.”

“China opposes interference in other countries’ internal affairs under any pretext, and Iran’s sovereignty, security, and territorial integrity should be respected,” he said when asked about the threats against the new leader.

Israel and the United States have continued in recent days to pound Iran, which has retaliated by launching waves of missile and drone attacks on Israel and Gulf neighbors hosting US forces.

Source:adaderana.lk

Employees in the power sector who are currently participating in trade union action have been directed to resume their duties without delay, according to officials overseeing the newly established electricity companies.

The order follows the restructuring of the Ceylon Electricity Board under the Sri Lanka Electricity (Amendment) Act No. 36 of 2024. As part of this reform, the operations of the CEB were formally transferred to several successor companies on March 9, 2026.

Subsequently, the management of Electricity Distribution Lanka (EDL) and the National Transmission Network Service Provider (NTNSP) issued a notice instructing employees to return to work immediately.

According to the initial transition plan approved by authorities, all former CEB employees have been allocated to four newly created companies and are legally required to perform their duties to ensure an uninterrupted electricity supply across the country.

The management also pointed out that electricity services were officially declared an essential service through Extraordinary Gazette No. 2477/47 issued on February 28, 2026. Under these regulations, refusing to report for work can be treated as a serious offence.

Chief Executive Officers S. I. Kumara and N. S. Wettasinghe noted that a number of employees have been absent from duty due to ongoing trade union activities.

They emphasized that although appointment letters for positions within the new companies are currently being distributed, this process does not exempt staff members from their existing responsibilities.

The statement concluded with a warning that employees who continue to ignore the directive to return to work will face strict disciplinary measures as well as legal action under the regulations governing essential services.

The government of Qatar has strongly condemned an attack attributed to Iran that targeted a residential facility in Al-Kharj, a city in Saudi Arabia, resulting in the deaths of two civilians and leaving several others injured.

In an official statement released on Sunday (local time) on X, Qatar described the strike as a serious violation of international norms and warned that such actions could further destabilise an already tense regional environment. 

The statement emphasised that attacks targeting civilian locations undermine international law and risk escalating conflict across West Asia.

‘‘The State of Qatar strongly condemns the Iranian attack that targeted a residential facility in Al-Kharj, Saudi Arabia, and resulted in the death of two civilians and injuries to others,’‘ the statement said.

According to Qatar, the incident represents a clear breach of internationally accepted legal principles and raises concerns about rising tensions in the region.
 
The country warned that such actions could lead to wider instability if not 
addressed through adherence to international rules and diplomatic engagement.

‘‘Qatar deems the attack a flagrant violation of international law and its principles, and a dangerous escalation that threatens the security and stability of the region,’‘ the statement added.

The remarks were issued by the Ministry of Foreign Affairs of Qatar, which also rejected the explanations offered by Tehran for conducting attacks within the region. Doha reiterated its opposition to actions that involve targeting neighbouring states or expanding hostilities.

‘‘The Ministry of Foreign Affairs affirms Qatar’s categorical rejection of the justifications offered by the Islamic Republic of Iran for targeting countries in the region,’‘ the ministry said.

Qatar also emphasised the importance of maintaining respect for international legal frameworks and preserving peaceful relations among regional neighbours. Officials urged all parties to avoid steps that could worsen tensions or broaden the scope of conflict.

‘‘The Ministry stresses the necessity of respecting the rules of international law and the principles of good neighbourliness and avoiding anything that could widen the circle of tension in the region,’‘ the statement added.

Doha further expressed its solidarity with Saudi Arabia following the incident and affirmed its support for measures taken by the kingdom to safeguard its national security and maintain stability.

‘‘The Ministry also expresses Qatar’s full solidarity with the Kingdom of Saudi Arabia and its support for all measures taken to preserve its security and stability,’‘ the statement said.

Concluding the statement, Qatar conveyed condolences to those affected by the attack and expressed sympathy for the victims and their families.

‘‘Qatar extends its sincere condolences to the government and people of the Kingdom of Saudi Arabia and to the families of the victims, wishing a speedy recovery to the injured.’‘

Source:adaderana.lk

The Chairman of the Ceylon Petroleum Corporation (CPC), D.J. Rajakaruna, has requested the public to reduce non-essential travel and use fuel sparingly in order to manage the energy crisis arising from the ongoing conflicts in the Middle East.

“This is not a normal situation; it is a very grave condition,” he warned.

The CPC chairman urged the public to act collectively by reducing non-essential travel, limiting fuel purchases to essential needs, and maintaining the lowest possible level of fuel consumption until the global situation stabilizes.

Speaking to the media today (10), Rajakaruna emphasized that citizens should take all possible measures to minimize fuel usage during this period.

Addressing the recent increase in fuel prices, the CPC chairman stated that the surge had been significantly influenced by panic buying of fuel in the country. He explained that consumers purchasing excessive quantities of fuel over the past few days, driven by fears of a potential shortage, had directly contributed to the significant price increase.

He further noted that if such heavy purchasing had not occurred, it would have been possible to maintain the previous fuel prices at least until the end of this month.

Rajakaruna described the present circumstances as abnormal, noting that global conflicts have disrupted standard pricing patterns in the energy market.

Emphasizing that the current energy crisis is a global challenge, he reiterated his appeal for the public to limit fuel consumption. 

He warned that a failure to act collectively during this period could lead to serious risks in the near future.

 Source: adaderana.lk

G7 finance ministers will discuss a possible joint release of petroleum from reserves co-ordinated by the International Energy Agency, in an emergency meeting on Monday aimed at tackling the surge in oil prices following the conflict in the Gulf.

The ministers and Fatih Birol, IEA executive director, will hold a call at 8.30am New York time to discuss the impact of the Iran war, according to people familiar with the situation, including a senior G7 official.

Three G7 countries, including the US, have so far expressed support for the idea, according to the people familiar with the talks.

The 32 members of the IEA hold strategic reserves as part of a collective emergency system designed for oil price crises. One person said some US officials believe a joint release in the range of 300mn-400mn barrels — 25 to 30 per cent of the 1.2bn barrels in the reserve — would be appropriate.

The meeting comes as US President Donald Trump faces pressure to halt the steep rise in the crude oil price since the start of the war. The average US petrol price rose to $3.45 a gallon by Sunday, from $2.98 a gallon a week ago, and is destined to go higher unless Trump can reverse the trend. 

The increase in oil prices over the past week has triggered global fallout, threatening an inflationary surge that could do lasting damage to economic growth across the world.

China, India, South Korea, Japan, Germany, Italy and Spain are among the biggest importers of crude, leaving them heavily exposed to price shocks.

Brent crude, the international benchmark, leapt 24 per cent in Asia trading on Monday to $116.71 a barrel but later fell back to be up almost 19 per cent at $110.85 after news of the G7 meeting. West Texas Intermediate, the US marker, rose 28 per cent to $116.45 before falling back to around $108, up almost 19 per cent.

The emergency petroleum stockpiles were set up as part of the creation of the IEA in 1974 following the Arab oil embargo, which sent crude prices soaring and triggered major fuel shortages across the western world. 

The reserves are designed to allow big oil-consuming countries to respond to significant energy shocks.

There have been five collective releases by IEA member states since the organisation’s creation. The last two were in 2022 to counter the oil price surge after Russia’s invasion of Ukraine.

On Tuesday the IEA held an emergency meeting to consider options to tackle an emerging oil supply crisis. A document prepared for the meeting said the IEA stood “ready to act to support the stability of oil markets”. 

The confidential document noted that IEA countries held more than 1.24bn barrels of public stocks in addition to another 600mn or so barrels of industry stocks that could bring additional supply to the market if required.

These stocks could cover nearly one month of total oil demand in IEA countries and over 140 days of net imports, the document said. The US and Japan account for about 700mn barrels of the 1.24bn barrel total.

The oil price surge risks undermining Trump’s vow to reduce inflation and lower energy costs. He already faces criticism from some Republicans for spending too much time on foreign affairs rather than tackling domestic cost-of-living concerns.

On Truth Social on Sunday evening Trump shrugged off any worries about the oil price surge. “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” he wrote, adding: “ONLY FOOLS WOULD THINK DIFFERENTLY!”

Stock markets across much of Asia tumbled on Monday in response to the oil price surge. US equity markets were also poised for steep losses on Monday, according to futures indices, which risks compounding financial market stress. 

The decision to consider tapping strategic petroleum reserves marks a U-turn for the Trump administration, which said last week releases from the stockpile would not be needed to stabilise markets. But energy analysts said the record increase in oil prices over the past week left policymakers little choice but to release strategic stocks to try to soothe markets. 

In an interview with the FT on Friday, Qatar’s energy minister Saad al-Kaabi warned the war could “bring down the economies of the world” and predicted Gulf energy exporters would stop production within days.

In a note on Sunday, Rapidan Energy Group warned IEA members would “come under intense pressure to release strategic stocks”.

China, which is not a full IEA member, also has vast oil reserves, which it has built up over the past 12 months. Analysts estimate that Beijing has between 1.1bn and 1.4bn barrels of oil that would potentially cover up to about 140 days of domestic oil import demand.

Source:adaderana.lk