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Doctors’ strike tomorrow (31)
GMOA to Launch Islandwide Strike Tomorrow Over Health Ministry’s Transfer Policy
The Government Medical Officers’ Association (GMOA) has announced that it will begin an islandwide trade union action tomorrow (31) to protest against what it calls the arbitrary transfer policy introduced by the Ministry of Health.
In a statement, the GMOA said the new transfer system was being implemented without proper consultation and warned that the government would be fully accountable for any disruption to hospital operations or healthcare services as a result of the move.
The doctors’ union urged health authorities to immediately suspend the current transfer process, and instead establish a fair, transparent, and consultative framework that safeguards both medical professionals’ rights and the continuity of patient care.
Furthermore, the association accused the Health Ministry of eroding the independence of the medical service, cautioning that unilateral administrative decisions could cause serious long-term damage to Sri Lanka’s healthcare system.
Sri Lanka Faces Sharp Vehicle Price Hike with New 15 percent Tax
Sri Lanka is facing a complex crossroads in its automobile import policy that could significantly alter the country’s economic landscape.
The Vehicle Importers Association of Sri Lanka (VIASL), led by Chairman Prasad Manage, has warned that vehicle prices across the board may “increase beyond affordable limits” if the government proceeds with a proposed 15 per cent tax on vehicle imports after the 2026 Budget.
At the heart of the issue is the removal of an import-valuation discount: currently, duties and taxes are applied to only 85 per cent of a vehicle’s export-country value because importers receive a 15 per cent deduction.
Manage says this concession has been in place since 2015, and that the government may remove it, which would immediately trigger steep price increases even for modest models.
Manage’s comments highlight how import duties are computed: based on the vehicle’s value in the exporting country after deducting all consumable taxes. If the 15 per cent deduction disappears, that higher base will translate into higher duty and tax bills.
For instance, a compact Suzuki Wagon R might see its price hike by about Rs 400,000, while a high-end Toyota Land Cruiser could jump by at least Rs 3 million.
The proposed tax reform also reportedly intends to unify the duty structure for brand-new and used-vehicle imports, which would have knock-on effects across the market in terms of pricing, demand, and foreign-exchange outflows.
From a macro-economic perspective the push and pull is significant. On one side, vehicle import duties have become a meaningful source of tax revenue: in 2025, the Sri Lanka Customs collected approximately Rs 165 billion (about US$ 550 million) from vehicle import taxes by mid-June, with the expectation of about Rs 450 billion for the full year.
According to analysts from BMI Research/Fitch, tax revenue from vehicle imports could contribute roughly 1.8 per cent of GDP in 2025up from 1.3 per cent in 2019.
On the flip side, however, the easing of vehicle import restrictions since early 2025 has triggered a rapid escalation in foreign-exchange outflows. In just five months after the ban was lifted, vehicles accounted for about US$ 742 million in letters of credit (LCs).
The government and central bank have raised alarms that such outflows risk depleting foreign-exchange reserves and endangering imports of fuel and other essentials.
The tension is palpable: the state needs additional tax revenue to meet fiscal targets—under the International Monetary Fund-supported reform programme, revenue mobilization is considered critical for debt sustainability.
But at the same time, the outflow of foreign currency associated with vehicle imports threatens macro-economic stability. The government and regulators are reportedly planning tighter monitoring mechanisms to control the pace of vehicle imports and ensure that foreign-exchange drain remains within manageable bounds.
Moreover, critics argue that relying so heavily on border taxes especially on vehicles, a luxury consumption category raises questions about equity, competitiveness, and long-term industrial policy. The reform appears to be a delicate balancing act: increasing duties and taxes to raise revenue and slow import-driven FX outflows, while avoiding a sharp contraction in demand or a surge in unofficial channels.
For buyers and the auto-industry alike, the implications are immediate: higher vehicle prices, uncertainty about future import regulations, and potential shifts in consumption patterns. For the economy, the broader consequences hinge on whether policies are calibrated to protect foreign reserves, maintain fiscal momentum, and yet not stifle legitimate domestic demand and investment in the auto sector. As the Budget 2026 deliberations approach, all eyes will be on how the government rationalizes the vehicle import tax regime, the valuation discount, and the dual imperatives of revenue generation and FX conservation.
National Mission “A Nation United” Begins Today
The national program “The Whole Nation Unites to Defeat Drug Addiction” will be launched under the patronage of President Anura Kumara Dissanayake today (30) at 10:00 a.m. at the Sugathadasa Stadium in Colombo.
The primary objective of this program is to eradicate the drug menace from its roots. To implement the initiative, a National Operations Council has been established under the leadership of the President.
As part of the mechanism to obtain public support, the government aims to establish operational committees at district, divisional, and village levels, along with community safety committees at the village level.
The Secretary to the President will serve as the Chairman of the National Operations Council.
In addition, a new bill is scheduled to be presented to Parliament to further strengthen the existing legal framework relating to narcotic drugs.
43% of schools found with mosquito breeding sites
The highest number of dengue mosquito breeding sites in the country have been found within the school system, according to the National Dengue Control Unit (NDCU).
Dr. Prashila Samaraweera, a specialist at the NDCU, revealed that 43% of the schools inspected were identified as having active mosquito breeding grounds. The warning comes amid a surge in dengue cases across the island, exacerbated by the prevailing rainy weather conditions.
The NDCU further reported that 11 districts have now been classified as high-risk zones for dengue transmission. Public health officials are urging school administrations, parents, and local authorities to take immediate action to eliminate mosquito breeding sites, particularly in and around school premises.
(Source - newsfirst)
Three unidentified dead bodies found
Based on information received by the Mattakkuliya and Pamunugama Police Stations, three unidentified male bodies have been discovered.
Police stated that investigations were launched yesterday (29) following the information provided to the respective stations. Two of the bodies were found along the coast of Kaaka Island in Mattakkuliya and near the mouth of the Kelani River, while the third body was discovered in the backyard of an under-construction two-storey house in the Epamulla area of Pamunugama.
According to reports, the man found in Pamunugama was last seen wearing a black pair of trousers and a light blue long-sleeved shirt. He is believed to be between 50 and 60 years old, approximately 5 feet 7 inches tall, and of a medium build.
Police further said that the identities of the deceased have not yet been confirmed. The two bodies recovered from Mattakkuliya have been placed at the mortuary of the National Hospital in Colombo for further examination, while the body found in Pamunugama has been transferred to the Ragama Hospital mortuary following a preliminary inquest. Investigations are ongoing under the supervision of the Pamunugama Police.
2 dead after consuming contents of a bottle floating on the sea
One person from a group of four has reportedly died at a fishing wadiya in Narakkaliya, Puttalam, after consuming contents of a bottle found floating on the sea, while another succumbed to the effects at Puttalam Hospital.
The remaining two victims are currently receiving treatment at the hospital.
(Source - adaderana)
Colombo’s Krrish Scandal: How ₹205 Crore was Diverted Abroad
Sri Lanka’s long-delayed Krrish Tranceworks Tower project once touted as a billion-dollar symbol of Colombo’s post-war revival has again come under scrutiny, following revelations by India’s Enforcement Directorate (ED) that the project was partly financed with ₹205 crore diverted from Indian homebuyers’ funds by Gurugram-based developer Krrish Realtech Pvt Ltd.
The luxury real-estate and hotel complex, located at Transworks House, a colonial-era heritage building in central Colombo, was launched in 2012 with promises of a five-star hotel, premium residences, and an international business hub. More than a decade later, the sprawling site remains largely idle, ringed by hoardings and skeletal structures, symbolizing years of stalled progress, regulatory uncertainty, and now, international financial controversy.
The ED’s investigation in India alleges that Krrish Realtech, led by promoter Amit Katyal, collected over ₹500 crore from 400 homebuyers in Gurugram for projects that never materialized. Of this, about ₹205 crore was allegedly siphoned off through shell companies to finance the Colombo venture under
The One Transworks Square Pvt Ltd, which holds the lease for the Sri Lankan project. Indian investigators claim the money was layered through intermediaries and disguised as overseas investment, forming part of a larger money-laundering network.
Following the probe, the ED in January 2025 provisionally attached properties worth more than ₹200 crore, including about four acres of prime Colombo land tied to the Krrish project. The assets, held under the Sri Lankan subsidiary, are now subject to legal proceedings under India’s Prevention of Money Laundering Act (PMLA).
The ED’s chargesheet names Krrish Realtech directors and associates, some of whom are also linked to offshore entities and dual citizenships, including St. Kitts and Nevis.
In Colombo, government officials say the project has effectively been frozen pending legal clarity. The Urban Development Authority (UDA), which leased the Transworks land, has been reviewing compliance conditions after repeated delays and unpaid dues.
Industry insiders note that while initial groundworks and design approvals were completed years ago, no substantial construction has resumed since 2018, and the site remains guarded but inactive.
For Sri Lanka, the development is both an embarrassment and a cautionary tale. The project was once marketed as a landmark foreign investment expected to attract over USD 650 million, create thousands of jobs, and enhance Colombo’s skyline. Instead, it has become a high-profile example of how opaque cross-border real-estate financing can entangle two jurisdictions in legal disputes.
Legal experts warn that the ongoing ED case in India could further delay any revival, as asset seizures and ownership claims will require bilateral coordination. Until then, the iconic Transworks site intended as a symbol of progress stands as a stark reminder of ambition undone by financial misconduct
Woman Remanded For Entering Court With Fake Gun
A woman who attempted to enter the Avissawella court premises with a fake firearm has been remanded until November 4, following her appearance before the magistrate earlier today.
The suspect was apprehended yesterday (27) afternoon during routine security checks at the court entrance.
Officers discovered the imitation weapon concealed in her handbag, raising immediate concern.
According to police, the woman, a resident of East Netolpitiya, had arrived at court to attend a traffic-related hearing.
Her motives for carrying the fake firearm remain under investigation.
Sri Lanka Revamps ODA Framework to Power Climate Goals
Sri Lanka has unveiled a transformative framework to align Official Development Assistance (ODA) with its national development and climate resilience agenda. The new National Climate Finance Strategy 2025–2030, launched by the Ministry of Finance, Planning and Economic Development with support from the United Nations Development Programme (UNDP), aims to channel foreign aid toward climate adaptation, sustainable infrastructure, and inclusive growth.
Treasury Secretary Dr. Harshana Suriyapperuma said the strategy marks “a critical step in turning climate policy into tangible results,” noting it would strengthen financial accountability and transparency. “It allows us to build resilience, cut emissions, and protect vulnerable communities while ensuring value for every dollar of public spending,” he added.
From 2021 to 2024, Sri Lanka received more than USD 2 billion annually in ODA, mostly directed to renewable energy, transport, water management, and health projects. Over the past five years, total ODA inflows amounted to USD 10.9 billion, including USD 10.7 billion in concessional loans and USD 147.9 million in grants. Following Sri Lanka’s recent reclassification from IBRD to IDA status, the country is refocusing aid utilization to support long-term development goals instead of fragmented, donor-led projects.
Under the new framework, the Department of External Resources (ERD) will act as the central coordination hub for all ODA-related activities. The ERD will streamline project approvals, align foreign-funded initiatives with national priorities, and monitor outcomes through a centralized digital reporting system that enables public access to performance data and transparency in donor-funded projects.
A core component of the initiative is the close integration of ODA with Sri Lanka’s climate finance strategy. The plan prioritizes renewable energy, water resource management, and climate adaptation, while introducing innovative tools such as green bonds, blended finance, disaster-risk insurance, and carbon trading to attract private capital alongside donor funding.
International partners including Japan, the World Bank, the Asian Development Bank (ADB), and the UK-funded Climate Finance Network have already shown interest by extending concessional financing and technical support for renewable energy and coastal protection programs. Officials emphasized that the new model focuses on outcome-based partnerships rather than traditional aid transfers.
However, challenges remain. Building the institutional and technical capacity to design and manage complex, multi-donor projects will require sustained effort. Coordination among ministries and partners with diverse goals is another obstacle. Yet, policymakers are optimistic that the framework provides the structure to overcome these hurdles and deliver visible results.
With climate-related losses estimated at over 2% of GDP annually, the strategy envisions annual investments of nearly USD 500 million for climate-resilient infrastructure and ecosystem restoration. If effectively implemented, it could redefine Sri Lanka’s relationship with foreign partners turning ODA from a temporary economic buffer into a catalyst for sustainable growth and national renewal.
IMF, World Bank Press Sri Lanka to Fix Aswesuma Data
Sri Lanka’s flagship Aswesuma social welfare program, designed to support low-income families, has come under renewed international scrutiny as the World Bank and International Monetary Fund (IMF) urge the government to strengthen its targeting mechanism, maintain accurate beneficiary databases, and improve program transparency.
At a recent parliamentary meeting attended by World Bank representatives, senior Finance Ministry officials, and members of key parliamentary committees on finance and economic development, international partners stressed the urgent need for a comprehensive and continuously updated digital database to ensure that welfare benefits reach genuinely poor and vulnerable citizens.
According to a statement from the Parliament Secretariat, World Bank officials said the establishment of a reliable social security data system is “a productive investment” that will allow authorities to correctly identify eligible households and prevent inclusion errors and political bias. They further clarified that merely being listed in the system does not guarantee Aswesuma eligibility each case must be verified through data analysis.
The Aswesuma program, which replaced the long-running Samurdhi welfare scheme, is a key pillar of Sri Lanka’s IMF-backed reform agenda aimed at improving fiscal efficiency and reducing poverty through better-targeted subsidies. However, the initiative has faced widespread criticism for exclusion errors, data inconsistencies, and lack of transparency in beneficiary selection.
The IMF, in its recent review of Sri Lanka’s Extended Fund Facility (EFF), reiterated that reforms to the social protection system are central to the bailout program’s success. The Fund has emphasised that welfare spending must prioritise the “most vulnerable households” while phasing out inefficient and politically influenced cash transfers. Maintaining a credible, transparent, and verifiable Aswesuma registry has thus become both a social and fiscal condition tied to continued international support.
During parliamentary discussions, lawmakers raised concerns about the fairness of the selection process and proposed the formation of village-level committees to identify deserving families. They also called for public display of beneficiary lists to enhance accountability and reduce political interference.
Officials from the Finance Ministry and Divisional Secretariats admitted that communication lapses and poor coordination among field officers particularly Grama Niladharis—had contributed to implementation delays and confusion. They assured that corrective measures were being taken, including training programs and clearer role definitions for officers involved in the program’s rollout.
The World Bank’s latest country update highlighted that while poverty levels are expected to decline slightly this year, 22% of Sri Lankans still live below the poverty line, with another 10% hovering just above it. Malnutrition and low wage growth remain serious concerns.
As Sri Lanka navigates its post-crisis recovery, effective reform of Aswesuma has become a litmus test for balancing IMF-driven fiscal discipline with social protection for the poor, making the accuracy and integrity of its welfare database more crucial than ever.
Sri Lanka’s Free Visa Plan Stalled amid Legal Turmoil
Sri Lanka’s long-promised visa-free travel scheme for 33 additional countries has been hit by fresh delays, revealing deeper issues in policy consistency, administrative inefficiency, and questionable deals involving the country’s visa processing system. The scheme intended to expand visa-free entry to 40 nations to boost tourism has been stalled for months as the Attorney General’s Department examines lingering legal complications tied to a controversial private visa management deal.
Tourism and Foreign Affairs Minister Vijitha Herath admitted this week that implementation remains pending “until the Attorney General provides clearance,” citing unresolved legal questions about revenue sharing and system management. “We have to submit a new gazette to Parliament, and we expect to finalize the process within one or two months,” he told reporters at the weekly Cabinet briefing.
However, the Attorney General’s review reportedly stems from an ongoing case related to a deal signed last year with VFS, IVS, and GBS, private firms contracted to handle online visa applications. The contract was later suspended by court in August 2024 following allegations of inflated fees, lack of transparency, and non-remittance of state revenue. A special audit by the Auditor General found that portions of income due to the Treasury had not been properly accounted for under the system, raising questions about oversight and governance.
The controversy has complicated the government’s efforts to relaunch a clean, transparent visa process. Prior to the VFS arrangement, visa fees had already been increased sharply, drawing criticism from tourism operators who said higher costs discouraged short-term travelers.
Under the proposed new free-visa system, only citizens of China, India, Indonesia, Japan, Malaysia, Russia, and Thailand currently enjoy exemption from the Electronic Travel Authorization (ETA) fee. The government announced in July 2025 that it would expand this list to include 33 more countries, mainly in Europe and the Middle East. Yet, months later, tourists from those nations still face standard visa fees.
Industry experts warn that the delay undermines Sri Lanka’s competitiveness as a destination in a region where rivals like Thailand, Malaysia, and the Maldives have aggressively eased entry requirements to capture post-pandemic travel demand. “At a time when every dollar counts, the delay in implementing a zero-fee visa system is costing us tourists and revenue,” a senior tourism official told this paper.
The prolonged legal and policy confusion also highlights the government’s mixed signals on foreign investment and public-private partnerships. Analysts argue that the failure to swiftly resolve the visa outsourcing scandal has created uncertainty across agencies.
As Sri Lanka battles to revive its crisis-hit economy, the free visa plan originally pitched as a quick win to attract foreign exchange is now emblematic of policy paralysis and bureaucratic inertia. Until the government restores clarity and accountability in its visa policy, the promised tourism revival may remain trapped in paperwork.
Government Acts to Save Historic Nuwara Eliya Post Office
The Government has launched an urgent initiative to conserve and restore the 130-year-old Nuwara Eliya Post Office, one of Sri Lanka’s most iconic colonial-era landmarks, amid growing public concern over its deteriorating condition and past attempts to convert it into a private tourist hotel.
A special inter-agency meeting chaired by Health and Mass Media Minister Dr. Nalinda Jayatissa was held recently to review progress on the restoration and conservation plan. The meeting brought together representatives from the Department of Posts, Sri Lanka Tourism Development Authority (SLTDA), Department of Archaeology, Department of Buildings, Sri Lanka Navy, and other government bodies.
The discussions centred on preserving the post office’s architectural and historical integrity while upgrading its infrastructure to serve both postal operations and tourism. Built in 1894 during the British colonial era, the red-brick post office situated at the heart of Nuwara Eliya—is a beloved symbol of the town’s old-world charm and a favourite subject among local and foreign visitors alike.
The previous government’s proposal to hand over the property to a private developer had triggered widespread criticism from heritage conservationists, postal unions, and residents who feared the loss of public ownership and cultural authenticity. The current administration has firmly rejected privatisation, stating that the landmark will remain under the Department of Posts and instead be developed as a state-managed heritage attraction.
Officials at the meeting highlighted that the roof of the post office is severely damaged, causing rainwater leaks that have disrupted postal operations and damaged parts of the building. Restoration of the roof has been identified as the top priority, followed by structural reinforcements, façade preservation, and interior refurbishments—all to be carried out under strict heritage conservation guidelines.
The Department of Archaeology and Department of Buildings have been tasked with preparing preliminary renovation plans, while the Sri Lanka Navy has offered technical and logistical support for the conservation project. Dr. Jayatissa instructed officials to expedite the process, ensuring that authentic materials and designs are used to maintain the building’s historic value.
Heritage experts stress that restoring the Nuwara Eliya Post Office is not only about preserving a structure but also about protecting a national symbol of Sri Lanka’s postal history and colonial architecture. The government’s decision to retain public ownership and promote the site as a heritage tourism attraction aligns with global trends of adaptive reuse where historical buildings are modernised without compromising authenticity.
Once renovations are complete, the restored post office is expected to become a flagship attraction in Nuwara Eliya’s heritage tourism circuit, balancing functionality with cultural preservation and reinforcing Sri Lanka’s commitment to safeguarding its architectural legacy.
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