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Advocating for a separate state or a federal system of governance as a political stance will not be classified as a terrorist offence under Sri Lanka’s proposed legislation, the Justice Minister said.

Speaking during a television broadcast on the state-owned Independent Television Network, Minister of Justice Harshana Nanayakkara clarified the legal scope of the new Protection of the State from Terrorism Act (PSTA).

The statement was made in response to questions about the legal implications of sharing information related to proscribed organisations under the updated framework.

Political discourse protected under new law

The proposed legislation relies heavily on a precise legal definition of terrorism to determine offences across all its clauses.

While the Liberation Tigers of Tamil Eelam (LTTE) remains a banned group within Sri Lanka, the minister noted that expressing political views remains distinct from terrorist acts.

Illustrating the government position, he explained that if a newly formed group calls for self-determination or federalism, such demands are treated strictly as political opinions.

The draft law safeguards the right to express views, criticism, beliefs, and opposition as part of legitimate political debate.

Holding or voicing these political positions by any party, outside specific existing regulations on the LTTE, will not constitute terrorism, he said.

Sri Lanka's weather agency has issued severe lightning warnings covering 25 districts across the island as intense afternoon thundershowers sweep through multiple provinces.

The Department of Meteorology declared red alerts for 10 districts and amber alerts for 15 others on Thursday morning, warning that hazardous atmospheric conditions accompanied by strong localized winds will persist overnight until early Friday.

Safety guidelines

Forecasters expect heavy thundershowers and widespread lightning across the Central, Eastern, and Uva provinces, as well as the Polonnaruwa and Hambantota districts.

Met Department officials warned that severe lightning poses immediate risks to life and infrastructure, urging the public to take preventative safety measures.

Residents in affected areas are advised to remain indoors during storms and explicitly avoid taking refuge under trees.

Outdoor workers, farmers, and fisherfolk have been cautioned against remaining in exposed environments, such as paddy fields, tea estates, or open water bodies.

Authorities also advised against using wired telephones, operating connected electrical appliances, or travelling in open vehicles including bicycles, tractors, and boats.

Hazard risks

The weather advisory highlighted hazards from localized high winds, which could trigger falling trees and down power lines.

Disaster management teams have been placed on standby across the affected districts to respond to severe weather incidents.

Members of the public requiring emergency assistance have been instructed to contact their local disaster management authorities immediately.

School sports are to become a core component of Sri Lanka’s school curriculum under upcoming national education reforms.

Prime Minister Dr. Harini Amarasuriya announced the policy shift during the closing ceremony of the 40th All Island Schools Games held at the Diyagama Mahinda Rajapaksa Stadium on Tuesday.

She explained that the government intends to shift sports away from being treated as a secondary extracurricular option and integrate physical activity as a fundamental pillar of child development.

The strategy focuses on building physical and mental well-being alongside academic learning to cultivate diverse talents across the island.

Highlighting the importance of grass-roots infrastructure, the Prime Minister noted that many young athletes currently excel despite lacking basic training grounds and tracks at their schools.

She pointed out that past international sporting figures including Sriyani Kulawansa and Sugath Thilakaratne first demonstrated their potential at the school level.

According to the Prime Minister, engaging in sports teaches students resilience, teamwork, and how to bounce back from failure rather than focusing solely on winning medals.

The four-day national event brought together more than 3,500 young competitors from across the country, resulting in 23 new meet records.

Western Province secured the overall provincial championship title at the games.

St. Joseph Vaz College in Wennappuwa took the boys’ overall championship, while Lyceum International School in Wattala claimed the girls’ overall title.

The proposed reforms aim to ensure systematically identified sporting talent receives early support and adequate facilities to progress from school competitions to international arenas.

A Gampaha magistrate has asked the President of the Court of Appeal to begin contempt of court proceedings against the Inspector General of Police for failing to obey court orders in two drug-related cases.

Magistrate Bandula Gunaratne referred the file after concluding that the police chief may have committed contempt by ignoring judicial directives that the Magistrate’s Court had issued.

In making the referral, the Magistrate observed that the failure to comply had weakened the authority of the court.

He also indicated that the police chief appeared to be trying to mislead the court.

The referral asks the Court of Appeal to decide whether the IGP should face legal action over the alleged conduct.

The case centres on the two narcotics matters in which the orders were allegedly left unfulfilled.

The development raises questions over accountability within the police service and over the duty of law enforcement authorities to honour the directions of the courts.

A complaint was lodged today (22) with the relevant authorities by the legal team of former Minister Patali Champika Ranawaka, raising concerns over the alleged misuse of provisions of the Assistance to and Protection of Victims of Crime and Witnesses Act, the expenditure of public funds, and possible improper interference in matters relating to witnesses.

The complaint, submitted by Senior Attorney-at-Law Shiral Lakthilaka, is to be handed over by Attorneys-at-Law Rajika Kodithuwakku and Thikshana Gammanpila to the National Authority for the Protection of Victims of Crime and Witnesses and the Attorney General’s Department.

The complaint arises from testimony given in court on 19 October 2026 in connection with case No. HC 1824/20, currently being heard before the Colombo High Court.

According to the complaint, although the witness had previously informed court, through his lawyers, that he was unable to travel to Sri Lanka to testify at the original trial, approximately Rs. 450,000 in air travel and related expenses had reportedly been incurred using public funds to bring him from Germany to Sri Lanka.

The complaint raises questions regarding the expenditure and the arrangements made to facilitate the witness’s journey.

During his testimony, the witness reportedly stated that he had not personally borne the cost of travelling from Germany to Sri Lanka to testify in the case.

Instead, he identified the person who had paid the expenses as “Mr. Indika, the Director of the CCD.”

The complaint calls for a formal investigation into whether the legally prescribed procedures for obtaining testimony from witnesses residing overseas were followed, whether the relevant legal and financial regulations governing the use of public funds were complied with, and whether any aspect of the process affected the independence of the witness or the fairness of the judicial proceedings.

It further requests an independent inquiry into the circumstances surrounding the matter, an audit of the use of public funds, and appropriate legal action against any individuals found responsible for violations of the law.

The position set out in the complaint is that the rule of law, the accountable use of public funds, and the independence of the judicial process must be safeguarded when dealing with witnesses in criminal proceedings.

The allegations and concerns raised in the complaint should not be treated as established facts before a proper investigation is conducted and the relevant evidence is examined.

Accordingly, the relevant authorities are being urged to investigate the matters impartially and take any necessary action in accordance with the law.

Sri Lankans have pawned more than Rs. 1,200 billion in gold jewellery to commercial banks as household debt and living costs continue to mount across the island.

Samagi Jana Balawegaya (SJB) parliamentarian Sujeewa Senasinghe disclosed the figure in Parliament yesterday (21), pointing to widespread financial strain among lower and middle income families following the severe economic disruptions triggered by the 2022 currency devaluation.

He said that the agriculture sector has experienced significant downturns, with overall sector output contracting by 2.3 per cent in the second quarter of 2026 and rice cultivation dropping by 15.1 per cent compared to previous strong harvests.

Farmers are facing severe financial desperation after failing to sell their paddy yields over two consecutive seasons, adding further pressure to rural livelihoods, he said.

The broader economic expansion has also slowed, slipping from the 5 per cent recorded at the conclusion of the previous administration in late 2024 to 4 per cent.

Persistent rises in utility tariffs, basic household expenses, and essential food commodities have systematically depleted family savings, forcing citizens to relinquish heirloom jewellery as an ultimate financial resort.

Leader of the House Bimal Rathnayake has expressed regret in parliament for mistakenly including former officials on a list of individuals facing corruption investigations or court cases.

He was speaking in Parliament on Thursday to clarify details in a 50-name document he tabled earlier this month.

The minister identified the three individuals as former Northern Province Governor Rupavathi Kethiswaran, former Board of Investment Chairman Thilan Wijesinghe, and former Ministry Additional Secretary Jayantha Fernando.

Clarifying the oversight, the Leader of the House admitted that the names of the three state officers were unnecessary to establish his argument regarding ongoing legal actions.

He offered a formal apology for any harm or reputational damage caused to the trio as a consequence of their inclusion in the parliamentary record.

The minister stressed that the compiled list was intended to show that state probes into past events were conducted strictly without political vendettas.

He reiterated that the government remains focused on pursuing legitimate inquiries into historical allegations rather than targeting individuals out of malice.

Opposition Leader Sajith Premadasa challenged Sports Minister Sunil Kumara Gamage in Parliament on Wednesday (21) regarding the non-payment of a Rs. 50 million financial reward to Sri Lankan javelin star Rumesha Tharanga.

Premadasa pressed the government on why the decorated international athlete had not received the funds, while also pointing out that an announced allocation of Rs. 800,000 to construct an access road to the athlete's residence had failed to materialise.

He further expressed concern over reports that the government intended to revise the existing scheme to reduce prize money for successful sports personalities.

Responding to the allegations, Minister Gamage denied that any standing official circular entitled the athlete to Rs. 50 million, clarifying that the previous payout arrangement was a one-off Cabinet approval tied to a specific year following a Sports Council recommendation.

The Minister said that a new cabinet-approved framework had been established to handle monetary rewards for achievements in 2024 and 2025, with a separate proposal currently being drafted for 2026 honors.

The Asian Development Bank (ADB) has approved $100 million in financing to strengthen social protection, expand economic opportunities and improve care services for vulnerable communities in Sri Lanka.

The financing comprises a $50 million policy-based loan and a $50 million project loan under the Promoting Resilience and Opportunity for Inclusive Recovery Sector Development Program.

According to the ADB, the programme will support government efforts to improve livelihood and employment opportunities for low-income households, enhance eldercare services and strengthen the effectiveness of the country’s social protection system.

“Sri Lanka’s economic recovery must translate into meaningful improvements in the lives and livelihoods of vulnerable people,” said ADB Country Director for Sri Lanka Shannon Cowlin.

She added that the programme would help expand economic opportunities for poor households, improve social care services for an ageing population and establish a more inclusive and resilient social protection system.

30,000 Households to Receive Livelihood Support

Despite Sri Lanka’s continued economic recovery, poverty and vulnerability to economic and other shocks remain significant challenges, particularly for women, young people, older persons, persons with disabilities and communities in rural and disadvantaged areas.

The programme will address these issues through policy reforms, institutional improvements and investments in livelihood development and care services.

As part of the initiative, 30,000 households identified through the Aswesuma social registry across six districts will receive support under the government’s National Empowerment Program.

The assistance will include livelihood grants, employment and business development support, skills training, financial literacy programmes and improved access to reliable markets. Women and young people will be among the targeted beneficiaries.

Five Elderly Day Care Centres Planned

The programme will also focus on improving care services for Sri Lanka’s ageing population by strengthening the policy and regulatory framework for eldercare.

Five model elderly day care centres will be established in poorer districts to provide integrated care and support services.

The centres will also serve as demonstration sites to develop and refine eldercare models that could be expanded across the country.

Digital Improvements to Strengthen Social Protection

Further measures will focus on improving the delivery of social protection services through stronger monitoring and evaluation systems, digital platforms, case management processes and data governance.

The ADB said the programme would also strengthen the country's ability to respond to emergencies and other unexpected shocks, including those associated with climate change.

Institutional arrangements and coordination mechanisms will be improved to help ensure that assistance reaches vulnerable communities in a timely and effective manner during emergencies.

The initiative aims to make Sri Lanka’s social protection system more responsive to the needs of vulnerable groups while supporting inclusive economic recovery and long-term resilience.

Sri Lankan taxpayers will be forced to absorb a USD 2.5 million loss resulting from a fraudulent overseas Treasury transfer, following failure by authorities to trace or recover the stolen public funds.

Speaking in Parliament on Wednesday, Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva said that the public would bear the ultimate financial burden of the cyber theft alongside their existing tax obligations, after millions were diverted from the Finance Ministry to foreign accounts.

The fraud occurred between December 2025 and January 2026, when cyber criminals compromised payment instructions using a lookalike email domain to intercept funds intended for Export Finance Australia.

Following the exposure of the theft, Assistant Director Ranga Nishantha Rajapaksha of the External Resources Department was interdicted and subsequently found dead at his home in Kuliyapitiya on April 30, 2026, with a four-member Judicial Medical Officer panel ruling the death a suicide.

Although the parliamentary finance committee published its final investigation report in July 2026, Dr de Silva noted that law enforcement agencies and state officials had failed to deliver any progress or submit formal updates to Parliament regarding recovery efforts.

The Treasury is expected to re-issue the full 2.5 million dollars to the legitimate foreign creditor using existing exchange-rate contingency buffers already allocated within last year's national budget, thereby avoiding the immediate need for new parliamentary funding allocations.

The committee chairman also expressed sharp disappointment with Speaker Dr Jagath Wickremaratne for declining a legislative recommendation to order a forensic audit through the Auditor General, opting instead to direct the findings back to the Finance Ministry where no visible action has since been taken.

The unresolved financial breach highlights severe ongoing vulnerabilities within Sri Lanka's central fiscal management systems and raises serious questions regarding executive accountability for public debt repayments.

Sri Lanka's state-run retail chain Lanka Sathosa is facing a critical financial emergency after accumulating up to Rs. 24 billion in losses.

Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe revealed the staggering fiscal deficit during parliamentary proceedings in Colombo, warning that years of unviable branch expansion and severe procurement imbalances have pushed the national retail network to the brink of collapse.

Official financial disclosures indicate that Lanka Sathosa owes approximately Rs. 14 billion to its suppliers, whereas physical inventory held across the entire national network is valued at a modest Rs. 5.8 billion.

Operational accounts show that out of an initial 452 retail outlets, 250 were established far from urban commercial centers without sufficient planning, resulting in continuous daily losses that fail to cover basic rental overheads.

Recent consolidation efforts have trimmed the network down to 423 branches, yet 212 locations remain chronically unprofitable.

To restore supply chain stability, authorities have blacklisted more than eight suppliers over the past three months for failing to prioritize the state enterprise.

*Proposed restructuring*

In response to the mounting crisis, the government is planning a transition toward a franchise-based business model.

Under the proposed arrangement, private operators will manage retail storefronts under the established brand, while the state corporation shifts its operational focus primarily toward bulk wholesale procurement and logistics.

The government also plans to open 25 new commercially viable outlets during 2026, alongside targeted refurbishment of key existing locations.

The disqualification of one of two bidders for the Bandaranaike International Airport expansion has left the Government negotiating with a single contractor. Now, allegations of an additional US$190 million demand raise urgent questions about competition, procurement delays and the protection of public funds.

Sri Lanka is still recovering from one of the gravest economic crises in its history. Every dollar of public expenditure matters. Every foreign-funded development project must be subjected to rigorous scrutiny, and every government institution entrusted with procurement decisions must be able to demonstrate that it has protected the interests of the people.

Against this background, troubling questions have emerged concerning the long-delayed expansion of Bandaranaike International Airport (BIA), one of the country's most strategically important infrastructure projects.

At the centre of the controversy is a straightforward question:

How did an international tender that attracted two bidders end up with only one eligible contractor, and could that loss of competition now expose Sri Lanka to an additional US$190 million in costs?

The answer deserves immediate public scrutiny.

From competitive tender to single-bidder negotiations

The airport expansion project, financed through Japanese development assistance, was intended to transform Sri Lanka's principal international airport, increase passenger capacity and strengthen the country's position as an aviation and tourism hub.

The Japan International Cooperation Agency (JICA) formally welcomed the renewed tender process in September 2024, identifying the project as an important element of economic cooperation between Japan and Sri Lanka.

Two bidders subsequently participated in the tender: Japan's Taisei Corporation and the Sojitz–Larsen & Toubro consortium.

However, following the technical evaluation, the Sojitz–L&T consortium was declared technically non-responsive, leaving Taisei as the sole responsive bidder. The selection subsequently received JICA's concurrence, according to reporting published in July 2026.

The legal and technical justification for Sojitz's disqualification must be assessed against the actual tender documents. A bid that fails mandatory requirements cannot simply be retained to preserve competition.

Nevertheless, the elimination of the only competing bidder has fundamentally changed the Government's commercial negotiating position.

With no alternative financial bid remaining in contention, the authorities must now demonstrate how they intend to establish that the final contract price represents fair market value.

This is not merely a procedural question. It goes to the heart of protecting public money.

The alleged US$190 million increase: A question that cannot be ignored

Information concerning the ongoing negotiations raises an especially serious concern: that Taisei is seeking approximately US$190 million above its originally quoted tender price.

If substantiated, the proposed increase would represent an extraordinary additional financial commitment.

For perspective, US$190 million is equivalent to approximately Rs. 45 billion at an illustrative exchange rate of Rs. 300 per US dollar.

That is money which could otherwise support essential public infrastructure, healthcare, education, disaster preparedness and other national priorities.

It is also a substantial amount of foreign exchange for an economy still working to strengthen its external financial position.

The authorities must therefore disclose whether such an increase has actually been requested, the contractual basis on which it is being sought and whether the Government has any legal obligation to consider it.

Can a delay justify an additional US$190 million?

One explanation reportedly being advanced is that considerable time has elapsed since the tender process began, exposing the contractor to increases in labour, materials, equipment and other construction costs.

Construction inflation and geopolitical disruptions are legitimate commercial considerations. Major international contracts frequently contain provisions addressing price adjustments, changes in law, force majeure and exceptional cost movements.

But these provisions exist precisely because contractors and employers must allocate foreseeable commercial risks before submitting and accepting bids.

A passage of time does not, by itself, entitle a bidder to disregard its quoted price or demand an unlimited revision.

Questions have also been raised about whether the applicable tender conditions limit permissible price adjustments to approximately US$20 million over the contract period.

That alleged ceiling requires verification against the actual bidding documents. If confirmed, the authorities must explain how any substantially larger adjustment could be justified within the contractual and procurement framework.

If the original tender does not permit the proposed increase, the Government should not treat it as an unavoidable cost merely because negotiations have reached an advanced stage.

The correct response would be to examine the available contractual remedies and procurement alternatives, including the financial and operational consequences of any further delay.

Who bears responsibility for the delay?

The Government cannot assess the proposed contract price without also examining how the project reached its present position.

The renewed tender was announced in September 2024. Bids closed in March 2025, following extensions to the submission deadline.

According to published audit reporting, the Technical Evaluation Committee completed its evaluation in November 2025, while financial proposals were opened only in April 2026.

By July 2026, negotiations over the contract amount were still continuing.

This prolonged process raises an unavoidable question:

If delays in evaluation, approvals or negotiations have materially increased project costs, who is accountable for those delays?

Responsibility cannot automatically be assigned to any one institution without examining the relevant records. Some delays may have been justified by technical complexity, financing requirements or mandatory procurement procedures.

But taxpayers are entitled to know whether every stage was conducted efficiently, whether avoidable delays occurred and whether the additional costs could have been prevented.

An institution entrusted with safeguarding public resources must be able to explain not only why it selected a particular bidder, but also whether its decisions preserved value for money.

The Auditor General's findings make the matter even more serious

The airport project already carries a significant history of financial losses and additional expenditure.

According to the Auditor General's findings reported by the Sunday Times, substantial amounts were paid in connection with the termination of the earlier construction contract.

The report identified termination-related payments of approximately JPY 7.76 billion and Rs. 6.64 billion during 2025.

It also highlighted expenditure on protective works and other activities undertaken while the project remained incomplete.

These findings do not establish misconduct by the current tender participants. They do, however, demonstrate the considerable financial consequences of the project's prolonged interruption.

The public is therefore entitled to ask how much more Sri Lanka may ultimately pay before the new terminal becomes operational.

A comprehensive accounting should identify the original contract value, payments already made, termination-related settlements, preservation costs, consultancy fees, financing charges and any proposed increase under the replacement contract.

Without that information, it is impossible to determine the true cost of completing the airport expansion.

A troubling question about the integrity of public procurement

The most serious concern is not simply whether one contractor is requesting a higher price.

It is whether Sri Lanka's procurement framework is adequately protecting the public interest when a competitive tender effectively becomes a single-bidder negotiation.

A properly conducted technical evaluation may legitimately eliminate a non-compliant bidder. But when that decision leaves only one bidder, it becomes especially important to demonstrate that the evaluation was objective, consistent and supported by documented evidence.

The public should be given confidence that the disqualification was neither arbitrary nor designed to favour any particular participant.

Equally, the remaining bidder must not be permitted to exploit the absence of competition to obtain unjustified commercial concessions.

These concerns establish corruption or wrongdoing and, the combination of a single responsive bidder, prolonged delays, undisclosed financial negotiations and allegations of substantial price escalation creates a compelling case for independent scrutiny.

Transparency is the most effective way to resolve these questions.

Seven questions the Government must answer

The Ministry of Ports and Civil Aviation, AASL and the relevant procurement authorities should urgently clarify:

1. What was Taisei's original financial bid, and has an additional US$190 million been requested? If so, what is the precise amount and justification?
2. Why was the Sojitz–L&T consortium disqualified? Which mandatory technical requirements were not satisfied, and were the same standards consistently applied to both bidders?
3. What do the tender documents permit regarding price escalation? Is there a contractual ceiling, and what legal basis exists for any adjustment beyond it?
4. Why did the procurement process take so long? Which stages contributed most to the delay, and were those delays unavoidable?
5. What is JICA's position on the final price and financing arrangements? Has any proposed additional cost been reviewed and approved?
6. What is the full cumulative cost of the airport expansion to date? This should include prior payments, termination costs, preservation works, consultancy expenses and the proposed replacement contract.
7. Has an independent value-for-money assessment been undertaken? If so, will the Government publish its conclusions before any final award?

These are reasonable questions concerning a project financed through public resources and international development assistance.

Development must proceed—but not at any price

Sri Lanka urgently needs the expanded airport.

The existing infrastructure constrains the country's long-term aviation ambitions. A modern terminal would support tourism, international connectivity, investment and future economic growth.

Japan has remained an important development partner, and JICA's continued commitment to the project deserves recognition.

But the importance of completing the airport cannot become a justification for accepting costs that have not been properly examined.

The Government must balance the economic cost of further delays against the financial consequences of accepting any proposed contract increase.

That requires an independent technical and commercial assessment—not an assumption that the sole remaining bidder's revised price must necessarily be accepted.

Public money is not an unlimited contingency fund

Sri Lankans have endured years of economic hardship, higher taxation and pressure on household incomes.

At a time when the public is being asked to exercise financial discipline, the institutions spending public money must be held to the same standard.

An alleged US$190 million increase in a major infrastructure contract is not a minor administrative adjustment. It is a matter of national financial significance.

If the increase is commercially and contractually justified, the Government should publish the evidence.

If it is not justified, the Government should protect the public purse and pursue lawful alternatives.

And if an independent investigation identifies negligence, procedural irregularities, conflicts of interest or corrupt conduct, the responsible parties should be held accountable through the appropriate legal processes.

Sri Lanka cannot afford a procurement culture in which delays accumulate, competition disappears and the final bill grows without a transparent explanation.

The airport must be completed. But it must be completed through a process that is lawful, accountable, commercially defensible and demonstrably in the public interest.

The immediate priority is clear: before any final contract award, disclose the proposed price, explain the escalation, publish the basis of the tender evaluation and establish whether Sri Lanka is receiving genuine value for money.

The public deserves nothing less.