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A delegation from the Government Medical Officers’ Association (GMOA), which commenced trade union action this morning (17) over several demands, has arrived at the Presidential Secretariat for discussions.

The meeting is being held under the patronage of President Anura Kumara Dissanayake.
Several senior GMOA members are reportedly participating in the discussion, which is currently underway at the Presidential Secretariat.

Several crude bombs exploded in the Bangladesh capital Dhaka on Sunday, police said, heightening tensions ahead of a verdict on Monday in a case against ousted former Prime Minister Sheikh Hasina over violence during street protests last year.

No casualties were reported, but the blasts further unsettled a city already on edge after days of political unrest.

Hasina, 78, is being tried in absentia on charges of crimes against humanity for allegedly ordering a deadly crackdown on student protests in mid-2024. She denies any wrongdoing and has remained in India since fleeing there after her ouster in August last year.

The Dhaka Metropolitan Police Commissioner has instructed officers to open fire on anyone involved in arson or attempts to cause death by hurling crude bombs, local media reported.

Security has been tightened across Dhaka, in Gopalganj — Hasina’s ancestral home and a stronghold for her party — and in two neighbouring districts, with Border Guard Bangladesh personnel deployed to reinforce local authorities.

Police and Rapid Action Battalion teams have been positioned around key government buildings and major intersections, leaving parts of the capital unusually quiet.

“It’s very tense — hardly anyone is coming out,” said Ramjan Ali, an autorickshaw driver in Dhaka. “I’ve been on the road since morning, but I’ve barely earned anything today.”

In the days leading up to the verdict, authorities recorded more than 30 crude bomb explosions and reported dozens of buses torched in Dhaka and several other districts.

Dozens of Awami League activists have also been arrested in recent days over alleged involvement in explosions and acts of sabotage.

( Source : adaderana.lk)

Former Chairman of the Geological Survey & Mines Bureau (GSMB), Anura Walpola, has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

He was taken into custody over allegations that he appointed an employee without following the proper recruitment procedures.

The Government Medical Officers’ Association (GMOA) will launch trade union action from 8 a.m. today (17), citing several unresolved demands.

The decision comes in protest against the government’s failure to address long-standing issues within the health sector and concerns raised by doctors, which the 2026 Budget presented by President Anura Kumara Dissanayake did not resolve.

As part of the trade union action, doctors at all hospitals will restrict certain services, including issuing prescriptions that require patients to purchase medicines from external pharmacies and recommending tests that must be conducted at private laboratories.

Sri Lanka’s battered dollar bond market once defined by default, outflows, and collapsing investor confidence is beginning to show signs of renewed strength. The Ceylon Dollar Bond Fund (CDBF) has reported an impressive 12.3% return in U.S. dollars as of mid-September 2025, indicating a tentative revival in appetite for the country’s restructured debt.

Managed by Ceylon Asset Management (CAM) and supported by Deutsche Bank as Trustee and Custodian, the fund’s strong year-to-date performance highlights growing investor confidence following Sri Lanka’s December 2024 debt restructuring. A senior official at the Sri Lanka Insurance Corporation (SLIC)—a key stakeholder—confirmed that the uptick reflects improving sentiment across global markets toward Sri Lankan sovereign assets.

CDBF is an open-ended unit trust regulated by the Securities and Exchange Commission (SEC). It invests solely in Sri Lankan International Sovereign Bonds (ISBs) and selected dollar-denominated, bank-guaranteed securities listed overseas. For investors, the fund provides a shield against rupee depreciation and enables capital repatriation in foreign currency—attributes aggressively marketed on social media to attract diaspora and regional investors.

According to CAM Managing Director Dulindra Fernando, the surge in returns stems from rising ISB prices, improving macroeconomic indicators, and policy stability. “Sri Lanka’s improving macro fundamentals have underpinned the fund’s performance,” he said, citing the rebuilding of foreign reserves to US$ 6.2 billion, falling inflation, and a steadier rupee.

Tourism earnings, worker remittances, and early signs of foreign investment inflows have further strengthened confidence. The Central Bank’s policy direction has also supported the recovery, with Governor Dr. Nandalal Weerasinghe recently forecasting that Sri Lanka could secure a sovereign rating upgrade from CCC+ to B by 2027, potentially unlocking wider access to capital markets.

Over the past ten months, CDBF’s net asset value (NAV) has risen steadily, in line with the strengthening of restructured ISBs. Market analysts note that average yields on Sri Lankan sovereign bonds have dropped from 15% in January to around 10% by October, signalling reduced default risk and improved investor sentiment. Deutsche Bank added that the recovery in sovereign valuations reflects better fiscal discipline and progress in economic reforms.

SLIC acknowledged that the fund’s performance signals the potential of disciplined investment in restructured debt, but called for strict regulatory oversight to protect investors. Research from Verité further notes that Sri Lanka’s new GDP-linked Macro Linked Bonds (MLBs) could offer returns of up to 10.3% if GDP growth exceeds 3% between 2025 and 2027. Standard Chartered analysts estimate a 67.5% likelihood of meeting that threshold—supporting the upside case for funds like CDBF.

Still, regulators warn that risks remain. The Central Bank stressed that although such funds help attract foreign inflows, they are not without exposure to global interest-rate changes, market volatility, and geopolitical shocks. CBSL also reiterated that Personal and Business Foreign Currency Accounts cannot invest directly in CDBF, and banks have been instructed to enforce the rule.

For many, however, the Ceylon Dollar Bond Fund has become a symbol of Sri Lanka’s slow but deliberate return to credibility in international capital markets a recovery built not on exuberance, but cautious rebuilding, bond by bond.

The Department of Meteorology reports that the low-pressure area lingering over the island continues to influence weather conditions, bringing widespread cloud cover across most regions today (17).

Frequent showers or thundershowers are expected in the Northern, North-Central, Eastern, and Uva Provinces, as well as in the Hambantota District.
Other areas of the island are likely to experience showers or thundershowers after 1.00 p.m.

Rainfall exceeding 100 mm is possible in parts of the Northern and Eastern Provinces, while fairly heavy showers of over 75 mm may occur in several other areas.

Misty conditions may also be experienced during the early morning hours in the Western, Sabaragamuwa, Central, and Southern Provinces.

The public is advised to take necessary precautions to minimize the risk of damage from temporary strong winds and lightning associated with thundershowers.

The second day of the Committee Stage debate—also known as the Third Reading—of the 2026 Appropriation Bill, the 80th National Budget, commenced today (17) under the chairmanship of the Speaker.

The Third Reading debate began on November 15 and will continue for 17 days. According to the Parliament’s Department of Communication, the final vote on the Third Reading is scheduled for December 5 at 6.00 p.m.

Meanwhile, the Second Reading of the 2026 Appropriation Bill was passed in Parliament on November 14, 2025, with a majority of 118 votes.
A total of 160 Members of Parliament—including three from the opposition—voted in favour, while 42 voted against and eight abstained.

The Second Reading of the 2026 Budget was initially presented to Parliament on November 07 by President Anura Kumara Dissanayake, in his capacity as Minister of Finance.

Southern Province Governor Bandula Harischandra passed away this morning (16) while undergoing treatment at the Colombo National Hospital.

Harischandra, widely regarded as a dedicated and principled public servant, served the state in numerous senior roles over the years. His career included appointments as a ministerial secretary, district secretary, and the head of several major government institutions.

Sri Lanka’s non-banking financial industry is bracing for one of the most sweeping regulatory overhauls in more than a decade as the Central Bank pushes forward with major amendments to the Finance Business Act (FBA) No. 42 of 2011.

The proposed reforms now open for public comments until 30 November 2025—aim to correct long-standing weaknesses in oversight, prevent institutional failures, and restore public trust in a sector damaged by repeated collapses.

The current FBA, introduced in 2011 as the main legal framework governing finance companies and deposit-taking institutions, has struggled to keep pace with an expanding and increasingly complex financial market. High-profile failures such as

The Finance Company and Bimputh Finance exposed deep cracks in governance, risk management, and supervisory enforcement. These failures eroded depositor confidence and highlighted the urgent need for stronger regulation.

The Central Bank says the proposed amendments are designed to modernise the law, strengthen supervisory powers, and align the sector with global standards.

Among the most significant changes are expanded investigative powers that will allow rapid action against unauthorised deposit-taking and illegal financial operations. Regulators will also be armed with new early-intervention tools to restructure, merge, or wind up failing institutions before they become systemically dangerous.

Governance is another central focus. The amendments propose stricter “fit and proper” requirements for directors and major shareholders, ensuring that only qualified and reputable individuals can oversee licensed institutions. Higher capital adequacy requirements, enhanced financial disclosures, and tighter advertising rules are also part of the package measures aimed at curbing misleading deposit campaigns and strengthening market discipline.

While the reforms are widely acknowledged as overdue, they have triggered significant concern among industry stakeholders, particularly smaller finance companies. CEOs warn that steeper compliance costs, higher capital thresholds, and tighter controls could force consolidation or drive weaker firms out of business.

Such an outcome, they argue, risks limiting access to credit for small and medium-scale enterprises (SMEs), which remain vital to economic recovery.

The Finance Houses Association of Sri Lanka has requested more time to review the proposals, emphasising the need for careful scrutiny to avoid destabilising the sector. Independent financial analysts echo this caution, pointing to the risk of over-regulation.

According to analyst Anuruddha Jayawardena, regulators face a delicate balancing act: “Strict oversight is essential to rebuild trust, but excessive rigidity could choke off legitimate credit flows, especially in under-banked rural areas.”

Despite concerns, many experts agree that if implemented sensibly—with phased timelines and clear transitional guidelines the amendments could strengthen investor confidence, attract foreign capital, and significantly reduce systemic risk in the non-banking financial sector.

The Central Bank’s decision to invite public feedback is widely seen as an important step toward a more transparent and participatory reform process. As Sri Lanka works to stabilise its economy, the fate of the new Finance Act will play a decisive role in shaping the resilience and credibility of the financial system for years to come.

Sri Lanka’s worsening household financial distress is now reflected in an alarming surge in gold-backed lending, revealing the depth of economic hardship gripping the country.

Official data show that pawning loans have skyrocketed to an estimated Rs. 356.5 billion in the first half of 2025, marking one of the steepest increases in recent years and highlighting the struggle of families forced to pawn their last remaining assets to make ends meet.

According to the Central Bank’s Financial Stability Review 2025, lending by licensed finance companies reached Rs. 1.84 trillion by mid-2025, with nearly 19.4% of these loans backed by gold.

This represents one of the sharpest expansions in gold-collateralised lending since the economic collapse of 2022–23 an expansion many analysts link directly to a lack of policy urgency, weak governance practices, and the government’s slow implementation of essential economic reforms.

A senior Finance Ministry official, speaking anonymously, said the surge in gold pawning reflects “acute pressure on middle- and lower-income households struggling with rising prices and stagnant incomes.”

With inflation persisting and economic reforms moving at a sluggish pace, families increasingly rely on pawning jewelry to buy food, pay school fees, or cover medical expenses.

The depth of the crisis is further underscored by the sharp rise in pawn-advance arrears. Ministry data show an increase from Rs. 210 billion in 2019 to Rs. 571 billion by March 2024 a clear sign that more borrowers are unable to redeem their jewelry. For many, these loans were intended as short-term lifelines but have now become long-term traps.

Industry leaders warn that gold-backed loans are expanding faster than other credit categories, reflecting severe liquidity stress among households.

A CEO of a major finance company noted that gold loans now form the backbone of cash-flow survival for many families, saying, “This is not healthy credit growth it is distress lending.”

Economists also caution that the trend poses systemic risks. Fitch Ratings previously warned that excessive reliance on gold-collateralised lending exposes financial institutions to collateral price swings and simultaneous borrower defaults particularly dangerous in a fragile economic environment.

But beyond financial risks lies a deeply human tragedy. Losing gold jewelry in Sri Lanka is not merely a financial loss; it is the loss of wedding heirlooms, inherited pieces, and symbolic family security.

A researcher at a leading think-tank said, “When people begin losing their gold, it means they’ve lost their final safety net.”

Experts argue that immediate safeguards are urgently needed. Proposed measures include temporary interest-rate caps for vulnerable borrowers, grace periods for jewelry redemption, and restructuring schemes to convert pawn advances into longer-term, affordable repayments.

Yet the ultimate solution remains elusive. Without meaningful progress on economic reforms, improved governance, and decisive policy execution, analysts warn that the pawning surge will intensify.

 

Until then, Sri Lanka’s once-cherished gold reserves long symbols of stability have turned into collateral for survival, revealing a nation still struggling to rebuild amid uncertainty and policy drift.

Sri Lanka’s long-standing struggle with an oversized, top-heavy and bottom-heavy public sector moved back into focus this week when an interim report proposing a structured salary framework and improved professionalism in the public service was presented to the Ministerial Consultative Committee on Public Administration.

The report, tabled by subcommittee chairman and MP Chandana Sooriyarachchi, outlines initial steps toward modernising state institutions that have suffered from decades of politicisation, inconsistent recruitment, and chronic inefficiencies.

Sri Lanka currently maintains one of the largest public sectors in Asia relative to population, employing more than 1.52 million workersroughly one in every six employed persons in the country.

According to Treasury data, public-sector salaries and pensions absorb more than 54% of annual government revenue, leaving limited fiscal space for development spending. Economists have repeatedly warned that the structure of the public service is highly imbalanced: it is overloaded with clerical and minor staff while critically short of skilled professionals, technical experts, and policy-level officers.

Against this backdrop, the interim report proposes establishing a formal institution to design a structured salary system, harmonise pay scales, and introduce merit-based career progression. The goal, officials say, is to reduce disparities across ministries, curb politically driven appointments, and create a more professional service aligned with national development needs.

The Committee meeting, chaired by Minister A.H.M.H. Abeyrathna, also examined growing administrative issues at Divisional Secretariats and Local Government bodies. MPs highlighted severe delays in service delivery, understaffing of critical units, and the absence of a standardised performance monitoring mechanism.

 Committee members instructed ministry officials to address these issues urgently, particularly at offices where citizens face long queues for essential documents, land transactions, and welfare services.

Another contentious issue discussed was the pension entitlements for public servants who later become Members of Parliament. Current rules disqualify an MP from receiving a parliamentary pension while also complicating claims for pensions from previous state-sector positions if they served more than ten years. The committee acknowledged the need to resolve this anomaly and agreed to pursue further deliberations.

Confusion within the public service over the Public Service Commission’s recent alterations to efficiency bar examinations, recruitment criteria, and promotion procedures was also raised. Ministry officials conceded that the changes had created disparities across departments and pledged to reassess the policy shift.

Analysts argue that modernising the public sector will require more than harmonising salaries. Solutions include a comprehensive manpower audit, eliminating redundant positions, digitalising frontline services, retraining underutilised staff, and depoliticising appointments. Without structural reform, Sri Lanka’s bloated public sector is expected to continue consuming scarce revenue while delivering inadequate results.

With fiscal pressures mounting and the IMF emphasising public-sector rationalisation under its ongoing programme, the government now faces a narrow window to turn recommendations into action. Whether the proposed reforms can break decades of institutional inertia remains the central question.