News

Senior Deputy Inspector General of Police (SDIG) Lalith Pathinayake, who had been serving as the Acting Senior DIG in charge of the Police Administration Division, has reportedly been removed from the position by the National Police Commission pending disciplinary action.

Despite this, Pathinayake will continue in his role as the Senior DIG in charge of the Central Province.

Meanwhile, the National Police Commission has approved the appointment of Senior DIG Sanjeewa Dharmaratne—currently overseeing the Western Province—to the post of Senior DIG in charge of the Police Administration Division, which became vacant following Pathinayake’s removal.

SDIG Dharmaratne is also functioning as the Acting Inspector General of Police (IGP), as IGP Priyantha Weerasuriya is presently overseas.

Prime Minister Dr. Harini Amarasuriya stated that as the country moves towards a digital economy through a new transformation, all sectors must work together in the national mission of empowering local entrepreneurs.

The Prime Minister made these remarks while participating in the inauguration ceremony of Global Entrepreneurship Week, held under the theme “Together We Build,” at Temple Trees premises yesterday (14). The event was organized by the Ministry of Digital Economy, the Prime Minister’s Media Division stated.

Addressing the event, the Prime Minister further stated:

“Global Entrepreneurship Week 2025 begins today. It actively contributes to building an entrepreneurial culture in the country and creating the necessary opportunities for that purpose. This week aligns with our national objectives. Creativity, collaboration, and innovation are vital for the future development of the country.

Our government’s vision is to create a country where ideas become opportunities, innovation attracts investment, and citizens can benefit from them. Entrepreneurial development is essential for achieving this vision. Similarly, entrepreneurship is also a crucial factor for economic diversification, export growth, youth empowerment, and balanced development.

During Global Entrepreneurship Week in 2024, over 20,000 people engaged in more than 207 programs conducted across 25 districts islandwide.

According to the 2024 Global Innovation Index, Sri Lanka ranks 89th. Although we show relatively good performance in innovation outputs, data makes it clear that innovation inputs, such as infrastructure and investment, are still at a weak level.

The Global Entrepreneurship Monitor (GEM) Report (2024/25) states that 49% of adults worldwide refrain from starting a business due to fear of failure. This highlights the importance of building a strong support system.

In 2023, Sri Lanka gained a significant demographic advantage, with a youth population of approximately 5.1 million aged between 15 and 29 (23.6% of the total population). Although this youth population is digitally literate, we understand that they still face challenges such as limited access to capital, fewer mentorship opportunities, and a general reluctance to take risks.

Therefore, the government has established a Digital Task Force consisting of 30 members under education reforms. Measures are being implemented to connect all schools to the internet, provide smart boards, computers, and digital devices, and enhance knowledge. A full policy framework for digital education is being prepared to be presented to the Cabinet by March 2026.

The 2026 National Budget has allocated Rs. 1.5 billion as a Start-Up Fund to advance the digital economy and entrepreneurship among youth and emerging entrepreneurs.

Additional provisions have been allocated for AI and cloud computing research, digital infrastructure development (broadband vouchers), and investment incentives. I would also like to mention that the government has proposed a Digital Economy Act, a new Digital Economy Authority, the Sri Lanka Unified Digital Identity (SL-UDI), and an Integrated Digital Payments System.

For the development of the economy and every sector of the country, we must all work together for a national agenda. Rather than working separately, it is necessary for all to start a collaborative national movement.

The government, industry, academia, and entrepreneurs must collaborate in resource mobilization, building mentorship networks, simplifying regulations, and opening access to global markets.”

The event was attended by the Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Deputy Minister of Industries and Enterprise Development Chathuranga Abeysinghe, President’s Advisor on Digital Economy Dr. Hans Wijayasuriya, Secretary to the Ministry of Digital Economy Varuna Dhanapala, as well as entrepreneurs, investors, and a large gathering.

( Source : adaderana.lk)

Parliamentarian Namal Rajapaksa has accused the government of imposing what he described as a severe crackdown on public servants, noting that the current environment has become increasingly difficult for many.

Speaking to the media after paying homage at the Sri Dalada Maligawa in Kandy, Rajapaksa alleged that the Sri Lankan Police have become “fully politicized” and claimed that national security has weakened.

He further stated that the public continues to suffer under a heavy tax burden introduced by the government.

The MP urged all citizens who feel they have been unfairly treated to join the opposition rally scheduled to take place in Nugegoda on November 21.

Rajapaksa emphasized that the rally is not intended to elevate any individual to power, but to remind the government of the promises it made to the people.

The Bank of Ceylon (BOC) has closed the first nine months of 2025 with one of its strongest financial performances in recent years, reaffirming its position as the backbone of Sri Lanka’s banking sector.

The state-owned lender posted a Profit  Before Tax (PBT) of Rs. 87.7 billion, more than doubling its earnings from the same period in 2024 and underscoring its ability to expand despite challenging macroeconomic conditions.

Chairman Kavinda de Zoysa said the latest results reflect BOC’s commitment to financial inclusion and the country’s broader economic recovery. “Our strategy balances profitability with purpose. By empowering youth, SMEs, and underserved communities, we are strengthening livelihoods and the nation’s long-term resilience,” he noted.

Much of the bank’s stellar performance stems from its core banking operations. Net Interest Income surged 62% to Rs. 153.2 billion, supported by effective repricing strategies and a favourable interest rate environment. Interest income grew 15% to Rs. 368.1 billion, while interest expenses fell 5% a combination that significantly boosted margins.

Non-fund-based income also contributed strongly, with fee and commission revenue rising 11% to Rs. 16.8 billion amid increased digital banking activity and remittance flows.

BOC’s total operating income climbed 61% to Rs. 181.1 billion, while expenses grew only 6%, pushing the cost-to-income ratio down to an efficient 32%. After paying Rs. 23.4 billion in taxes on financial services and Rs. 31.9 billion in income tax, the bank reported a solid Profit After Tax of Rs. 55.7 billion. In total, BOC contributed Rs. 55.3 billion in taxes to the Treasury during the period.

Acting GM/CEO Y.A. Jayathilaka attributed the strong results to customer trust and staff dedication. He said the bank’s emphasis on responsible growth and digital innovation will continue guiding its strategy. “Each step we take is geared towards expanding opportunity and driving shared prosperity,” he said.

BOC’s assets rose 11% to Rs. 5.5 trillion by end-September, driven largely by investments in government securities. Loans increased to Rs. 2.5 trillion, reflecting renewed credit demand, while deposits rose 9% to Rs. 4.6 trillion. Despite these expansions, the bank maintained firm risk controls, recording an 18.7-billion-rupee impairment charge and holding Stage 3 loan coverage at 56.24%.

Key indicators remained robust, with ROA at 2.22% and ROE at 22.82%. Capital ratios also stayed comfortably above Basel III thresholds. Digital banking continued to expand, particularly through BOC Flex, Smart Remit, and the newly launched BizPlus Credit Card for MSMEs.

Expanding inclusion on the ground, the bank opened 50 new Agent Banking Centres and launched BOC Connect Analathivu, while the Gammana programme continued uplifting rural communities.

With major international rankings, brand awards, and an AA-(lka) Fitch rating, BOC heads into the final quarter poised for further growth as it strengthens digital services, SME lending, and sustainability initiatives nationwide.

At least seven people were killed and 27 injured when a large pile of confiscated explosives in a police station in India’s Kashmir detonated late on Friday, broadcaster NDTV reported, citing sources.

Most of those killed are policemen and forensic team officials who were examining the explosives stored at the police station, the report said.

The death toll could climb further, with five of the injured still in critical condition, NDTV said.

Reuters could not immediately verify the reason for the blast. Jammu and Kashmir police did not immediately respond to Reuters requests for comment.

Earlier, a local police official told Reuters that an explosion had ripped through Nowgam police station. The official said fire had engulfed the compound and fire tenders had been rushed to the spot, with casualties feared.

The blast comes four days after a deadly car explosion in Delhi, which killed at least eight people in what India has called a terror incident.

(Source : adaderana.lk)

The debate on the Committee Stage or the Third Reading of the 2026 Appropriation Bill, or the 80th Budget Speech, is scheduled to commence today (15) in parliament.

The Second Reading debate, which began on November 8, continued for six days and concluded with the vote held yesterday (14) at 6.00 p.m., as scheduled by the Department of Communication of Parliament.

The Second Reading of the Appropriation Bill for the year 2026 was passed in Parliament yesterday (14) with a majority of 118 votes. A total of 160 Members of Parliament voted in favour of the Budget, while 42 voted against it. Eight MPs abstained from voting.

Beginning today, the Committee Stage debate on the Appropriation Bill will proceed for 17 days, including three Saturdays, and is expected to conclude on December 5. 

Following that, the vote on the Third Reading of the Appropriation Bill will be held on December 5 at 6.00 p.m.

With this, the full Budget debate spans from November 8 to December 5, 2025.

The Second Reading of the Appropriation Bill (Budget Speech) was presented to Parliament on November 7 by President Anura Kumara Dissanayake in his capacity as Minister of Finance. The President arrived at the Chamber at around 1.30 p.m., following tradition by entering from the Office of the President located within the Parliament premises, led by the Serjeant-at-Arms.

The presentation of the Budget proposals continued until 5.50 p.m.

( Source : adaderana.lk)

The Department of Meteorology reports that the low-level atmospheric disturbance located to the east of Sri Lanka continues to influence the island’s weather.

As a result, showers or thundershowers are expected at times in the Northern, North-Central, and Eastern provinces. According to the advisory, heavy rainfall of around 100 mm is likely in parts of the Northern Province and the Trincomalee District.

Several other areas of the island will experience showers or thundershowers after 1.00 p.m. Fairly heavy rainfall exceeding 75 mm is possible in the Western, Sabaragamuwa, Central, Southern, and Uva provinces.

Misty conditions may also occur in parts of the Western, Sabaragamuwa, Central, Southern, and Uva provinces during the early morning hours.

The public is advised to take necessary precautions to minimize harm caused by strong, localized winds and lightning during thundershowers.

Sri Lanka’s hard-won economic stabilisation, secured through the IMF-brokered rescue package after the 2022 collapse, now faces renewed uncertainty as global lenders carefully examine the 2026 Budget presented by the new JVP-led NPP government.

The IMF confirmed yesterday that it is reviewing the budget and assessing whether the administration’s fiscal direction remains consistent with the commitments signed under the US$3 billion Extended Fund Facility (EFF).

IMF Director of Communications Julie Kozack told reporters in Washington that the Fifth Review is expected to reach the Executive Board “in the coming weeks.”

A successful review will unlock the next tranche of US$347 million funding Sri Lanka critically needs to maintain reserves, service external debt, and keep its fragile recovery on track.

A staff-level agreement was already completed on 9 October, but the Fund now needs to verify that key reforms, revenue measures, and fiscal discipline have not drifted under the new administration.

Kozack noted that the IMF’s current assessment focuses heavily on whether the government’s fiscal framework aligns with programme targets, especially given the “structural reforms essential for strengthening Sri Lanka’s growth outlook.”

These reforms from trade liberalisation and streamlined FDI regulation to governance improvements and expanded social protection were central to stabilising the economy after the 2022 crisis. The question now is whether they will continue at the required pace.

Concerns have mounted within economic circles that the NPP government’s policy rollout has been slow, uncoordinated, and often ideologically conflicted.

Analysts warn that a drift away from predictable, rules-based policy implementation could weaken investor confidence, delay external financing, and threaten the hard-earned stability achieved since 2022.

Kozack appeared to underline these concerns subtly, emphasising that protecting vulnerable groups must remain a priority a reminder that fiscal populism, without structural reform, risks reversing progress.

International rating agencies are also watching closely. Fitch Ratings noted this week that while the 2026 Budget technically keeps Sri Lanka aligned with its fiscal reform trajectory, slower revenue growth, lower-than-planned capital expenditure, and risks emerging after the completion of the IMF programme could undermine the medium-term outlook.

The agency said the government still appears committed to reducing debt-to-GDP ratios after exceeding targets under the 2025 Budget, but warned that sustained revenue performance will be crucial.

Economists say the next few months will determine whether Sri Lanka can maintain the reform momentum that pulled it back from the brink in 2022 or whether the new administration’s hesitant, politically cautious approach will place the IMF programme, and the country’s recovery, in jeopardy.

 

With the Fifth Review nearing its decisive stage, the government’s ability to meet its commitments will shape both investor sentiment and Sri Lanka’s path to long-term stability.

Prime Minister Dr. Harini Amarasuriya stated that as the country moves towards a digital economy through a new transformation, all sectors must work together in the national mission of empowering local entrepreneurs.

The Prime Minister made these remarks while participating in the inauguration ceremony of Global Entrepreneurship Week held under the theme “Together We Build” at Temple Trees Premises yesterday (14). The event was organized by the Ministry of Digital Economy.

Addressing the event, the Prime Minister further stated,

Global Entrepreneurship Week 2025 begins today. It actively contributes to building an entrepreneurial culture in the country and creating the necessary opportunities for that purpose. This week aligns with our national objectives. Creativity, collaboration, and innovation are vital for the future development of the country.

Our government’s vision is to create a country where ideas become opportunities, innovation attracts investment, and citizens can benefit from them. Entrepreneurial development is essential for achieving this vision. Similarly, Entrepreneurship is also a crucial factor for economic diversification, export growth, youth empowerment, and balanced development

During Global Entrepreneurship Week in 2024 over 20,000 people engaged in more than 207 programs conducted across 25 districts island wide.

According to the 2024 Global Innovation Index, Sri Lanka ranks 89th place. Although we show relatively good performance in innovation outputs, data makes it clear that innovation inputs such as infrastructure and investment still at a weak level.

The Global Entrepreneurship Monitor (GEM) Report (2024/25) states that 49% of adults worldwide refrain from starting a business due to fear of failure. This highlights the importance of building a strong support system.

In 2023, Sri Lanka gained a significant demographic advantage, with a youth population of approximately 5.1 million aged between 15 and 29 (23.6% of the total population). Although this youth population is digitally literate, we understand that they still face challenges such as limited access to capital, fewer mentorship opportunities, and a general reluctance to take risks.

Therefore, the government has established a - Digital Task Force consisting of 30 members under education reforms. Measures are being implemented to connect all schools to the internet, provide smart boards, computers, and digital devices, and enhance knowledge. A full policy framework for digital education is being prepared to be presented to the Cabinet by March 2026.

The 2026 National Budget has allocated Rs. 1.5 billion as a Start-Up Fund to advance the digital economy and entrepreneurship among youth and emerging entrepreneurs.

Additional provisions have been allocated for AI and cloud computing research, digital infrastructure development (broadband vouchers), and investment incentives. I would also like to mention that the government has proposed a Digital Economy Act, a new Digital Economy Authority, the Sri Lanka Unified Digital Identity (SL-UDI), and an Integrated Digital Payments System.

For the development of the economy and every sector of the country, we must all work together for a national agenda. Rather than working separately, it is necessary for all to start a collaborated national movement.

The government, industry, academia, and entrepreneurs must collaborate in resource mobilization, building mentorship networks, simplifying regulations, and opening access to global markets.

The event was attended by the Deputy Minister of Digital Economy Eng. Eranga Weeraratne, Deputy Minister of Industries and Enterprise Development Chathuranga Abeysinghe, President’s Advisor on Digital Economy Dr. Hans Wijayasuriya, Secretary to the Ministry of Digital Economy Varuna Dhanapala, as well as entrepreneurs, investors, and a large gathering.

Prime Minister’s Media Division

Sri Lanka’s 2026 Budget has placed the country’s digital transformation at the centre of its economic recovery strategy, with the government pledging Rs. 35.6 billion (US$120 million) to modernise public services, strengthen digital infrastructure and establish the foundations of a competitive digital economy.

 The investment marks one of the most ambitious technology-focused commitments made in recent years as the country attempts to boost efficiency, attract investment and expand digital access nationwide.

President and Finance Minister Anura Kumara Dissanayake said the multi-layered programme aims to ensure that digital inclusion reaches every part of the country, positioning Sri Lanka to emerge as a regional hub for data-driven services.

He stressed that the development of data centres will be a top priority, noting that creating an investor-friendly environment will be essential in drawing foreign and local participation.

Incentives such as concessional land, green-energy promotion and low-cost electricity during the initial years of operation will form part of the government’s strategy to strengthen investor confidence.

As an initial step, the government has allocated Rs. 500 million for 2026 to lay the groundwork for data centre development.

To further accelerate digital infrastructure rollout, a simplified and faster approval process for constructing communication towers will be implemented. All new towers built under this programme will qualify for a five-year tax exemption, a move expected to reduce costs and encourage network expansion.

Supporting innovation is another major focus. A new startup fund, backed by an initial allocation of Rs. 1.5 billion under the Ministry of Digital Economy, will be launched next year to provide financial and technical support to emerging entrepreneurs.

The government also plans to introduce “Virtual Special Economic Zones” through the Board of Investment, designed to function as digitally enabled export hubs aimed at generating employment and high-value services.

One of the most significant milestones in the digitalisation programme will be the rollout of the country’s first digital National Identity Card early next year.

The initiative forms part of the broader integration of the Electronic National Identity Card (e-NIC) with the Unique Digital ID (SL-UDI) system, a combined framework for secure personal identification.

Five Indian firms were recently shortlisted to operate the digital ID system, signalling progress in procurement and implementation.

The budget also allocates Rs. 750 million towards establishing an AI data centre to strengthen domestic capabilities in emerging technologies. In parallel, all government transactions will shift to digital payment systems, with service fees and QR charges for payments below Rs. 5,000—waived to encourage public adoption.

Additional measures include tax waivers for private-sector investments in expanding internet coverage, broadband vouchers to support online learning for children, and the development or reactivation of IT zones to bolster the broader technology ecosystem.

Together, these initiatives underscore the government’s intent to fast-track Sri Lanka’s digital transition and leverage technology as a key driver of economic growth in the years ahead.

A 16-year-old girl was brutally killed with a sharp weapon at her home in the Panwilatenna area of Millagahamula, under the Gampola Police Division, last night (14).

According to Gampola Police, early investigations suggest the incident stemmed from a dispute related to a romantic relationship.

Police confirmed that the suspect has already been identified, and a search operation is underway to apprehend him.

The victim’s body remains at the residence under police protection. A post-mortem examination will be carried out after the Magistrate’s inquest.

Sri Lanka’s long-standing public sector overstaffing problem has re-emerged as a critical economic threat in 2025, with new data showing that the state machinery already one of the largest in South Asia continues to drain scarce fiscal resources and obstruct national productivity. Government officials, including Deputy Minister of Industries Chathuranga Abeysinghe, now openly admit that the system is “bloated at the bottom tier” due to decades of politically driven recruitment.

As of 2025, Sri Lanka’s public sector including ministries, departments, state-owned enterprises (SOEs), statutory bodies and security forceshas swollen to approximately 1.38 million employees, edging closer to its approved cadre of 1.5 million. This makes the public service larger than the total private-sector workforce employed by the country’s top 50 corporations combined. Yet productivity indicators remain stagnant, and service delivery continues to deteriorate, particularly in education, healthcare, and local administration.

Speaking at a Deloitte post-budget forum, Deputy Minister Abeysinghe acknowledged a truth that previous governments avoided. “The public service has been expanded artificially, largely at the bottom, where jobs were handed out as political favours. What we are trying to do now is rightsizing—supported by technology to restore efficiency,” he said. The 2025 Budget’s proposed 75,000 new recruitments, he emphasized, would focus strictly on essential skilled categories such as nurses, teachers, and engineers, rather than unqualified general staff.

The most controversial segment remains the so-called “Development Officers”—a politically inflated cadre of graduates placed in state offices often without defined duties. As of January 2025, Sri Lanka employed nearly 104,000 Development Officers, despite an approved cadre of 78,000. Many report to district or divisional secretariats where, according to senior officials, “there are not enough desks or functional tasks for them.”

This surplus workforce places a heavy burden on public finances. Salaries, allowances, pensions, and overtime consume almost 86% of government revenue, leaving limited room for development spending. Sri Lanka’s public-sector wage bill is now one of the highest in Asia relative to GDP. Economists warn that unless the system is restructured, the country’s recovery from the 2022 financial crisis will be slowed significantly.

A second structural problem is the expanded post-war military. Unlike countries that downsized after conflict, Sri Lanka never undertook a demobilisation program. Nearly 40,000 personnel from the 2006–2009 recruitment wave will complete 20 years of service over the next three years. The government now faces the challenge of upskilling and reintegrating them into the economy, while thousands of deserters remain outside the formal system, limiting the country’s productivity potential.

Despite promises of voluntary retirement schemes, the government insists there will be no mass layoffs. Instead, it expects digitalisation to gradually “rightsize” ministries within three to five years. However, experts caution that without skill development, performance evaluations, and enforcement of merit-based hiring, digitalisation alone cannot fix structural inefficiency.

The consequences are already visible: parents opting for private education despite paying taxes for state schooling; patients “channeling” private doctors due to failing hospitals; and taxpayers subsidising loss-making SOEs, including enterprises re-nationalised during the Rajapaksa era.

 

With Sri Lanka aiming for long-term economic stability under IMF-guided reforms, analysts argue that meaningful public-sector restructuring is no longer optional—it is the cornerstone on which the country’s future progress depends.