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Verité Research has submitted twelve evidence-based policy proposals for consideration in the 2026 National Budget. The proposals span economic growth, social welfare and governance, and are accompanied by full supporting documentation.

Members of the public and stakeholders can also explore these ideas on the Budget Proposal Hub on PublicFinance.lk, Sri Lanka’s first interactive, trilingual space for budget ideas. The Hub brings together two streams—Formulated Proposals for the Budget and Concepts for the Budget—and enables users to download templates and vote in support of proposals. Following an invitation extended to all Sri Lankans, the Hub currently hosts 12 Formulated Proposals and 17 Concepts.

(Image - Son of the Morning Light)

The inauguration ceremony for the 'Certificate Course on Participatory Democracy', jointly conducted by the Department of Political Science, Faculty of Social Sciences, University of Kelaniya, and the AFRIEL Youth Network, was successfully held yesterday (02).

The event also included the handing over of selection letters to the chosen cohort of government rural field officers.

Selection of Participants

​A total of 100 rural-level field officers, including Grama Niladharis, Economic Development Officers, Agricultural Research Production Assistants, and Agrarian Services Officers were selected for the first two batches through a screening examination and interview process, conducted with the support of the Ministry of Public Administration, Provincial Councils, and Local Government.

Objectives and Significance of the Programme

The course aims to provide these government officers with deep knowledge and practical training in democratic governance, good governance, and civil participation. Course Coordinator Dr. Nadeeka Damayanthi emphasized the program's significance, stating that it is a key step towards creating public servants who will strengthen democratic practices in Sri Lanka.

Ravindra De Silva, Chairman of the AFRIEL Youth Network, the collaborating partner, addressed the gathering, stating, "We are immensely happy to invest in the democratic values, understanding, and commitment of the rural government service in our country.

We believe this program will provide great strength for rural development. Furthermore, an allocation of Rs. 8 million has been made for this course for the upcoming year, and future developmental activities are also expected."

Distinguished Guests and Academic Participation

The event was graced by the Dean of the Faculty of Social Sciences and Acting Vice-Chancellor of the University of Kelaniya, Professor M. M. Gunathilaka, as the chief guest.

Vimukthi Dushantha, Deputy Executive Director of AFRIEL Youth Network, handed over supplementary reading materials prepared for the course to the Head of the Department of Political Science, Professor Osantha Thalapavila.

​Also in attendance were other prominent academic leaders from the University of Kelaniya, including the Head of the Department of Sociology, Prof. K. Karunathilaka, Head of the Department of Economics, Senior Professor W. M. Semasinghe, and Head of the Department of International Studies, Yamuna Mendis, along with a large number of academic and non-academic staff from the university and the Board of Directors from AFRIEL.

​The University and the AFRIEL Youth Network expressed confidence that these field officers, now equipped with knowledge on democracy and good governance, will make a strong contribution to the development of their communities and the strengthening of good governance in Sri Lanka.

Sri Lanka last week took a significant step in global digital security by signing the United Nations Convention Against Cybercrime (UNCC) in Ha Noi, Viet Nam, joining 72 UN Member States and the European Union in what is being hailed as a landmark moment in coordinated international efforts to combat cyber-crime.

UNCC

The signing ceremony was attended by António Guterres, UN Secretary-General, and Luong Cuong, President of Viet Nam, alongside high-level delegates from 111 countries. On behalf of the Sri Lankan government the agreement was signed by Waruna Sri Dhanapala, Acting Secretary of the Ministry of Digital Economy and head of the delegation.

This commitment comes amid a deeply troubling surge in cyber-crime within Sri Lanka. According to the national cybersecurity agency Sri Lanka Computer Emergency Readiness Team (SLCERT), more than 6,500 cyber-crime complaints were lodged in the first seven months of 2025, with 1,198 of those directly tied to financial fraud.

SLCERT

Social media platforms were flagged as the primary battleground: nearly 90 % of reported incidents involve platforms such as Facebook. The tactics of the criminals have grown more sophisticated, with artificial-intelligence-driven phishing, deep-fake videos, and ransomware attacks increasingly common.

The decision by Sri Lanka to accede to the UNCC follows its earlier adoption of the Budapest Convention on Cybercrime in 2015. Officials say the UNCC opens broader pathways for cooperation especially in evidence sharing and cross-border investigations under the framework of the government’s Digital Economy Blueprint and the National Cyber Protection Strategy (2025-2029).

A Cabinet directive mandates the formation of an inter-ministerial mechanism within three months to drive ratification, involving the Ministries of Justice, Foreign Affairs, Defence, and Public Security, while SLCERT has been designated national focal point for implementation.

Yet the cyber-crime statistics underline that the challenge is urgent and escalating. According to SLCERT, over 5,400 incidents were reported to date in 2025, predominantly tied to social platforms and AI-enabled scams. Cases have ranged from malware attacks to the compromise of public-sector networks.

In one alarming breach, Sri Lanka’s National Water Supply and Drainage Board’s SMS gateway was hijacked by hackers demanding Bitcoin payments via the board’s shortcode. Financial institutions have also been targeted: earlier this year multiple banks endured ransomware attacks resulting in the leak of 1.9 terabytes of sensitive data including national identity card images and transaction logs.

https://asianmirror.lk/

Sri Lanka’s signing of the UNCC marks a major milestone in its effort to enhance digital trust, anchor its international cooperation credentials and address a rapidly worsening internal threat. But analysts caution that signing alone is not enough.

With cyber-threat vectors evolving faster than regulatory responses, only an accelerated build-out of technical capacity, legislative reform and public-awareness is likely to give the government the upper hand. In this landscape the UNCC provides a crucial backbone but Sri Lanka now faces the harder test of making it operational, robust and effective in a digital era where the costs of inaction are high.

Ven. Galagodaaththe Gnanasara Thera has written to the Secretary of Defense requesting that two security officers be assigned for his protection, citing information that members of organized criminal gangs are allegedly plotting to assassinate him.

In his letter, the Thera stated that intelligence officers had also visited his temple and informed him of the threat.

Gnanasara Thera further noted that, due to his long-standing revelations regarding Islamic extremism connected to global terrorism, many extremist activities in the country had been curbed. However, under the present circumstances, he said his own safety had come under threat as a result.

The Thera added that although he had already requested appropriate security arrangements from the government, he has not yet received any protection.

LTL Holdings Ltd. has issued a strong clarification following recent proceedings before the Committee on Public Enterprises (COPE), asserting that the company has maintained full compliance with national audit and corporate governance standards for over four decades. The clarification comes amid intense public and parliamentary scrutiny over the relationship between the Ceylon Electricity Board (CEB) and its partly owned subsidiary, LTL Holdings.

In a statement, LTL Holdings said it was invited to the COPE session on 24 October 2025 “for the purpose of questioning in respect of the examination of the CEB,” and that the invitation did not specify any areas of inquiry. However, the company said it was surprised when the session focused solely on LTL’s internal operations rather than its interactions with the CEB.

Responding to COPE’s remarks about auditing practices, LTL Holdings maintained that it is not subject to direct audit by the Auditor General under the National Audit Act or the Constitution, as it is not classified as an “auditee entity.”

The company emphasized that all its subsidiaries are independently audited twice a year by shareholder-appointed auditors including the CEB and that those results are consolidated into the CEB’s own financial statements. “The Auditor General has every right to inquire about LTL’s audited financials through the CEB, and we have always cooperated fully,” the statement said.

On the controversial Employee Trust issue, LTL explained that the 10 % Employee Trust was created by mutual agreement between its two original shareholders the CEB and ABB of Norway and not by employees themselves. The Trust was later converted into Teckpro Investments Ltd. to resolve a regulatory issue related to LTL’s foreign operations. “No CEB employee was ever allocated shares or received dividends,” the company stressed.

LTL also addressed allegations regarding changes in shareholding and the CEB’s reduced stake. The company said that the CEB’s transfer of part of its LTL Holdings shares to West Coast Power Ltd. was part of a government-mandated debt restructuring initiative, and that LTL merely carried out CEB’s instructions to register the new shareholder.

The CEB’s stake was thus reduced from 63 % to 35 %, while West Coast Power remains a state-controlled entity. “All shareholder composition changes occurred due to external circumstances, never through actions initiated by LTL,” it noted.

Addressing concerns over potential conflicts of interest, LTL clarified that its current CEO resigned from the CEB in 1997 before joining LTL Holdings, and only later subscribed to one share in its subsidiary Lakdhanavi Ltd. in 2000 well after his transition from public service. “There was no conflict of interest at any time,” the company stated.

LTL further emphasized that all power-generation projects undertaken by its subsidiary Lakdhanavi have been awarded through competitive bidding under the CEB’s 20-year Long-Term Generation Expansion Plan (LTGEP), approved by the Public Utilities Commission of Sri Lanka (PUCSL) following public consultation.

“We have never obtained a project outside the LTGEP framework,” the statement concluded, reaffirming that LTL’s operations are fully aligned with national energy planning and regulatory oversight.

State Minister of Tourism Ruwan Ranasinghe says that newly appointed local representatives, including chairpersons and mayors, are facing serious practical difficulties in carrying out their duties due to the lack of transport facilities.

He pointed out that after assuming office, many of the new representatives have realised the real challenge lies in how to perform their duties effectively without the necessary resources.

“The problem begins after assuming duties as chairpersons or mayors. There are no vehicles for them to travel for official work—neither for the chairperson nor the secretary. We must find solutions for these issues. Now we can clearly see the results of the hasty appointments made in the past,” Ranasinghe said.

(Source - Asianmirror)

Opposition Leader Sajith Premadasa left for India on an official three-day tour today.

During the visit, he is expected to meet several government ministers and high-ranking officials.

MP Sajith Premadasa is also expected to attend several events while in India.

The Opposition Leader left the country for India a short while ago.

(Source - newswire)

Sri Lanka’s decision to double the Withholding Tax (WHT) on interest income to 10 percent has dealt a severe blow to thousands of senior citizens who depend entirely on their bank deposits to survive. For many retirees, the interest earned on years of careful savings is their only source of income used to buy medicine, pay rent, and meet daily needs.

But with the recent hike in WHT, their monthly income has begun to shrink, leaving them struggling to make ends meet. As the 2026 Budget nears, elderly depositors are appealing to President Anura Kumara Dissanayake and the Ministry of Finance to offer urgent relief not as a privilege, but as an act of fairness and compassion toward those who built the nation’s economy through a lifetime of work.

Under the Inland Revenue (Amendment) Act No. 2 of 2025, banks and financial institutions must deduct 10 percent of all interest income at source, regardless of the depositor’s total earnings. Although individuals with annual incomes below Rs. 1.8 million can file declarations to avoid the deduction, many retirees fall just above this threshold earning between Rs. 1.8 million and Rs. 4 million and now find themselves trapped in a rigid system that taxes them far beyond their true liability.

For example, a retiree with Rs. 3 million in fixed deposits may earn Rs. 300,000 a year in interest. Despite their effective tax being under Rs. 10,000 after allowances, they now face a mandatory Rs. 30,000 deduction three times higher than what they actually owe. Reclaiming this overpayment requires filing refund claims and enduring months of bureaucratic delays, a task most elderly citizens find overwhelming.

“This system takes more than what we owe and forces us to beg for our own money back,” said Senaka Samaraweera, a 72-year-old retiree from Galle. “We can’t spend hours filling forms or visiting tax offices. Many just give up and bear the loss.”

For elderly savers living on fixed incomes, this policy is not just a tax it’s a cut into their daily survival. The money lost could cover essential medicine, food, or utility bills. Economists warn that if the government fails to act, the policy could push thousands of seniors into poverty and erode faith in the fairness of Sri Lanka’s tax system.

The Inland Revenue Department has been under mounting pressure to raise state revenue, with total tax collection surpassing Rs. 3,400 billion by September. Yet, experts caution that relying on taxes from vulnerable groups undermines social trust and violates the principle of equity in taxation.

Inland Revenue Department

A collective of retired public servants recently urged the Finance Ministry to introduce an automatic exemption system for low-income seniors and ensure refunds of excess WHT within 60 days. “Fiscal targets must not come at the cost of humanity,” the group said in a joint appeal.

Sri Lanka’s aging population now exceeds 2.7 million, nearly 18 percent of the total population, and around one million depend on interest income from deposits, finance ministry data shows.

While the government has launched a special fixed-deposit scheme offering an additional three percent interest for citizens over 60 with deposits up to Rs. 1 million, critics argue that it does little to assist those already penalized by the 10 percent WHT.

A 46-year-old woman from Dematagoda, who was taken into custody for obstructing police duties and acting aggressively during a traffic stop, has been remanded until November 10.

The Gampaha Magistrate’s Court granted the extension when she was produced before it today.

According to police, the woman ignored orders to stop her vehicle for a traffic violation, prompting her arrest. She now faces legal proceedings for both the traffic offense and her aggressive conduct towards law enforcement officers.

Red tape within the bureaucracy contributes to the physical aggravations. Importers of perishables and agri-products often experience clearance delays because local authorities refuse to accept international lab certifications, forcing retesting at local facilities such as Sri Lanka Standards Institute, already operating at maximum capacity.

The result: higher demurrage charges, congestion, and rotting foodstuffs. Industry experts argue that accepting internationally recognized certifications would tilt safety and efficiency.

Terminal performance differences persist as well. State-owned terminals such as SAGT and CICT consistently lag behind privately owned terminals such as SAGT and CICT in productivity. The new West Container Terminal, with computerised handling systems, holds promise but is underused due to a lack of operational integration.

Industry leaders warned that Colombo Port is currently at a crossroads. Despite its prime location and expanding facilities, bureaucratic complacency and outdated rituals threaten to unravel its regional dominance.

Colombo Port

 Simply increasing capacity will not solve the crisis. Exporters underline the need for predictability timely vessel scheduling, fast clearance, and transparent regulation.

Experts call for across the board reform, from harmonised berth allocation, digital pre-clearing, and simplified customs to total operating system overhaul. With much delay, Sri Lanka may turn its prized maritime gateway into a costly chokepoint losing trade and investment to faster, better-manage colombo Port Struggles Threaten Sri Lanka’s Export Competitiveness.

Sri Lanka’s exporters are once again facing mounting challenges as long-standing congestion and procedural bottlenecks at the Port of Colombo disrupt trade flows, forcing major global shipping lines to reroute around the nation’s key maritime gateway. The disruptions have exposed structural weaknesses in port administration and customs coordination, highlighting obstacles to Sri Lanka’s long-held goal of becoming South Asia’s premier transshipment and logistics hub.

For sectors such as garments, rubber, and electronics, which rely on precise delivery schedules, the impact has been severe. Ships bypassing Colombo or arriving weeks late are driving up costs, triggering contract penalties, and eroding customer confidence. At the heart of the crisis are terminal congestion, inefficient inter-terminal transfers, and coordination gaps. Exporters note that transshipment containers still require manual movement between terminals using prime movers—a time-consuming method ill-suited for modern logistics.

In comparison, India’s newly commissioned Vizhinjam Port, with its single-basin design, enables faster vessel turnaround and smoother internal container movement, drawing shipping traffic away from Colombo. While the port handled 4.7 million TEUs from January to July 2025a 4% increase over last year industry participants warn that these numbers mask growing operational strain.

Vizhinjam Port

The financial burden on Sri Lankan exporters is significant. Container shunting costs between Rs. 100,000 and Rs. 300,000 per shipment for haulage, demurrage, and labor, heavily impacting small-scale exporters with narrow margins. Official estimates project total container handling at 7.76 million TEUs in 2025, of which 6.2 million are transshipments. Yet berth waits of 48–72 hours persist due to congestion, incomplete infrastructure integration, and weak terminal coordination.

Bureaucratic red tape further aggravates delays. Importers of perishables and agricultural products often face clearance problems as local authorities reject internationally recognized laboratory certifications, forcing costly retesting at the overburdened Sri Lanka Standards Institute. The result is rising demurrage charges, increased congestion, and wasted produce.

A suspect known as ‘Madusankha’, alias ‘Samaposha’, who is believed to be a member of an organized criminal gang, has been arrested by the police.

The arrest was carried out by the Colombo North Division Crime Investigation Unit.

According to the Police, the suspect is a close associate of Gamagedara Saranga Pradeep, also known as ‘Welle Saranga’, a notorious organized criminal and major drug trafficker.

The suspect was apprehended in the Grandpass area, and the Police recovered 26.890 grams of ICE narcotics in his possession.

The Police further stated that the suspect is also connected to five separate murder cases.

(Source - Newswire)

In a bold move, the Urban Development Authority (UDA) has begun proceedings to blacklist construction companies amid mounting concerns that the Ministry of Finance is unable to discharge billions of rupees owed to contractors engaged in ongoing development works. The decision places a harsh spotlight on a sector already stretched by stalled payments and unfinished infrastructure.

According to reports, the government currently owes around Rs 150 billion for completed public construction work including road and building projects accrued since 2019. In response, Treasury officials have flagged plans to roll out allocations running to tens of billions of rupees and to raise funds via treasury bonds to begin addressing arrears.

While the UDA’s sanctioning of blacklists is framed as a deterrent against shoddy contractor performance, analysts warn the timing is fraught: many firms are already financially fragile due to payment delays and remain central to the delivery of key public projects.

Crucially, large-scale road and highway schemes under the oversight of the Road Development Authority (RDA) and other agencies remain dependent on these contractors. The RDA remains the principal body responsible for the national highway network under the Ministry of Highways.

A review of major development projects through the Ministry of Finance shows significant under-execution in recent years, raising doubts over whether the government is in a position to clear dues while sustaining new rollouts.

Ahead of the 2026 budget, the UDA and the Ministry of Urban Development, Construction and Housing held pre-budget discussions in August 2025. The review flagged numerous unfinished housing, sanitation and bridge projects and emphasised the need to expedite disbursements and payment flows.

The collision of obligations is stark: on one hand, the UDA is moving to curb contractor malpractices through blacklisting; on the other, the contracting base is under pressure as unpaid dues undermine cash flows, threaten project continuity and risk a wave of contractor defaults.

The dues problem extends beyond the UDA’s purview government-led road rehabilitation programmes, for example, were noted in 2024 to face overdue payments nearing the hundred-billion-rupee mark.

For roads and highways specifically, the stalled contractor payments inject uncertainty into sub-contracts and maintenance works, indirectly affecting the UDA’s urban infrastructure portfolio. The fiscal squeeze means that even when allocations are made, the rate of release and actual progress lag behind.

Going into the 2026 budget, several dynamics will matter: whether the government creates a formal repayment schedule for outstanding dues, whether contractor blacklisting comes with safeguards for small and medium-sized firms, and how the UDA aligns its enforcement drive with the wider fiscal constraints facing the finance ministry.

Without a credible plan to clear dues, the blacklist strategy while symbolically strongrisks targeting under-capitalised firms already reeling from payment delays.

In summary, the UDA’s intervention to discipline the contracting sector arrives against a backdrop of billions in unpaid state obligations, stalled infrastructure deliveries and mounting pressure on the public finances.

The 2026 budget will be closely watched for whether it addresses the payment backlog and how it balances regulatory enforcement with the need to preserve the contracting ecosystem critical for infrastructure delivery.