Industry Minister concludes official visit to India to advance industrial and investment ties

At the invitation of the Union Minister of Textiles of India, Shri Giriraj Singh, the Minister of Industry and Entrepreneurship Development of Sri Lanka, Sunil Handunneththi, concluded a successful official visit to India from 14 to 18 July 2026, undertaking a series of high-level engagements aimed at strengthening bilateral cooperation in industry, investment, textiles, agribusiness and technology.

At Bharat Tex 2026 in New Delhi on 14 July, Minister Handunneththi met with the Union Minister of Textiles, Shri Giriraj Singh, and the Minister of State for Textiles and External Affairs, Shri Pabitra Margherita. The discussions focused on enhancing India – Sri Lanka cooperation in the textiles and apparel sector, promoting investment, strengthening value chain linkages, expanding trade and industrial collaboration, and advancing capacity building.

On 15 July, the Minister visited the Rajasthan State Industrial Development and Investment Corporation (RIICO) Neemrana Japanese Zone in Rajasthan to gain first-hand insights into India’s successful model of attracting foreign direct investment through dedicated industrial parks. Discussions highlighted industrial infrastructure, investment facilitation, skills development and integration into global manufacturing value chains.

On 16 July, the Minister participated in a business roundtable organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), where he engaged with Indian business leaders on opportunities to expand trade, investment and industrial partnerships between Sri Lanka and India.

The Minister further met in New Delhi, with the Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, to explore opportunities for expanding economic cooperation between Sri Lanka and the State of Madhya Pradesh. Recalling the ancient civilisational links between Sanchi and Sri Lanka, the Chief Minister invited Minister Handunneththi to participate in the Madhya Pradesh Global Investors Summit (GIS) 2027 to be held in Bhopal in January 2027. He also encouraged the exploration of direct air connectivity between Colombo and Bhopal to facilitate tourism, business partnerships and greater people-to-people exchanges.

Recognising the importance of agricultural modernisation and value addition, the Minister visited the Indo – Israel Centre of Excellence for Vegetables in Haryana on 17 July, where he was briefed on advanced technologies in protected cultivation, precision irrigation, nursery management and farmer capacity building. He also toured the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) Mega Food Park in Sonipat to study integrated food processing, cold chain infrastructure and value addition systems that support agricultural productivity, rural development and market connectivity.

The visit underscored the growing momentum in the Sri Lanka – India economic partnership and reflected the shared commitment of both countries to deepen cooperation across manufacturing, investment, innovation, agriculture and food processing, while strengthening capacity building, tourism, cultural exchanges and people-to-people connectivity.

Science can lead the way: Reduce smoking harm to public

The scientific community together with the industry and innovation have made significant strides in reducing smoking-related harm, as more people switch from combustible cigarettes to reduced risk profile products. However, in some countries, policymaker and public awareness of tobacco harm reduction – or smokeless nicotine products – is slow, as cigarettes are intrinsically linked with nicotine historically. While nicotine is addictive and not risk-free, it is not listed as a known carcinogen by the WHO,

British American Tobacco’s Head of Scientific Engagement, Marianna Gaca, avers it is critical to decouple smoking from nicotine. She notes that nicotine is not the primary cause of smoking-related chronic diseases, but that the misconceptions are so entrenched that harm reduction products have become difficult to discuss with regulators, despite roughly 5 million smoking-related mortalities annually.

‘When you light a cigarette or tobacco, it is one of the most complex reactions. In a couple of seconds, in the smoke that is generated, there are over 7,000 substances that are formed the consumer will inhale. Of those substances about 150 are known to be toxins, and some of these are carcinogens. You really have to decouple smoking and nicotine,’ she said.

Tobacco harm reduction is a topic that governments, and public health practitioners, should open doors to, but the experience thus far has been quite different. Speaking on the sidelines of the Global Nicotine Forum in Warsaw, Gaca noted it is a difficult message to deliver. However, when policymakers are engaged one-on-one with the science and are taken through the story, they see and understand the story much better.

‘For the regulation of tobacco harm reduction products, there is a trajectory for any country and environment. If you consider the model risk continuum, many people would recognise these products – from vape, to heated products to nicotine pouches as potentially lower-risk alternatives to cigarettes. Cessation of smoking is the preferred approach of course.’

As a microbiologist and expert on cell and molecular biology, Gaca, stressed the importance of providing smokers with potentially reduced risk alternatives that conform to high-quality standards and ingredients. Cigarettes remain the market leader globally. She points to the downstream consequences of prohibitionist regulations that have led to increases in the illicit trade of cigarettes and vapor products.

‘We must go to the science to really help us understand the difference between combustibles, and smokeless tobacco and nicotine products, as you would find the data quite compelling. Within BAT alone we have over 250 publications in the space of non-combustible products, and we have a series of steps and an assessment framework that we take our product through.’

‘But emissions alone are not enough, we must go to the lab and understand the biological impacts of reductions in emissions. The clinical studies we do with adult consumers help us assess the different biomarkers in the body,’ Gaca said, explaining the rigorous checks and balances that take place.

Gaca closed by explaining that the model risk continuum for tobacco and nicotine products is not an industry construct, but a framework designed by two eminent public health scientists. She noted that nicotine pouches or oral tobacco products like Snus as used in Sweden consistently appear in research for harm reduction globally, and are expected to play an important role in reducing smoking related harm globally.

DSL announces promotion of Pinidiyapathirage as Joint MD

Douglas and Sons Ltd., (DSL) has promoted Jayendra Pinidiyapathirage as the Joint Managing Director.

Prior to this promotion, he served as the Deputy Managing Director of DSL from January 2023.

Jayendra joined the organisation in March 1989 and has played a pivotal role in driving the company’s growth over the years.

In his new role as Joint Managing Director, he will work closely with the Chairman and Managing Director Saroj Perera and the leadership team to guide the organisation through its next phase of sustainable growth.

Commenting on the appointment, Perera said: ‘We are delighted to announce Pinidiyapathirage’s promotion to Joint Managing Director. His leadership, integrity and dedication have been instrumental in our achievements. We are confident that he will continue to inspire our teams and lead the company toward even greater success.’

No confidence motion against Justice Minister to be debated tomorrow

The Parliamentary Business Committee has decided that the no confidence motion against Justice and National Integration Minister Harshana Nanayakkara, will be taken up for debate in Parliament tomorrow (24).

The decision was reached during the Parliamentary Business Committee’s meeting held yesterday.

The Opposition formally handed over a noconfidence motion against Justice Minister Nanayakkara to Speaker Dr. Jagath Wickramaratne in Parliament on Tuesday (21).

The submission was made with the signatures of several Opposition MPs, marking a coordinated challenge to the Minister’s position. The motion comes in direct response to the Negombo Prison unrest on 5 and 6 July, where clashes left 10 prison officers and inmates dead and several others seriously injured.

The Opposition pointed out that Minister Nanayakkara failed to fulfill his responsibility and accountability for ensuring the safety of those in custody.

NDB posts PAT of Rs. 3 b in 2Q 2026 driven by core banking operations

National Development Bank PLC (NDB) has announced its financial results for the six months ended 30 June 2026. Despite the challenges arising from the fraud uncovered in April 2026, the bank delivered healthy results, driven by strong core banking operations, reflecting the resilience of its business model and the clarity of its strategic direction.

The bank reported an operating profit before taxes on financial services of Rs. 9.5 billion for 1H 2026, after recognising the gross financial impact of the fraud attributable to the period amounting to Rs. 2.55 billion, which related entirely to the quarter ended 31 March 2026. This compares with an operating profit before taxes on financial services of Rs. 4.38 billion for 1H 2025, which has been restated to reflect the applicable fraud impact of Rs. 4.26 billion recognised for that period.

Post-tax profit for 1H 2026 amounted to Rs. 4.83 billion, compared with a restated post-tax profit of Rs. 1.93 billion for 1H 2025, with the net financial impact of the fraud reflected in both periods. Excluding the impact of the fraud, post-tax profit for 1H 2026 would have been Rs. 6.21 billion, compared with Rs. 4.22 billion in the corresponding period of 2025. Notably, the bank recorded a standalone post-tax profit of Rs. 3.01 billion during the 2Q 2026, the first full quarter since the reporting of the fraud. These results underscore the strength of the bank’s underlying franchise, earnings resilience, and the continued momentum of its core banking operations.

The bank continued to deliver a strong income performance during the period under review, generating total operating income of Rs. 25.13 billion, representing a year-on-year (YoY) growth of 12.7% over 1H 2025. This growth was driven entirely by the bank’s core banking operations and is presented before taking into account any financial impact arising from the fraud incident.

Supporting this performance, total revenue increased by 12.8% YoY to Rs. 53.82 billion. Net interest income (NII) grew by 2.8% YoY to Rs. 17.42 billion, supported by prudent balance sheet management, disciplined pricing strategies, and effective asset and liability management. Interest income increased by 8.4% to Rs. 45.86 billion, while interest expense rose by 12.1% to Rs. 28.44 billion. Against the backdrop of the prevailing interest rate environment, the bank’s timely repricing of both loan and deposit portfolios helped sustain margin performance, resulting in a net interest margin (NIM) of 3.8%, compared with 4.1% for FY 2025.

Net fee and commission income continued to be a key contributor to revenue diversification, increasing by 22.4% YoY to Rs. 4.45 billion, driven primarily by credit, cards, operations, and trade-related activities. Other non-fund-based income, comprising gains from trading activities, financial assets measured at fair value through profit or loss, derecognition of financial assets, and other operating income, amounted to Rs. 3.26 billion during 1H 2026. Within other operating income, foreign reserve revaluation gains netted Rs. 1.21 billion, and compared with a Rs. 362.37 million in 1H 2025.

Impairment charges on loans and other investments declined to Rs. 3.46 billion, representing a significant 22.9% YoY reduction. Loan impairment charges decreased by 18.7%, reflecting the benefits of the bank’s continued focus on asset quality management, enhanced credit underwriting standards, closer monitoring of asset quality and stage migration trends, and strengthened recovery efforts. The impaired loans (Stage 3) – Net ratio improved to 3.3% as at 30 June 2026 from 3.8% at end-2025, while Stage 3 provision coverage improved further to 62.9% from 59.1%.

Total operating expenses amounted to Rs. 12.18 billion for the period under review, including Rs. 2.55 billion recognised under other operating expenses in relation to the fraud. The comparative operating expense for 1H 2025, adjusted for the fraud-related expense applicable to that period, was Rs. 13.44 billion.

Following the discovery of the fraud within the bank, several announcements were made to the CSE on 2, 6 and 23 April 2026 to keep stakeholders informed of developments. As per the latest update, issued on 26 June, the bank received the Interim Report from Deloitte Touche Tohmatsu India LLP (Deloitte), which had been commissioned by the Board of Directors to conduct an independent forensic review of the facts and circumstances surrounding the fraud. Based on Deloitte’s examination conducted thus far, the value of the suspicious transactions identified amounts to Rs. 13.58 billion, versus the initial estimate of Rs. 13.2 billion.

The bank has restated its financial statements, including comparative information for prior periods, to reflect the impact of this revised amount of Rs. 13.58 billion as follows: Rs. 1.42 billion to periods prior to 1 January 2025, Rs. 9.62 billion to the financial year ended 31 December 2025, and Rs. 2.55 billion to the quarter ended 31 March 2026. Accordingly, the Statement of Profit or Loss for the comparative period ended 30 June 2025 and the Statements of Financial Position as at 1 January 2025 and 31 December 2025 have been restated.

These restatements have been made in accordance with applicable accounting standards to ensure that the financial statements present a true and fair view of the financial impact arising from the fraud. Following these adjustments, the previously reported post-tax profit of Rs. 9.03 billion for FY 2024 has been restated to Rs. 8.18 billion, while the previously reported post-tax profit of Rs. 11.04 billion for FY 2025 has been restated to Rs. 5.9 billion.

The bank reported total assets of Rs. 949.02 billion as at 30 June 2026 after recognising the financial impact of the fraud, compared with a restated asset base of Rs. 926.14 billion as at 31 December 2025. On an unadjusted basis, total assets as at 30 June 2026 would have amounted to Rs. 960.71 billion, compared with Rs. 935.81 billion at end-2025.

Net loans increased to Rs. 595.28 billion from Rs. 593.6 billion as at 31 December 2025, while total deposits grew to Rs. 712.5 billion from Rs. 707.17 billion. The Bank’s Current Account Savings Account (CASA) ratio stood at 23.6% as at end-1H 2026, compared with 27% at end-2025. Total equity attributable to shareholders amounted to Rs. 80.05 billion, while Group equity stood at Rs. 87.55 billion as at 30 June 2026.

The bank maintained a sound liquidity and capital position throughout the period under review. Liquidity Coverage Ratios (LCR) in both rupee and all-currency terms stood at 163.5% and 163.2%, respectively, while the Net Stable Funding Ratio (NSFR) was 129.5%. All ratios remained comfortably above the regulatory minimum requirement of 100%.

The bank’s solvency position also remained robust, with Common Equity Tier 1 (CET 1)/Tier I Capital and Total Capital Adequacy Ratios (CAR) of 9.7% and 15.3%, respectively, as at 30 June 2026, remaining above applicable regulatory minimum requirements. The corresponding restated ratios as at 31 December 2025 were 11.3% and 14.8%, respectively.

All Key Performance Indicators (KPIs) for 1H 2026 are presented after incorporating the financial impact of the fraud, with comparative figures similarly restated. Return on Average Equity (ROE) improved to 12.7% for 1H 2026, compared with a restated ROE of 7.5% for FY 2025. Pre-tax Return on Average Assets (ROA) was 2.2%, compared with a restated 1.4% for FY 2025.

Annualised Earnings per Share (EPS) increased to Rs. 23.49 from a restated Rs. 13.83 for FY 2025. At Group level, ROE and EPS stood at 11.8% and Rs. 23.54, respectively, compared with restated FY 2025 figures of 8.4% and Rs. 15.77. Net Asset Value (NAV) per share stood at Rs. 185.21 as at 30 June 2026 compared with a restated Rs. 187.67 as at 31 December 2025, while the closing share price was Rs. 112.50 (FY 2025: Rs. 141.25). Group NAV per share was Rs. 199 compared with a restated Rs. 201.61 at end-2025.

Commenting on the bank’s financial performance for 1H 2026, Director/Chief Executive Officer Kelum Edirisinghe said:

‘The bank continues to demonstrate resilience and stability, remaining firmly aligned with its strategic priorities despite the challenges encountered during the year. While dedicated teams remain fully engaged in addressing matters relating to the fraud incident, the broader organisation continues to execute its business strategy with focus, ensuring continuity in operations and service delivery to our customers.

Following the discovery of the fraud, the bank acted swiftly and decisively to strengthen its governance and risk management framework. A comprehensive forensic review by Deloitte is ongoing, while a series of enhanced control measures have already been implemented across the organisation. Investigations by the relevant law enforcement authorities are also progressing independently.

Importantly, the bank remains well-capitalised and liquid, with capital and liquidity buffers comfortably supporting our business operations and future growth ambitions. Our balance sheet strength, coupled with our prudent risk management practices, positions us well to navigate the evolving operating environment.

We remain focused on supporting Sri Lanka’s economic recovery and growth, particularly through continued engagement with the small and medium enterprise (SME) and retail sectors, which are critical drivers of economic activity. The confidence and trust placed in us by our customers, depositors, investors, and other stakeholders have been deeply encouraging, and we remain committed to honouring that trust through consistent execution and responsible stewardship.’

Ceylon Energy hosts ‘Energize 2026’; launches Apollo Energy, Delaware USA investment platform

Reaffirming its commitment to driving innovation in the energy sector, Ceylon Energy successfully hosted ‘Energize 2026,’ a premier knowledge-sharing forum that brought together global industry experts, engineers, investors, business leaders, and energy professionals to explore the latest developments shaping the future of energy.

Held under the theme ‘Latest Industrial Developments in the Energy Sector,’ the event served as a platform for knowledge sharing, collaboration, and discussions on global innovations transforming the energy industry. Through a series of technical presentations and an engaging panel discussion, participants gained valuable insights into emerging technologies, modern engineering practices, and future opportunities within the sector.

The workshop featured distinguished resource personnel representing Ceylon Energy’s strategic global alliances, including Hubbell Power Systems, CTC Global, and Aclara Technologies. The experts shared their knowledge on advanced transmission and distribution technologies, smart grid solutions, digital infrastructure, and innovations that are shaping energy systems across the world.

The event attracted a diverse audience comprising engineers, utility professionals, investors, financial institutions, business leaders, and other stakeholders from across the energy sector.

A key highlight of ‘Energize 2026’ was the insightful panel discussion titled ‘Shaping the Future of Energy,’ which brought together renowned global industry experts to discuss the opportunities and challenges in building resilient and technology-driven energy systems.

The panel featured Hubbell Power Systems USA International HPS Sales Vice President Fabio C. Faria, Aclara Technologies USA Product Management Vice President Julian Roteta, Hubbell Power Systems Southeast Asia Territory Manager Dr. Timothy See Thoe, Hubbell Power Systems USA Transmission Principal Engineer Jeff Butler, and CTC Global South Asia Vice President Hitesh Mundhada.

The panellists shared valuable perspectives on technological advancements, innovation, investment opportunities, and the importance of adopting global best practices to transform the energy sector.

A defining highlight of ‘Energize 2026’ was the official launch of Apollo Energy, Delaware USA, an innovative investment platform introduced by Ceylon Energy Chairman and Founder Madu Fernando. The platform has been developed to connect investors with carefully curated high-yield energy and infrastructure projects across Sri Lanka and the wider region, creating a transparent marketplace for investment in sustainable energy developments.

Apollo Energy enables participation from investors of all scales, from individual investors to corporate and institutional investment groups, opening access to opportunities that have traditionally been limited to large-scale investors. By bridging the gap between project developers and investors, the platform is expected to unlock new sources of funding for renewable energy and infrastructure projects while creating attractive long-term investment opportunities and stronger returns for investors.

Speaking at the launch, Fernando said: ‘All our initiatives are focused on our vision of ‘Lighting People’s Lives.’ Apollo Energy is one such initiative, and Energize by Ceylon Energy is another platform built with the same purpose, to empower the industry through knowledge, innovation, collaboration, and opportunity.’

AG opposes request to halt Yoshitha’s money laundering case

The Attorney General’s Department yesterday opposed a request made by lawyers for former President Mahinda Rajapaksa’s son Yoshitha Rajapaksa seeking an order to prevent the hearing of a money laundering case filed against him in the Colombo High Court.

The objection was raised before the Supreme Court when Rajapaksa’s appeal was taken up for consideration.

Appearing on behalf of the Attorney General, Deputy Solicitor General Janaka Bandara strongly opposed the request, arguing against halting proceedings under the Prevention of Money Laundering Act.

Minority caucus, PC elections, SJB and the new Constitution noose

The CPA’s latest poll made headlines. The headline-getter was the contrast between President AKD’s approval rating and that of Opposition Leader Sajith Premadasa. ‘…The survey found that 75.5% of respondents are satisfied with President Dissanayake’s performance, compared to 29.4% for Opposition Leader Premadasa’.

The proof of the pudding is in the eating. If AKD was even remotely as popular as the CPA figures claim, it just does not figure why the ruling JVP-NPP fails to:

Minority bloc

Six parliamentary parties representing the Tamil and Muslim people have constituted themselves into a single political platform. I call it a minority bloc or caucus.

In a revival of an old term, it is billed an in-gathering of the Tamil and Muslim parties, collectively representing the ‘Tamil-speaking people’. It consists of the Ilankai Tamil Arasu Kachchi (ITAK), Sri Lanka Muslim Congress (SLMC), Tamil Progressive Alliance, All Ceylon Makkal Congress (ACMC), Democratic Tamil National Alliance (DTNA), and the Ceylon Workers’ Congress (CWC). The leading personalities of the new bloc are M.A. Sumanthiran, Jeevan Thondaman, Rauff Hakeem, Mano Ganeshan, Selvam Adaikalanathan, and Rishard Bathiudeen.

Coverage in the mass media and social media have focused on a supposed split in the Opposition where several parties belonging to Sajith Premadasa’s Samagi Jana Sandhanaya are members of the new minority bloc. This is a grey area, because nothing prevents the six-party bloc acting as a caucus on minority issues while remaining with and within the Samagi Jana Sandhanaya, or returning to it at a national election. But it could also mark an exit from the SJS.

Social media shows a paranoid alert about a convergence of minorities and a near-hysterical call for majority unity to counter it.

As a student of politics, I see nothing amiss in the formation of a minority caucus in the legislature. The USA has long had a respected Congressional Black Caucus.

Tamil Nadu factor

Gajendran Ponnambalam and his party are not members of the new bloc. In fact, the timing of its emergence seems to make it something of a counter to the splash that Ponnambalam made in Tamil Nadu when he met the youthful new Chief Minister.

On his trip to Chennai, Ponnambalam called for political parties in Tamil Nadu and Sri Lanka to form a joint forum which will commit itself to Federalism for the Tamil people of Sri Lanka.

Whether this will happen some way down the road one doesn’t know. But the opening for him to raise such a slogan across the water, comes with the political vacuum at the provincial level in Sri Lanka, with the extended deep-freeze of Provincial Councils by the Anura Dissanayake administration.

If we had elected Provincial Councils up and running, that would have been Sri Lanka’s answer to this new demand. The Government and our able High Commissioner would only have needed to point to the PC system which emanates from the Indo-Sri Lanka Accord. Now, we have nothing to say in our defence; no political shield to raise. The situation is wide open for radical Tamil nationalists like Gajan Ponnambalam to overtly solicit Tamil Nadu political interference in our politics.

While Ponnambalam beckons Tamil Nadu political interference-and he may not be the only one, as it might prove politically contagious among Tamil politicians-the SJB’s Dr. Harsha de Silva has resumed his public crusade to hook up Sri Lanka’s economy with that of Tamil Nadu. Such entanglement would only give Chennai a greater handle over Sri Lanka, and it would be hopelessly naive to imagine that Tamil Nadu’s pan-Tamil nationalism and competitive electoral compulsions will not drive its economic behaviour in the direction of the assertion of control over the neighbour.

Why would any patriotic Sri Lankan politician, Govt or Opposition, wish to confer Tamil Nadu with a potential handle over Sri Lankan affairs-economic, ethnic and geopolitical?

PC elections vs. new Constitution

As for the minority caucus (or ‘Minority Six-Pack’), my critique is not its formation, but the content of its agenda. Firstly, it has a glaring gap. Secondly, it is headed in two contradictory directions.

Its joint communique says:

‘ ‘…any new Constitution should provide the maximum possible devolution of powers within a framework that ensures justice, equality, and meaningful power-sharing’.

‘…The representatives…expressed hope that a common approach on these issues would contribute to reconciliation, democratic governance, and the protection of the rights of all communities in Sri Lanka…’

A country’s Constitutional framework-and certainly that of Sri Lanka and any country of the global South-must have as founding objectives, the safeguarding of National Independence, unity, territorial integrity and ensuring the sovereignty of the people. However, the minority platform does not have any such overarching national/State goals. It reduces the aims of the Constitutional framework to justice, equality and meaningful power-sharing, with no commitment to the unity, territorial integrity and sovereignty of Sri Lanka as a single country. ‘Reconciliation, democratic governance, and the protection of the rights of all communities’ are valid and valuable but the absence of an overarching commitment to Sri Lanka as a State, a country, not simply a (geographic) place, is a dangerous political Freudian slip.

The minority platform wants the Provincial Council election expeditiously held. It also wants Constitutional reform or a new Constitution. ‘…They have identified three immediate priorities: Constitutional reform with meaningful power-sharing; the conduct of PC elections without further delay; and the resolution of land issues affecting Tamil, Muslim, and Malaiyaha Tamil communities….’ (https://www.ft.lk/news/Tamil-parties-urge-President-to-fulfil-pledges-bring-new-Constitution-hold-PC-polls-and-grant-land-rights/56-794632)

The last time the Tamil and Muslim parties sought a new Constitution making for greater power sharing than in the existing Constitution (i.e., the 13th Amendment) was 2015-2019. The upshot is that they are now lobbying plaintively for the holding of Provincial Council elections which they had enjoyed even in wartime but find jammed-up indefinitely by the ‘more meaningful’ amendments they helped introduce. The new, non-unitary Constitution project also helped elect Gotabaya Rajapaksa President.

The time before that, when they held out for a new Constitution during the tenure of President Chandrika Bandaranaike Kumaratunga, the upshot was that her ‘quasi-federal’ political packages were blocked and the backlash secured Mahinda Rajapaksa the candidacy and the presidency.

The Tamil parties forgot the truism that ‘a bird in the hand is worth two in the bush’. The bird in the hand is/was the 13th Amendment. Looking for a bigger bird, the Tamil and Muslim parties seem to have lost the one they held in their hand-the system of elected Provincial Councils (1987). Now they want a bigger bird while also wanting the old one back!

There isn’t a shred of evidence that a new or reformed Constitution would make for greater power sharing with the provinces than the existing 13th Amendment.

The Minority Bloc plus outlier Gajan Ponnambalam fail to recognise the obvious: the 13th Amendment which they want replaced-qualitatively superseded-was the product of a set of forces, factors and circumstances which no longer exist and have been supplanted by forces, factors and circumstances which have moved decisively in the opposite direction.

Black July’83, the LTTE and other armed organisations, the Eelam war, Indira’s India, a pro-devolution left and a ruling UNP that had agreed to devolution in principle, all made for the 13th Amendment enabling devolution to elected provincial administrations within a unitary State -but not beyond.

None of those factors exist anymore. Some exist in reverse. India’s priorities vis-a-vis Sri Lanka have changed. The Eelam war was lost by the secessionists and won by the State. Prabhakaran is dead, the Tigers decimated, the non-LTTE Eelam movement extinguished. The ruling JVP is not ambivalent about devolution as was the UNP, or pro-devolution as was the left led by Vijaya Kumaratunga, but was bitterly hostile to it and remains opposed to provincial devolution as a concept.

The only new card for the Minority Caucus to play is the young Tamil Nadu Chief Minister, but what MGR couldn’t do in wartime with Prabhakaran in play, it is impossible for Thalapathy Vijay to achieve in post-Prabhakaran peacetime.

It would be a commendable feat to retrieve the 13th Amendment, but to expect a new Constitution or a reform to go beyond the 13th Amendment and the unitary State in terms of power-sharing is wildly irrational.

If there is a new system of devolution, it will surely have a smaller unit and/or lesser degree of power-sharing, not a greater one. If it comes to a vote at a referendum, greater devolution will be shot down, as will a new Constitution if it entails greater devolution with or without the executive Presidency. After a defeat, it may be zero-devolution or small-unit devolution that survives. Why should the minority caucus take that risk?

The Minority Six should stick to two of their three demands-hold PC elections swiftly and expedite the processing of return of lands. An all-parties campaign, national and international, demanding Provincial Council elections within a transparent, compressed yet reasonable time-frame, could be legitimately initiated by the parliamentary minority caucus.

SJB’s ‘New Constitution’ illogic

Sri Lankan politics lacks rational thinking. We already have a Constitution which makes for power-sharing (the 13th Amendment) though the latter needs to be unfrozen and reactivated. In any walk of life, when one asks for something new, one must do so either when the old no longer exists and there’s an absence to be filled, or there’s certainty that the new which one will get in exchange for the old, is better than the old which exists.

What gives the minority bloc or the SJB the slightest notion that the new Constitution they are urging the JVP-NPP to introduce, will be better, especially in respect of power-sharing, than the current Constitution?

One can understand the Opposition making a case for a new Constitution, presenting its own ideas, and pledging implementation at an election campaign, when seeking office. That is what JR Jayewardene did in his 1977 election manifesto, having first surfaced the idea in 1966.

But that is not what the SJB and minority bloc are doing. They are lobbying the incumbent President and Cabinet to bring in a new Constitution.

Logically, this means that the SJB trusts the JVP-NPP to produce a Constitution that is more progressive, advanced and enlightened than that which JR Jayewardene, Ranasinghe Premadasa and the UNP introduced (1978), and modified through the 13th Amendment (1987).

Is it only me, or isn’t it surreal to see the SJB expecting-trusting-AKD, Tilvin and the JVP to produce a better Constitution than JR, Premadasa and the UNP?

Isn’t it surreal to see the six-party minority platform expecting-trusting-the JVP which tortured and killed pro-autonomy leftists well before the Indian intervention (university student leader Daya Pathirana) and have never apologised for it, to be architects of a better Constitutional arrangement for greater power-sharing than JR, the UNP and the Government of India produced in 1987?

What of the Opposition’s well-founded fears and warnings that the JVP-NPP is driving towards an authoritarian if not totalitarian system, and that there are many signs of that in the JVP’s politicisation of the power-structures and programs as well as in its public discourse?

The Opposition simply cannot have it both ways. If the JVP-NPP is creeping towards some form of dictatorship, why ask them for a new Constitution which they will only use to further their project of control? A new Constitution would also remove the entrenched, mandatory timeline for the holding of a presidential and parliamentary election. A new Constitution was used as a portal once before (1972) to extend the Government’s term of office. Why run that risk with the JVP-NPP which is ideologically predisposed towards totalitarianism?

Is it that the two Opposition formations -the new minority bloc and the SJB-think that a new Constitution or constitutional reform under the AKD administration is desirable and feasible because the Opposition will produce, articulate and push for enlightened proposals? It is obvious that the Opposition doesn’t have the numbers-the SJB has under 50 and the new Minority Six-Pack has around 20-so how on earth are they going to push through enlightened reform?

The JVP-NPP hardly allows Sajith Premadasa and the Opposition to speak in Parliament, so what makes the Opposition think this Government will magically metamorphose into a benign, enlightened entity which adopts the SJB and the Tamil-speaking bloc’s ‘advanced’ constitutional proposals?

The JVP-NPP doesn’t need the numbers; they have their own. A new Constitution would reflect the JVP’s and its NPP fellow-travellers’ ideas, ideology and political interests, and entrench a monopoly of power. What kind of Opposition can’t figure that out?

Socioeconomic majoritarianism

The Tamil-speaking parties’ platform could be completely flouting the advice given by Lord Soulbury to C. Suntharalingam in 1964. Expressing regret that he didn’t build-in more safeguards for the Tamil minority into the Constitution, he recommended a strategy of mainstream affiliation and participation. His example was the Northern Ireland Protestants’ cooperation with the UK Conservatives in Westminster. (The Catholics leaned towards UK Labour). Lord Soulbury explicitly recommended that the Tamil parties work with the UNP. The UNP space being occupied by its successor the SJB, the delinking/distancing by the minority bloc from Sajith’s SJB implies a rejection of Soulbury’s strategic counsel.

On the other hand, the distancing of the minority bloc from the SJB may be a blessing in disguise. The TNA/ITAK’s lobbying for a new non-unitary/quasi-federal Constitution in place of optimising the 13th Amendment-the result of the Indo-Sri Lankan Accord-did enormous damage to the administrations of Chandrika Bandaranaike Kumaratunga and Maithripala Sirisena, while supporting Ranil Wickremesinghe’s UNP ‘like a rope supports a hanging man’ (as Lenin’s sardonic line goes).

Without the minority parties, Sajith/ SJB can no longer count axiomatically on the minority vote. The SJB is liberated from the liability of bearing the tattoo of ‘minoritarianism’ that eroded Ranil Wickremesinghe’s UNP for decades.

This means that the SJB will have to compete for Sinhala votes with Anura Dissanayake’s JVP-NPP, Namal Rajapaksa’s SLPP and Dilith Jayaweera’s Sarvajana Balaya on a level playing field.

This does NOT mean that the SJB has to resort to ethnoreligious/ethno-lingual nationalism. What it does mean is that the SJB has to revert to the Ranasinghe Premadasa strategy of socioeconomic majoritarianism, rather than ethnoreligious majoritarianism.

President Premadasa’s strategy was the alliance of the socioeconomic majority of the majority, with the majority of the minorities, in a patriotic, populist, pluralist bloc.

CBSL holds policy rate at 8.75%

The Central Bank of Sri Lanka (CBSL) yesterday announced an unchanged stance on policy rates at 8.75% following the Monetary Board Review on Tuesday, citing evolving external shocks stemming from the renewed tensions in the Middle East.

The Board noted that the decision was based on an assessment of evolving domestic and global developments, particularly uncertainties linked to geopolitical tensions and their potential impact on inflation and external stability.

‘Renewed tensions in the Middle East have resulted in a surge in global commodity prices, particularly petroleum. These developments are likely to dampen global economic prospects with potential spillovers to the domestic economy through multiple channels,’ it said in its Monetary Policy statement.

It noted that the CBSL will continue to closely monitor domestic and global developments for emerging risks.

Noting that headline inflation accelerated to 6.8% year-on-year (YoY) in June 2026, mainly due to higher domestic energy and food prices, the CBSL said headline inflation is expected to remain above the target of 5% in the near term before gradually returning to the target level.

It also noted that core inflation is also expected to increase and remain around the headline inflation target.

‘In spite of the near-term uptick in actual inflation, inflation expectations remain well-anchored around the inflation target over the medium term,’ the statement added.

Although the acceleration of headline inflation is largely supply-driven, the CBSL said demand conditions in the economy have also strengthened.

‘The CBSL expects the monetary policy tightening carried out previously to transmit to the economy in the period ahead. It stands ready to take appropriate measures to ensure that inflation stabilises around the 5% target, while supporting the economy to reach its potential over the medium term,’ the statement said.

However, together with other policy measures taken by the Government and the CBSL, the monetary policy tightening in May 2026 and its gradual transmission to the real economy are expected to moderate credit growth and the buildup of demand pressures going forward.

It added that the pressure on the external sector caused by the Middle East conflict has eased somewhat, although the outlook remains uncertain due to renewed tensions.

‘Since April 2026, the external current account has recorded a deficit, mainly because higher fuel import costs widened the merchandise trade deficit and tourism earnings slowed down. Going forward, import demand, including demand for motor vehicles, is expected to reduce in response to recent policy measures,’ it noted.

Meanwhile, the statement said workers’ remittances have remained strong so far in 2026. Gross official reserves stood at $ 6.45 billion at the end of June 2026, amid foreign debt service payments. The Sri Lankan rupee has stabilised somewhat in recent weeks, reflecting the impact of policy measures that have been taken thus far.

Freedom 250 Baseball Series honours American legacy and four decades of baseball in Sri Lanka

The US Embassy in Sri Lanka recently launched the Coach Jim Dimick Memorial Baseball Classic, celebrating the enduring American legacy of baseball in Sri Lanka as part of the Embassy’s

Freedom 250 Baseball Series commemorating the 250th anniversary of the United States.

Chargé d’Affaires Jayne Howell joined players, coaches, alumni, and Sri Lanka Baseball/Softball Association officials at Royal College Colombo to officially launch the tournament, with Marine Security Guard Gunnery Sergeant Kyle Aparicio throwing the ceremonial first pitch.

The triangular tournament brought together Royal College Colombo, Kingswood College Kandy, and Richmond College Galle-three schools whose history is closely intertwined with the growth of American baseball in Sri Lanka. Kingswood opened with a 26-10 win over Royal College before falling 15-7 to Richmond. Richmond secured a place in the championship game with a 7-7 draw against Royal College, but Kingswood prevailed 11-6 in the final rematch to capture the Freedom 250 championship.

Chargé d’Affaires Howell

said: “As America celebrates,

250 years of independence, we are proud to celebrate one of our nation›s greatest traditions-baseball. For generations, America›s national pastime has brought communities together through teamwork, perseverance, and sportsmanship. Today, that same game continues to build friendships between Americans and Sri Lankans. We are proud that baseball, first introduced to Sri Lanka through the leadership of an American coach, continues to inspire young athletes and strengthen the ties between our two countries.”

Baseball is woven into the fabric of American life. For over 150 years, families have gathered at ballparks, children have dreamed of the major leagues, and communities have rallied around the game. Today, America›s national pastime continues to inspire young athletes around the world, connecting people through teamwork, sportsmanship, and a shared love of the game.

For four decades, the United States has supported the growth of baseball in Sri Lanka through sports diplomacy, including coaching exchanges, equipment donations, youth development, community outreach, and partnerships with the Sri Lanka Baseball/Softball Association. The Freedom 250 Baseball Series celebrates both America›s semiquincentennial and the 40th anniversary of baseball in Sri Lanka. Throughout the year, the US Embassy has partnered with Sri Lankan schools, coaches, and athletes to recognise baseball›s enduring role as a bridge between our two nations and as an example of the power of sports diplomacy to connect people across cultures.

Baseball was introduced to Sri Lanka in 1985 by James “Jim”

Dimick, a US Marine Corps veteran and National Baseball Hall of Fame coach, who traveled to Sri Lanka through a U.S. Embassy initiative to conduct the country’s

first baseball clinics. Royal College Colombo was among the four original schools where the game took root, and many of those early players remain leaders in Sri Lankan baseball today. Coach Dimick’s vision and dedication established the foundation for the sport›s continued growth, making him one of the most influential figures in Sri Lankan baseball history.