Category: Daily Financial Times

The inaugural ceremony of ‘Badhu Shakthi 2026′ National Tax Week, a year-long initiative aimed at strengthening State revenue generation and fostering a culture of voluntary tax compliance, was held yesterday at the Presidential Secretariat under the patronage of Parliament Speaker Dr. Jagath Wickramaratne.

Organised by the Revenue Administration Reform and Modernisation Unit of the Presidential Secretariat, the program seeks to transform public perceptions of taxation while broadening the country’s tax base and supporting the country’s long-term economic development.

As part of the initiative, National Tax Week will be observed across the country from 6 to 10 July, accompanied by a countrywide media and public awareness campaign, including the distribution of educational material and promotional activities to encourage greater tax compliance.

Dr. Wickramaratne said: ”Badhu Shakthi 2026′ was not merely a tax collection campaign, but a national movement aimed at cultivating responsible citizens committed to the country’s development.’

He said the economic independence and long-term stability of any sovereign nation depended on strong State revenue, with taxation serving as one of the key pillars of national development.

Dr. Wickramaratne acknowledged that taxation had long been viewed negatively, attributing the perception to shortcomings in tax administration and political patronage that had enabled tax evasion in the past.

The Speaker said the current Government had succeeded in improving public confidence by demonstrating that tax revenue was being utilised transparently for development and public welfare.

He noted that major infrastructure projects, including expressways, highways, and power projects, were now being financed through domestic resources rather than foreign borrowing.

Dr. Wickramaratne cited the commencement of the Kandy Expressway without external loans and Cabinet approval for the Kurunegala-Galewela Road project as examples of the country’s growing ability to finance development independently.

He also said tax revenue had enabled the Government to allocate Rs. 500 billion in response to Cyclone Ditwah while expanding assistance through the President’s Fund, including educational support for schoolchildren across the country.

The Speaker stressed that increasing public awareness of how tax revenue is utilised would strengthen confidence in the tax system, helping to expand the tax base, improve compliance, and reduce tax evasion. He added that if every citizen paid their fair share of taxes, the overall tax burden on individuals could be reduced.

Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando said a better public understanding of taxation would help accelerate Sri Lanka’s economic and social transformation.

He said although individuals pursued personal aspirations, many national goals could only be achieved through collective effort and cooperation. He noted that paying taxes had become much simpler through improvements to the tax administration system, enabling more efficient and systematic revenue collection.

Dr. Fernando said the Government also recognised its responsibility to manage public finances prudently and ensure tax revenue was used effectively for the benefit of society. He warned that poor financial discipline would undermine public confidence and discourage tax compliance.

He said the Government had therefore introduced a tax administration system based on fiscal discipline and would not tolerate fraud, corruption or waste, adding that rebuilding the country required every citizen to contribute willingly with a sense of national responsibility rather than merely complying with legal obligations.

Sun Siyam Pasikudah, part of the Privé Collection under Maldivian-owned Sun Siyam Resorts, the Privé Collection property of The House of Siyam, recently played host to the finalists and crew of Poland’s national beauty pageant, Miss Polski 2026, as part of an islandwide tour organised in partnership with the Sri Lanka Tourism Promotion Bureau (SLTPB).

The 24 finalists, accompanied by reigning titleholders Oliwia Mikulska (Miss Polski 2025) and Kasandra Zawal (Miss Polski 2024), along with a 45-member production and competition crew, arrived in Sri Lanka on 7 June for a 10-day tour ahead of the grand final in Nowy Sacz on 2 August, which will be broadcast live on Polsat.

The itinerary, which began in Sigiriya before moving on to the East Coast, was designed to showcase the island’s cultural heritage, natural beauty, and wildlife to an international audience, with the group’s experiences and photography shared widely across Polish media throughout the tour.

As part of this journey, the group spent two nights at Sun Siyam Pasikudah, where the resort’s pristine beachfront and laid-back East Coast setting provided the backdrop for an exclusive promotional photography session featuring the finalists.

SLTPB Deputy Director Masitha De Thabrew said the collaboration was aimed at putting Sri Lanka’s lesser-explored destinations in front of a global audience through platforms like Miss Polski, while giving the finalists an authentic taste of the island’s hospitality and scenic diversity.

Sun Siyam Pasikudah General Manager Arshed Refai said the team was delighted to welcome the Miss Polski finalists and crew to the property, adding that moments like these are a reminder of just how much the East Coast has to offer international visitors and productions alike, from its calm turquoise waters to the warmth of the welcome they receive on arrival.

For Sun Siyam Pasikudah, the visit offered an opportunity to showcase the East Coast’s appeal as an emerging destination for both leisure travellers and international productions, reinforcing the resort’s position as a boutique escape that pairs natural beauty with refined hospitality.

Set along one of Pasikudah’s most idyllic stretches of coastline, the resort is known for its shallow, calm lagoon waters, powder soft sands, and uninterrupted views of the bay, framed by swaying palms and the kind of quiet that makes the East Coast feel worlds away. Its understated villas and suites, many opening directly onto the beach, are designed to blend into this natural setting rather than compete with it, offering guests a sense of seclusion paired with the personalised service The House of Siyam is known for.

Tucked along one of Sri Lanka’s most unspoiled coastlines, Sun Siyam Pasikudah’s 34 contemporary pavilions sit lightly on the landscape, part of a wider commitment to sustainability that runs through solar power, water conservation, and a waste approach built on reduction, recycling, and composting. As the boutique tier of The House of Siyam, the Privé Collection property is built for travellers drawn to a sense of place rather than just a view, something reflected in experiences like its floating platform dining, set against the bay and the Indian Ocean beyond.

The St. Peter’s College Rugby Foundation elected a new leadership team at its 18th Annual General Meeting, held at the Old Boys’ Union Secretariat of St. Peter’s College, Bambalapitiya, recently.

Former committee member Jerome Brohier was elected President, succeeding Samson Roy, who completed a successful three-year tenure at the helm of the Foundation. General Secretary Amry Jiffry was reappointed for a third consecutive term. Amil Zimal was elected Treasurer, while Themiya De Mel and Ziyan Badurdeen were appointed Vice Presidents.

The Annual General Meeting was attended by St. Peter’s College Rector Fr. Rohitha Rodrigo, Sports Coordinator Fr. Praveen Wijesekara, and Old Boys’ Union President Dr. Nirmal de Silva. (SJ)

Sri Lanka has spent six decades proving it can build institutions: Universities, Banks, and Entrepreneurs. The harder question is whether it can finally make them work together, province by province. A look through the lens of decentralisation, and a proposal: the ‘PraLe’ Triangulation Model.

Kamil is a young man living in Matara who teaches mathematics at a nearby government school during the day. At night, he works on a software tool designed to help farmers in Southern Province monitor soil moisture and market prices using a second-hand laptop. He has a brilliant idea. He has the discipline. He even has a university in his own city that runs an agriculture faculty and a computer science department. However, he faces challenges, such as a lack of resources for the university to support his project, banks unwilling to overlook his lack of collateral or credit history, and provincial authorities who do not recognise his potential. As he waits for opportunities, Kamil searches LinkedIn for job openings in Colombo, hoping to find a supportive environment for his idea.

This situation is common across Sri Lanka, highlighting a broader issue: the country excels at generating talent, capital, and ideas throughout its provinces but struggles to connect them effectively, with most opportunities concentrated in the Western Province. Home to Colombo, the Western Province accounts for over 42% of the nation’s entire output, while the other eight provinces share the rest.

This significant imbalance is not just a result of administrative choices; it highlights a fundamental flaw in the system that drains regional resources, talent, and innovation, funnelling them into Colombo’s real estate and import sectors. To address this issue, it is essential to move beyond traditional fiscal transfers and explore how aligning provincial economies can transform administrative borders into sources of sustainable growth.

How the island learned to bend toward Colombo

The numbers that frame Sri Lanka’s narrative are striking. In 1970, when the island was still referred to as Ceylon, the per capita income stood at about $ 187 (World Bank Open Data, 2026). Today, Sri Lanka has regained ‘upper-middle-income’ status in the World Bank’s 2026-27 classification cycle, with the per capita GDP dramatically increasing to $ 5003 (CBSL Annual Economic Review, 2025), despite facing a brutal civil war and an economic crisis, including a recent sovereign default. This transformation reflects an extraordinary resilience in the face of adversity. However, resilience does not equate to success, and the path to progress was filled with difficulties.

Beginning in the early 1960s, Sri Lanka faced a persistent shortage of foreign currency, leading to a self-imposed isolation. These problems intensified in the mid-1960s and again in the early 1970s under the ‘closed economy’ policies. Around 1974, only about 40% of its industrial capacity was utilised, as factories built under protective tariffs struggled with a shortage of raw materials and high production costs. A significant turning point occurred in 1977 when Sri Lanka opened its economy. This led to the establishment of garment factories, especially in Katunayake area, and by the mid-1990s, Garment exports accounted for more than half of Sri Lanka’s export earnings (Weerakoon and Thennakoon, 2006)

The liberalisation programme continued through the 1980s, making Sri Lanka the most liberalised economy in South Asia. Alongside industry, two quieter revolutions were taking shape. Banking expanded rapidly, increasing from about 2,000 licensed commercial bank branches in 2008 to over 2,900 by 2015, reaching areas that had long been cut off from formal finance, especially in the North and East after the war ended in 2009.vThe ‘PraLe’ model does not call for the creation of complex state structures or excessive fiscal spending. Instead, it establishes a systematic approach to connect three essential components present in every province: the University, the Banks, and the Entrepreneur, collectively known as the UBE Triangle.

n The University (U) acts as the crucial incubator, focusing on creating local mentoring systems, safeguarding early-stage design risks, and preparing students and regional talent to become capable founders. It serves as a supportive environment that encourages talent development, minimises the fear of failure, and transforms academic research into practical business opportunities before engaging with financial institutions.

n The Bank (B) plays a vital role within this triangle, ensuring that financial resources are integrated into the innovation process, especially in a credit-restricted setting. By collaborating with the university ecosystem, which has already assessed and validated entrepreneurs and their prototypes, banks can confidently offer financing options that do not rely on traditional credit histories, thus supporting promising entrepreneurs.

n The Entrepreneur (E) is the primary development agent. She/He emerges from the university’s nurturing environment, equipped with tested prototypes ready to leverage local commercial credit and turn innovations into successful businesses.

At the core of the “PraLe” model is the “Pradeshiya Lekham,” which acts as a local facilitator and overseer. It provides essential support, streamlines administrative processes, offers risk-sharing guarantees, aligns local infrastructure and regulations, and connects public services to minimise obstacles. Essentially, the Pradeshiya Lekham plays a crucial role in fostering the UBE triangle by aligning the interests of various stakeholders and ensuring that validated concepts quickly evolve into job-creating economic activities rooted in local communities. The Pradeshiya Lekham’s competitive advantage lies in its local credibility, swift administrative processes, and ability to absorb risks cost-effectively, which together facilitate rapid and impactful economic development. What sets this model apart is not just the triangle itself, but its unique nine-fold symmetry. The model does not have to be built. It just needs to be ‘switched on’. Once the UBE triangle is switched on, the entrepreneur’s journey does not stop at just validation; it scales through the LNG progression of Local, National, and Global markets. Early traction within the home province builds the credibility and cash flow needed to “Go to Market” nationally, where the venture is tested against broader competition and demand. Achieving success at this level paves the way for entry into global markets, allowing Sri Lankan innovation to compete at an international level. Each stage compounds the gains of the last, transforming a fragile prototype into a mature, progressing startup that no longer relies on university support or the bank’s credit line, instead becoming a self-sustaining engine of economic value.

As the entrepreneur grows from Local to National to Global, the value created flows back into the system that built it: the University gains real-world case studies, research partnerships, and reputational capital, while the Bank gains a proven client with a track record, repeat business, and a stronger loan book. The UBE triangle thus creates a virtuous cycle, where success at one node of the triangle strengthens the other two for the next entrepreneur in line.

Choosing whom to back – A business model canvas for entrepreneurs

The success of this triangle hinges on the entrepreneur at its third corner. If banks are to lend and universities to mentor, both need a common, honest way to ask the oldest question in enterprise: is this founder, and this idea, worth backing? The ‘PraLe’ Model introduces a straightforward diagnostic tool, the Business Model Canvas (Bamunusinghe, 2021), aimed at identifying promising entrepreneurs rather than creating merely a business plan. An interactive version of the BMC can be accessed at https://slsme.org/

This tool is very simple, featuring eight dimensions surrounding a central question – the ‘SME Business Prospect’, which measures the founder’s capability to recognise and leverage opportunities. The dimensions are organised along four axes: Revenue Potential, Company Practices, Capital Building, and Business Landscape. Each is scored on a ten-point scale, from unsatisfactory to satisfactory. The aggregate score gives an honest read on the entrepreneur’s overall business potential.

The strength of the tool is evident in its comprehensive approach to enhancing the triangle’s functionality. It provides banks with a clear and consistent framework for making credit decisions that extend beyond mere collateral considerations. For universities, it offers a structured curriculum and a mentoring checklist, while entrepreneurs receive a detailed assessment of their ventures, highlighting both strengths and areas for improvement. For entrepreneurs, it gives an honest mirror, cell by cell, of where a venture is strong and where it must improve. A founder who scores low on Cost Scheme but excels in Value Proposition knows exactly where the next conversation with a mentor or a lender must begin. The BMC is currently being developed as a mobile application that would enable aspiring entrepreneurs across various provinces to self-evaluate and connect, based on merit, with the corresponding university and bank at the other vertices of the triangle.

Nine autonomous engines, each to its strength

When provinces are liberated from the singular goal of enhancing Colombo’s service economy, they can tailor their UBE triangle to leverage their distinct competitive advantages. Say…..

n The Western Province can establish itself as a hub for finance and technology, exporting its banking and university expertise to support the other provinces.

n The Central Province can focus on tea value addition, Agri-tech, and tourism, utilising Peradeniya for research and development alongside plantation finance.

n The Southern Province can capitalise on logistics and light manufacturing driven by the Hambantota port, supported by local talent and trade finance.

n The North-Western Province can enhance agribusiness and food processing, with Wayamba University serving as the core of agri-innovation.

n Sabaragamuwa can specialise in gems and hydropower, leveraging its university’s design and geology programs.

n The Eastern Province can develop its deep-water port, fisheries, and tourism sectors, with support from local universities and post-war investment finance.

n Uva can focus on highland tea, eco-tourism, and renewable energy, with Uva Wellassa University fostering entrepreneurship.

n The North-Central Province can enhance irrigated agriculture and heritage tourism, with Rajarata University as the Agri-water cluster.

n Finally, the Northern Province can drive growth through reconstruction in fisheries, agriculture, and trade across the Palk Strait with assistance from Jaffna University, supported by targeted development banking initiatives.

Keyu Jin’s “Mayor Economy”: A real-world validation of The PraLe Model’s decentralisation approach

The ‘PraLe’ Model’s core argument that decentralised, locally driven ecosystems can produce better economic outcomes has powerful real-world validation in the experience of other economies, the most compelling one coming from China, as documented by London School of Economics economist Keyu Jin in The New China Playbook (2023). The common Western assumption, Jin argues, is wrong. China is not run top-down by a handful of people in Beijing. Politically, it is highly centralised; economically, it is fiercely decentralised. The decisions that built modern China were made on the ground, by local officials.

(Authors Yash Naik, MBA Merit, PIM, University of Sri Jayewardenepura; Imandee Gunaratne, Undergraduate, Department of Decision Sciences, University of Moratuwa; Dr. Ravi Bamunusinghe , Senior Lecturer. PIM, University of Sri Jayewardenepura and Dr. Indra Mahakalanda, Senior Lecturer Department of Decision Sciences, University of Moratuwa)

The National Sales Average (NSA) of tea declined in June, but increased marginally during the first half of 2026, according to Forbes and Walker Research.

The NSA for the month was Rs. 1,153.49 ($ 3.45), down Rs. 31.07 and $ 0.20 from May’s average of Rs. 1,184.56 ($ 3.65).

June…

Compared with June 2025, however, the NSA increased by Rs. 50.22 from Rs. 1,103.27, although the US dollar equivalent declined by $ 0.23 year-on-year (YoY) from $ 3.68.

The cumulative NSA for the first six months of 2026 stood at Rs. 1,162.09 ($ 3.66), representing a marginal increase of Rs. 3.55 over the Rs. 1,158.54 recorded during the corresponding period in 2025. However, the dollar-denominated average declined by $ 0.23 from $ 3.89.

Among the elevation categories, Forbes and Walker Research said the High Grown average recorded the sharpest month-on-month decline, falling Rs. 64.64 and $ 0.29. Compared with June 2025, High Grown teas posted a gain of Rs. 52.40, although the dollar average declined by $ 0.19.

The Medium Grown category recorded a month-on-month decline of Rs. 53.74 and $ 0.25, while compared with the corresponding month last year, the average fell by Rs. 29.82 and $ 0.43.

The Low Grown average declined by Rs. 12.61 and $ 0.15 compared with May 2026. However, against June 2025, Low Grown teas registered a positive variance of Rs. 72.02, despite the US Dollar average declining by $ 0.19.

On a year-to-date (YTD) basis, only the High Grown elevation recorded a positive variance in Sri Lankan rupee terms, while the Medium and Low Grown categories posted negative variances in both rupee and US dollar terms.

Trinity College, Kandy opener Dimantha Mahavithana stroked a brilliant unbeaten century and S Thomas’ Mt Lavinia left-arm seamer Gimhan Mendis took five wickets for 41 runs to set up Sri Lanka U19’s series levelling eight-wicket win against India Under19 in the second Youth ODI played at the Mahinda Rajapaksa Cricket Stadium, Hambantota yesterday.

In another high scoring match India U19 chose to bat first but failed to last the 50 overs as they were dismissed for 285 in the 48th over. Sri Lanka U19 knocked the runs off losing only two wickets to win with 12 balls to spare.

The three-match series stands at one-all with the third and final game to be played on 9 July at the same venue.

A feature of the Indian batting was the fifth wicket partnership of 145 in 21 overs between Anvay Dravid, the 17-year-old son of former Indian cricketer Rahul Dravid and Arjun Rajput. The pair came together when India U19 were in a bit of bother having lost their first four wickets for 81.

Dravid went on to score a stroke-filled 87 off 67 balls (9 fours, 1 six) before becoming one of Mendis’ five victims. Rajput made 76 off 81 balls (9 fours, 1 six) when Mahavithana ran him out with a direct hit. Once the partnership was broken India U19 lost their way with the last six wickets falling for 59 runs. Mendis cleaned up the tail getting the last two Indian wickets off successive deliveries.

Sri Lanka U19 lost an early wicket when Dulnith Sigera was out for 14, but Mahavithana batting with great authority combined in two century partnerships to see Sri Lanka U19 home comfortably. He finished the match in grand fashion with a six that also brought up his 150. Mahavithana finished unbeaten on 155 scored off 153 balls (12 fours, 5 sixes) and was assisted in partnerships of 103 off 124 balls by Senuja Wekunagoda (60 off 64 balls, 4 fours, 2 sixes) and 163* off 135 balls by skipper Vimath Dinsara (56* off 60 balls, 3 fours). – [ST]

Scores:

India (U19) 285 (47.2) (VK Vineeth 24, Kushagra Ojha 38, Anvay Dravid 87, Arjun Rajput 76, Gimhan Mendis 5/41, Kavija Gamage 2/54)

Sri Lanka (U19) 291-2 (48) (Dimantha Mahavithana 155*, Senuja Wekunagoda 60, Vimath Dinsara 56*)

The Parliamentary Committee on Public Finance (CoPF) last week pressed the Central Bank of Sri Lanka (CBSL) over whether the country’s anti-money laundering and counter-terrorism financing framework is becoming more expansive than necessary, with lawmakers questioning whether successive legal amendments risk extending regulatory powers beyond what is required to meet international standards.

The discussion took place as the Committee considered several Bills and regulations aimed at strengthening Sri Lanka’s compliance with the standards of the Financial Action Task Force (FATF), the global body that sets benchmarks for combatting money laundering and terrorist financing.

CBSL and legal officials argued that the reforms are driven not by a desire to widen State powers but by the need to satisfy increasingly demanding international assessments and avoid the economic consequences of renewed grey-listing.

CoPF Chairman Dr. Harsha de Silva questioned whether some of the proposed legislative language went beyond what was strictly necessary to meet FATF obligations, referring to concerns raised by civil society groups, including the potential impact on individual liberties. While acknowledging the importance of strengthening the legal framework, he asked whether sufficient consideration had been given to ensuring that innocent individuals would not be unfairly affected by broad criminal provisions.

CBSL and legal officials responded that the legislation largely reflected obligations arising from international conventions and evolving UN standards, particularly following concerns over foreign terrorist fighters after the 2019 Easter Sunday attacks.

They added that concerns raised by petitioners had already been considered, with committee-stage amendments proposed to other related legislation following observations by the Supreme Court.

CoPF member MP Ravi Karunanayake widened the discussion by questioning whether Sri Lanka had become overly focused on incorporating every international recommendation into domestic law without giving sufficient weight to national priorities.

He argued that Parliament should carefully consider whether the country was legislating beyond what served its own interests, noting that previous debates had already highlighted the risk of ‘technical defaults’ arising from excessive regulatory obligations.

Karunanayake repeatedly asked officials who Sri Lanka was ultimately seeking to satisfy through the expanding legislative framework and whether domestic interests should take precedence over international expectations.

Officials from the Attorney General’s Department and the Financial Intelligence Unit replied that FATF assessments have entered a new phase.

Unlike previous mutual evaluations, which focused largely on whether appropriate laws existed, the current review cycle places greater emphasis on effectiveness, examining the number of investigations, prosecutions, convictions, and asset freezes carried out by authorities.

They said merely having legislation in place would no longer be sufficient to satisfy assessors. Authorities would now be expected to demonstrate that the framework is being actively enforced.

When Karunanayake questioned why Sri Lanka should attach so much importance to FATF compliance, officials stressed that virtually every jurisdiction is expected to implement the organisation’s recommendations and that failure to do so carries significant financial consequences.

They noted that grey-listing increases scrutiny of cross-border financial transactions, raises compliance costs, and affects the country’s international financial reputation. Officials also outlined the latest FATF blacklist and grey list, emphasising that countries now face a more demanding process both to avoid and to exit enhanced monitoring.

CBSL Governor Dr. Nandalal Weerasinghe said the primary objective was to protect Sri Lanka from the economic damage associated with renewed FATF sanctions rather than to satisfy external demands for their own sake.

He said the experience of previous grey-listing episodes demonstrated the significant costs imposed on the economy and financial system, making continued compliance an important national interest.

Dr. de Silva acknowledged the economic importance of avoiding another grey-listing, recalling the extensive effort required for Sri Lanka to secure its removal in the previous review cycle. While indicating the Committee would approve the measures before it, he maintained that Parliament should continue to balance stronger enforcement powers with appropriate safeguards for civil liberties.

The deadly clashes that erupted inside Negombo Prison on Sunday and continued into yesterday, killing 26 people and injuring more than 100 others, have renewed calls for authorities to address longstanding structural problems, including severe overcrowding, inadequate infrastructure, and acute staff shortages, that have increasingly threatened the security of Sri Lanka’s prison system.

The unrest, which initially broke out between two groups of inmates on Sunday afternoon, yesterday escalated into one of the deadliest incidents in the country’s prison history.

According to Department of Prisons sources, at least 26 people, including a prison jailor, a senior prison guard, seven prison guards, and inmates, were killed in renewed violence and gunfire inside Negombo Prison yesterday morning as prison authorities, the Police, and the military struggled to regain control of the facility.

The Police Media Division said the death toll and number of injuries increased after inmates reportedly attempted to force their way through the Prison’s main gate at around 10 a.m. yesterday.

Authorities confirmed that prison officers were among the dead, alongside inmates, while more than 100 injured people were admitted to the Negombo District General Hospital. Seriously injured prisoners were later transferred to the National Hospital in Colombo, where hospital sources said around 10 inmates underwent emergency surgery.

Prison sources said the attempted prison break triggered fresh clashes and exchanges of gunfire inside the Prison. Journalists at the scene reported hearing continuous gunfire as security forces deployed additional personnel to contain the violence.

Department of Prisons Spokesperson A.C. Gajanayake said: ‘On Monday morning, while breakfast was being served, inmates attacked prison officers inside the premises. As the situation escalated, groups of inmates attempted to break out through the main gate and violently assaulted prison officials.’

He said inmates had destroyed the Prison’s CCTV cameras during the unrest but were unable to obtain firearms because the Prison armoury had been secured after the initial clashes happened on Sunday.

Negombo District General Hospital Director Dr. Pushpa Gamalathge said medical teams were operating under severe pressure.

‘We are treating a large number of critically injured patients. Several have already undergone surgery, while others continue to be assessed,’ she said.

Police and Special Task Force (STF) personnel were deployed in large numbers to regain control of the Prison. The Sri Lanka Army and Sri Lanka Air Force were later called in to strengthen security both inside and outside the prison.

Prison officials said Negombo Prison currently accommodates more than 2,400 inmates, including remand prisoners, placing enormous pressure on available facilities.

‘They are under immense pressure due to severe shortages of space and basic facilities. Negombo Prison is operating well beyond its capacity. Managing the institution has become increasingly difficult with prison staff at only about one-quarter of the required strength,’ a senior prison official said, speaking on condition of anonymity.

The Department of Prisons has appointed a special committee to investigate the incident, while separate Police and magisterial inquiries are also underway.

Gajanayake said authorities had begun transferring inmates to the Welikada and Agunakolapelessa Prisons to ease overcrowding and restore the situation.

Male and female inmates who staged a protest on Sunday afternoon also sustained injuries after part of a roof collapsed during the unrest.

Meanwhile, prison authorities confirmed that no foreign inmates, including those from India and Australia, were killed or injured during the clashes. They were transferred to other prisons as a precautionary measure to ensure their safety.

While taking all measures to tighten and restore security in Negombo Prison, according to prison sources, over 700 inmates have been transferred to the Agunukolapelessa, Bogambara, Anuradhapura, Polonnaruwa, and Kuruwita Prisons yesterday.

In recent weeks there has been a debate in the public domain on the alleged intention of the Government to extend the constitutionally guaranteed tenure of the Chief Justice and the other Judges of the Supreme Court, as well as on the failure of the President to nominate persons to fill eight vacancies on the Supreme Court and the Court of Appeal.

In the weeks preceding that debate, the Speaker rejected a motion submitted by 31 members of Parliament requesting the appointment of a Select Committee of Parliament to examine the exercise by the Judicial Service Commission of its powers relating to the dismissal and disciplinary control of judicial officers. It was alleged on the floor of the House that the JSC had acted arbitrarily in terminating the services of several judicial officers. The Speaker rejected that motion on spurious grounds that the JSC was ‘exercising the judicial power of the People’. The Supreme Court had already held, as far back as 1962, in The Queen v. Liyanage, that the JSC was ‘a body performing executive functions’, and that judicial power is vested in ‘the established courts of this country’.

The Sri Lankan Judiciary is one of the few in the world that has failed to adopt the Bangalore Principles of Judicial Conduct which was adopted by the United Nations General Assembly in 2006. The United Nations ‘invited Member States to encourage their judiciaries to take into consideration the Bangalore Principles when reviewing or developing rules on the professional and ethical conduct of members of the judiciary’. As far as I am aware, the 175-page Commentary on the Bangalore Principles, which was published in 2007 in the official UN languages, and has since been re-published by several national judiciaries in their own languages, has not been made available to the members of the Sri Lankan Judiciary. Nor has the 2019 Istanbul Declaration on Transparency in the Judicial Process, which the United Nations General Assembly invited Member States to take into consideration ‘when formulating their programmes and legislative reforms in the administration of justice’.

These two standard-setting global instruments of the 21st Century, which successive Sri Lankan Governments and Judiciaries have chosen to ignore, prescribe procedures for the disciplining of judges.

Measures for the effective implementation of the Bangalore Principles

This instrument requires that:

n Conduct that may give rise to disciplinary sanctions to be defined by law;

n Disciplinary proceedings against a Judge may be commenced only for serious misconduct;

n A specific body or person should be established by law with responsibility for receiving complaints, for obtaining the response of the Judge, and for considering in the light of such response whether or not there is a sufficient case against the Judge to call for the initiation of disciplinary action, and in the event of such a conclusion, to refer the matter to the disciplinary authority;

n The power to discipline a Judge should be vested in an authority or tribunal which is independent of the legislature and executive, and which is composed of retired or serving Judges, but which may include in its membership persons other than Judges, provided that such persons are not members of the legislature or the executive;

n All disciplinary proceedings should be determined by reference to established standards of justice, and in accordance with a procedure guaranteeing full rights of defence;

n There should be an appeal from the disciplinary authority to a court;

n The final decision in any proceedings instituted against a Judge involving a sanction against the Judge, whether held in camera or in public, should be published;

n Each jurisdiction should identify the sanctions permissible under its own disciplinary system, and ensure that such sanctions are, both in accordance with principle and in application, proportionate;

A Judge may be removed from office only for proved incapacity, conviction of a serious crime, gross incompetence, or conduct that is manifestly contrary to the independence, impartiality and integrity of the judiciary.

The Istanbul Declaration on Transparency in the Judicial Process

This instrument reaffirms the provisions in the Bangalore Principles, and requires the judiciary:

n To develop and promulgate rules or standards of professional and ethical conduct for members of the judiciary, taking into consideration the Bangalore Principles of Judicial Conduct;

n To ensure that each Judge is provided with a written copy of such code and any related material, such as a commentary;

n To disseminate the code of judicial conduct in the community, through written publication or on the internet;

n To establish a mechanism or procedure by which individual Judges may obtain advice on the propriety of proposed conduct;

n To develop courses or modules on judicial ethics and as a mandatory requirement in the initial training of Judges.

The Judicial Service Commission

A Judicial Service Commission consisting of the Chief Justice and the next two senior Judges of the Supreme Court was initially introduced in the 1946 Constitution of the Dominion of Ceylon. It was a constitution which was drafted on the basis of a report of a Royal Commission, and which was issued in the form of an Order-in-Council from Buckingham Palace. The Chief Justice at the time was an officer in the Colonial Legal Service. The JSC was excluded in the 1972 Constitution of the Republic of Sri Lanka but was restored in the 1978 Constitution. Today, it appears to be a constitutional anachronism. If the allegations made on the floor of Parliament in regard to the summary termination of the services of several judicial officers are true, the Judicial Service Commission has failed to take note of, and give effect to, the very significant international developments relating to the judiciary that have occurred in this century.

(The author is the Rapporteur of the UN-sponsored Judicial Integrity Group of Chief Justices, and was actively involved in the drafting, and thereafter in the processes that led to the adoption by the UN General Assembly, of the Bangalore Principles of Judicial Conduct and the Istanbul Declaration on Transparency in the Judicial Process)

Sri Lanka could benefit from easing inflation across the Eurozone through lower fuel import costs, softer imported inflation, and reduced pressure on the rupee, Frontier Research said yesterday, as cooling energy prices strengthen expectations that the European Central Bank (ECB) will leave interest rates unchanged later this month.

The research firm said Eurozone headline inflation slowed to 2.8% in June from 3.2% in May, while core inflation eased to 2.4% from 2.6%, defying earlier expectations that inflationary pressures would intensify following the conflict in the Middle East.

It attributed the sharper-than-expected decline largely to falling energy prices, with oil markets stabilising as concerns over supply disruptions eased.

Frontier Research noted that disinflation had broadened across the currency bloc, with Germany’s inflation easing to 2.3% from 2.6% and France’s slowing to 2% from 2.8%, although Spain’s inflation remained unchanged at 3.6%, suggesting underlying price pressures have yet to fully subside.

The firm said the latest data have reinforced market expectations that the ECB will keep its deposit facility rate unchanged at 2.25% when policymakers meet on 23 July, despite inflation remaining above the ECB’s 2% target.

According to market pricing cited by Frontier Research, there is a 96% probability of rates being left unchanged this month, with only a 4% chance of a further 25-basis-point increase.

For Sri Lanka, Frontier Research said the decline in global oil prices could provide timely relief after the country’s fuel import bill rose sharply earlier this year.

Fuel imports increased to $ 630 million in March before climbing further to $ 866 million in April, although they moderated to $ 536 million in May.

The research firm said a sustained decline in oil prices would help narrow the import bill, strengthen the current account, and ease inflationary pressures at a time when domestic consumer prices have been accelerating.

Frontier Research also said lower inflation in Europe could reduce the cost of Sri Lanka’s imports from the EU, which amounts to approximately $ 1.15 billion annually, further supporting domestic price stability.

In addition, lower global oil prices could reduce depreciation pressure on the rupee, which has weakened by around 7% against the US dollar so far this year, improving macroeconomic conditions following the rise in energy prices triggered by tensions in the Middle East.

However, Frontier Research cautioned that risks to the inflation outlook remain.

It noted that energy prices continue to trade above pre-conflict levels, while uncertainty surrounding developments in the Middle East, potential fertiliser shortages, and adverse weather conditions in Europe could place renewed upward pressure on food prices, potentially delaying further monetary easing by the ECB later this year.