Category: Daily Financial Times

The “Poson Bliss 2026” festival is being held in Polonnaruwa from June 27 to July 2 to mark this year’s Poson celebrations, offering a range of recreational activities and family-friendly entertainment for visitors.

Health Minister Dr. Nalinda Jayatissa yesterday (27) opened a state-of-the-art AI-enabled Cardiac Catheterisation Laboratory (Cath Lab) at Jaffna Teaching Hospital, established at a cost of Rs. 300 million.

The Ministry of Industries and Entrepreneurship Development, together with the Sri Lanka Export Development Board and the Department of Textile Industries, launched the Handloom Weaving Design Handbook and hosted the ‘Art of Weaving’ Fashion Show to promote Sri Lanka’s traditional handloom sector and expand its local and international market reach.

A discussion on modernising Sri Lanka Customs and strengthening export facilitation under the National Export Development Plan (NEDP) 2026-2030 was recently held at the Presidential Secretariat.

A programme to raise awareness among District Secretaries and Productivity Development Officers on the National Programme to Develop 1,000 Young Entrepreneurs Islandwide was recently held at the Sri Lanka Foundation Institute under the patronage of Ministry Secretary Thilaka Jayasundara.

‘Deposuit potentes de sede et exaltavit humiles’ (He has put down the mighty from their seat and exalted them of low degree). These words of W. H. Longfellow ring a bell when one looks at the turn of events surrounding the US-Israel war against Iran.

Never in the history of US military adventures in the Middle East has it experienced such an embarrassing setback as against Iran in the aftermath of 28 February.

In Libya, Iraq, Yemen and Afghanistan, the US virtually faced no credible resistance against its military might and walked away with incredible arrogance after causing maximum destruction and bloodshed.

In fact, something along that scale was the original intention of Donald Trump and his Israeli partner Benjamin Netanyahu, who planned to walk away in two weeks’ time after destroying the so-called mullah regime with its non-existent nuclear arsenal and replacing that regime with that of the Pahlavi Dynasty. At one point, Trump even trumpeted that he would destroy Iran’s entire civilisation.

But after spending an expected $ 1 trillion, according to Linda Bilmes, a public policy expert from Harvard Kennedy School, it is Iran, not the US, that appears to be setting the agenda for possible regime changes in both the US and Israel.

The fourteen-point memorandum signed between the US and Iran a few days ago in Switzerland is expected to ‘turn over a new leaf’ in US-Iran relations, according to US Vice President J. D. Vance. However, until that memorandum is ratified in sixty days’ time, it remains a fragile ceasefire, like Trump’s other ceasefires.

Unless Trump intervenes directly to keep Israel out of South Lebanon, this ceasefire cannot last long. In the meantime, Iran’s blockade of the Strait of Hormuz and the US counter-blockade will be removed, oil and gas transportation through the strait will resume, and nations across the continents could breathe a sigh of relief, expecting their economic pain to ease, at least for now.

Among those fourteen points are five crucial ones, which really show that Iran is negotiating from a position of strength and not weakness.

Mutual respect for each other’s sovereignty, $ 300 billion for Iran’s reconstruction from as yet unknown sources, termination of all US sanctions against Iran, release of Iranian frozen assets, and negotiations over Iran’s nuclear and uranium enrichment program under the supervision of the International Atomic Energy Agency are vital issues on which Iran would not yield, and the fate of the memorandum lies in the US ratifying them. (That Iran has no nuclear weapons at present and that the late Ayatollah Ali Khamenei banned their production are open secrets.)

However, Iran has proved itself capable not only of defending its territory against any foreign threat but also of attacking US bases anywhere in the Gulf region and the Middle East. The main reason why Israel revolted against this memorandum is that it wanted Iran’s nuclear and uranium enrichment programs to be destroyed completely or transferred elsewhere so that Israel could remain the only nuclear power in the Middle East.

The chief loser in this development is Israel.

It was Israel and the Zionist lobby in Washington that pressed Trump to bomb Iran in the first place. Now, having lost that gamble and allowed Iran to gain the upper hand in negotiations, Netanyahu’s own future, personally, and that of his Likud Party, politically, are in jeopardy. That is why, in sheer desperation, Israel insists on occupying South Lebanon in the name of fighting Hezbollah’s so-called terrorism. But Iran insists on Israeli withdrawal. Trump is in a dilemma. Is there a way out of this predicament?

The absence of any mention of the future of Gaza and the West Bank in the memorandum indicates that Israel might be compensated by being allowed to annex these two territories permanently into Eretz Israel. Already, Trump and Israel are actively working to strip Jordan of its historic custodianship over Al-Aqsa, with a plan to convert it into a multifaith centre so that its Islamic identity would be destroyed forever.

Trump’s son-in-law Jared Kushner and US Ambassador to Israel Mike Huckabee are reported to be championing this sinister design. That is why the omission of Gaza and the West Bank from the memorandum gives room to suspect that Iran is ready to sacrifice the cause of Palestine in exchange for its own national benefits. Are the Qatari and Pakistani negotiators also party to this devil’s bargain?

Revenge of history

The Middle East tragedy since 7 October 2023 originated in 1948 when that Zionist entity called Israel was planted at the heart of the Arab world. None of the Arab leaders since then realised that this entity would remain an existential threat to all their kingdoms and governments and that they should either individually or collectively build their own defence capabilities against the new enemy. Instead, what they did was surrender that vital sector at the feet of the dominant Western powers, starting with Britain and then switching to the US.

The American bases in the Gulf region speak volumes about this surrender. Even after the 1970s, when petrodollars started flooding the national coffers of a few of them to such an extent that they could have, as *The Economist* commented at the time, ‘paved their deserts with gold’, they chose instead to invest that wealth in the West and tried to recreate at home the image of those legendary Arabian Nights.

When the struggle for an independent Palestine led by the PLO became an irritant to them after the 1970s, they went along with the Western powers to endorse whatever solutions were offered by those powers.

The so-called Oslo Accord was virtually a blueprint for the eventual absorption of Palestine by Israel. To make the situation worse, one or two Arab regimes, such as the UAE and Saudi Arabia, were already normalising their relations with Israel behind the scenes. When Libya and Iraq tried to challenge the US-made Middle East order and were militarily destroyed by the US as a result, the other Arab regimes remained spectators because of their historic disunity.

Trump’s Abraham Accord in 2020 was an open invitation to these regimes to formalise their relations with Israel. The UAE and Bahrain did so immediately, and the others were almost ready to join in when Trump was defeated in the midterm elections. Iran, however, remained an outsider to these developments and, after 1979, chose to reject US leadership altogether and Israel’s claim to military dominance over the Middle East. The rest is history.

In short, the Israeli genocide in and physical desertification of Gaza, the killings and forced eviction of Palestinians by Israeli settlers, all designed and endorsed by the Israeli Government in the West Bank, the killings, destruction and occupation of Southern Lebanon under the pretext of fighting Hezbollah terrorism, and the bombing of Iran by the US are all history’s revenge on a disunited Arab world. Its natural allies are in the East and not in the West.

Even the Prophet looked to China as a repository of knowledge and wanted his followers to seek that knowledge from that quarter. When will the Arab intelligentsia wake up to this truth?

The Government will introduce a modem-based remote control system for large rooftop solar installations by the end of the year, enabling the power utility National Systems Operator (NSO) to disconnect solar generation during emergencies to safeguard national grid stability.

Speaking in Parliament yesterday, Deputy Minister of Energy Arkam Ilyas said around 2,200 rooftop solar installations generating over 100 kW will be fitted with communication modems that will allow the authorities to remotely switch off feeders when required.

‘We have launched a project to fix a modem for them. Then, in such an emergency situation, we will be able to remotely turn the feeders off and avoid power breakdowns in various parts of the country,’ he said.

As an interim measure, the Government has requested owners of rooftop solar installations generating more than 300 kW to voluntarily disconnect their systems from 27 to 29 June to prevent a repeat of the widespread power disruptions experienced during the recent Vesak holiday.

The Deputy Minister said the authorities had been forced to disconnect around 120 feeders during the previous incident to protect the national grid.

‘System stability is number one,’ Ilyas said, stressing that safeguarding the integrity of the national grid remains the Government’s overriding priority.

Veteran policing and national security intelligence expert Mahil Dole, recently launched his latest book, Security Beyond Enforcement: Practical Approaches for a Safer Nation at the Mandarina Colombo, bringing together diplomats, senior law enforcement officials, academics and members of the security community for an important discussion on the future of national security.

The event was graced by High Commissioner of Malaysia in Sri Lanka Badli Hisham Adam as the Chief Guest, while DIG Colombo Nishantha De Zoysa attended as the Guest of Honour.

Dole brings decades of distinguished service in national security and intelligence to this important contribution to Sri Lanka’s evolving security discourse, offering practical insights and policy perspectives shaped by years of experience in policing, intelligence coordination and public safety.

The publication presents a forward-looking approach to national security, urging policymakers and institutions to move beyond conventional enforcement methods toward preventive, inclusive and community-driven strategies.

Dole emphasised that true national security extends beyond arrests and enforcement.

‘True security is not merely about enforcement; it is about building resilient societies where prevention, partnership and people-centred strategies work in harmony,’ he stated.

The book explores several contemporary security strategies and policy approaches, including community-centric prevention through proactive public engagement and trust-building, intelligence-led security frameworks focused on technology and inter-agency coordination, and holistic national security measures that address socio-economic and ideological factors contributing to instability and extremism.

Badli Hisham Adam highlighted the importance of addressing the root causes of terrorism and extremism rather than associating such issues with any religion or community.

He noted that terrorism should never be linked to a particular faith or ethnic group, stressing instead the need to understand the socio-economic inequalities, ideological influences and lack of inclusion that often contribute to radicalisation and violence.

Imara Amiranthi Wijegunaratna, niece of the author, noted that the family takes great pride in its long-standing contribution to Sri Lanka’s public service, with several family members having served the nation with dedication and sacrifice.

She stated that some had even laid down their lives in service to the country, reflecting the family’s deep commitment to protecting the sovereignty and future of Sri Lanka.

Written in a clear and accessible style, Security Beyond Enforcement balances practical experience with strategic insight. The inclusion of actionable policy recommendations makes the book valuable not only for security professionals and policymakers but also for students, researchers, and readers interested in governance and public policy.

The launch reflected the importance of the publication, with distinguished guests commending the book’s forward-looking vision and timely contribution to modern security discourse in Sri Lanka and the wider region.

The Government yesterday formally presented its Fiscal Strategy Statement to Parliament, setting out the policy framework that will underpin the 2027 Budget while reaffirming its commitment to fiscal consolidation, revenue mobilisation and transparent public financial management as the country continues its economic recovery.

Addressing a media briefing, Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando said the statement was tabled in accordance with the Public Financial Management Act No. 44 of 2024. It is a new statutory requirement that must be presented before 30 June each year, outlining the Government’s fiscal strategy for the following year together with an assessment of risks that could affect public finances.

He described sound public financial management as one of the pillars of sustaining economic stability, stressing that without adequate Government revenue, ‘the country would really lead to a collapse situation.’

‘The statement consists of two key components. The first outlines the Government’s fiscal strategy, including revenue mobilisation measures and expenditure priorities that will form the foundation for next year’s Budget. The second provides a comprehensive assessment of fiscal risks, covering both domestic vulnerabilities and external economic threats, together with the strategy to manage them,’ he explained.

Dr. Fernando said the document is intended not only for policymakers but also for the general public, adding that it would be published on the Finance Ministry’s website to enhance transparency and allow citizens to evaluate the Government’s fiscal strategy and governance framework.

The Deputy Minister also countered what he described as widespread misinformation surrounding several tax amendments recently presented in Parliament, particularly changes relating to Value Added Tax (VAT), digital services and financial services taxation.

Rejecting claims that the Government had introduced a new tax burden on small and medium-sized enterprises (SMEs), Dr. Fernando clarified that VAT is ultimately paid by consumers rather than businesses, with enterprises merely acting as collection agents throughout the supply chain.

‘The misleading information is that we have imposed a ‘new tax’, especially on SME entrepreneurs. No, it is wrong,’ he said.

He insisted that the Government’s objective is to gradually bring businesses involved in manufacturing, wholesale and retail trade into a more comprehensive VAT registration network, enabling firms to claim input tax credits while improving fairness and reducing leakages in the tax system.

However, acknowledging current business conditions, Economic Development Deputy Minister Nishantha Jayaweera said the Government had decided to temporarily postpone the reduction of the compulsory VAT registration threshold from Rs. 60 million to Rs. 36 million, allowing affected businesses additional time to prepare for the new compliance requirements following recent economic disruptions.

He stressed that other tax administration reforms aimed at improving compliance, digitalisation and efficiency would proceed as planned.

Addressing concerns over so-called ‘digital taxes’, Dr. Fernando dismissed claims that the Government had imposed a tax on software or digital businesses.

Instead, he said the amendment merely extends VAT obligations to non-resident providers of digital services supplied to Sri Lankan consumers through electronic platforms, ensuring equal treatment between overseas providers and resident businesses already subject to VAT.

‘What we have done is increase fairness,’ he said, noting that detailed implementation guidelines would be issued by the Inland Revenue Department (IRD).

Dr. Fernando also clarified amendments relating to VAT and the Social Security Contribution Levy (SSCL) applicable to financial service providers, explaining that the changes simply consolidate the two applicable tax rates into a combined 20.5% calculation for ease of administration rather than introducing an additional tax burden.

He accused critics of misrepresenting the amendments and creating unnecessary public concern through social media.

‘I take the opportunity to tell the general public not to be misled by this wrong information. Always follow proper and authentic information, which is publicly available,’ he said.

Reiterating the Government’s broader economic priorities, Dr. Fernando said maintaining fiscal discipline, strengthening revenue administration and adhering to good governance principles remain essential to safeguarding macroeconomic stability and keeping Sri Lanka’s recovery on track.

‘We have understood that one of the key factors in stabilising the country and taking the economy towards our objective is the quality of public financial management,’ he said.

THE main opposition party, Samagi Samagi Jana Balawegaya (SJB) has suspended the party membership of its Horana organiser, Charith Abeysinghe, following his arrest and subsequent remand over an alleged bribery incident.

The party also suspended Abeysinghe from all positions and portfolios he held within the SJB with immediate effect.

In a special statement, SJB General Secretary Ranjith Madduma Bandara said Abeysinghe had neither functioned as a party member nor served as its Horana organiser during 2023. He added that Abeysinghe did not hold any official position within the SJB during that period.

Madduma Bandara nevertheless stressed that the SJB does not oppose the enforcement of the law or the judicial process against individuals implicated in corruption or any other illegal activity.