CBSL projects 4-5% growth in 2026

The Central Bank of Sri Lanka (CBSL) has projected economic growth of 4-5% in 2026, but warned that the outlook remains exposed to geopolitical, external and climate risks.

In its Monetary Policy Report for August 2026, the CBSL said near-term growth prospects had improved as the economic spillovers from geopolitical tensions in the Middle East were less severe than previously anticipated. Improving domestic demand and continued macroeconomic stability are expected to support growth over the medium term.

Real GDP growth in the second quarter is expected to have remained steady, reflecting industry and services performance. The medium-term growth trajectory is expected to strengthen gradually towards potential, although the recovery in domestic demand is likely to be gradual partly due to the transmission of the recent monetary policy tightening.

The CBSL cautioned that renewed Middle East tensions could affect global energy markets, trade, supply chains and investor sentiment, while developments in Sri Lanka’s main trading partners and recurrent weather shocks could weigh on growth. It said continuation of the growth momentum was conditional on timely and effective implementation of structural reforms and growth-enhancing strategies.

The Central Bank also estimates that the current account will return to a moderate deficit in 2026 after three years of surpluses, primarily reflecting a wider trade deficit from higher fuel and vehicle imports and a smaller services surplus due to lower tourism earnings, despite healthy remittance flows.

Its baseline assumes Brent crude will average about $ 80 per barrel in 2026 and $ 70 in 2027, while global food prices, currently close to a three-year high, are expected to moderate gradually.

Downside growth risks include weaker external demand, lower tourism activity and adverse weather, while sustained private-sector credit growth and stronger domestic demand could push economic activity above the baseline projection.

Alumex supports Expressway reforestation project

Hayleys Alumex PLC, partnered with the Road Development Authority (RDA) and the Operations and Maintenance Management Division of the Southern Expressway, to plant approximately 600 indigenous and fruit-bearing trees along sections of the Southern Expressway – spanning the Galanigama and Meerigama-Kurunegala Expressways – on 21 and 22 July.

The initiative, which included species such as mee, kubuk and kaha karanda, reflects the Company’s broader sustainability agenda by minimising its environmental footprint while restoring Sri Lanka’s natural ecosystems through collaborative partnerships.

By increasing indigenous tree cover, the project contributes to restoring ecological balance in areas affected by infrastructure development while supporting long-term biodiversity conservation. It will also help create greener transport corridors, enhancing both the surrounding landscape and the overall driving environment by reducing visual monotony for motorists.

Hayleys Alumex PLC Managing Director Pramuk Dediwela said: ‘Hayleys Alumex PLC is pleased to work with the Road Development Authority in restoring tree cover along vital expressways to leave a lasting environmental legacy. Meaningful environmental progress comes from partnerships and a shared commitment to improving public spaces. As a manufacturer, we believe contributing to the environment in the communities where we operate is simply part of being a responsible business.’ The initiative forms part of ‘Elevate’ – Hayleys Alumex PLC’s comprehensive ESG Roadmap, which integrates sustainability into the Company’s operations and long-term business strategy. Aligned with the broader ESG vision of the Hayleys Group, this roadmap serves as a strategic blueprint in driving initiatives that promote responsible growth and lasting value for future generations.

UNDP partners Sri Lanka to strengthen technical capacity for industrial transformation

The United Nations Development Programme (UNDP) in Sri Lanka and the Industry and Entrepreneurship Development Ministry have entered into a strategic partnership to enhance the Ministry’s institutional and technical capacity through the establishment of an Expert Support Unit, aimed at accelerating industrial development, strengthening entrepreneurship and SME competitiveness, and advancing evidence-based policymaking.

A Memorandum of Understanding (MoU) was signed recently between Industry and Entrepreneurship Development Ministry Secretary Thilaka Jayasundara and UNDP Sri Lanka Resident Representative Azusa Kubota in the presence of Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe.

The partnership will support the design and operationalisation of an embedded Expert Support Unit within the ministry, providing high-quality technical, analytical, and coordination expertise across priority areas including SME development, industrial zone development, trade and policy, digital transformation, data analytics, skills development, and international relations.

Sri Lanka’s industrial sector plays a critical role in driving economic growth, generating employment, and enhancing export competitiveness. As the ministry’s mandate continues to expand to address emerging economic opportunities and challenges, the Expert Support Unit will provide agile and targeted expertise to strengthen program implementation, policy innovation, stakeholder engagement, and strategic coordination.

Deputy Minister Abeysinghe said: ‘Sri Lanka’s ambitions for industrial growth, entrepreneurship development, and export competitiveness require agile institutions equipped with the right expertise and innovative approaches. This partnership with UNDP represents an important step towards strengthening our capacity to develop and implement forward-looking policies, support our entrepreneurs and industries, and deliver impactful solutions that contribute to national economic transformation. The Expert Support Unit will help us accelerate key priorities while strengthening the Ministry’s ability to respond effectively to emerging challenges and opportunities.’

Drawing on UNDP’s experience supporting innovative government capacity-building mechanisms, the initiative will facilitate the rapid deployment of technical specialists while strengthening systems for project management, monitoring, reporting, and performance measurement. The partnership also seeks to mobilise support from development partners and private sector stakeholders to ensure sustainable and impactful results.

Kubota said: ‘UNDP has been proud to support Sri Lanka’s reform agenda through innovative and agile institutional support. We are pleased to partner with the Ministry of Industry and Entrepreneurship Development in establishing the Expert Support Unit, a results-oriented mechanism that brings specialised expertise directly into Government systems. The Ministry’s reform agenda has the potential to create jobs, strengthen Sri Lanka’s integration into global value chains, and accelerate sustainable economic growth. We look forward to supporting the capacities needed to drive this transformation.’

The Expert Support Unit is expected to comprise a multidisciplinary team of specialists embedded within the Ministry, supporting strategic initiatives while fostering knowledge transfer and strengthening institutional capabilities over time.

Parliament website wins Gold, overall Silver at BestWeb.lk 2026

The official website of the Parliament of Sri Lanka has won the Gold Award for Best Government Website and the Overall Silver Award for Best Website at the BestWeb.lk 2026 Awards.

The competition, organised by the LK Domain Registry, attracted over 350 websites across 24 categories, with entries assessed on technical implementation, performance, design, content, security and other features.

The awards ceremony was held on 12 August at Monarch Imperial, Sri Jayawardenepura, with Prime Minister’s Secretary G. Pradeep Saputhanthri as Chief Guest.

Parliament said this marked its return to the competition after a seven-year absence following the launch of its revamped website.

CBSL sees inflation above 5% target near term, risks tilted to upside

The Central Bank of Sri Lanka (CBSL) expects headline inflation to remain above its 5% target in the near term, with risks tilted to the upside as energy and transport costs, exchange-rate pass-through and food prices add to price pressures.

In its Monetary Policy Report for August 2026, the CBSL said headline inflation based on the Colombo Consumer Price Index (CCPI) averaged 5.9% in the second quarter, ending an eight-quarter period during which inflation remained below the target by more than the margin specified under the Monetary Policy Framework Agreement.

The Central Bank expects inflation to remain above target in the near term, driven mainly by energy and transport inflation, exchange-rate pass-through to imported prices and higher volatile food inflation and its base effect. It expects inflation thereafter to moderate towards 5%, conditional on the effects of Middle East tensions and their spillovers proving temporary and gradually dissipating.

Energy and transport inflation accelerated in the second quarter following increases in fuel, electricity and LP gas prices, before easing marginally after downward revisions to fuel and LP gas prices in July. Weather-related uncertainty could also raise electricity generation costs.

The CBSL warned that an escalation of geopolitical tensions could disrupt commodity markets, energy supplies and shipping routes, raising domestic energy, transport and fertiliser costs.

Further rupee depreciation arising from adverse market sentiment and external shocks could also increase imported goods and production input prices, while adverse weather, including El Niño conditions, could pressure food and energy inflation.

‘Risks to inflation projections are assessed to be skewed to the upside in both the near and medium term,’ the CBSL said.

Corporate-sector inflation expectations also increased across all horizons during the first half, with three-month and one-year expectations rising notably between January and June. However, the increase in medium-term expectations was marginal, with expectations remaining broadly anchored around the 5% target.

Sri Lanka’s realpolitik: Why India must come first

Sri Lanka’s No.1 ally – not out of sentiment, but out of geographic reality. Twenty-two miles of the Palk Strait separate the two countries. No treaty, no summit, and no partnership with a distant power can change that. Sri Lanka should never do anything that triggers India’s core security concerns, because India is the neighbour who will always be there, long after other powers have moved on to their next strategic priority.

The United States is now working hard to secure a permanent military foothold in Sri Lanka. Nearly every week brings another visiting delegation, another joint exercise, another statement about ‘mutual security’ and ‘partnership.’ That framing is disingenuous. What Washington actually wants is for Colombo to pull away from Beijing and fall in line with a broader US containment strategy in the Indian Ocean.

China, for its part, spent the last two decades embedding itself in Sri Lanka’s economy – Hambantota Port, Colombo Port City, and a string of loans and infrastructure projects that gave Beijing real leverage.

That closeness alarmed both New Delhi and Washington, and the two capitals have, at different points, worked to pull Sri Lanka back into their orbit – sometimes bluntly, sometimes through economic and political pressure.

The Cold War precedent

This isn’t a new game. During the Cold War, the US ran signals intelligence operations against India out of Sri Lanka, most notably the Voice of America relay station and related listening posts. India saw this as a direct threat sitting in its backyard. New Delhi’s response was to destabilise the J.R. Jayewardene government through the 1980s – training and arming Tamil militant groups, including the LTTE, partly as leverage to force Colombo into line. That pressure culminated in the 1987 Indo-Sri Lanka Accord and the deployment of the Indian Peacekeeping Force (IPKF), an intervention that left thousands dead and produced the 13th Amendment – the still-unresolved promise of devolution to the provinces. It’s one of the clearest examples in the region of a great power treating a small neighbour’s internal politics as an extension of its own security perimeter.

Why today is different

What’s changed since then is that Indian and American interests have converged. Both now see China’s regional presence as the primary threat, so the old friction – Washington undermining Delhi’s backyard – is far less likely to recur. Instead, the two increasingly coordinate: trilateral frameworks, intelligence sharing arrangements like the Colombo Security Conclave (Sri Lanka, India, Maldives, with the US and others as observers), and quiet alignment on which Chinese projects get waved through and which get blocked or renegotiated – the aborted Hambantota deal to a Chinese firm in 2021, and Chinese research vessel visits being slow-walked or denied, are both cases where Indian objections effectively set the terms.

The practical lesson for Colombo is straightforward: Sri Lanka doesn’t need to choose isolation from the US or a wholesale rupture with China to protect itself. It needs to make sure India is consulted and comfortable before any major security-adjacent decision – a port deal, a military exercise, a new base access agreement – goes forward. Run it past Delhi first, and Washington’s ambitions become much less dangerous, because India functions as the gatekeeper for what the region will tolerate. Ignore that step, and Sri Lanka is exposed to exactly the kind of pressure it experienced in the 1980s, just with different sponsors and different tools – economic coercion instead of insurgency this time.

That is realpolitik (Willy Brandt: West German Chancellor vis-a-vis USSRv and East Germany). Simply geography. Small states positioned between great powers don’t get the luxury of picking allies on principle. They survive by reading the map correctly and never forgetting who their permanent neighbour is.

But the other side:

Strong counterarguments a person could raise:

India isn’t a monolith – the MEA, the Indian Navy, and Indian commercial interests (like Adani’s stake in Colombo Port’s West Container Terminal) don’t always want the same thing, so ‘check with India’ is more complicated in practice than it sounds.

Sri Lanka has also used Indian and Chinese competition to extract better terms from both sides – the ‘India-first’ framing may undersell Colombo’s own agency in playing them off each other.

Some would argue the 1980s parallel cuts differently: India’s IPKF intervention was itself deeply resented in Sri Lanka, which complicates using it as a model for why deference to India is the safe choice.

President defends judicial reforms as systemic change, rejects claims of political influence

Sri Lanka (BASL) that the reforms were not designed to benefit or influence any particular judge, but were part of a broader effort to strengthen the judicial system, speed up the delivery of justice and address longstanding capacity constraints.

Below is the full speech made by the President:

‘I would like to briefly present our views on the matters raised here, as well as the reasons that have shaped our approach to this process.

The Bar Association of Sri Lanka (BASL) issued a statement this morning, even though we had scheduled this discussion for this evening. The statement set out your position on the matters under discussion. Therefore, you have come here with a particular position. I have made a considerable effort to come here with an open mind and that was my intention from the outset.

I believe that, in our country, everyone is free to express their views on any matter following a discussion. However, when a discussion has already been scheduled, I do not believe it is appropriate to issue a statement in the morning setting out the content, substance and points to be presented at the discussion later in the day. My view is that doing so can constrain the scope for an open discussion. I make this observation, while fully recognising and respecting your right to express your views and to issue such statements.

When the President of the BASL presented his views, he stated that this was his personal position. I would like to make it clear that I do not regard the views expressed by you as your personal views. I accept them as the views of the legal profession that you represent. I do not, in any way, regard them as your personal opinion.

Secondly, you may say that this represents the views of the entire legal profession. Someone else may say that it does not represent the profession as a whole; another may say that it represents the majority, while someone else may say that it represents only a minority. That remains open to debate. Whether these views represent the entire profession, the majority or a minority is a matter that can be debated by all of us. I do not think we necessarily need to reach a definitive conclusion on that matter.

Thirdly, my approach is firmly grounded in the Constitution. I have absolutely no intention of using my executive powers, or any powers vested in us, beyond the authority granted by the Constitution.

Then there is the alleged risk referred to by Attorney-at-Law Upul, namely, that the previous President had to leave office because of a constitutional amendment and that I, too, might have to leave office as a result. I am prepared to accept that risk. I did not come into office with the intention of remaining here indefinitely. I am also someone who is prepared to take risks in order to bring about change. I do not believe that meaningful change can take place without taking risks. Change always requires a willingness to accept a degree of risk.

The best example I can give is the Easter Sunday investigation. The investigation has been entrusted to the intelligence services, who are also responsible for my security. Yet I am prepared to engage with the investigation. I am aware that doing so involves a risk to my personal safety. However, I do not believe that meaningful change can be achieved without accepting risks. Therefore, I am prepared to take that risk because I believe it is necessary for the people of this country. If, as a result of accepting that risk, I lose my position, I am fully prepared to accept that outcome and leave office. I am ready to do so.

Turning to the other matters that were raised, there was the issue of privilege that you raised, Madam. Where do we draw the line when defining privilege? How can it not be considered a privilege to pave the way for someone personally selected by an individual to eventually occupy the position of Chief Justice? There is a history of such practices.

If someone personally selects an individual, how is that person then brought to the forefront? Such actions can be interpreted as privileges centred on an individual. Another person could interpret the proposal to increase the number of Supreme Court judges from 11 to 17 and the number of Court of Appeal judges from 12 to 20 as an attempt to bring a personally selected group of individuals into the Supreme Court and the Court of Appeal.

Therefore, I believe that any change we make within the judicial sector could be interpreted as a privilege or as an undue influence being exerted on another person. I believe there would be virtually nothing we could do that could not be interpreted in such a manner.

If we look at the changes that have taken place in recent times, when the number of Supreme Court judges was increased from 11 to 17, it could be interpreted as meaning that the provision was created specifically to bring in six individuals who had been personally selected. Today, any change made within the Supreme Court could be interpreted as a privilege from increasing judges’ salaries to granting vehicle permits. Therefore, I made every effort to ensure that this was not structured as a privilege centred on any particular individual.

For that reason, I do not regard this as a privilege. I regard it as an effort to take the existing state of the judiciary to a new level. It is a transformation of the judicial system from its present state to a more advanced position. I do not consider it a privilege intended for any particular individual.

‘These vacancies were not kept open with any particular individual in mind nor were they left unfilled, while waiting for someone to become eligible or qualified for appointment. They remained vacant because of the circumstances surrounding the Easter Sunday case, which has attracted considerable public attention. My only objective was to ensure that justice was served in that case’

‘Police officers are among those who have suffered the highest number of deaths while on duty in Sri Lanka. Last year, 1,100 Police officers died while performing their duties. We are taking steps to recruit an additional 10,000 Police officers, provide them with the equipment they require, including improvements to their uniforms and equip them with the necessary technology. We need to strengthen the investigative process’

Then comes the question: why was it done now, when others had already left and could it not have been done earlier? The answer is that, whenever such a measure is introduced, someone may have retired the day before it takes effect. Likewise, someone else may benefit from it after it has been introduced. Otherwise, such a reform could never be implemented. Whenever such a change is made, there will inevitably be judges who have already retired and others who are approaching retirement age. This is a situation that exists within any judicial system at any given time. Therefore, I do not interpret this as an undue privilege or as undue influence being exercised in favour of a particular group.

Regarding the specific issue you raised concerning the filling of vacancies, I intend to resolve this matter within approximately one month. There is one specific reason for this and I will explain it to you clearly. There is the Easter Sunday case. That case involves approximately 23,000 charges and 3,000 witnesses. The three-member High Court Bench hearing the case comprises some of the most senior judges currently serving in the High Courts. As you have pointed out, those judges would then be among those eligible for appointment to the Court of Appeal.

When I looked into the matter, I found that the case is now at its final stage. It is a case that has attracted significant public attention and in which society has a strong expectation that justice will be served. We all know this. Therefore, I had the view that the judge concerned should be appointed to the Court of Appeal. You are aware of the potential impact that such an appointment could have on the case. I also considered the impact on the judge if he were not appointed. I had to consider whether having him continue to sit on such a significant case could itself place him at an unfair disadvantage. That was the consideration involved.

The next question was why this would not have an impact on appointments from the Court of Appeal to the Supreme Court. I also examined that issue. The volume of cases in the Supreme Court has been steadily decreasing, whereas the more pressing difficulty has arisen in the Court of Appeal. When the two situations are compared, I believe it would be inappropriate to move a group of judges from the Court of Appeal to the Supreme Court while leaving vacancies in the Court of Appeal.

Therefore, I want to state very honestly that these vacancies were not kept open with any particular individual in mind, nor were they left unfilled while waiting for someone to become eligible or qualified for appointment. They remained vacant because of the circumstances surrounding the Easter Sunday case, which has attracted considerable public attention. Even today, reports have indicated that the case could be concluded relatively soon. My only objective was to ensure that justice was served in that case.

That is why I believe this is perhaps the clearest example of judicial independence and the strongest assurance we can provide to people who are awaiting justice. If I had wanted to, I could have allowed the Easter Sunday case to collapse. There are approximately 23,000 charges and 3,000 witnesses. Who would come forward to hear such a case again? When would justice ultimately be delivered to the people? That was the consideration behind my approach.

However, I recognise that, in seeking to ensure fairness to one person, another person may have experienced some degree of unfairness. It is therefore a relative matter. The question is whether, having recognised the disadvantage faced by one person, justice was nevertheless secured for others. That is the balance that has to be considered.

However, the more pressing issue lies within the Court of Appeal rather than the Supreme Court. That was the conclusion I reached. That is the basis of my position regarding these appointments.

This is our principle and our policy. I accept the concerns you have raised. The question is whether ensuring justice means simply filing a case and having it heard expeditiously, or whether the process leading up to the filing of the case is equally important. As you pointed out, that process is also crucial. Therefore, the first step must be to strengthen our investigative process. At present, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has only one office, in Colombo. A bribery allegation arising anywhere in the country has to be brought to Colombo. I expect to establish 24 CIABOC branch offices across the country. Approval has now been granted to recruit 373 officers for this purpose. I have also discussed the matter with the Department of Management Services and obtained approval to place these investigators on salary scales higher than those applicable to the general public service. Investigators need to be placed on an appropriate salary scale because we must strengthen the investigative capacity of the Commission. We recognise the importance of doing so.

‘What we are proposing is a systemic change. Previous changes have often focused on individuals or been tailored to particular individuals’

‘If I had wanted to, I could have allowed the Easter Sunday case to collapse’

Then there is the Sri Lanka Police. The approved police cadre is 102,000, but only around 72,000 officers are currently serving. Of these, nearly 4,000 are on medical leave or are otherwise unable to perform uniformed duties. This means that, out of a cadre of 102,000, only around 68,000 officers are effectively available for duty. These are the personnel from whom we expect to carry out investigations and perform the broader investigative functions required in the country. Police officers are among those who have suffered the highest number of deaths while on duty in Sri Lanka. Last year, 1,100 Police officers died while performing their duties. They are working 18 to 20 hours a day. Therefore, we are taking steps to recruit an additional 10,000 Police officers, provide them with the equipment they require, including improvements to their uniforms and equip them with the necessary technology. We need to strengthen the investigative process. I have observed that investigations often take a considerable amount of time. This is because of the large number of complaints being received and the shortage of personnel available to investigate them. That is why we are strengthening the investigative institutions.

Next, we need to strengthen the Attorney General’s Department to support investigations and conduct prosecutions. There is, in fact, a problem within the Attorney General’s Department. Skilled and experienced legal officers are leaving the department. We have already granted approval to recruit 50 additional officers.

There is also an issue with the current promotion process. Our Minister has begun discussions to revise and improve that process.

In addition, legal officers receive certain allowances, particularly when they handle cases involving companies. I have decided that these allowances should be increased. Unless we ensure that legal officers are placed on an appropriate remuneration structure, we cannot retain and develop highly capable legal professionals within the Attorney General’s Department. We are therefore also giving attention to this matter.

We are also putting in place the necessary preparatory measures before cases reach the courts. I believe that, from the perspective of the judiciary, this constitutional amendment has been delayed. In my view, this amendment should have been introduced alongside the 20th Amendment. When the 20th Amendment increased the number of Supreme Court judges from 11 to 17 and the number of Court of Appeal judges from 12 to 20, let us assume that all six additional Supreme Court judges were appointed from the Court of Appeal. That would have created six vacancies in the Court of Appeal. There were also eight new positions created by increasing the number of Court of Appeal judges from 12 to 20. That would mean a total of 14 appointments would have been required.

At that time, there were only 12 judges in the Court of Appeal. If six of those 12 judges were promoted to the Supreme Court, only six would have remained. To bring the number of Court of Appeal judges up to 20, 14 new judges would therefore have had to be appointed. I believe that was the appropriate time to introduce this amendment. It was then that the increase should have been implemented while retaining and building upon the experience of the existing group of judges. However, that did not happen. That is now a matter of the past.

Therefore, there is a need to retain a certain level of experience within the judicial system. What you said is correct. Some judges may be 65, others 60 and some may be particularly experienced in writing judgments. I accept all of that. However, we cannot make these changes simply by selecting the individuals who are considered capable of writing judgments. That is precisely where the issue of undue privilege and undue intervention arises. If individuals are selected and appointed on the basis of their ability to write judgments properly, who makes that selection? Does the outcome then depend on the person making the selection? That is why I do not believe this was done on the basis of favouritism. I believe it would be preferable to have some form of objective assessment mechanism and make appointments according to that assessment. However, I do not believe that such an assessment mechanism, by itself, would necessarily guarantee judicial independence. That is why I believe the necessary change must be achieved through a broader transformation of the judicial system as a whole.

Then comes the question: will cases actually be heard and concluded more quickly? That is the key issue. The next matter concerns the Court of Appeal. I am not proposing to increase the number of Supreme Court judges. However, I am proposing to increase the number of Court of Appeal judges. The Constitution already provides for the Court of Appeal to sit at provincial level. In other words, the jurisdiction of the Court of Appeal does not necessarily have to remain concentrated in Colombo; while the Court of Appeal remains centrally administered, it can sit in different provinces from time to time. We need to implement that provision and develop the necessary infrastructure to support it.

I have therefore included an increase of four judges to provide the additional capacity required. If it is decided that the Court of Appeal should sit in another location, these additional judges would provide the capacity necessary for such sittings. There is also a significant backlog of cases in the High Courts. I believe we need to establish approximately 11 new courts, primarily across 10 districts, although proposals have now been made for around 11 locations.

We have therefore decided to establish approximately 11 new High Courts, including in areas such as Kurunegala. Once these new courts are established, we will also need to increase the number of High Court judges. Accordingly, we have decided to increase the current cadre from 110 to 120 judges, as additional High Courts need to be established.

Contd. on P11…

The reason is that High Court judges are not part of a general pool in the same way as judges of the Court of Appeal and the Supreme Court. Those courts have a pool of judges, whereas a High Court judge must have a specific court to serve in; otherwise, the individual cannot function as a High Court judge. Therefore, the number of High Court Judges needs to increase in line with the number of new High Courts established. I recently saw a comment suggesting that a deadlock could arise, with the courts effectively being locked for two years and all appointments being frozen as a result. That is not the case. The Supreme Court appointments may be affected by the proposed changes, but the Court of Appeal will continue to be staffed as the additional capacity is created. The four additional Court of Appeal judges will be appointed as the necessary Court of Appeal sittings are established. Similarly, High Court judges will be appointed in line with the establishment of new High Courts. Magistrates will also not have to wait an additional two years before becoming eligible for promotion to the High Court. Promotions within the Magistrate Courts will take place correspondingly.

The next matter you raised concerns the large number of cases pending before the Magistrate’s Courts and the need to reform and strengthen those courts. The Judicial Service Commission is currently taking steps to recruit 50 additional magistrates. According to the information I have received, I do not know whether the interviews have yet been conducted and it is not for me to determine that. If a selection panel determines that only 32 candidates meet the required standard, I cannot instruct them to appoint 33. That would constitute undue interference. Nor can I instruct them to appoint all 50. The panel responsible for recruitment has the authority to determine who meets the standard it considers necessary and to appoint accordingly. That is what judicial independence means. I will not ask why 50 positions were approved but only 32 candidates were selected. That would not be appropriate. The panels responsible for making these appointments have the right to decide not to recruit candidates who do not meet the standard they consider necessary.

These are some of the changes we are making within the judicial system. However, there is little point in establishing additional courts if we are unable to attract and retain the professionals required to staff them. I am aware that Sri Lanka currently faces difficulties in recruiting and retaining professionals in several fields. This is one of the reasons why the retirement age of doctors has been increased from 60 to 63. Initially, this extension applied only to specialist doctors, but it was subsequently extended to all doctors. Therefore, while the retirement age in the general public service remains 60, doctors have been permitted to serve until the age of 63.

More broadly, our first responsibility is to retain the professionals working in these critical fields. Judges, too, face a number of issues, including difficulties relating to official accommodation and deductions from their housing-related benefits. We intend to address all these issues through the Budget. I also expect some of these matters to be resolved even before the Budget is presented.

Another issue is the shortage of support staff. I understand that there is currently a shortage of approximately 1,007 staff members within the judicial sector compared with the approved cadre.

Of these 1,007 vacancies, approval has already been granted to recruit approximately 260 staff members and we will proceed to fill the remaining vacancies as well. We have already received around 21,000 applications for the 260 positions, which illustrates the scale of the recruitment process involved.

We will not bypass the established recruitment procedures. The appointments must be made through a proper competitive examination or interview process. Our objective is to fill all 1,007 vacancies and provide the courts with the necessary human resources and facilities to function effectively.

There are also a large number of courts in the country that remain only partially constructed. In the case of courts where there are two unresolved disputes with contractors, we will exclude those particular projects for the time being. For all other partially completed courts, provisions will be allocated in the Budget to complete the construction work. In addition, 11 more courts have been requested, many of which are currently operating from temporary rented premises. We also intend to allocate funds to construct a number of these courts as permanent facilities.

As you pointed out, we have also taken steps towards the digitalisation of the judicial system. In particular, I have instructed Dr. Hans from the Ministry responsible for digitalisation to meet the Judicial Service Commission (JSC) directly and expedite this work. I believe there has already been significant progress in the Supreme Court and the Court of Appeal. The system is currently at a testing stage and although the programme has been initiated, it needs to be implemented and evaluated to determine whether it is successful.

This is therefore part of a much broader process. It is not, in any way, an issue concerning the extension of the tenure of judges. Rather, it forms part of an approach that looks at the entire process, beginning with investigations and continuing through the judicial process.

I also believe that, regardless of whether the concern raised by one of you is ultimately substantiated, we have to acknowledge the perception that it creates. I accept that point. However, this principle applies more broadly. The judiciary has continued to function and people continue to place their trust in the courts. Is that trust based solely on the most favourable aspects of the judicial system? No. There have been many circumstances that have not reflected the highest standards. Yet people have continued to place their faith in the judicial system. I, too, place my trust in this judicial system.

In reality, what we are proposing is a systemic change. Previous changes have often focused on individuals or been tailored to particular individuals. That is open to interpretation.

I have seen some people asking why this cannot be done after 1 December. If the argument is that it cannot be done after 1 December, then the issue is not really one of principle or policy; rather, it suggests that there is a concern about particular individuals.

I have no personal interest in any particular individuals. I do not even know many of the people concerned. As you know, I have had no close association with many of those who hold positions at that level. I only came to know the names of some of them after assuming this office. They are people whom I would not otherwise have had occasion to meet.

Nevertheless, I believe that a change to the system is necessary.

I believe that this entire process is being undertaken to bring about that systemic change. Therefore, I understand that, in the course of a campaign or a struggle, arguments may sometimes be presented beyond the strict limits of the underlying issue. That is part of the nature of such campaigns and I can understand that as well.

When conducting a campaign, it is often necessary to frame the argument somewhat more strongly than the underlying reasoning itself. I understand that. This can create a heightened sense of alarm for example, suggesting that public confidence in the judiciary will be completely undermined from this point onwards, or that people may begin to question whether a judgment was influenced because the judge concerned received some form of special privilege.

I believe that such arguments can arise as part of efforts to mobilise public opinion when there is disagreement with a particular course of action.

That is the nature of many campaigns. Arguments are often framed somewhat beyond the strict limits of the underlying reasoning.

I am not saying that you are doing this. I am referring to the broader public discourse. The discussion taking place outside the Bar Association sometimes goes beyond the substantive argument.

At times, even the labels being applied to this Constitutional amendment go beyond what is actually contained in the Constitution or supported by the underlying argument. They are sometimes framed in terms of creating fear and alarm rather than through the substance of the argument itself.

Therefore, our view is that we must proceed from the principles and policy objectives underlying this reform.’

Cabinet nod to gazette new draft Immigration Bill

The Cabinet of Ministers has approved the publication of a new draft Immigration Bill in the Government Gazette aimed at replacing the Immigrants and Emigrants Act No. 20 of 1948 and introducing updated provisions to the country’s immigration and emigration framework.

The Bill will subsequently be presented to Parliament for consideration and approval.

A previous draft bill had been prepared to replace the existing legislation. However, further action on that draft could not be taken following the dissolution of the Ninth Parliament on 24 September 2024. The Government subsequently reconsidered the matter, taking into account the decision of the Supreme Court regarding the earlier draft.

Accordingly, the Cabinet approved the preparation of a new Bill at its meeting held on 18 August 2025.

Further amendments were subsequently considered in relation to the introduction of electronic passports. At its meeting on 10 December 2025, the Cabinet approved the inclusion of provisions in the new draft Bill to designate the Secretary to the Ministry responsible for Immigration and Emigration as the Country Signing Certification Authority.

The proposed legislation is expected to provide a modern legal framework for immigration and emigration administration, while incorporating provisions necessary to support the introduction and security of electronic passports and biometric identification technology.

The proposal to this effect was submitted by Public Security and Parliamentary Affairs Minister Harshana Nanayakkara.

Tourism arrivals down 5.9% in first 13 days of Aug.

Sri Lanka’s tourism recovery remained fragile in the first half of August, with arrivals declining 5.9% year-on-year (YoY) to 93,511 visitors, as weaker long-haul demand continued to offset strong arrivals from key regional markets.

According to the latest data released, Sri Lanka welcomed 93,511 international visitors during the first 13 days of August, compared with 99,406 recorded during the corresponding period last year. Average daily arrivals consequently fell to 7,193 from 7,647 a year earlier.

The latest arrivals have taken the cumulative total for 2026 to 1.43 million compared with 1.46 million during the corresponding period of 2025, leaving the country down 2% YoY or 30,765 arrivals behind last year’s pace.

Of the August arrivals, 49,759 were recorded during the first week, while a further 43,752 visitors arrived between 8 and 13 August.

India remained the largest source market during the period, accounting for 20,378 arrivals or 22%, followed by the UK with 10,491 (11%), France with 7,198 (8%), China with 6,383 (7%) and Italy with 5,500 (6%).

On a year-to-date (YTD) basis, India continued to provide the strongest contribution, with 358,608 visitors, followed by the UK at 140,892 and China at 94,890.

The relatively soft start to August, however, comes ahead of one of Sri Lanka’s key tourism events, the Kandy Esala Perahera, which is scheduled from 18 to 27 August. The festival has traditionally generated a surge in visitor arrivals during the latter part of August, meaning the first 13 days do not capture its potential impact on the month’s overall performance.

However, whether the seasonal boost will be sufficient to overcome the broader weakness in international travel demand remains uncertain.

Sri Lanka’s revised target of 2.5 million tourist arrivals for 2026 remains increasingly challenging, with the country having recorded 1.43 million visitors by 13 August.

To reach the target, Sri Lanka would need to attract approximately 1.06 million additional tourists over the remainder of the year, requiring average monthly arrivals significantly above the pace recorded so far.

The latest performance follows a year marked by considerable volatility, including sharp declines in March and April amid disruptions to international aviation caused by the escalating Middle East conflict.

Although arrivals stabilised in July, with the monthly decline narrowing to 1.7%, the continuing weakness in August highlights the sector’s vulnerability to disruptions in long-haul connectivity, particularly from Europe.

Industry analysts said the recovery will depend on sustained restoration of international air connectivity, continued strength in regional markets such as India, and an intensified destination marketing drive ahead of the peak winter tourism season.

While the Kandy Esala Perahera could provide a short-term boost to August arrivals, the industry faces a much larger challenge in generating the sustained monthly volumes required to close the gap with the revised annual target.

Domino’s Sri Lanka marks 15 years with longest pizza in Sri Lanka

Domino’s, the world’s largest pizza brand, marked its 15th anniversary in Sri Lanka by creating the longest pizza ever made in the country, bringing together employees and partners to celebrate the milestone.

Since entering the Sri Lankan market in 2011, Domino’s has served more than two million customers and their families, becoming part of celebrations, family occasions, late-night cravings and everyday moments across the country.

Reflecting on this journey, Domino’s Sri Lanka Country Head – Marketing Shayana Seneviratne said: ‘We wanted to celebrate 15 years in a way that represents the spirit of Domino’s. We didn’t just want to celebrate history, we wanted to make history. Creating this extraordinary pizza together with our people was the perfect way to mark this milestone.’

She added that as a global brand, Domino’s strength comes from combining the scale, quality and expertise of Domino’s worldwide with a deep understanding of Sri Lankan consumers.

Over the years, Domino’s Sri Lanka has continued to evolve its offering in line with changing local consumer preferences. Beyond its core pizza range, the brand has expanded into products such as burgers and a range of rice, with a growing focus on local consumer-led innovation and creating more occasions for customers to choose Domino’s.

The history-making pizza was conceptualised by Chef Nalaka Mahawaththa together with execution support from the Domino’s restaurant operations team led by Suranga Perera, bringing together teams from across the organisation to ensure success of this anniversary initiative.

The event also recognised the leadership and support of Domino’s Sri Lanka Country Head Vijaya Bhaskar, in driving the business to continually innovate and raise the bar for the business in Sri Lanka.

The anniversary follows another significant period for Domino’s Sri Lanka, which received the prestigious Golden Franny Award for Overall Performance in both 2024 and 2025. This recognition also made Domino’s Sri Lanka the first South Asian market to receive the global honour.

Building on its 15-year journey, Domino’s Sri Lanka plans to focus its next phase of growth on innovation, customer experience, convenience and stronger local relevance, while continuing to leverage the scale and expertise of the global Domino’s business.