Category: Daily Financial Times

Senthilverl Holdings Ltd. has increased its shareholding in Colombo Dockyard PLC to above 12% following a series of share purchases executed on 30 January 2026.

Senthilverl Holdings’ stake rose to 12.20% of Dockyard PLC’s issued share capital after shares were acquired at prices ranging between Rs. 149.25 and Rs. 155.25 per share.

As at the close of trading on 29 January 2026, Senthilverl Holdings held 34,106,318 shares, representing 8.63% of Colombo Dockyard’s issued share capital.

On 30 January 2026, a total of 4,263,567 shares were purchased through Asia Securities, while an additional 9,876,264 shares were acquired via other licensed stockbrokers. A total of 36,569 shares were sold on the same day.

Following these transactions, the combined shareholding increased to 12.20% of Colombo Dockyard, which has a total issued share capital of 395,224,082 shares.

Colombo Dockyard’s share price closed Tuesday Rs. 6.25 on the up at Rs. 152 with over 2.6 million shares changing hands on a Rs. 405.2 million turnover. The company reported assets of Rs. 46.21 per share as of end-September.

Earlier in January, India’s Mazagon Dock Shipbuilders Ltd. acquired a 41.73% stake in Colombo Dockyard PLC following an allotment of shares arising from the unsubscribed portion of a Rights Issue.

Mazagon Dock said it acquired 164,916,229 fully paid ordinary shares on 19 January at a price of Rs. 40 per share, representing an investment of approximately Rs. 6.6 billion.

The acquisition increased Mazagon Dock’s shareholding from zero to 41.73% of Colombo Dockyard’s issued share capital of 395,224,082 shares. The shares were allotted from the Rights entitlement that remained unsubscribed by existing shareholder and parent company Onomichi Dockyard Company Ltd.

Hemas Holdings PLC has reported cumulative earnings of Rs. 5.9 billion, up 7.5% year-on-year (YoY), for the nine months to end-December 2025 supported by revenue growth of 9.4% to Rs. 95.8 billion and a significant reduction in net finance costs.

Operating profit was broadly stable at Rs. 9.8 billion, with margin pressures in select Consumer Brands categories offset by robust performance in Healthcare and Mobility, both of which delivered double-digit growth in revenue and earnings.

On a quarterly basis, revenue grew by 5.3% YoY to Rs. 35 billion, driven by continued strength in Healthcare and Mobility. However, quarterly earnings declined by 12.8% to Rs. 2.6 billion, reflecting two temporary factors. First, Consumer Brands performance was impacted by a seasonality shift at Atlas, where sales were advanced into earlier quarters compared to the prior year. Second, Cyclone Ditwah disrupted distribution and consumer demand during November and December 2025, particularly within Consumer Brands, resulting in lower volumes during the peak quarter.

During the period, the Group commenced a structured, enterprise-wide digital transformation program focused on standardising core business processes, implementing integrated enterprise systems, and strengthening real-time data and reporting capabilities across the Group. Further, the Group strengthened its Artificial Intelligence (AI) capability-building agenda through the establishment of Hemas AI Labs, a structured platform to develop internal capabilities and incubate use-case-led AI solutions across businesses.

Reflecting strong investor confidence, the Hemas share price increased 68% YoY, significantly outperforming the broader market. In comparison, the All Share Price Index (ASPI) and S and P SL Top 20 Index gained 41.9% and 26.6%, respectively.

In the Consumer Brands segment, cumulative revenue increased marginally to Rs. 36.5 billion, while earnings reached Rs. 4.2 billion for the nine-month period to end-December 2025. During the period, it encountered margin pressure due to the Home Care segment, higher overhead costs earlier in the year, and investments in brand building and capability enhancement.

The sector reported a softer quarterly performance, with revenue declining 9.9% YoY to Rs. 14.5 billion. The decline was largely attributable to a timing-led preponement of Learning segment demand into the second quarter following proposed curriculum changes, and temporary demand and distribution disruptions arising from Cyclone Ditwah.

In the Home and Personal Care – Sri Lanka segment, the Personal Care and Personal Wash categories continued to record positive underlying cumulative volume growth of 4.6%, supported by strong performance in Beauty and Baby Care. In contrast, the Home Care segment experienced a volume decline during the quarter, reflecting temporary demand softness following the cyclone.

In line with the Group’s innovation-led premiumisation strategy, Diva launched its 3-in-1 ‘Power Pods’, introducing an advanced laundry format to the Sri Lankan market. The Diva ‘Fresh’ range was also re-launched with enhanced formulation, fragrance longevity, and refreshed packaging, aimed at strengthening category competitiveness.

Despite ongoing macroeconomic challenges in Bangladesh, the international consumer business delivered strong cumulative revenue growth of 18% YoY (in BDT terms), driven by volume expansion and pricing actions within the value-added hair oil category.

In the Learning segment, Atlas continues to grow and delivered cumulative revenue growth ahead of the industry, fuelled by a 12.6% volume growth compared to last year. However, quarterly revenues declined YoY due to a timing shift, with a significant portion of demand being realised in the second quarter following anticipated changes to the school curriculum.

Atlas completed the rollout of its school bags and water bottles range, while its Educational Toys segment continued to scale, supported by an expanding sales network and steady progress in the preschool teacher training program.

In the Healthcare segment, cumulative sector revenues increased by 14.6% to Rs. 57.6 billion for the nine months to end-December 2025, driving growth in operating profits to Rs. 4.8 billion and earnings of Rs. 3.2 billion, recording increases of 9.2% and 16.9%, respectively.

The sector posted a revenue of Rs. 19.9 billion for the quarter, achieving a growth of 19.6%, with operating profits of Rs. 1.7 billion and earnings growth of 19.9% to Rs. 1.1 billion. Higher volumes from the Pharmaceuticals segment contributed to the increase in revenue, while the Hospital segment saw increased inpatient and outpatient demand.

In the Pharmaceuticals segment, the Pharmaceutical Distribution business achieved significant YoY cumulative revenue growth of 17.8% despite impact from the cyclone in November 2025, which was totally recovered in December 2025. Morison’s own branded products continued to gain market traction, and also successfully secured a further one-year extension to the buyback agreement with the Government.

Hemas Pharmaceuticals continues to be the market leader in the Pharmaceutical Distribution industry segment, while in the Pharmaceutical Manufacturing industry segment, Morison has moved up by 19 places during the last four years, as per the latest available IQVIA market data.

In the Hospitals segment, increases in both inpatient, outpatient numbers and lab services saw the hospital segment recording strong revenue growth during the quarter, delivering cumulative revenue growth of 26% compared to last year. New services such as the Cath-lab and the Health Plus OPD facility have contributed to the revenue growth.

In the Mobility segment, the sector achieved a cumulative revenue of Rs. 1,730.3 million in the nine-month period to end-December 2025, reflecting a growth of 18.5% which contributed to a 16.4% growth in earnings to Rs. 634.1 million. The revenue growth was backed by healthy volume growth across all the segments.

The quarterly revenue and earnings increased to Rs. 612.4 million and Rs.237.9 million, respectively, recording a growth of 18.1% and 42.7%, respectively. This performance was supported by the successful introduction of the China-India Express service, which emerged as a key driver of incremental volumes.

The Maritime segment delivered strong cumulative volume growth of 8.7%, with increased throughput across import, export, and transshipment operations. In the Aviation segment, passenger numbers continued to improve by 15.2% during the year, driven by increased frequencies and enhanced marketing efforts, while cargo volumes and yields remained broadly stable, reflecting steady demand conditions.

The Group continued to advance its environmental and social priorities in line with its long-term sustainability strategy, strengthening circular economy outcomes, improving resource efficiency, scaling community impact, and reinforcing its position as a purpose-led corporate leader.

Cumulative plastic recovery reached 2.5 million kilograms, reaffirming the Group’s commitment to collect 50% of plastic sent to market by 2025 and 100% by 2030. Water intensity increased marginally from 1.3 to 1.5. However, efficiency improvement initiatives remain under way across operations to mitigate resource risk and drive long-term conservation. Renewable energy adoption continued to progress, with 10% of total electricity consumption sourced from renewable energy, supporting the Group’s goal to ensure 25% of its energy is from renewable sources. The Group delivered meaningful social impact across education, health and wellbeing, and inclusion, reaching over 31,600 individuals during the quarter, reinforcing its commitment to inclusive growth. Through the Hemas Outreach Foundation, three new preschools were added, expanding the network to 75 schools.

Hemas Holdings PLC was recognised among 200 Best Under a Billion 2025 companies by Forbes Asia, as one of Sri Lanka’s top three corporate citizens by The Ceylon Chamber of Commerce and as one of the Top 10 Best Employers in Sri Lanka for 2025 by the Employers’ Federation of Ceylon.

The company announced a planned Board transition with long-serving Chairman and former Group CEO Husein Esufally retiring from the Board on 31 December 2025, following over four decades of service that shaped Hemas into a leading diversified conglomerate in the country. Deputy Chairman Dr. Anura Ekanayake also retired upon completing his term on the same date. From 1 January 2026, Ajith Fernando, a veteran investment banker and a member of the Board since July 2024, assumed the role of Chairman, while Murtaza Esufally, member of the Board and the Chairman of the Healthcare cluster, was appointed as Deputy Chairman, reflecting Hemas’ commitment to balancing continuity with renewal, preserving the Group’s heritage while strengthening its leadership to achieve its growth priorities and deliver superior shareholder value.

Looking ahead, the Group is experiencing an improvement in operating conditions as the economy recovers, supporting improved consumer sentiment and normalisation of demand, which will fuel growth in coming quarters.

In parallel, the Group is in the process of finalising its long-range plan, which will set the strategic agenda and capital allocation priorities for the next five years, with a continued focus on sustainable growth, portfolio resilience, and disciplined value creation.

During the quarter, macroeconomic conditions reflected selective cost pressures alongside areas of stability, with a moderated net impact on the Group’s performance. The LKR depreciated by 2.4%. This created some pressure on imported inputs, particularly in Consumer Brands and Healthcare, which was partially mitigated through pricing actions, procurement discipline, and cost optimisation initiatives.

The Average Weighted Prime Lending Rate (AWPLR) rose marginally but the impact on the Group was contained due to its strong balance sheet, negative net gearing, and disciplined funding strategy. Inflation remained low at 2.1%, helping to contain operating cost escalation and preserve consumer affordability.

In parallel, softer global palm oil and crude oil prices provided relief on input and energy costs, partially offsetting currency pressures.

Cyclone Ditwah, which struck Sri Lanka on 25 November 2025, was one of the most severe natural disasters experienced by the country in recent decades. The Group’s manufacturing and service facilities did not sustain any direct physical damage, however, the cyclone caused temporary supply-chain and distribution disruptions during November and December 2025, alongside a short-term deterioration in consumer sentiment.

As a result, demand softness was observed during the latter part of the third quarter, particularly within the Consumer Brands and Healthcare sectors. Demand has since stabilised, with encouraging recovery trends evident, entering the fourth quarter.

In parallel, the Group mobilised a coordinated, multi-sector disaster response, working closely with Government authorities, community organisations, and local stakeholders. The Group committed approximately Rs. 30 million in financial and in-kind humanitarian assistance, focused on immediate relief for vulnerable communities. In addition, the Group has factored in Rs. 200 million for targeted support to small and medium enterprises across the value chain through extended credit terms, stock replenishment, and business restoration initiatives.

As part of the Union Bank School of Social Entrepreneurship (UBSSE) initiative, Union Bank partnered with the University of Moratuwa and the National Innovation Agency to upskill and empower SMEs under the National Entrepreneurship Development Program (NEDP). Recently, yet another group of emerging entrepreneurs successfully completed the program and received their certificates.

After nearly two decades of painstaking negotiations, India and the European Union (EU) successfully concluded negotiations on a landmark Free Trade Agreement (FTA) last month. The trade pact intends to liberalise trade and investment between the two economies through planned commitments covering goods, services, and regulatory cooperation. Both India and the EU together account for 23% of the global GDP (close to $ 25 trillion) and 25% of the world’s population (2 billion). Currently, cross border goods and services trade between the two regions is close to $ 220 billion.

The deal is widely seen as a strategic hedge against the’ volatile trade policies and tariff threats of the Trump Administration. The White House imposed a 15% tariff on EU imports last year despite agreeing on a trade deal with the bloc, while goods from India were slapped with a more punitive 50% because of its ongoing oil purchases from Russia. Many analysts opine that Trump’s unpredictable trade policies hastened the finalisation of the landmark deal.

As per the agreement, both parties are expected to remove or reduce tariffs on more than 90% of the goods traded between the two regions. The powerful European block expects the trade deal will help the region to double its exports to India by 2032. India will reduce tariffs on over 90% of European exports to India such as autos, machinery, agri-food products, chemicals, and aircrafts. Similarly, the deal would provide New Delhi with preferential access to the European markets for more than 90% of its traded goods. Key export items from India to the EU like textiles, apparel, marine, leather, footwear, chemicals, plastics, sports goods, toys, gems, and jewellery will become eligible for zero duty once the FTA comes into force. Before the deal, the EU tariffed the aforementioned labour-intensive sectors of the economy at rates of between 4% to 26%.

While India exports labour-intensive and downstream products, Europe supplies high-tech products like machinery, aircraft, electronic components, medical devices and industrial inputs. Hence, the two economies are complementary, not competitive. The empirical evidence suggests that a trade agreement signed between a developed economy and a developing economy often creates a win-win situation for both parties concerned.

The trade deal could create six or seven million jobs in the textile sector – the second biggest employer in India after agriculture, according to India’s Minister of Industry and Commerce Piyush Goyal. The two trading partners have also agreed to enable temporary entry and stay for professionals and independent professionals, which would benefit India’s strong IT industry.

Between 2000 and 2025, India signed 15 new trade agreements covering 33 countries, and three PTAs covering seven countries. The deal with the EU is India’s 9th FTA in just four years. In stark contrast to its giant neighbour, Sri Lanka has entered into just four bilateral trade agreements over the last 25 years. Unfortunately, two of them are not even operational – agreements with Singapore and Thailand. New Delhi adopts a highly professional and systematic approach towards reaching FTA with its trading partners and does not rush through like its southern neighbour. Whereas Colombo does not have a proper mechanism towards negotiating FTAs and sometimes the Department of Commerce is sidelined from trade negotiations.

The deal would undeniably challenge Sri Lanka’s exports to the EU, as India is a competitor of Sri Lanka’s main export commodity to the EU – garments. Last year, Sri Lanka earned $ 1.58 billion from apparel exports to the EU. The latest development makes the continuity of the EU GSP+ trade concession extremely vital to safeguard the island’s largest export industry. Currently, Sri Lankan garments qualify for EU cumulation rules for fabrics purchased from India. It is unclear whether the same arrangement would continue when the landmark deal comes into effect.

Importantly, Sri Lanka needs to closely study India’s foreign trade policy and its professional approach towards forging FTAs with its trading partners to turnaround its dismal track record in terms of trade liberalisation.

India will play England in the final of the Under-19 World Cup after a record-breaking run-chase against Afghanistan in Harare.

The five-time winners chased down an Under-19 World Cup record target of 311 for the loss of just three wickets and with more than eight overs to spare in a blistering display.

Aaron George hit 115 after 14-year-old Vaibhav Suryavanshi, who already has a 35-ball IPL century to his name, smoked a scintillating 68 off just 33 balls after being dropped twice.

Captain Ayush Mhatre added a half-century of his own as India waltzed into their 10th final against an England side looking for their first win in the competition since 1998.

Faisal Khan Shinozada and Uzairullah Niazai both hit centuries for Afghanistan, who looked well set until the India batters took over.

‘Our discussion was simple – just play our natural game,’ said Mhatre. ‘The wicket was playing beautifully, a real flat wicket, so we knew if we played naturally, it would be a manageable total.

‘Suryavanshi played a major role in the chase. Scoring 90 runs in the first 10 overs released all the pressure, making it much easier for the rest of us to build the innings.

‘George is a classy, fabulous batsman. He anchored the innings perfectly.’

Afghanistan 310-4 (50 overs): Faisal 110 (93), Uzairullah 101* (86); Chouhan 2-55; India 311-3 (41.1 overs): George 115 (104), Suryavanshi 68 (33); Nooristani 2-64; India won by seven wickets.

Instead of spending the years of the last war in safe luxury in a friendly country with her sons, Shiranthi Rajapaksa stayed with her husband, family, home and country when Mahinda was giving political leadership to the nation and the armed forces, in the permanent shadow of assassination.

Under a civilized, cultured administration, the former First Lady would not be summoned to the FCID, though the FCID may certainly call on her at home and record a statement. I’m not calling for impunity and immunity, but common decency and courtesy. That is not, however, the ethos of the Anura Dissanayake dispensation.

Meanwhile, interestingly, Minister Mahinda Jayasinghe announced that Namal will be hauled up on the Krish issue in two weeks.

Hounding Ranil

Additional Solicitor General Dileepa Peiris, whose excessive zeal reminds me of Ian Wickremanayake, the Bribery Commissioner and Director Public Prosecutions under Minister Felix Dias Bandaranaike, informed Court on behalf of the Attorney General that ‘indictments will be filed before a three-judge Bench of the High Court in March in connection with the case against ex-President Ranil Wickremesinghe, following the conclusion of investigations.’

The trial-at-bar ‘nuclear’ option is to be used against former Prime Minister and former President Ranil Wickremesinghe, who, by Anura Dissanayake’s public admission, stabilised the economy, carrying it across a precarious rope-bridge, which Anura continued upon.

A brief Google search shows that:

‘A Trial-at-Bar is an extraordinary court proceeding…reserved for cases of exceptional public importance or those involving complex points of law. It consists of a panel of three High Court judges sitting together. Cases are often heard on a day-to-day basis to ensure rapid conclusion.’ Under ‘Contexts for Application’ it lists ‘grave offences against the State, such as conspiracy to overthrow the Government.’ Other contexts include ‘murder of public officials’. Historically, a trial-at-bar was used in England and Wales for crimes of ‘High Treason’.

Ranil Wickremesinghe doesn’t stand accused of any crime which falls into such categories. When the law is so grossly misapplied by the authorities, it has two results:

Ranil Wickremesinghe is not being charged for the arguably treasonous conduct of calling off, against the entreaty of Army chief Lionel Balagalle, an operation by the Long-Range Reconnaissance Patrol targeting Velupillai Prabhakaran on 21 December 2001. Nor is he being tried on charges relating to the Batalanda torture camp. Nor yet is he being charged on the Central Bank Bond scam, nor plunging us into a debt trap by borrowing heavily from the private international money markets on the cusp of the 2019 election.

No, he is to be hauled up before a trial-at-bar, for allegedly filing a dodgy claim for a relatively modest sum of Rs. 16.6 million while accompanying his wife for the ceremonial conferment on her of an honorary professorship by a British university as publicly announced that month by the Mayor of Wolverhampton.

Anura’s hypocrisy

Ranil is not being prosecuted according some radical Jacobin notion of justice, but by the successor administration which pivoted sharply to the Right, continued seamlessly from where he left off and proceeded further-spurning course correction-along the same policy path.

Meera Srinivasan of The Hindu accurately contextualised it.

‘Sri Lanka will press ahead with the ongoing International Monetary Fund (IMF) program-criticised by sections for imposing painful austerity on ordinary people – despite the devastation caused by Cyclone Ditwah that struck the island nation in late November 2025.

Following President Anura Kumara Dissanayake’s meeting with a visiting IMF delegation earlier this week, his office said that the Fund pointed to Sri Lanka moving ‘in the right economic direction despite facing a severe disaster situation’ and stated that there would be ‘no changes to the agreement’, on the Extended Fund Facility (EFF) program.

.President Dissanayake, who was elected to office in September 2024, promised not to derail the IMF program aimed at achieving macroeconomic stability, even as some in Sri Lanka flagged crushing austerity measures linked to the program, including a drastic drop in value of ordinary people’s pension funds, tax hikes, rise in fuel and electricity prices, and a high cost of living that persists as a consequence.

In the wake of the cyclone, over 70 civil society groups and activists across Sri Lanka called for the renegotiation of the IMF deal, accusing the Dissanayake Government of becoming a ‘prisoner’ of the ongoing IMF program. ‘The IMF controlling Government spending not only restricts the ability of the Government to respond to the ongoing humanitarian crisis, but severely impedes investment in infrastructure, recuperating livelihoods, and adapting to further climate change impacts,’ they contended. A group of globally renowned economists, including Nobel laureate Joseph Stiglitz, echoed this demand and called for a halt to Sri Lanka’s debt repayments.

.Both the IMF and the Sri Lankan Government agreed to continue implementing the Extended Fund Facility program without making any changes to the existing agreement, the statement issued by the Presidential Media Division said.’

Prosecuting Ranil is hardly in the same category the progressive Lula administration prosecuting Far-Right former President Bolsonaro for inciting a coup.

State seizure

Sri Lanka is caught in an AKD-JVP-NPP pincer of the worst of both worlds:

Intelligent Sri Lankans have long agreed that one of the causes of the country’s failure to fulfil its brilliant potential at Independence was the dismantling through politicisation of the excellent independent Civil Service we had inherited from colonialism. The abolition of the independent Public Service Commission in the 1972 Constitution and its non-restoration in 1978 guaranteed our deterioration.

After the second insurrection, President Premadasa appointed a Youth Commission with Prof. GL Peiris as Vice-Chairman. A conclusion of its celebrated report was that the politicisation of the State administration and the State sector in general was a root cause of the alienation of the educated youth which had exploded in barbaric violence. As recommended by the report, President Premadasa began depoliticising the State sector and reintroducing examinations with interviews too, thereby reinstating merit as criteria of selection for the State apparatus.

What Minister KD Lal Kantha announced in a hitherto uncontradicted statement, was the intention to discard the notion of a State free of party-political control, and to embark relentlessly on a path of ‘State seizure’. It must be recalled that ‘the capture of State power by the party of the proletariat’, was precisely the aim of the two insurrections in 1971 and 1986-90. It is now being openly pursued by top-down infiltration and institutional insemination.

Ranil’s prosecution, Shiranthi Rajapaksa’s grilling and the threatened incarceration of Namal Rajapaksa are part of ‘mowing the lawn’ for this larger project.

Opposition Leader Sajith Premadasa responds far too tepidly and tardily to these totalitarian symptoms. If he is myopic enough to think the JVP-NPP will remove Ranil and Namal from the board, clearing a path for the son of President Premadasa who crushed the JVP and ended Rohana Wijeweera, he’s politically naïve beyond belief. When the JVP-NPP frames him, there’ll be none left to resist.

Federalist failure

Indispensable columnist DBS Jeyaraj has written a piece on the centenary year of SWRD Bandaranaike’s pioneering call for a federal Ceylon. He informs us that MA Sumanthiran hopes to commemorate the year by recanvassing the case for federalism including among the people and parties of the South.

That the call for federalism is a century old but has remained a failure reminds us of the line attributed to Einstein, namely that to keep doing the same thing and expecting a different result is the acme of lunacy. The federalist or federalising effort, right up to the Yahapalanaya Constitution reform process (2015-2019) has failed. Not even under the most extreme pressure of a major war for secession was federalism adopted.

The recent renewal of fighting by the Kurds in Syria shows that without a political solution, any nationalities question can and probably will flare up-but despite longstanding US support, the Syrian Kurds haven’t been able to secure federalism from either the Assad regime or the newly established Al Sharaa Presidency. The two were mortal enemies and polar opposites, but share the rejection of federalism. There are many such countries, from the Philippines to Nicaragua, Vietnam to South Africa, which just won’t go federal for complex, abiding reasons of geopolitics, history, State formation and political culture. Sri Lanka is one such.

Revisiting SWRD Bandaranaike’s exposition a century ago, what I find most striking as a political scientist, is his correct insistence that no country with our diversity and ethnic distribution, managed to maintain a centralist political superstructure; a centralist State. This remains true. A centralised unitary State, which Sinhala ultranationalists wish for, is geopolitically unsustainable as we saw in 1987.

However, SWRD’s recommendation of federalism is fatally flawed. As DBS Jeyaraj points out, Bandaranaike had abandoned federalism by 1940 in favour of Provincial autonomy.

‘.Subsequently, SWRD moved away from espousing federalism to encouraging decentralisation.

SWRD began envisaging the province as the unit of greater local authority. He wanted to set up Provincial Councils. The Local Government Ministry’s Executive Committee released a report advocating more powers to these proposed councils. In 1940, R.S.S. Gunawardena introduced a motion in the State Council proposing the setting up of Provincial Councils. The State Council approved it but for some inexplicable reason SWRD did not proceed further and present a Bill in the State Council during its tenure.

Bandaranaike later joined the United National Party (UNP) with his Sinhala Maha Sabha. He was appointed the Local Government Minister in Independent Ceylon’s first Cabinet under D.S. Senanayake. It is said that SWRD tried to revive his Provincial Council formulation again as a means to bring Government closer to the people. But his Cabinet colleagues enjoying power as full-fledged Ministers were reluctant to dilute or reduce their newly-gained authority. So SWRD could not go through with his plans.’

Prof GL Peiris’ memoir on Sri Lanka’s Peace Process contains a fascinating piece of historical information that unwittingly underscores this centrist solution.

‘The Donoughmore Commissioners were not friendly to the idea of federalism because of their robust aversion to division along communal or other lines, and their commitment, as the foundation of their report, to the unity of the body politic.

A nuanced approach typified their recommendations, insofar as they showed themselves well disposed to the concept of Provincial Councils. They accepted the system in principle, although inclined to leave the modalities of implementation to an elected administration.’

(GL Peiris, The Peace Process of Sri Lanka, p 2)

Thus, the Donoughmore Commission, a ‘neutral umpire’, regarded federalism as potentially centrifugal, divisive, and sagaciously preferred non-federal Provincial Councils. Provincial autonomy is the Middle Path between federalism and a centralised unitary State.

Roads not to be taken

From the USA through Europe to Myanmar and Bangladesh, the problem of migration has been a huge, and hugely polarising, problem. Migration is almost always an issue when there are land borders. It is far less of a problem for islands. Why then would Sri Lanka not give daily thanks to all the devas that it is an island, devoid of land connectivity with South India?

Has Sri Lanka forgotten the initial military presence in the island’s north was that of TAFAII, i.e., Task Force Anti Illicit Immigration? True, Tamil Nadu is now much more prosperous than Sri Lanka, but these things change, while land connectivity once established, will not, and will become organic because of an ethnic kinstate as neighbour.

What if Sri Lanka had land connectivity with Tamil Nadu during the 30 years war? What if the LTTE’s rear base (‘pin thalam’) was physically contiguous with its frontline, and the Sri Lankan navy’s role was reduced?

Why would the High Commissioner of India keep harping on this controversial, tendentious outlier of an idea, at a time when India’s Sri Lankan diplomacy is exceedingly successful and its relationship with all parties, excellent? Here is an extract from an interview in the Jaffna Monitor.

‘Q. You have noted that traditional connectivity links, such as the Mannar-Rameswaram corridor, are under renewed discussion with the new Government. How serious is India about pursuing land or bridge connectivity between the two countries, and what factors will determine whether this moves beyond the discussion stage?

A. Physical connectivity is an important aspect of India-Sri Lanka relations, and India has been consistently working to improve it.

.With regard to the proposed land bridge connecting Talaimannar and Rameswaram, it is important to clarify that this proposal originated from the Sri Lankan side as far back as 1998-99, although it is often mistakenly described as an Indian proposal. The idea was subsequently included in the India-Sri Lanka Vision Statement of July 2023. Following this, the proposal was discussed in detail with the then Government in Sri Lanka.

The proposed land bridge would, in fact, be far more beneficial to Sri Lanka than to India. It has the potential to spur tourism and infrastructure development and would significantly transform the Northern and Eastern parts of Sri Lanka by enhancing connectivity. Improved connectivity would be a game-changer, particularly for the people of the North even though significant benefits will accrue to the entire Island.’

Physical connectivity and contiguity with India would tilt this island’s geopolitical and economic balance to its North and East, away from the South where the majority lives.

Who originated the idea ‘from the Sri Lankan side.as far back as 1998-9’? Does the record show President Chandrika Bandaranaike Kumaratunga or Foreign Minister Lakshman Kadirgamar having done so? As for the ‘India-Sri Lanka Vision Statement of July 2023. discussed in detail with the then Government in Sri Lanka.’ this refers to Ranil Wickremesinghe and his administration. Wickremesinghe was never elected the leader of the country-the President-by the people of Sri Lanka, and had no mandate to discuss any proposal of such existential magnitude.

Given the continued piracy in Sri Lankan waters by South Indian fishermen and the recent physical brutalisation of Sri Lankan fishermen allegedly by the Indian Coast Guard, one can well imagine the consequences of land connectivity and a shared border. The scenario can be summed-up in the Sinhala saying warning against ‘gifting a monkey a razor’ (‘wandurata dalipihiya dunna vagey’).

Sri Lankan leaders and citizens should be inspired by Greenland/Denmark and Canada which demonstrated the patriotic backbone to say NO to the leader of the mighty American Empire, and stand staunchly by their sovereignty, boundaries, national interests, and identities.

Former First Lady Shiranthi Rajapaksa and Sri Lanka Podujana Peramuna National Organiser and MP Namal Rajapaksa recorded statements yesterday with two separate police units in connection with ongoing investigations.

Shiranthi Rajapaksa, the wife of former President Mahinda Rajapaksa, left the Financial Crimes Investigation Division after recording a statement for nearly five hours. She had been summoned in connection with alleged financial irregularities relating to the Siriliya funds.

She was initially requested to appear before the FCID on 27 January 2026, but had, through her attorney, sought a two-week extension citing her inability to attend on that date. She was subsequently instructed to appear yesterday and complied with the summons.

Meanwhile, MP Namal Rajapaksa left the Criminal Investigation Department after recording a statement for over four hours. He had been summoned to provide a statement regarding alleged connections with underworld figure ‘Kehelbaddara Padme’.

It was reported that MP Rajapaksa had previously been summoned by the CID but requested a new date as he was overseas at the time, following which a fresh summons was issued for yesterday.

Police said the two matters are being investigated separately by the CID and FCID in line with their respective mandates.

President Anura Kumara Dissanayake yesterday convened a high-level meeting to review Sri Lanka’s preparedness for its Third Mutual Evaluation on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), signalling direct presidential oversight of a process critical to safeguarding the country’s standing in the global financial system, according to the President’s Media Division.

The meeting comes as Sri Lanka prepares to demonstrate technical compliance with the Financial Action Task Force’s (FATF) 40 recommendations and their effective implementation across 11 immediate outcomes. Failure to meet these standards could expose the country to heightened international scrutiny, including the risk of being placed back on the FATF ‘grey list’, a designation that could deter foreign investment and disrupt international financial transactions.

Addressing officials, President Dissanayake stressed that accountability and good governance must precede efforts to convince external stakeholders. ‘As a Government, we are first and foremost committed to ensuring good governance,’ he said, urging State institutions to take responsibility for timely and effective implementation.

The FATF, the global standard-setter on AML/CFT and countering the financing of the proliferation of weapons of mass destruction, assesses countries through a Mutual Evaluation process that examines legal frameworks, institutional capacity, resource allocation and effectiveness. Sri Lanka’s evaluation is overseen by the Asia/Pacific Group on Money Laundering (APG), with domestic coordination handled by the Financial Intelligence Unit of the Central Bank of Sri Lanka and the involvement of around 25 Government institutions.

An Operational Committee on AML/CFT appointed by the President monitors the implementation of action plans across these agencies. The discussion also reviewed Sri Lanka’s previous evaluations in 2006 and 2014-2015, including shortcomings that led to international grey listing in 2017, underscoring the need for a nationally prioritised and fully resourced effort.

During the meeting, the President questioned officials on legal delays and obstacles to enacting required legislation and instructed that pending technical amendments be expedited. Human resource shortages across several institutions were identified as a key constraint, with the President directing immediate corrective action, including exploring the re-engagement of experienced retired officers on one-year contracts.

He also ordered steps to resolve instances of officers holding multiple positions, directed that promotions and recruitments be accelerated in consultation with the Public Service Commission, and instructed that a circular be issued to retain trained officers in their current posts until the evaluation is completed in November.

The report of the Special Task Force appointed to oversee progress is due to be submitted to the President within the next two weeks.

The meeting was attended by Justice and National Integration Minister Harshana Nanayakkara, Central Bank Governor Dr. Nandalal Weerasinghe, Finance, Planning and Economic Development Ministry Secretary Dr. Harshana Suriyapperuma, Defence Ministry Secretary Air Vice Marshal Sampath Thuyacontha (Retd.), Foreign Affairs Ministry Secretary Aruni Ranaraja, Attorney General Pärinda Ranasinghe, Inspector General of Police Priyantha Weerasuriya, National Intelligence Chief Major General Nalinda Niyangoda, and heads of relevant institutions, including the Commission to Investigate Allegations of Bribery or Corruption and the Legal Draftsman’s Department.

US President Donald Trump has said that Washington is lowering its tariffs on India to 18%, from the earlier 50%, following a trade deal struck between the two countries, bringing cheer for labour-intensive sectors-such as textiles, marine and leather-struggling with the levies so far.

‘They will likewise move forward to reduce their tariffs and non-tariff barriers against the United States, to zero,’ Trump posted on his social media platform Truth Social following a telephonic conversation with Modi.

But there is no clarity on India’s market opening commitments although the US farm lobby is already celebrating the access American farmers will get to ‘India’s massive market’.

‘New US-India deal will export more American farm products to India’s massive market, lifting prices, and pumping cash into rural America,’ said US agri secretary Brooke Rollins in a social media post.

Trump also said that India has agreed to stop Russian oil purchases and White House officials clarified that based on the promise, the 25% punitive tariffs on Indian goods for Russian oil purchases was being removed-bringing down tariffs on India to 18%.

‘The Prime Minister (Modi) also committed to ‘BUY AMERICAN,’ at a much higher level, in addition to over $ 500 billion of US energy, technology, agricultural, coal, and many other products,’ Trump added.

The Indian Prime Minister responded to Trump’s announcement on social media platform `X’ thanking him for agreeing to reduce tariffs on Indian goods to 18%.

‘Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,’ Modi said.

The PM, however, did not mention a trade deal, or its contours, in his post. Nor did he confirm that India had agreed to stop Russian oil purchase and bring down tariffs and non-tariff barriers on American goods to zero.

Commerce and Industry Minister Piyush Goyal said in a social media post that India and US are natural allies and the partnership will co-create technologies, co-develop solutions, and work together for peace, growth, and a brighter future for India and US.

‘This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, design in India for the world, and Innovate in India for the world. It will help India get technology from the US,’ Goyal said.

External Affairs Minister S Jaishankar, who is currently on an official trip to the US, welcomed the announcements on bilateral trade. ‘This will create more jobs, spur growth and promote innovation in both economies. It will strengthen ‘Make in India’ endeavours and encourage trusted,’ he said in a social media post.

Trump’s announcement that India would buy $ 500 billion worth of US goods is highly ambitious given the fact that India’s imports of goods from the US in FY25 was less than a tenth of that at about $ 45.69 billion.

‘We spoke about many things, including trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week!,’ Trump stated in his post.

India had so far shied away from committing to reduce Russian oil purchases to zero although its procurement of crude from Moscow since December 2025 declined substantially. This followed imposition of US sanctions on Russian oil companies Rosneft and Lukoil.

Since Moscow is a long-term economic and strategic partner, it may be difficult for Delhi to officially stop its trade with the country, including purchase of oil.

A deal with the US is essential for India to stay competitive in the American market. India’s competitors, such as Vietnam, Bangladesh and Indonesia, have already negotiated pacts with the US and face tariffs of 19-20%.

India had so far shied away from committing to reducing Russian oil purchases to zero, although its crude purchases from Moscow since December 2025 have declined substantially. This followed the imposition of US sanctions on Russian oil companies Rosneft and Lukoil.

Oman won their T20 World Cup warm-up match against Sri Lanka by 5 wickets at the CCC grounds yesterday.

Oman did well to restrict Sri Lanka A to a total of 145-9, and then knocked the runs off with two overs to spare. Opening bat Aamir Kaleem played a sensational knock of 80 off 47 balls inclusive of 8 fours and 3 sixes. Vinayak Shukla guided them home with an unbeaten 39 off 24 balls (3 fours, 2 sixes). Left-arm spinner Wanuja Sahan was the pick of the Sri Lanka A bowlers capturing 3/16.

Oman are in Group B with Australia, Sri Lanka, Ireland and Zimbabwe.

Scores:

Sri Lanka A 145-9 (20) (Dulnith Sigera 20, Sahan Kosala 21, Wanuja Sahan 29, Chamindu Wijesinghe 24*, Shah Faisal 2/21, Shakeel Ahmed 2/24, Jay Odera 2/18)

Oman 146-5 (18) (Aamir Kaleem 80, Vinayak Shukla 39*, Wanuja Sahan 3/16)