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Commercial banks ordered to pass benefit of latest CB Statutory Reserve Ratio reduction on to customers pronto

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The Monetary Board of the Central Bank of Sri Lanka, at its meeting held Tuesday, decided to reduce the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of Licensed Commercial Banks (LCBs) by 200 basis points, from 4.00 percent to 2.00 percent.

The Central Bank, on Wednesday, announced that the decision comes into effect from 16 August 2023.

The Central Bank said this decision had been taken with a view to injecting liquidity into the banking system and further reducing market liquidity deficit on a permanent basis in line with the current monetary policy stance of the Central Bank.

This reduction in the SRR is expected to release around 200 billion rupees of liquidity to the domestic money market, the Central Bank says.

This will allow Licensed Commercial Banks to further reduce the market lending rates as a result of the reduction in cost of funds, thereby supporting the expansion in credit flows to the economy, the Central Bank says.

The Licensed Commercial Banks are expected to pass the benefit of the Statutory Reserve Ratio reduction to their customers without delay, the Central Bank will continue to monitor market developments, and take appropriate administrative measures, if required, to ensure faster reduction of market lending rates.



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Health authorities on high alert over Nipah Virus threat

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Sri Lanka has stepped up efforts to detect and respond to a potential outbreak of the deadly Nipah virus (NiV), with health authorities enhancing surveillance and laboratory readiness amid growing concerns in the region.

The Medical Research Institute (MRI), the country’s premier laboratory, has upgraded its testing capacity with the latest technology to identify the Nipah virus, enabling early detection of suspected cases, an MRI source said.

Nipah virus is a highly infectious zoonotic disease that can spread from animals

to humans and also through human-to-human contact. Fruit bats are the natural hosts of the virus.

First identified in Malaysia in 1988, the virus has since caused deadly outbreaks in countries including India and Bangladesh. Experts warn that Sri Lanka, with its close human-animal interactions and tropical climate, must remain vigilant against such emerging infectious diseases.

The case fatality rate of Nipah virus ranges from 40% to 75%, making it one of the most lethal viral infections affecting humans. There are currently no specific drugs or vaccines, with treatment relying mainly on intensive supportive care, health specialists say.

Symptoms of infection initially include fever, headaches, muscle pain, vomiting, and sore throat, followed by dizziness, drowsiness, altered consciousness, and neurological signs indicating acute encephalitis. Severe cases may progress to atypical pneumonia, acute respiratory distress, seizures, and coma within 24 to 48 hours.Authorities continue to urge heightened awareness and precautionary measures, emphasizing that early detection and rapid response are key to preventing outbreaks.

by Chaminda Silva ✍️

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Free Media Movement demands govt. accountability on free speech issues

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The Free Media Movement (FMM) has demanded government accountability on many freedom of expression issues referred to in a statement issued by the Human Rights Commission in a statement issued last week.

The statement under the hands of FMM Convener Lasantha De Silva and Secretary Dileesha Abeysundera says FMM has paid close attention to the statement issued by the Human Rights Commission (HRC) under reference number HRC/S/i/E/03/02/26. It has also informed that global stakeholders, including the International Federation of Journalists—of which it is a member—that are already closely monitoring this matter.

In its statement, HRC has elaborated at length on the issues that have arisen in Sri Lanka concerning freedom of expression and online safety. It specifically points out that the actions of the Sri Lanka Police have been a major contributing factor to these concerns. The Commission notes that recent conduct of the police has indirectly interfered even with the professional activities of journalists.

HRC has also drawn attention to the practice of summoning journalists and other activists before the police without providing clear reasons, in violation of circulars issued by the IGP. In certain instances, the police have stated that journalists were summoned due to alleged defamation arising from media activities.

However, freedom of expression guaranteed by the Constitution is restricted only within constitutionally prescribed limits. Accordingly, defamation that is no longer a criminal offence cannot be acted upon by the police. Such matters constitute civil offences that must be resolved before courts of law. The Commission further observes that attempts by politicians and others to lodge complaints with the Criminal Investigation Department regarding defamation are efforts to portray defamation as a criminal offence.

The HRC statement also addresses the Online Safety Act. While emphasizing the need to be mindful of online safety, the Commission points out that the current law does not address genuine needs. Therefore, as already demanded by many stakeholders, the government has the option to repeal this Act.

In addition, HRC has outlined a three-pronged approach that should be adopted to safeguard freedom of expression, as guaranteed by the Constitution and in line with Sri Lanka’s commitments under the Universal Declaration of Human Rights of the United Nations.

FMM said it is of the view that the Government of Sri Lanka must give serious consideration to this statement and to the recommendations emphasized therein. “This is a moment in which the accountability of the Sri Lankan government is being questioned. Accordingly, the Free Media Movement urges the government to take immediate steps to implement the recommendations set out in this statement,” it said.

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Opposition alleges Govt deliberately delaying PC polls

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ITAK Batticaloa District MP Shanakiyan Rasamanickam accused the government in Parliament on Friday of deliberately delaying Provincial Council elections, pointing to its failure to nominate members to a Parliamentary Select Committee.

The committee, tasked with considering matters related to Provincial Council polls, was announced on 6 January 2026. Opposition parties submitted their nominees promptly.

However, a month later, the government has yet to name its eight members, preventing the committee from being constituted and from commencing its work, Rasamanickam alleged.

Opposition representatives argue that this delay represents intentional inaction aimed at postponing elections. They urged the government to appoint its nominees without further delay to allow the committee to proceed.

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