News
Central Bank expects inflation to “gradually stabilize”
Sri Lanka’s inflation is anticipated to gradually stabilise around the targeted level of five per cent over the medium term, following a short-lived acceleration of inflation in the near term on account of the recent tax adjustments and supply-side disruptions, the Central Bank of Sri Lanka (CBSL) said in its monetary policy report for February.
In the report, the CBSL said that headline inflation is expected to peak in the third quarter of 2024, mainly on account of the unfavourable base effect stemming from sharp disinflation recorded in the third quarter of 2023.
However, the near-term surge in headline inflation is unlikely to persist due to subdued demand conditions, as the economy is projected to operate below its full capacity for an extended period, the Bank said.
The CBSL observed that the rebound of domestic economic activity witnessed in the third quarter of 2023 is expected to continue, assisting the economy to gradually reach its potential over the medium term with the help of appropriate policies.
It predicted that the gradual relaxation of monetary policy will impact the broader market interest rates, and the resultant normalisation of nominal interest rates, are anticipated to stimulate growth towards its potential level by fostering investments, enhancing consumer spending, and ultimately boosting aggregate demand, thereby alleviating the ongoing contractionary impact on output.
The Central Bank said that they expect a negative trade-weighted foreign output gap to last for around two years, thereby impacting the domestic economy through exports. Improving productivity and addressing growth impediments by minimising structural limitations, such as the weak doing-business environment, remain pivotal to achieving a sustainable growth path and elevating the economy’s potential, it added.
News
Advisory for strong winds and rough seas for Multi-day boats in the Bay of Bengal
Advisory for strong winds and rough seas for Multi-day boats in the Bay of Bengal deep sea areas
Issued by the Natural Hazards Early Warning Centre
Issued at 05.00 p.m. 18 September 2026, valid for the next 24 hours.
PLEASE BE AWARE!
The atmospheric disturbance to the North of the Andaman Islands in the Bay of Bengal, is likely to develop into a low pressure area within the next 24 hours.
Due to its influence, wind speed over the Bay of Bengal sea areas will increase during the next few days starting from
tomorrow (19th).
The wind speed in the sea areas marked under the “Advisory” category on the map below will increase to 55-65 kmph at times and those sea areas will be rough or very rough at times.
Navel and fishing communities engaging the activities over this sea area are advised to be vigilant and be attentive to the future forecasts and bulletins issued by the department of Meteorology in this regards.
News
Some NPP manifesto promises may be difficult to fulfil – CIABOC DG
Text and Pic by Priyan de Silva
Director General of the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) Ranga Dissanayake has questioned whether some promises contained in the National People’s Power (NPP) manifesto, A Thriving Nation – A Beautiful Life, could be fulfilled even if the government wanted to implement them.
Dissanayake raised the issue during a discussion following the release of the third biannual report on manifesto monitoring by the March 12 Movement, at the BMICH, on Wednesday.
He questioned whether the report had taken into account legal and institutional constraints affecting the implementation of certain pledges.
Citing the proposal to establish Anti-Corruption Investigation Offices in each district, Dissanayake said such offices could be established only with the agreement of CIABOC and that amendments to the Anti-Corruption Act would be necessary.
He also referred to the pledge to abolish the Executive Presidency, noting that successive governments had made similar commitments since 1994. He questioned whether there had been adequate consideration of where the powers vested in the Executive President would be transferred if the system were abolished.
On the proposal to establish a Public Prosecutor, Dissanayake questioned whether the Government intended to maintain the office alongside the Attorney General, who currently performs prosecution-related functions.
Executive Director of the Institute for Democratic Reforms and Electoral Studies (IRES) Manjula Gajanayake said Dissanayake’s remarks should be regarded as his personal views and not as Government policy.
Monitoring and Evaluation Consultants M. Thilakarajah and D.D. Mataharaarachchi presented the third-phase findings, covering January to June 2026.
News
Yoshitha and ex-Navy chief Karannagoda’s case fixed for PTC
The corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against former Navy Commander, Admiral of the Fleet Wasantha Karannagoda, and Yoshitha Rajapaksa was set for a pre-trial conference by the Colombo High Court.
The case was taken up before the Colombo High Court on Thursday (17), when the accused, who are currently out on bail, appeared before the court. After considering the submissions made, the court ordered that the case be called for a pre-trial conference.
The CIABOC had filed the case against the accused, alleging that a corruption offence was committed by sending Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, for training at the Royal Naval College in the United Kingdom despite him not having the required qualifications.
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