News
CB points out double edge of low interest rates
While low interest rates have helped revive credit and contributed to improving the overall business sentiment, they could also disproportionately hurt savers, the Central Bank said in its ‘Policy Agenda for 2025 and Beyond’, which was launched on Wednesday (08).
However, unlike during the high inflation episode, real returns on deposits have been positive, with inflation successfully being reined into low levels, CBSL said. Interest rates have their cycles, and the Central Bank will manoeuvre interest rates to ensure that inflation is kept low and stable with a view to promoting overall public welfare, the Bank said.
“Amidst these developments, to ensure that domestic savings are promoted in a low interest rate environment, the financial industry is encouraged to introduce innovative solutions and products to promote savings in the context of the rapidly ageing population, while also embedding elements of liquidity and safety to compensate for interest rate volatilities during business cycles. Moreover, the culture of saving at an earlier stage of life should be nurtured, which will not only promote long-term savings but will also ensure greater financial security for a better life after retirement,” the policy statement said.
The Central Bank follows a forward-looking, data-driven approach to monetary policy formulation.
“Domestic money market liquidity is likely to increase gradually in 2025 with the expected buildup of foreign reserves, and the Central Bank will stand ready to manage liquidity, through appropriate monetary operations. Meanwhile, the Central Bank will explore ways to gradually phase out its holding of restructured bonds, a legacy of the Central Bank’s financial support to the Government during the crisis,” CBSL said.
The CBSL said: “The near completion of the Government’s external debt restructuring, coupled with the significant progress made under the IMF-EFF programmer, has created a solid foundation for boosting investor confidence and ensuring the stability of the external sector. In this regard, the Central Bank will closely observe the developments and risks on the external front to advocate appropriate policies promptly.
“Sri Lanka has been able to record a current account surplus continuously for two years, in 2023 and 2024. However, as economic activity picks up, the external current account is likely to record a deficit in 2025. Sri Lanka needs to maintain the external current account at sustainable levels over the medium term. A gradual recovery in import expenditure is expected, particularly in the context of the planned relaxation of vehicle import restrictions in 2025 by the Government. Furthermore, the external current account will be supported by inflows from the services trade and workers’ remittances, which together are expected to reach historically high levels.
“The journey towards ensuring long-term stability in the external sector will be essentially built upon the ongoing IMF-EFF programme to ensure the implementation of reforms and promote overall macroeconomic stability. The Central Bank will continue to strive towards the key commitment of rebuilding external buffers under the programme by purchasing forex from the foreign exchange market. Such buildup of external buffers needs to be facilitated by sufficient foreign exchange inflows to the country by way of enhanced earnings from merchandise and services exports, workers’ remittances, and foreign direct investment. Further, with the objective of expanding reserve management activities, the Central Bank intends to capitalize market opportunities through various diversification strategies across the markets, such as establishing a new investment tranche with advanced portfolio management strategies. Due attention will be given to strengthening risk mitigating aspects to ensure the safety of invested foreign reserves.”
It has been reported quoting family sources that veteran singer Mariazelle Goonetilleke has passed away this morning (10) at the age of 68
She had been receiving treatment at the Kalubowila Teaching Hospital.
The wife of retired Major General Suresh Sallay has lodged a further complaint with the Human Rights Commission of Sri Lanka (HRCSL), alleging that her husband’s fundamental rights continue to be violated as Criminal Investigation Department (CID) officers prevent him from having confidential consultations with his lawyer while he is under detention at the National Hospital.
In a letter addressed to the HRCSL Chairman on Thursday, Mrs. S.B.M.S.B. Sallay has said the latest complaint was filed in relation to an earlier complaint concerning the detention and treatment of her husband.
Full text of the letter: I, Mrs. S.B.M.S.B. Sallay, respectfully write to lodge this further complaint in relation to my earlier complaint bearing reference H RC-HO-1 103-26, concerning the detention and treatment of my husband, Retired Major General Suresh Sallay.
I wish to bring to the attention of the Commission a further serious violation of his fundamental rights that occurred on 08 July 2026 during a consultation between my husband and his Attorney-at-Law, Mr. Asith Siriwardena, while my husband remains under detention and is receiving treatment at the National Hospital.
I am informed by his Counsel that he is presently permitted to consult with my husband only once a week for a period of approximately twenty minutes. During the consultation held on 08 July 2026, officers of the Criminal Investigation Department (CID) stationed at the Cardiac Coronary Care Unit of the National Hospital informed Counsel that they had received instructions from higher authorities that my husband should not be permitted to meet with his
legal counsel in private. Consequently, the officers remained present throughout the consultation and refused to permit a confidential lawyer-client meeting.
This conduct constitutes a grave infringement of my husband’s fundamental right to communicate privately and confidentially with his legal counsel. Confidential communication between an accused or detainee and his lawyer is an indispensable safeguard of the right to legal representation, the right to prepare his defence, and the right to a fair trial. The denial of confidential legal consultations undermines these fundamental protections guaranteed under the Constitution of the Democratic Socialist Republic of Sri Lanka and the applicable provisions governing persons detained under the Prevention of Terrorism Act.
The confidentiality of communications between a lawyer and client is also a well-recognized principle under international human rights law and forms an essential safeguard against arbitrary detention, coercion, and unfair legal proceedings.
In view of the foregoing, I respectfully request the Human Rights Commission of Sri Lanka to urgently intervene and take all necessary steps within its statutory mandate to:
1. Ensure that my husband is afforded immediate and unrestricted confidential access to his legal counsel without the presence or supervision of law enforcement officers;
2. Inquire into the instructions allegedly issued by higher authorities requiring CID officers to remain present during lawyer-client consultations;
3. Direct the relevant authorities to cease any practice that interferes with confidential legal consultations; and
4. Take such further action as the Commission considers appropriate to safeguard my husband’s constitutional and human rights.
This complaint is made as a further complaint to Complaint No. H RC-HO-1103-26, and I respectfully request that it be placed on the same file and considered together with my previous complaints.
I respectfully seek the Commission’s urgent intervention in this matter.
The Supreme Court yesterday (9) upheld a Colombo Commercial High Court order directing former Minister Wimal Weerawansa to pay Rs. 1 million in damages to Janatha Vimukthi Peramuna (JVP) General Secretary Tilvin Silva for violating intellectual property rights.
A three-member Supreme Court bench dismissed in its entirety an appeal filed by Weerawansa challenging the earlier Commercial High Court ruling.
The case was instituted by Silva, who alleged that Weerawansa had violated provisions of the Intellectual Property Act by publishing his book “Neththa Wenuwata Aththa” (“Truth Instead of Lies”), which contained the JVP’s political ideology and official party documents without authorisation.
The Supreme Court also affirmed the order restraining the publication and distribution of the book in its existing form. However, the court ruled that the book could be republished if the 60-page section identified as infringing intellectual property rights was removed.
Dharmaraja and Kingswood set for historic rugby clash on Saturday
Sri Lankan singer Mariazelle Goonetilleke passes away at the age of 68
Tensions erupt in Indian state after 11-year-old raped and murdered
US and Iran trade attacks as Khamenei is buried
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Canadian PM visits Saudi Arabia to strengthen energy, mining partnerships
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