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Sluggish capital spending irks govt: AKD cracks the whip

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The highest levels of government have expressed serious concern about the sluggish pace of capital spending by Ministries, with some having utilised as little as 11% of their allocated budgets, according to sources.

With more than half the fiscal year having elapsed, it is increasingly likely that no Ministry will be able to utilise its capital expenditure allocations fully by year-end. The underutilisation has prompted President Anura Kumara Dissanayake himself to initiate reviews of Ministry project performance, beginning with the Ministry of Health on Friday (06).

At the review meeting, held at the Presidential Secretariat, President Dissanayake evaluated the progress of infrastructure development and human resource projects in the health sector, as well as the ongoing challenges in medical procurement and pharmaceutical standardisation. Present at the meeting were Minister of Health and Mass Media Dr. Nalinda Jayatissa, top officials from the Ministry of Health and the Ministry of Finance, and senior presidential advisors.

Sources from several ministries identified what they described as administrative paralysis as a key reason for the delay in capital spending. Middle and upper-middle-level Ministry officials reportedly lack the necessary political clearances from recently appointed Ministers and Deputy Ministers, many of whom lack experience. In some Ministries, project implementation has come to a near standstill following political interventions and changes initiated by NPP-aligned union leaders, according to sources.

Despite the government’s focus on infrastructure and development—reflected in the Rs. 1.32 trillion allocation for capital expenditure (roughly 31% of the total non-debt government spending)—implementation has lagged. The 2025 Budget, passed on March 21, allocated Rs. 7.19 trillion in total government expenditure, with notable capital allocations made to sectors such as transport (Rs. 421 billion), agriculture (Rs. 124 billion), urban development (Rs. 98 billion), and health (Rs. 95 billion).

The Ministry of Finance, which received the largest overall budget of Rs. 714.2 billion (including Rs. 229.3 billion in capital expenditure), is expected to take the lead in coordinating remedial action.

Political party sources said that the NPP top brass were disturbed that failure to execute the capital projects effectively could stall the government’s broader goals of economic recovery, infrastructure modernisation, and service delivery reform in 2025.The President is expected to continue Ministry-by-Ministry reviews in the coming weeks to identify bottlenecks, party sources said.



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SC finds Keheliya, others, guilty of violating FRs of public through corrupt drug procurement deal

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The Supreme Court yesterday held former Health Minister Keheliya Rambukwella and several senior health officials liable for violating the fundamental rights of the public over a controversial drug procurement carried out under the 2022 Indian Credit Line.

Delivering the judgment, a three-judge bench, headed by Chief Justice Preethi Padman Surasena, and comprising Justice Kumudini Wickremasinghe and Justice Janak de Silva, found that the procurement of medical supplies from an unregistered company, in breach of established procedures, had resulted in a serious infringement of public rights.

The Court ruled that the granting of a Waiver of Registration by the authorities was “wrongful, arbitrary and capricious,” and held that the direct procurement carried out on an unsolicited basis was unlawful. The transaction was accordingly declared null and void.

In a significant order, the Court directed Rambukwella to pay Rs. 75 million in compensation to the State from his personal funds.

The then Health Ministry Secretary Janaka Chandragupta and former Chairman of the National Medicines Regulatory Authority (NMRA), Prof. S. D. Jayaratne, were each ordered to pay Rs. 50 million.

The Court further directed NMRA Chief Executive Officer Dr. Wijith Gunasekara and former Director of the Medical Supplies Division Dr. Thusitha Sudarshana to pay Rs. 50 million each as compensation.

The ruling followed the hearing of a fundamental rights petition filed by Transparency International Sri Lanka and two other parties.

The Court also instructed the Commission to Investigate Allegations of Bribery or Corruption to initiate appropriate action under the Anti-Corruption Act against those found responsible.

Senior Counsel Senany Dayaratne, with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema and Maheshika Bandara, appeared for the petitioners.

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Sajith nudges govt. to follow India’s example in giving relief to consumers by slashing taxes on fuel

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Sajith

Opposition and SJB Leader Sajith Premadasa yesterday urged President Anura Kumara Dissanayake to reduce taxes on fuel, just as the Indian government has done.

He said in a post on X that “Modi government has decided to reduce the Special Additional Excise Duty on petrol and completely remove it for diesel in order to cushion the hardship on the Indian consumer. High time for Anura Kumara Dissanayake to keep up to his election promise and follow suit.”

Meanwhile foreign media reported that India has slashed excise duties on petrol and diesel to protect consumers and rein in a potential spike in inflation, while imposing windfall taxes on aviation fuel and diesel exports, amid volatile global oil markets, as a result of the Iran war.

Global oil prices have surged past $100 per barrel after the near closure of the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, since the US and Israel first struck Iran on February 28.

In a government order, released late on Thursday, India’s Finance Ministry reduced the special excise duty on petrol to three Indian rupees ($0.0318) per litre from 13 Indian rupees earlier. It also cut the duty on diesel to zero from INR 10 rupees per litre.

The government did not say how much the duty cuts would cost. The move comes ahead of elections next month in four Indian states and one federal territory, with Indian voters known to be extremely sensitive to higher prices.

“Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies, approximately 24 rupees a litre for petrol and 30 rupees a litre for diesel, at this time of sky high international prices, are reduced,” Indian Oil Minister Hardeep Singh Puri said in a post on X.

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Expect hot weather until end of May

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The Met Dept. advises public to avoid outdoors between 11am and 4pm

Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology warned yesterday.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the country is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

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