As the Sri Pada pilgrimage season commences, the Police Media Division has reported the arrest of 322 individuals in possession of various illegal narcotics while travelling to pay homage to the sacred Sri Pada site.

Among the substances seized by authorities were heroin, Ice (crystal methamphetamine), hashish, kush, mawa, cannabis, madana modaka, and illicit prescription pills.

Following their apprehension, the suspects were produced before the courts, where they pleaded guilty to the charges. The court subsequently imposed fines totaling Rs. 2,065,000 against the offenders.

The arrests were the result of a series of coordinated raids and rigorous security inspections conducted by special police teams across the Hatton police division. The operations were specifically targeted at key transit points, including Hatton, Polpitiya, Ginigathhena, and Nallathanniya, to ensure the safety and sanctity of the pilgrimage route.

The Police Media Division emphasised that these measures are part of an ongoing effort to curb the smuggling and consumption of drugs during the sacred pilgrimage period. They warned that police surveillance would be intensified throughout the season to prevent further incidents of this nature and to maintain order among the thousands of devotees visiting the holy site.

By S. K. Samaranayake

Central Bank Governor Dr. Nandalal Weerasinghe asserted yesterday that Sri Lanka’s latest round of coordinated policy tightening had already begun restoring economic stability, effectively containing external sector pressures and inflation risks. He stressed that more drastic emergency interventions are unnecessary at this stage.

Speaking to the media, following the announcement of the Monetary Policy Review—which raised the Overnight Policy Rate by 100 basis points to 8.75 percent—Governor Weerasinghe said the government and the Central Bank had succeeded in regaining control over currency market conditions.

“The current adjustments are sufficient,” he said, adding that the combined fiscal and monetary measures introduced last week were delivering the intended results, particularly in stabilising the exchange rate and easing pressure in the dollar market.

Despite ongoing global uncertainties, linked to the Middle East tensions and elevated oil prices, the Governor indicated that policymakers did not currently see a need to escalate intervention measures.

“Although there are other policy tools available, there is no need,” he reiterated.

Market participants are likely to interpret the Governor’s remarks as an effort by the authorities to quell speculation that Sri Lanka could impose tougher restrictions or aggressive administrative controls if pressure on the rupee intensifies further.

Instead, Dr. Weerasinghe appeared to signal that a calibrated combination of tighter fiscal discipline, credit controls, and monetary tightening is already sufficient to cool excessive demand conditions in the economy.

Last week, the government imposed a surcharge on vehicle imports, while the Central Bank tightened lending rules—reducing loan-to-value ratios for vehicle financing and capping gold-backed lending at 70 percent. The Central Bank believes these measures will help contain strong private sector credit growth, which has been fuelling import demand and straining foreign exchange liquidity.

“These measures have already stabilised the exchange rate,” the Governor said. “The supply and demand for US dollars are under control.”

An economist who spoke to The Island noted that the Governor’s comments carry an important policy message: Sri Lanka is attempting to avoid both extremes—neither allowing imbalances to build unchecked nor overreacting with destabilising emergency restrictions.

“Instead, authorities appear to be pursuing a middle path aimed at slowing credit-fuelled import demand while averting higher inflation expectations and severe external vulnerabilities,” the economist said.

The latest rate hike also signals that the Central Bank remains focused on anchoring inflation expectations, after April inflation accelerated to 5.4 percent—following energy price adjustments linked to global oil market disruptions.

By emphasising that no additional tools were currently necessary, the Governor sought to reassure investors and businesses that the situation remained manageable within the framework of conventional macroeconomic policy rather than crisis management.

By Sanath Nanayakkare

Former Foreign Minister Prof. G. L. Peiris, on Monday (25), claimed a change of US policy in respect of Sri Lanka. Prof. Peiris said President Donald Trump had done away with the Indian role in its relations with Sri Lanka and was developing his own strategy.

The academic said so at the launch of ‘Ekata Gatuma,’ authored by former Minister Patali Champika Ranawaka, leader of the United Republic Front, launched in May, 2023.

Addressing the gathering at the BMICH, Prof. Peiris said that Sergio Gor, the current US Ambassador to India would spearhead the move. Gor, President Trump’s special envoy for South and Central Asian affairs, since August, 2025, assumed office as US Ambassador, to India, on January 14, 2026.

Declaring that major powers changed their positions appropriately, in line with their strategies, Prof. Peiris emphasised that India launched a terrorist project here in the 80s as it feared Sri Lanka, under President JRJ’s leadership, was getting too close to the US. India utilised the LTTE, Prof. Peiris said, underscoring the Trincomalee oil tank farm and the Voice of America (VoA) which were seen by Delhi as two disruptive issues at that time.

Today India controls part of the Trincomalee oil tank farm and the second player in the fuel market here.

The former Minister dealt with the ‘One China’ policy that received fresh global attention during President Trump’s recent visit to Beijing where Chinese leader Xi Jinping warned if the Taiwan issue was handled poorly, it could lead to a clash with the United States. China applied the same policy in respect of Tibet and that was a troublesome issue, involving India and China. Prof. Peiris briefly explained how India’s decision to accommodate the spiritual leader of Tibet in Dharamshala, Himachal Pradesh, since 1959 caused a rift between the Asian giants.

Commenting on the devastating ongoing West Asia conflict, Prof. Peiris asserted that the joint unprovoked US-Israeli attack on Iran was meant to disrupt energy supplies to China. In spite of claims that the primary issue was the Iranian nuclear programme the truth is that the US was hell-bent on depriving China of Iranian oil.

Prof. Peiris discussed the US-led invasion of Iraq in 2003 pointing out how the US Vice President Dick Cheney’s role in the oil industry contributed to that decision.

Among other notable developments Prof. Peiris dealt with were the terrorist attack on Pahalgam, India, in April, that led to the war between nuclear powers India and Pakistan, and US utilisation of Pakistan to negotiate with Iran at the expense of India.

Referring to the 1848 speech, in the House of Commons, by Foreign Secretary Lord Palmerston, who declared: “We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow,” Prof. Peiris explained the US advanced its interests in its relations with India and Pakistan.

Declaring that India suffered a setback due to Pakistan’s use of US aircraft in the most recent war, Prof. Peiris recalled Indian PM Narendra Modi throwing his weight behind Trump at the US elections by urging Indian Americans to exercise their franchise in support for the Republican candidate. But, Trump needed Pakistan to deal with the Taliban, the ex-Minister said, adding that US Secretary of State Marco Rubio’s recent visit to New Deli was meant to repair damage the caused by US actions, beginning with the unprecedented tariff hikes which led to China, India and Russia taking a collective stand against President Trump.

Recalling his time as the Foreign Minister, Prof. Peiris said that Sri Lanka biggest challenge, during the war and post-war period, was how to balance relations with the US, China and India. Referring to his two terms as the Foreign Minister (2010-2015 and 2022 to 2024), Prof. Peiris recalled unwavering Chinese and Russian support during the Western attacks on the human rights front.

Prof. Peiris recalled assurance received in Moscow from Russian Foreign Minister Sergey Lavrov that any move against Sri Lanka at the UN Security Council would be vetoed by them. The Chinese stand that Western efforts to use human rights as a tool to interfere in Sri Lanka’s domestic affairs would be opposed by them strengthened the country’s posture, the former Minister said.

Prof. Peiris credited President Mahinda Rajapaksa for enhancing relations with Iran, Iraq, Libya, Turkey and Pakistan to counter western strategies, influenced by Tamil Diaspora.

Prof. Peiris faulted President Anura Kumara Dissanayake over his handling of the Iranian ship affair in March this year. President Dissanayake couldn’t claim to follow non-aligned policies by refusing entry to Iranian frigate Iris Dena and declining US request for refueling facilities here.

By Shamindra Ferdinando