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Govt. opts to re-establish International Trade Office

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The Government has decided to reorganize the existing institutional set-up, regarding foreign trade and re-establish the International Trade Office (ITO) to connect all the relevant institutions, and synergize their work, to boost the external trade sector to the National Economy.This decision was taken on the instructions of President Ranil Wickremesinghe.Sri Lanka can benefit greatly from linking with regional and global value chains and this is a major element of the Government’s economic revival programme, the President’s Media Division (PMD) said.

It said: “The plan is to first integrate into South Asia and then expand to the east; China, Thailand and Indonesia linking to the Regional Comprehensive Economic Partnership (RCEP) which consists of 30% of the world’s GDP, trade and population”.

To achieve this overarching objective, there is no alternative but to formulate a strong institutional structure to manage Sri Lanka’s presence in international trade while removing the existing compartmentalization of trade-related institutions. Thus, the Government has decided to reorganize the existing institutional set-ups and newly establish the International Trade Office (ITO), the PMD said.

“The ITO, once it is established through an Act of Parliament, will be headed by an Ambassador of International Trade, supported by an eminent group of advisors who has expertise in international trade. Designated officers, from all the relevant institutions, will be attached to it. The National Trade Negotiation Committee, which undertakes the Free Trade Negotiations, will also be an integral part of the ITO. As announced in the 2023 Budget Speech, the ITO will initially be established, under the Ministry of Finance, and, subsequently, it will be amalgamated into the Ministry of Foreign Affairs to implement Sri Lanka’s foreign trade development policy, across the world, with enhanced and effective coordination.

“Until the establishment of the ITO is fully completed, the core staff of the institution will come from the Presidential Secretariat. Taking immediate measures to operationalize the Sri Lanka – Singapore FTA (SLSFTA), which entered into force, in May 2018, but has not been operationalized till now, will be the first task of the ITO. The Joint Committee, set up in accordance with SLSFTA, comprising designated officials from both countries, will meet in January 2023 and finalize the modalities to agree on operationalization.

“In parallel, by next January the ITO will resume negotiations of the three FTAs with India, China and Thailand. The Chief Negotiator and the National Trade Negotiation Committee (NTNC), comprising Sub Committees on specific areas, have been appointed by the Cabinet for this task. In parallel, the government plans to resume negotiation of the three FTAs with India, China and Thailand. The 12th round of negotiations with India, the 7th round of negotiations with China and the 3rd round of negotiations with Thailand, will be held during the first two months of 2023.

“It is planned to complete these negotiations, possibly within the next year. Stakeholder consultations will be held with the relevant Chambers/Associations, before and after every round of negotiation, to make them aware of the status of negotiations, as they are the ultimate beneficiaries of the FTAs, with enhanced market access. Already, the first stakeholder awareness programme was held on 17 November, 2022. Moreover, simultaneous actions will also be taken, through this office, to revive the PTA negotiations with Bangladesh and Indonesia.”



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Sangha reform drives stymied from within: CBK

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Chandrika

Former President Chandrika Bandaranaike Kumaratunga has called for a comprehensive reform programme within Sri Lanka’s Buddhist clergy, warning that repeated efforts to strengthen the Sasana have in the past been derailed by opposition from within sections of the Sangha itself.

In a statement addressed to the Mahanayake Theras of the three Buddhist chapters, Kumaratunga stressed that the long-term preservation of Buddhism depends on safeguarding both the Dhamma and Vinaya, or disciplinary code, and urged urgent internal reform to address what she described as deep-rooted structural weaknesses.

She noted that Buddhist history has consistently demonstrated that periods of institutional crisis were addressed through reform processes, citing precedents from the First Buddhist Council to reforms during the Kandyan era under Welivita Sri Saranankara Thera.

Referring to post-independence efforts, Kumaratunga said initiatives taken during the 1956 Bandaranaike administration to strengthen Buddhism were left incomplete following the assassination of former Prime Minister S.W.R.D. Bandaranaike.

She further stated that during her own presidency, plans to convene a Buddhist Council under the guidance of the late Madihe Pannasiha Mahanayake Thera had received government backing but were ultimately abandoned due to resistance from certain sections within the clergy.

The former President alleged that, on both occasions, vested interests benefiting from existing weaknesses within the Buddhist establishment had worked to obstruct meaningful reform efforts.

Warning that Buddhism in Sri Lanka is currently facing serious challenges, she called for a broad internal dialogue within the Sangha to identify root causes and implement both short- and long-term corrective measures.

Kumaratunga urged the Mahanayake Theras to take the lead in convening a Dharma Sanghayana, or Buddhist Council, and said she was prepared to work with senior lay Buddhist leaders to support such an initiative.

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Court orders arrest of Basil

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The Colombo Fort Magistrate’s Court on Friday ordered the arrest of former Minister Basil Rajapaksa, Tourism Promotion Bureau Chairman Bhashwara Gunaratne, Managing Director Rumi Jauffer and several others over the alleged misuse of Rs. 7.8 million belonging to the Tourism Promotion Authority during the 2014 Uva Provincial Council election campaign.

Magistrate Pasan Amarasena directed the Criminal Investigation Department (CID) to arrest and produce the suspects before court, after it was informed that they would be named under the Public Property Act on the advice of the Attorney General.

The CID told court that attempts to take the suspects into custody from their residences had been unsuccessful as they were not present.

The Magistrate also imposed an overseas travel ban on the suspects and ordered that the Controller of Immigration and Emigration be notified.

Investigations have reportedly revealed that the funds were used to print 12,000 T-shirts bearing an image of former President Mahinda Rajapaksa on one side and the name of a political party on the other.

According to the CID, the T-shirts were later distributed at a political event held in the Monaragala District.

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Dayasiri raises alarm over ‘coal cartel’, flags national security risks

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Dayasiri

Kurunegala District SJB MP Dayasiri Jayasekera last week lodged a detailed submission before the Special Presidential Commission probing coal imports, alleging that Sri Lanka’s power sector is being exposed to serious national security risks due to irregularities, collusion and sanctions-related vulnerabilities in the coal procurement process for the Norochcholai Lakvijaya Power Plant.

In a dossier submitted last week, the MP called for a comprehensive investigation into the ongoing 2026/2027 tender for 2.28 million metric tonnes of coal, warning that the awarding of contracts to certain bidders could jeopardise the stability of the country’s electricity supply and trigger risks reminiscent of the 2022 power crisis.

The Lakvijaya Power Plant, Sri Lanka’s largest coal-fired power station, contributes nearly 40 percent of the national electricity generation.

Jayasekera alleged that the procurement process has been compromised by what he described as a “network of disreputable international commodity traders” and urged the Commission to examine patterns of alleged corruption, collusion and sanctions circumvention linked to coal supply chains.

Among the companies flagged in his submission was Potencia LLC-FZ, which he claimed is involved in ongoing legal proceedings against the Lanka Coal Company (LCC) while simultaneously participating in the current tender process. The MP questioned the propriety of such participation and further warned that the company’s alleged links to Russian supply networks could expose Sri Lanka to secondary sanctions risks, potentially affecting letters of credit, shipping arrangements and marine insurance coverage.

Jayasekera also called for the immediate exclusion of Taranjot Resources from the tender, citing its reported suspension by India’s state-owned NTPC Limited since March 2024. He further alleged that the company has a track record of supplying coal with sub-standard calorific value in previous shipments, which he said had contributed to operational disruptions in power generation.

Raising further concerns over possible bid rigging, the MP pointed to what he described as corporate interlinkages between Mohit Minerals and Taranjot Resources through a common associated entity, Trona Minerals. According to his submission, shared directorships and corporate overlaps suggested coordinated participation in the tender process, which he claimed could amount to a breach of national procurement guidelines.

The dossier also referred to several other international suppliers, raising concerns over their past records. These included allegations relating to shipping practices, arbitration disputes, quality certification issues and exposure to sanctioned supply chains. The MP cited instances involving alleged “dark shipping” practices, quality disputes in past deliveries, and contractual disputes that had led to arbitration proceedings in international forums.

Jayasekera also urged the Commission to revisit the Trident Chemphar coal procurement controversy of 2025/2026, alleging that a contract had been signed prior to obtaining Attorney General clearance. He claimed the episode had resulted in significant shortfalls in power generation, estimating a loss of around 250 gigawatt-hours.

Describing the matter as one of “national security rather than a commercial dispute”, the MP warned that any compromise in coal procurement could destabilise the country’s power supply, particularly at a time when Sri Lanka remains under an IMF-supported economic reform programme.

He urged the Commission to take a firm stance on procurement integrity and ensure that only credible and compliant suppliers are considered in future tenders.

The Commission is expected to examine the submissions as part of its wider inquiry into coal procurement practices dating back to 2009.

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