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Civil society groups warn of move to delay LG polls

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Transparency International Sri Lanka has said that the proposed law, titled “Regulation of Election Expenditure Bill,” listed for its Second Reading in Parliament today (19), shouldn’t be used to put off scheduled Local Government polls.

The following is the text of statement issued by the anti-corruption watchdog: “Transparency International Sri Lanka (TISL), People’s Action for Free and Fair Elections (PAFFREL), the Centre for Monitoring Election Violence (CMEV) and Institute for Democratic Reforms and Electoral Studies (IRES) have for several years been campaigning for the enactment of a strong law to regulate the role of money in election campaigns.

The collective of election monitoring organisations emphasizes that a law that seeks to regulate election campaign financing should prevent undue influence of donors over candidates, parties and independent groups, create a level playing field for all candidates including new entrants and underrepresented groups and reduce excessive and illegal spending on elections including by means such as the misuse of public funds and vote-buying. To be effective, the law should also provide for a robust monitoring and enforcement mechanism by both the authorities and citizens.

However, the Bill that was gazetted on 29th November 2022, is woefully inadequate to serve these purposes. The Bill bans campaign contributions from certain parties such as foreign governments, corporate bodies registered outside Sri Lanka, companies with foreign shareholding and anonymous donors. However, it does not impose any limit on how much funding a candidate, party or independent group can receive from any source, allowing space for undue influence.

The Bill foresees the designation of an authorized amount as the spending limit for a candidate at each election, which amount has not been considered with sufficient detail. It also does not, set out an adequate monitoring mechanism. It does not prevent spending by political parties and third parties, on candidates. As such, the proposed spending limit will only defeat the purpose of introducing this law.

The proposed procedure to enforce spending limits, is also inadequate. The Bill only provides that candidates should submit audited accounts to the Election Commission of Sri Lanka (ECSL), who will notify the public of their availability for perusal. An effective law would require maintenance and disclosure of separate all accounts of candidates, parties or independent groups to the ECSL, and would also make such information digitally accessible to the public, enabling easy scrutiny, and an opportunity to digitally identify irregularities.

When the Bill was placed on the Order Paper of Parliament, it was challenged before the Supreme Court, but the Determination of the Court is not yet publicly available.

While re-emphasising the critical need for election campaign financing regulation in Sri Lanka, the collective of election monitoring organisations calls upon the government to close the aforementioned loopholes in the Bill and to engage in a consultative process with the public, without rushing its passage in Parliament. A weak regulatory system can lead to a further deterioration of people’s trust in politics and the legitimacy of the electoral process, and will not achieve the objectives of introducing such a law.

The collective further reiterates that the introduction of a campaign financing law should in no instance be used as a reason to delay the holding of the local government elections.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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