Business

Central Bank says it merely executed government instructions

Published

5 months ago

2026/05/14

CBSL Governor Dr. Nandalal Weerasinghe takes questions from the audience at the public seminar held at the Central Bank yesterday.

USD 2.5 million sovereign debt payment:

The Central Bank merely carried out the controversial USD 2.5 million sovereign debt payment in accordance with instructions issued by the government, Central Bank Governor Dr. Nandalal Weerasinghe said yesterday, emphasising that the institution acted solely in its capacity as banker to the state.

Addressing a question at a public seminar, Dr. Weerasinghe explained that the Central Bank’s responsibility in such transactions is operational rather than supervisory. According to him, once the Ministry of Finance or the Treasury issues a payment order, the Central Bank processes the transfer exactly as instructed, without involvement in determining the beneficiary or the broader decision-making process behind the payment.

The Governor’s remarks came in response to a query regarding the widely discussed USD 2.5 million sovereign debt repayment reportedly sent to a party in Australia and later alleged to have been siphoned off by a cyber criminal.

“The Central Bank is the banker to the government just as it is to commercial banks,” he explained. “When we receive a payment instruction from the Ministry of Finance or the Treasury, we execute that payment in line with the instructions given to us.”

He noted that the Central Bank credits the account specified by its client, in this case, the government — and subsequently informs the relevant authorities once the transaction has been completed. If a payment cannot be processed or is rejected by the banking system, the Bank notifies the client accordingly. And when a payment is successful, the client would receive a notification, he said.

However, Dr. Weerasinghe indicated that the Central Bank would not necessarily be aware if recipient details had been altered elsewhere in the chain of communication prior to the transaction reaching the Bank for execution.

The Governor also highlighted the institutional changes that took effect from January 1, 2026. He explained that when the Public Debt Department functioned under the Central Bank, the institution had a more direct role in sovereign debt management and decision-making. With the External Debt Department now operating under the Ministry of Finance, the Central Bank’s role has become largely facilitative.

Under the current arrangement, he said, the Bank simply processes payments on behalf of the government. If the Treasury provides funds in Sri Lankan rupees, the Central Bank converts them into US dollars before remitting the payment. Alternatively, the payment may be made from government accounts maintained at the Central Bank or from the country’s foreign reserves.

To simplify the explanation, Dr. Weerasinghe compared the process to an ordinary customer instructing a commercial bank to transfer money to a designated recipient. In such instances, the bank processes the transaction based on the customer’s instructions rather than independently verifying the account details of the recipient.

Through his remarks, the Governor strongly conveyed that the Central Bank had no involvement in the policy or decision-making aspects of the disputed payment and acted purely as the executing financial institution on behalf of the government.

By Sanath Nanayakkare

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

11 mins ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

19 mins ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

19 mins ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.