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Central Bank to immediately remove cash margin requirement on non-essential imports
Ban on vehicle imports continues
by Shyam Nuwan Ganewatte
Central Bank (CBSL) Governor Ajith Nivard Cabraal unveiling the ‘Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability’ on Friday (1) discontinued the cash margin deposit requirements imposed on 623 non-essential/non-urgent imports with immediate effect.
The cash margin requirement was imposed by former CBSL Governor Prof W.D. Lakshman.
Speaking at the launch of six month road map at the Atrium of the CBSL, Governor Cabraal said that the ban on the vehicle importation will continue for some more time.
The Governor said that the CBSL would ensure the maintenance of mid-single digit inflation and ensure stability of interest rates and the exchange rates.
He said the CBSL will continue with steps to curb prohibited pyramid schemes and other financial scams and also introduce directions on IT Risk Resilience of Licensed Banks.
Cabraal said that the CBSL balance sheet would be strengthened with gradual rollback measures and the buildup of external reserves.
“It will also strengthen off-site surveillance and improve risk management framework including Governance in financial institutions,” he said.
The governor said that regional development initiatives would be strengthened and new regulations on financial consumer protection will be developed under the Monetary Law Act.
The central bank will introduce user-friendly online complaint submission portal through the CBSL website and social media and a ‘Credit Counseling Centres’ and ‘Investment Advisory Centres’ would be established at Regional Offices.
It would facilitate the setting up ‘Equity Funds’ to support stressed businesses and thereby avoid the increase of non-performing loans.
Cabraal also said the possibility of buying back the entire Issue of ISBs maturing in January 2022 and/or July 2022 would be considered, if high discounts are prevalent in the market.
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Death toll in violent clashes at Negombo Prison rise to 25
It has been reported quoting police sources that the death toll from the renewed unrest at the Negombo Prison which this morning, has risen from nineteen to twenty five (25).
A clash initially broke out between two groups of inmates (a group of remand prisoners and a group of convicted inmates serving sentences) at the Negombo Prison at around 1.00 p.m. on Sunday (05).
Two inmates died in yesterday’s clash, while around 40 others sustained injuries and are receiving treatment at hospital.
News
The Government is committed to equipping children with new technology and knowledge – PM
Prime Minister Dr. Harini Amarasuriya stated that the children of Sri Lanka are well capable of viewing the world with creativity and critical ways of thinking, and that the Government is committed to equipping them with the required knowledge and modern technologies necessary to realize their full potential.
The Prime Minister made these remarks while attending the opening of the ’Arumasiya’ Exhibition and the occasion of laying the foundation stone for a new three-storey building at Balangoda Vidyaloka Central College, on the 4th of July.
During the visit, the Prime Minister officially declared open the exhibition showcasing the students’ innovations and creative talents and commended them for their remarkable achievements. The Prime Minister also participated in the ceremony of laying the foundation stone for the construction of the College’s new three-storey building.
Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated:
“It is a pleasure to participate in this special event at Balangoda Vidyaloka Central College, the school where Sri Lanka’s first female Prime Minister received her education
I had the opportunity to visit the exhibition featuring the outstanding creations and innovations of the students. What I witnessed was a group of talented young people who have moved beyond textbook learning and are capable of viewing the world with creativity and critical thinking.
We are introducing a new education reform process that moves away from a rote-learning, examination-oriented system towards a practical and skills-based one. The Government is now systematically completing all the necessary preparations to implement the new education reforms scheduled to commence in 2027.
Our objective is to ensure that every child leaving school has access to vocational and technical education that matches their individual talents and meets the demands of the modern labour market. We are committed to transforming vocational education into a field that enjoys the same dignity and recognition as university education.
Finally, I commend the Principal and the academic staff of Balangoda Vidyaloka Central College for organizing this exhibition, and to the students and parents whose dedication made this event a success.”
The event was attended by Members of Parliament for Ratnapura District Wasantha Pushpa Kumara and Sunil Rajapaksha, the Mayor of Balangoda and members of the Municipal Council, the Zonal Director of Education, the Principal and academic staff of Balangoda Vidyaloka Central College, parents, and students.

Prime Minister’s Media Division
News
Appointment of SPO to probe AG on hold until establishment of Ind. Public Prosecutor’s Office
The appointment of a Special Parliamentary Ombudsman (SPO) to inquire into the complaints against the Attorney General, as promised in the NPP manifesto, is on hold, pending the establishment of an Independent Office of the Public Prosecutor and provincial Sub Officers.
Authoritative sources told The Island that the Justice and National Integration Ministry was awaiting the recommendations, regarding the new legislation for the establishment of such an Office, from a Committee of Technical Experts, chaired by Justice Yasantha Kodagoda, PC.
Responding to a query raised in Parliament by SJB lawmaker Ajith P. Perera about the delay in appointment of SPO, Justice and National Integration Minister Harshana Nanayakkara said the government couldn’t take a decision until the Kodagoda Committee made recommendations.
Nanayakkara said that the positioning of the SPO couldn’t be decided before they differentiate the powers of the Attorney General and the an Independent Office of the Public Prosecutor and provincial Sub Officers.
According to the NPP manifesto, provincial Sub Officers were to be established under a senior Additional Solicitor General.
Opposition sources pointed out that the relevant Cabinet decision was taken on 7 May 2025. According to the Cabinet Office, the government decided to establish an Independent Office of the Public Prosecutor and provincial Sub Officers in line with a proposal made by the United Nations High Commissioner for Human Rights, in her final report on Sri Lanka, submitted in September, 2024.
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