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Early convening of Lanka-Indonesia Joint Commission discussed

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Govt. wants to build on ex-Prez Sirisena’s initiative

Foreign Minister Prof. G.L. Peiris and Indonesian Ambassador in Colombo Dewi Gustina Tobing recently discussed the early convening of the third session of the Joint Commission between the two countries to be held in Colombo and the need to follow up and build on the visit of President Joko Widodo to Sri Lanka to deepen and broaden economic collaboration, and the need to harness the untapped potential, in the bilateral economic sphere.

President Widodo visited Sri Lanka in late January 2018 on the invitation of the then President Maithripala Sirisena.

The Indonesian Ambassador met Prof Peiris on January 24 at the Ministry. Ambassador Tobing presented her credentials to President Gotabaya Rajapaksa on Dec 21, 2021.

The following is the text of the FM statement: “Prof. G.L. Peiris highlighted that Sri Lanka and Indonesia shared many common interests and goals, founded on long standing historical and cultural ties that predated the formal establishment of relations between the two countries in 1952. The Minister made these remarks at a meeting when, Ambassador of the Republic of Indonesia to Sri Lanka Dewi Gustina Tobing called on the Foreign Minister at the Foreign Ministry, on Monday 24 January 2022.

The Minister recalled warmly meeting his counterpart Foreign Minister Retno L.P. Marsudi, on the sidelines of the United Nations General Assembly in 2021 and also meeting Indonesian President Joko Widodo, at the COP26 and even before his inauguration, noting the excellent warm relations between the two countries. Minister Peiris underscored that both countries shared global priorities in the international arena, dating to their membership of the Non-Alignment Movement and shared outlook on socio-economic development and international relations, including environment, climate change and sustainable development. He emphasised the importance of the development of the Indian Ocean and the Indo- Pacific region and briefed on Sri Lanka’s chairmanship of the Indian Ocean Rim Association (IORA) and playing a leading role as Blue Charter Champion in the Commonwealth and its work on issues such as Mangrove conservation and spearheading the campaign for Sustainable Nitrogen Management.

The Foreign Minister and the Ambassador expressed interest to further expand cooperation, in a wide range of areas such as close cooperation in the United Nations and international fora, and supporting each other’s candidatures as well as to enhance trade, investment and tourism. They underscored the importance of initiating not just high-level interaction of their leaders, but increasing people-to-people contacts and forging links with business, trade and tourism, particularly to commemorate the 70th anniversary of diplomatic relations between Sri Lanka and Indonesia that would be marked in August 2022.

Foreign Minister Peiris noted that it would be most appropriate to celebrate the anniversary of relations with a visit from his counterpart, and extended a warm invitation to the Foreign Minister of Indonesia to visit Sri Lanka.

Minister Peiris apprised the Ambassador of Sri Lanka’s progress in reconciliation and the protection and promotion of human rights and socio-economic development of its people and engagement with the United Nations, but was opposed to the selective singling out of countries by some UN mechanisms, that were unwarranted and intrusive. He stated that Sri Lanka was giving priority to economic diplomacy and increasing opportunities to expand trade and investment, particularly in the post pandemic world and both sides could share their experiences.

The Ambassador looked forward to enhance relations between the two countries and noted the potential for close collaboration and partnerships in trade, investment and tourism and noted the interest of some Indonesian Industry, to look at possible projects in Sri Lanka, as well as closer ties with the business community and Chambers of Commerce, as well as possible events and activities to raise more awareness on relations and areas to bolster cooperation for their mutual benefit.

Foreign Minister Peiris also noted significant possibilities in defence cooperation, including combating illicit drug trafficking and sharing of intelligence and underlined the importance of close interactions between maritime agencies, National Anti-Narcotic agencies, and counter terrorism, highlighting that approximately 60,000 ships passed through the Indian Ocean annually and about one third of the world’s oil also passed through the region.

They looked forward to use the momentum of the 70th anniversary to strengthen relations between the two countries for their mutual benefit, including high level visits later in the year.”



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Removing monk’s robes matter for Sangha to decide: Mahanayake Theras

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Ven. Gnanasara

The Mahanayaka Theras of all Nikayas have protested against Bodu Bala Sena (BBS) General Secretary Ven. Galagodaaththe Gnanasara Thera, who is serving a prison sentence for contempt of court, being produced before court in civilian attire.

In a letter to the Commissioner General of Prisons, the Mahanayaka Theras have said they were surprised and concerned by the decision to remove the monk’s robes.

The letter has been signed by Most Ven. Thibbotuwawe Sri Siddhartha Sumangala Thera of the Malwatu Chapter, Most Ven. Warakagoda Sri Gnanarathana Thera of the Asgiri Chapter, Most Ven. Karagoda-Uyangoda Maithri Murthi Thera of the Amarapura Maha Nikaya and Most Ven. Makulawe Sri Wimala Thera of the Ramanna Maha Nikaya.

The Mahanayaka Theras have said they respect the Constitution and the judicial process, but maintained that removing a monk’s robes or ending his status as a member of the Buddhist Order is a matter that should be decided by the Maha Sangha.

They have said the relevant Sangha Council has not determined that Ven. Gnanasara Thera committed a Parajika offence or any other offence warranting his removal from the Buddhist Order.

The Mahanayaka Theras have also referred to Regulation 550 of the Prison Standing Orders, which they say stipulates that convicted prisoners should not be taken to court in prison uniform and should be allowed to wear the type of clothing they normally wore before their conviction. In the case of a Buddhist monk, they have said, this means his monastic robes.

They also referred to the United Nations Standard Minimum Rules for the Treatment of Prisoners, which provide for prisoners taken outside prison to be allowed to wear their own clothing or other unobtrusive clothing.

The Mahanayaka Theras have requested the Commissioner General of Prisons to allow Ven. Gnanasara Thera to wear his robes when appearing in court and to maintain his status as a monk while he remains in prison.

Prisons authorities have said that the clothing decision was made under prison regulations, and the Prisons Department has stated that prisoners serving sentences of more than three years are required to wear prison-issued clothing when produced before court.

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NDB fraud Rs 60mn more than reported

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The Committee on Public Finance has said that the actual losses suffered by the NDB bank are much more than what was initially reported. When compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud had increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion, the committee said.

When compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.

The has committee issued the following statement: The Committee on Public Finance recently summoned officials of the Central Bank of Sri Lanka to Parliament to inquire into the financial irregularities identified at NDB Bank and the final audit report relating to the matter.

The Committee meeting, chaired by Member of Parliament Dr. Harsha de Silva, discussed irregularities identified in NDB Bank’s financial statements, shortcomings in the audit process, and the relevant audit reports.

The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Ajith Agalakada, Nimal Palihena, Wijesiri Basnayake, M.K.M. Aslam, Champika Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.

The Committee also focused on the findings of the investigation conducted by the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAAMB), as well as the findings revealed through the investigation conducted by Deloitte Touche Tohmatsu India LLP. In particular, the Committee inquired into the failure of the external auditors to identify irregularities in NDB Bank’s financial statements.

The accountability of senior management with regard to corporate governance and risk management in relation to the financial irregularities was also discussed.

As a significant proportion of NDB Bank’s shares are held by institutions representing public and state funds, the Committee also considered the potential impact of such financial irregularities on public funds and the general public.

The Committee also discussed the progress made by LankaPay in establishing a centralized fraud monitoring system to prevent fraud within the financial system. The need to strengthen fraud monitoring systems at the individual bank level to monitor transactions carried out within each bank was also emphasized.

Accordingly, the following observations are included in the final audit report concerning the financial irregularities at NDB Bank:

1. The audit covers the period from 1 April 2016 to 31 March 2026. The audit report specifically identifies the financial impact arising from fraudulent transactions amounting to Rs. 13,639,664,684 (Rs. 13.6 billion).

2. According to the disclosure made on 29 September 2026, the financial impact arising from the fraudulent transactions is as follows:

· Rs. 1.5 billion for the period prior to 1 January 2025;

· Rs. 9.6 billion during 2025; and

· Rs. 2.5 billion for the quarter ended 31 March 2026.

3. Compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud has increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion. Compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.

4. The final audit report has also confirmed the previous disclosures that no customer accounts were affected as a result of the fraud incident.

5. The report has identified several governance failures at NDB relating to the processing of CEFT transactions, user-level activities within the Core Banking System, and the management of user credentials and access information. In addition, shortcomings have been identified in several operational areas, including transaction monitoring, daily account reconciliation, financial compliance, internal audit, branch network management, and operational risk management.

The audit report has made comprehensive recommendations to strengthen the control mechanisms, governance structures, and processes relating to the above-mentioned activities of the bank.

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President orders review of laws on treatment of imprisoned monks

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President Anura Kumara Dissanayake has ordered the formation of a committee to review the laws and regulations on how Buddhist monks serving prison sentences are treated, including the procedures that apply when they are taken out of prison.

He revealed this at a special meeting with Maha Sangha representatives held yesterday (8) at the Presidential Secretariat. The meeting was called after concerns were raised over how Ven. Galagoda Aththe Gnanasara Thera was treated when he was taken from prison to court.

The committee will recommend amendments to existing laws and, where needed, new prison standing orders and regulations. Its members will be drawn from the Attorney General’s Department, the Ministries of Justice, Public Administration, and Buddha Sasana, Religious and Cultural Affairs, and the Department of Prisons, including the Commissioner General of Prisons. It has been given two weeks to review the current legal provisions and submit its recommendations. The President added that any changes specific to Buddhist monks would be made in consultation with the Maha Sangha.

Outlining the legal background, the President said prison administration was governed by the Prisons Ordinance of 1877, along with the regulations and standing orders issued under it. That framework mostly addressed prisoners in general, he said, and had few provisions dealing specifically with Buddhist monks.

The meeting was attended by senior Maha Sangha members representing the Siyam, Amarapura and Ramanna Nikayas, along with Minister of Buddhasasana, Religious and Cultural Affairs Hiniduma Sunil Senevi and Minister of Justice Harshana Nanayakkara.

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