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FSP opposes move to make Central Bank of Sri Lanka independent of Parliament
The Frontline Socialist Party says that the Central Bank of Sri Lanka Bill, if passed, would enable President Ranil Wickremesinghe to come to Parliament one day and state that there had been no Central Bank robbery for there had been no Central Bank to be robbed.
Addressing the media at the party headquarters, in Nuegegoda, FSP Educational Secretary, Pubudu Jagoda, said that the new legislation would deprive Parliament of power over the Central Bank. “This Bill contains provisions to do away with the Parliament’s powers of controlling the Central Bank. Parliament has the supreme control over public finance. It will hand the Central Bank’s autonomy to a few officials,” Jagoda said. “This Bill contains nothing but realisation of the general concept of an Independent Central Bank (ICB) promoted across the world by neo-classical economists and institutions such as the IMF. ICBs are fundamentally antithetical to democracy. The Parliament of elected representatives will lose their power to stop if an ICB oversteps its regulations. Parliament cannot make an ICB accountable. This has been tried and failed in many parts of the world. What happened in Latvia recently exemplifies ICB well. The Latvian Central Bank Governor was accused of bribery and money laundering. The Latvian Parliament voted 55 to 0 against him. However, when he was barred, the European Union stated that it was against the EU law because the Latvian Central Bank was an ‘independent’ institution.
Jagoda said that the US Parliament had been able to nothing when the Federal Reserve bank took away 4.7 trillion dollars from public funds meant for people’s welfare and deposited them in bank accounts of the super-rich.
“Years ago, all the countries had national central banks. It was noticed that there were a hindrance to the global money circulation because the banks were guided by the interests of their countries. Then came a concept proposing to make these banks independent. This independence is given by removing all the rights of the electives of people to intervene in the central bank. The new law will rescind Parliament’s power to appoint top officials of the Central Bank. As of now, Parliament can summon Central Bank officials and question them. This would not be possible if the Central Bank of Sri Lanka Bill is passed. This would surely end the Central Bank’s national role. After the bank is done away with, President Ranil Wickremesinghe could come to Parliament and state that he did not rob the Central bank as there was no Central Bank to be robbed,” Jagoda said.
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Chemmani mass graves: Govt to seek international forensic help
ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.
“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.
Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.
The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.
Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.
Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.
The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.
In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.
412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.
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ADB approves $57.4 million package to boost Lanka’s rooftop solar drive
The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.
The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.
Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.
The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.
ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.
She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.
The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.
The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.
A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.
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Bond scam case against Mahendran, Ravi K fixed for July 22
The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.
The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.
Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.
The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.
The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.
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