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India commits grant assistance to High Impact Community Development Projects here for five more years

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Indian HC Jha and Finance Secretary Dr. Harshana Suriyapperuma after the signing of the agreement

A Memorandum of Understanding (MoU) for the implementation of High Impact Community Development Projects (HICDPs) in Sri Lanka, through grant assistance from the Government of India, was signed and exchanged by High Commissioner of India to Sri Lanka. Santosh Jha. and Secretary, Ministry of Finance, Planning and Economic Development. Dr. Harshana Suriyapperuma. on 11 November, 2025, extending the existing framework for another five years.

The text of the Indian High Commission statement regarding the above:

“The HICDP framework has been designed to contribute to the developmental aspirations and needs of Sri Lanka through relatively small but highly impactful developmental initiatives implemented in coordination with the Government of Sri Lanka, while maintaining the funding of large and medium scale developmental projects, as well as special financial assistance packages. The capital cost of a project covered under the HICDP framework is capped at SLR 600 million and the total capital cost of all such projects taken up for implementation at any time is capped at LKR 10 billion. Projects under the framework are entirely based on the requirements of the people and the priorities of the Government of Sri Lanka.

The Governments of India and Sri Lanka first entered into a MoU for implementation of such a framework for a period of five years in June, 2005. Noting the high utility of the implemented projects for socio-economic development in Sri Lanka, particularly in the education, health and community development sectors, and based on request from the Government of Sri Lanka, the framework has been extended thrice to date, in 2010, 2015 and 2020. The MoU signed on 11 November is thus the fourth extension of the framework for a period of another five years.

Over 50 HICDPs have successfully been implemented in Sri Lanka until now with Indian grant assistance. Some notable instances include construction of new surgical unit at Teaching Hospital Batticaloa, construction of 115 houses and infrastructure facilities at Ven. Sobitha Nahimigama in Anuradhapura, construction of Mahatma Gandhi Community Centre in Matale, supply of 110 buses to educational institutions across Sri Lanka, renovation of Duraiappah Stadium in Jaffna, upgrading 70 crèches in the estate sector to assist mothers employed in tea estates, construction of buildings of faculties of Engineering and Agriculture at University of Jaffna, Killinochchi campus, construction of buildings for Department of Kandyan Dance at Pallekele under Sri Dalada Maligawa, establishment of Rabindranath Tagore Memorial Auditorium at Ruhuna University, among others.

A total of 21 HICDPs are currently under implementation with a total outlay of over SLR 7 billion. Notable instances include construction of model villages each of 24 houses in every district of the island, establishment of smart classrooms and computer labs in 200 schools in the Southern Province, supply of single cabs for use in police stations in Sri Lanka, among others. Most recently committed projects under the scheme include establishment of 60 smart classrooms in selected schools in plantation areas, rehabilitation of Karainagar boatyard, and construction and supply of medical equipments for Accident and Emergency Unit at District General Hospital, Mannar.”



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Coal scandal: Govt. urged to release lab report

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Pubudu Jagoda

The government is under mounting pressure to release a foreign laboratory report on the controversial coal consignment imported for the Lakvijaya Power Plant, with the Frontline Socialist Party (FSP) accusing the authorities of political interference and tender manipulation.

Speaking to the media after a party meeting in Homagama yesterday, FSP Education Secretary Pubudu Jagoda demanded an immediate explanation for the delay in disclosing the report from a Dutch laboratory, Cotecna, which was commissioned to test samples of the coal stocks in question after doubts were raised about an earlier local laboratory assessment. Jagoda said Cabinet media spokesperson Dr. Nalinda Jayatissa had announced that the report would be submitted by 16 January, but it had yet to be made public.

“The Sri Lankan lab confirmed the coal was substandard and could damage both the environment and power plant machinery. The foreign lab has independently verified the same results, we are told. Yet, political pressure appears to be delaying the release of the report.” He warned that any attempt to issue a false report would eventually be exposed and urged the government and the laboratory to maintain transparency.

SLPP MP D.V. Chanaka told Parliament last week that while 107 metric tonnes of coal were normally required per hour to generate 300 megawatts, but as many as 120 tonnes of newly imported coal were needed to produce the same amount of power due to its lower calorific value. Tests showed the first two shipments had calorific values of 5,600–5,800 kcal/kg, below the required minimum of 5,900 kcal/kg, said.

Jagoda accused the government of tailoring procurement rules to benefit an Indian supplier, citing a drastic reduction in reserve requirements—from one million metric tonnes in 2021 to just 100,000 tonnes in 2025—and alleged previous irregularities by the company, including a 2016 Auditor General finding regarding a rice supply contract and the 2019 suspension of a key agent of the company by the International Cricket Council over match-fixing.

He further criticised systemic manipulation of the coal tender process, including delays in issuing the tender from the usual February-March window to July, and progressively shortening the submission period from six weeks to three, giving an advantage to suppliers with stock on hand.

The Ministry of Energy recently issued an amended tender for 4.5 million metric tonnes of coal for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender. Jagoda warned that procurement delays and irregularities could trigger coal shortages, higher spot-market purchases, increased electricity costs, and potential power cuts if hydropower falls short.

Jagoda called for urgent investigations into the procurement process, insisting that any mismanagement or corruption should not be passed on to the public.Denying any wrongdoing, the government has said it is waiting for the lab report.

by Saman Indrajith ✍️

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Greenland dispute has compelled Europe to acknowledge US terrorising world with tariffs – CPSL

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Dr Weerasinghe

The Communist Party of Sri Lanka yesterday (18) alleged that the US was terrorising countries with unfair tariffs to compel them to align with its bigot policies.

CPSL General Secretary Dr. G. Weerasinghe said so responding to The Island query regarding European countries being threatened with fresh tariffs over their opposition to proposed US take-over of autonomous Danish territory Greenland.

US President Donald Trump has declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland with effect from 1 February but could later rise to 25% – and would last until a deal was reached. Targeted countries have condemned the US move.

Dr. Weerasinghe pointed out that none of the above-mentioned countries found fault with the US imposing taxes on countries doing trade with Russia and Iran. Now that they, too, had been targeted with similar US tactics, the CP official said, underscoring the pivotal importance of the world taking a stand against Trump’s behaviour.

Referring to the coverage of the Greenland developments, Dr. Weerasinghe said that news agencies quoted UK Prime Minister Keir Starmer as having said that the move was “completely wrong”, while French President Emmanuel Macron called it “unacceptable.

Dr. Weerasinghe said that Sri Lanka, still struggling to cope up with the post-Aragalaya economic crisis was also the target of discriminating US tariff policy. The top CPSL spokesman said that the recent US declaration of an immediate 25% increase in tariff on imports from countries doing business with Iran revealed the prejudiced nature of the US strategy. “Iran is one of our trading partners as well as the US. Threat of US tariffs on smaller countries is nothing but terrorism,” Dr. Weerasinghe said, stressing the urgent need for the issue at hand to be taken up at the UN.

Responding to another query, Dr. Weerasinghe cited the US targeting India over the latter’s trade with Russia as a case in point. He was commenting on the recent reports on India’s Reliance Industries and state-owned refiners sharply cutting crude oil imports from Russia. The CPSL official said that the EU wouldn’t have even bothered to examine the legitimacy of US tariff action if they hadn’t been targeted by the same action.

Perhaps, those who now complain of US threats over the dispute regarding Greenland’s future owed the world an explanation, Dr. Weerasinghe said. The reportage of the abduction of Venezuela’s President and the first lady underscored that the US intervened because it couldn’t bear the Maduro administration doing trade with China and other countries considered hostile to them, Dr. Weerasinghe said.

The CPSL official said that the NPP couldn’t turn a blind eye to what was happening. Just praising the US wouldn’t do Sri Lanka any good, he said, adding that the Greenland development underscored that the US under Trump was not concerned about the well-being of any other country but pursued an utterly one-sided strategy.

The US dealings with the NPP government, particularly the defence MoU should be examined taking into consideration US tariffs imposed on Sri Lanka at the onset of the second Trump administration and ongoing talks with the US, Dr. Weerasinghe.

By Shamindra Ferdinando ✍️

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MPs’ Pension Repeal Bill challenged in Supreme Court

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 Two petitions have been filed before the Supreme Court challenging the constitutionality of the proposed Parliamentary Pensions (Repeal) Bill, which seeks to scrap pensions for legislators.

The Bill, presented to Parliament on 7 January by the Minister of Justice and National Integration, has drawn strong opposition from retired parliamentarians who argue that it undermines the rights of former lawmakers and their dependents.

One petition has been filed by former MPs M. M. Premasiri, Nawarathne Banda, Nishantha Deepal Gunasekara, and Saman Siri Herath, who served in Parliament from 2004 to 2010. The other petition is by former MPs Piyasoma Upali (1988–2004) and Upali Sarath Danstan Amarasiri (1988–2000).

The petitioners argue that former MPs, many of whom dedicated decades of service to the nation, often sacrificed careers and business prospects for public duty. They contend that retired MPs and some widows rely solely on their pensions, which range between Rs. 60,000 and Rs. 80,000, amounts they say are insufficient to cover basic living and medical expenses.

The petitions seek a declaration that the Bill requires approval by the people through a referendum and a two-thirds majority in Parliament, citing constitutional safeguards.

The petitions were filed through Attorney-at-Law Sanath Wijewardane and are to be supported by Dr. Wijeyadasa Rajapakshe PC.

 By AJA Abeynayake ✍️

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