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India markets use of INR for transactions with Sri Lanka
India is pushing for the use of Indian Rupees (INR) for economic transactions between India and Sri Lanka.
The High Commission of India recently organised a discussion on the use of INR for economic transactions between India and Sri Lanka. Representatives from the Bank of Ceylon, State Bank of India and the Indian Bank shared their experiences and informed the audience that they had started carrying out INR-denominated trade transactions through respective Vostro/Nostro accounts after the creation of enabling framework by the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) in 2022, according to an IHC press release.
The participating banks also outlined the benefits of settlements denominated in INR which includes shorter timelines, lower exchange costs and easier availability of trade credits, etc. The beneficial impact of this initiative on the tourism and hospitality industry was also highlighted including its role in helping increase collections which could be utilised by other sectors.
A team from RBI joined the discussion in the online format and indicated the possibility of settlement of current account transactions in goods as well as services in INR apart from the option of undertaking permitted capital account transactions. The RBI team referred to the close cooperation with CBSL and RBI’s commitment to further facilitate this process.
State Minister of Finance Shehan Semasinghe appreciated the close economic relationship between the two countries and the financial and humanitarian support extended by India over the past year including the strong financing assurances provided by India in context of the IMF support programme for Sri Lanka. Hon. Governor of CBSL, Dr. P. Nandalal Weerasinghe mentioned the strong desire among Indian and Sri Lankan business communities for enabling trade settlements in INR. He called for expanding this facility over a period of time to utilize it for the full range of capital and current account transactions. Governor CBSL also appreciated the wide-ranging participation from stakeholders in Sri Lanka and India which included more than 300 attendees in the physical format apart from those that joined online.
High Commissioner of India to Sri Lanka Gopal Baglay highlighted the positive impact that the initiative will have in the joint efforts for building a stronger and closer economic partnership between the two countries through trade and investment led measures. He also mentioned the ongoing cooperation between India and Sri Lanka in the area of digital payments and the potential it possesses for enhancing the economic relationship between the two countries.
Participants from Sri Lanka included officials from CBSL, Government of Sri Lanka, representatives from business and industry including tourism sector, media personnel, bank representatives, and economists. Participants from India that connected in the online format included representatives from RBI, Government of India, trade and industry associations and export promotion councils.
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Election monitors flay JVP for postponing PC polls
Election monitors have strongly condemned JVP General Secretary Tilvin Silva’s Jaffna declaration that the long-delayed Provincial Council polls couldn’t be held this year due to financial and legal impediments. Silva said so after declaring open a new NPP coordination office, in Jaffna, over the last weekend.
People’s Action for Free and Fair Elections (PAFFREL), and the Institute for Democratic Reforms and Electoral Studies (IRES), said that Tilvin Silva, in his capacity as the General Secretary of the main constituent of the National People’s Power (NPP), couldn’t make such a declaration under any circumstances.
PAFFREL head Rohana Hettiarachchi and IRES Chief Manjula Gajanayake emphasised that the JVP-led NPP government should be ashamed of the developing situation.
Hettiarachchi said that Tilvin Silva’s statement has to be examined against the backdrop of a parliamentary committee, headed by Foreign Minister Vijitha Herath, tasked to determine the electoral system under which PC polls should be conducted.
Alleging that the JVPer had made the parliamentary committee irrelevant, the civil society activist said that the whole exercise of appointing the Herath-led committee now seemed a farce. The JVP’s ruse to put off PC polls further reminded the country of a similar bid made by President Ranil Wickremesinghe, Hettiarachchi said, asserting that a government couldn’t postpone any poll, claiming it didn’t have the wherewithal.
Hettiarachchi emphasised that conducting elections was the responsibility of the government of the day. PC polls have been delayed for nearly one and half decades. Hettiarachchi said that as the NPP won the parliamentary election in November, 2024, it should be held accountable for further delaying the PC polls since then.
Responding to The Island queries, Hettiarachchi said that the JVP’s move couldn’t be justified, under any circumstances. If the NPP felt that the PC system was not required then urgent action must be taken to initiate a dialogue regarding the PC system and remove it through necessary constitutional means, he said.
Hettiarachchi alleged that the JVP, having gained political power, was now following the despicable agenda of the previous political parties which sought to hold onto power at the expense of the democratic rights of the people. The JVP proved that they were not different from those who were routed at the last presidential and parliamentary polls, the PAFFREL chief said.
Tilvin Silva’s unexpected Jaffna statement contradicted their election manifesto that promised to conduct both Local Government and PC polls in 2025.
Gajanayaka said since 1998 there had been several Supreme Court and Court of Appeal rulings regarding the PC polls due to reluctance on the part of some governments to conduct polls for obvious reasons. Referring to Tilvin Silva’s declaration that money allocated for the conduct of elections were utilised for Ditwah relief, Gajanayake emphasised the need to verify such claims. Gajanayake suggested that there should be provision to conduct a forensic study to find out whether Treasury had the required funds or the government lied.
Gajanayaka said that though the JVP was the dominant party, it would be interesting to know the opinion of Dr. Nihal Abeysinghe, General Secretary of the NPP. President Anura Kumara Dissanayake is the leader of both the JVP and the NPP.
The JVP Jaffna declaration couldn’t be accepted, Gajanayake said, adding that the JVP never really backed the PC system, though it contested them later after having waged a bloody insurgency against the Indian introduced set-up. Gajanayaka recalled the violence unleashed by the JVP in the wake of the Indo-Lanka accord of July 29, 1987, under which the then Congress government forced Sri Lanka to enact the 13th Amendment to the Constitution.
By Shamindra Ferdinando
News
SL exports exceed USD 5.7 bn in first four months of 2026
The Sri Lanka Export Development Board (EDB) says Sri Lanka’s total exports, comprising merchandise and services, reached US$ 1,380.93 million in April 2026, recording a year-on-year growth of 6 % compared to the previous year.
The EDB in a statement has said that the positive export performance recorded during the first four months of 2026 highlights the resilience of Sri Lanka’s external sector. Sustained export earnings, supported by stable merchandise trade and the growing contribution of services exports, indicate a steady and encouraging recovery trajectory for the Sri Lankan economy in 2026.
Commenting on the export performance in April 2026, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), has said: “Sri Lanka’s export sector continued to demonstrate resilience in April 2026, with total exports reaching US$ 1,380.93 million, recording a year-on-year growth of 6 % compared to April 2025. Merchandise exports recorded a notable increase of 9.87%, while services exports continued to make a significant contribution to overall export earnings, reflecting the growing importance of the services sector within the country’s export portfolio.
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Easter Sunday carnage: Court told Maulana’s statement cannot be accepted without cross-examination
Retired Maj. Gen. Suresh Sallay’s Counsel Shavendra Fernando, PC, recently told Colombo Fort Magistrate Pasan Amarasena that Mohammed Milhilar Mohammed Hanzeer alias Azad Maulana’s statement that implicated his client in the 2019 Easter Sunday carnage couldn’t be accepted as evidence in a court of law without cross-examination.
Fernando also reminded the court that a warrant had been issued in respect of Maulana, one-time aide to Sivanesathureyai Chandrakanthan, alias Pilleyan, over a case of bigamy.
The Criminal Investigation Department (CID) in late February this year arrested Sallay, who served as the Director of State Intelligence Service (SIS)s from Nov. 2019 to early Oct. 2024, just weeks after the National People’s Power (NPP) won a 2/3 majority at the parliamentary election. President Anura Kumara Dissanayake brought in DIG Dhammika Kumara as Sallay’s successor. Sallay previously served as the head of the Directorate of Military Intelligence (DMI) from 2012 to 2016.
Making submissions to the court after Additional Solicitor General (ASG) Dileepa Peiris, Fernando emphasised that a court of law couldn’t act on a statement submitted through a third party as it couldn’t be relied upon.
At the onset of his submissions, the retired officer’s Counsel declared that he was making submissions before the court and not for the media.
The crux of the matter was whether Maulana, a fugitive from Sri Lanka law, whose statement, recorded by a team of CID officers, led by its Director SSP Shanie Abeysekera, at the Sri Lankan mission, in Paris, could be accepted without cross-examination.
The Attorney General’s Department and the suspect’s Counsel explained their position with regard to producing Sallay, detained under the Prevention of Terrorism Act (PTA) in court.
The ASG requested that an order, issued by the Colombo Fort Magistrate court to produce Sallay in court, be vacated. Responding to the ASG’s statement that there was no provision to produce a person detained under PTA, in court, the President’s Counsel pointed out that no existing provision denied such an opportunity. The retired officer’s Counsel said that it was the Magistrate’s prerogative.
Alleging that there was an ongoing attempt to derail the Easter Sunday investigation, the ASG opposed an opportunity for Sallay to make a statement in court in terms of the Section 127 of the Code of Criminal Procedure. Fernando emphasised that Salley should be given the opportunity.
Fernando also strongly opposed the ASG’s move, on behalf of the Attorney General, to have an earlier order issued by court, to ensure Sallay received unhindered access to his lawyers, vacated. He questioned how the Attorney General, who heads the Bar, could deny the right of lawyers to have free access to their clients.
Magistrate Amaraseena told the court that a report on Sallay’s health has been received by the court. Fernando has said that he would respond once he received a copy.
During cross talk among lawyers, President’s Counsel Fernando has asked Rienzie Arsularatne, PC, who appeared for the Archbishop of Colombo, Malcolm Cardinal Ranjith, whether the Cardinal had approved and condoned the inhuman conditions in which Sallay was held in a 6X4 rat-infested cell.
ASG Peiris responded jokingly that Fernando might be excommunicated by the Cardinal. Fernando has pointed out that only the Pope could excommunicate and that the Cardinal administered the churches and priests and that, too, only in Colombo.
Based on the statement recorded from Maulana, the CID submitted a 14-page report to the Colombo Magistrate’s court, declaring Sallay as the 2019 Easter Sunday terror mastermind.
Maulana repeated accusations, aired by Channel 4 TV in a documentary “Sri Lanka’s Easter bombings” in its “Dispatches” programme on Tuesday 05, September ,2023.
According to Maulana’s statement recorded in Paris, Seyani Maulavi, an associate of Zahran Hashim, had got in touch with former Eastern Province Chief Minister Pilleyan, in the Batticaloa Prison, where both were held.
Pilleyan had been arrested in connection with the alleged involvement in the assassination of ITAK MP Joseph Pararajasingham on Christmas Eve, in 2005, in Batticaloa, while Maulavi was apprehended over a clash at Aliyar junction, in the east.
Maulavi has reiterated that Sallay met six persons, including Zahran Hashim, at Karadippooval, in Puttalam, in 2018.
The statement claimed that immediately after the Easter suicide blasts, Sallay directed Maulana to pick Jameel, who had been assigned to bomb Taj Samudra, but didn’t do so, and to collect his hand phone. Visits by Mahinda Rajapaksa, Basil Rajapaksa and Namal Rajapaksa to the Batticaloa Prison to meet Pilleyan, too, had been mentioned with Maulana claiming that the visitors gave Pilleyan an assurance he would be released within six months from Gotabaya Rajapaksa’s victory at the 2019 November presidential election.
The CID told court that Gotabaya Rajapaksa, soon after winning the election, appointed Sallay as SIS head to protect the secrets, and the DMI paid Rs 250,000 bail for Maulavi. The CID also alleged direct DMI-Pilleyan link in the abduction of journalist Keith Noyahr, in May 2008, Lasantha Wickrematunga assassination, in January, 2009, attack on Rivira Editor Upali Tennakoon, in January, 2000, and in the disappearance of Prageeth Ekneligoda, on the eve of the 2010 January presidential election.
Another major allegation was that approximately 2,000 men, under Pilleyan’s command, were paid a monthly salary.
The Magistrate, at the end of the proceedings, declared that a decision regarding Sallay being brought to court and an opportunity for him to make a statement would be announced on July 1.
By Shamindra Ferdinando
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