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Japan cautious on reviving stalled projects, seeks faster debt deal with China

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Japan has asked Sri Lanka to secure a debt restructure deal with China before any discussion on reviving the Light Rail Transit (LRT) project scrapped by former president Gotabaya Rajapaksa, diplomatic sources said.

Foreign minister Yoshimasa Hayashi made it clear during his brief visit to Colombo last week for talks with President Ranil Wickremesinghe that priority must be clinching a debt deal with Beijing before the end of August.

Sri Lanka must have a debt treatment plan ready before the second review of the IMF bailout finalized in March. The release of the second tranche of some $330 million depends on a credible debt restructure plan acceptable to all local and foreign creditors.

“I conveyed my expectations for further progress in the debt restructuring process and stressed the importance of a transparent and comparable debt restructuring that involves all creditor countries, Hayashi said in a statement.

He also welcomed Sri Lanka’s moves to tackle corruption, a key demand of the IMF bailout program.

Sri Lanka wanted more Japanese private investments and a quick revival of the LRT project which was initially estimated to cost about $1.5 billion and fully funded through highly concessionary 40-year loan from Japan. The loan carried an interest rate of 0.1 percent and a 12-year grace period.

The then secretary to Rajapaksa, Punchi Banda Jayasundara and Treasury Secretary Sajith Attygalle who championed the scuttling of the LRT said the project was “not cost effective.”

Officials at the time said they wanted to go with a Chinese developer who had offered to build the LRT at a lower price. However, a “viability charge” in the Chinese proposal meant that Colombo would have end up paying much more than for the Japanese LRT.

Relations between Colombo and Tokyo strained following Rajapaksa’s abrupt cancellation of the LRT in September 2020.

During Hayashi’s visit, the Japanese delegation made it clear that they were cautious about re activating any of the projects given Colombo’s track record of policy inconsistency.

Japan’s Foreign ministry spokeswoman Yukiko Okano also underlined their concerns about opaque Chinese funding and mega vanity projects that got Sri Lanka into a major economic crisis.

Asked if Japan will agree to Colombo’s request for a quick reactivation of the LRT as well as the airport expansion, the central expressway projects, Okano made it clear that they were all “stopped.”

“We will keep discussing (about) these projects with the Sri Lankan government, but in order to make a decision on the new lending for example, then it has to come after the debt restructuring.

“And I think private sector is also watching very carefully how this restructuring process goes forward, because otherwise they also have a stake in this.”

Japan’s main concern about China’s growing presence in Sri Lanka was its funding of mega projects and not so much the increased naval presence in the Indian Ocean region.

“In this region, I think it’s more to do with the big infrastructure projects and we have nothing against you know, Chinese helping other countries to build infrastructure, but as I said, these infrastructure financing has to be in accordance with the international rules, for example on transparency of the terms of the loans or, for example, the labour.

“Using the local labour or using local materials or, you know those standards and as long as their projects comply with these international standards, I think we are fine. But if not, then we have a concern.

“I’m not naming a specific project, but I think this concern is shared not only with the OECD countries, but maybe with the recipient countries too.”



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Showers about 100 mm are likely at some places in the Western, Sabaragamuwa, Central, Uva, Southern, North-western, Northern and North-central provinces and in Trincomalee district.

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WEATHER FORECAST FOR 11 MAY 2026
Issued at 05.30 a.m. on 11 May 2026 by the Department of Meteorology

 

The low-level atmospheric disturbance in the vicinity of Sri Lanka is likely to develop into a low-pressure area around the next 36 hours. Therefore, the prevailing showery conditions over the island are expected to continue during the next few days.

Showers or thundershowers will occur at times in most parts of the island and Cloudy skies are expected, under the influence of the aforementioned system. Heavy showers about 100 mm are likely at some places in the Western, Sabaragamuwa, Central, Uva, Southern, North-western, Northern and North-central provinces and in Trincomalee district.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.

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Treasury theft: Speaker’s conduct brought to IPU’s attention: SJB  

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Dayasiri

SJB MP Dayasiri Jayasekera has sought the intervention of the Inter-Parliamentary Union (IPU) to pressure the JVP-NPP government to respect the rights of the Opposition.

MP Jayasekera told The Island that they wouldn’t allow the NPP to suppress the truth regarding the theft of Treasury funds amounting to USD 2.5 million. He accused Speaker Dr. Jagath Wickremaratne of depriving the Opposition of its legitimate rights, at the behest of the government.

Jayasekera said that the Speaker’s conduct regarding the action taken against Deputy Secretary General of Parliament Chaminda Kularatne, too, had been brought to the notice of IPU and other international associations.

The text of MP Jayasekera’s letter to the Secretary general of IPU: “I respectfully submit this petition seeking the attention and intervention of the Inter-Parliamentary Union concerning a matter affecting parliamentary accountability, the rights of elected representatives, and the proper functioning of constitutional oversight within the Parliament of Sri Lanka.

On 06 May 2026, I Dayasiri Jayasekara MP submitted a formal request to the Hon. Speaker of Parliament seeking permission, under the Parliament (Powers and Privileges) Act No. 21 of 1953 and Standing Order 29(1), to raise a question of privilege regarding alleged constitutional and parliamentary violations by Mr. Harshana Suriyapperuma, Secretary to the Treasury of Sri Lanka.

The proposed privilege motion raised matters including:

1. Alleged violations of Articles 148, 149, and 150 of the Constitution of Sri Lanka concerning parliamentary control over public finance;

2. Alleged failure to report to Parliament concerning a controversial and unlawful transfer of approximately USD 2.5 million from the Treasury;

3. Alleged non-compliance with parliamentary committee procedures under the Standing Orders of Parliament;

4. Questions relating to constitutional eligibility under Article 91(1)(d)(xiii) of the Constitution concerning dual citizenship and qualification to sit and vote in Parliament;

5. A request that the matter be referred to the Parliamentary Ethics and Privileges Committee established under Standing Order 118.

 Despite the seriousness of the constitutional and parliamentary issues raised, the Hon. Speaker declined permission for the privilege issue to be raised in Parliament.

It is respectfully submitted that this refusal has the effect of:

•  Preventing an elected Member of Parliament from exercising his parliamentary oversight function;

• Restricting parliamentary scrutiny over matters involving public finance and constitutional accountability;

•  Undermining the privileges of Members of Parliament to raise matters of urgent public importance;

•  Limiting institutional transparency concerning allegations involving senior state officials.

The right of parliamentarians to raise questions of privilege and matters relating to constitutional governance is an essential component of parliamentary democracy and legislative independence. The refusal to permit even the presentation or preliminary consideration of such a matter raises serious concerns regarding parliamentary accountability mechanisms in Sri Lanka.

Accordingly, I respectfully request that the Inter-Parliamentary Union:

1.Take cognizance of this matter as one affecting the rights and functions of Members of Parliament;

2.Seek clarification from the relevant parliamentary authorities in Sri Lanka regarding the grounds upon which the privilege motion was disallowed;

3.Consider whether the refusal is compatible with internationally recognised principles of parliamentary democracy, accountability, and freedom of parliamentary speech;

4. Encourage the Parliament of Sri Lanka to ensure fair and transparent procedures governing parliamentary privilege motions and constitutional oversight.

I further request that this communication be placed before the appropriate committee or mechanism within the IPU dealing with the rights and duties of parliamentarians.”

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Navin calls for formal alliance between UNP and SJB

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UNP Vice President and Kandy District Leader, Navin Dissanayake, on Saturday, stressed that any proposed merger between the UNP and the SJB must be carried out formally rather than in an ad hoc manner.

Addressing a media briefing in Kandy, Dissanayake said a structured framework was essential to ensure the successful reunification of the two parties ahead of future elections.

“A formal mechanism must be established for the unification of the UNP and the SJB. This process cannot be confined to personal verbal assurances given to suit individual interests. We must build a strong framework to contest future elections as a united force,” he said.

He added that the UNP could only regain political strength by reuniting with factions that had broken away from the party.

Dissanayake also claimed that the Government would be compelled to hold Provincial Council elections amid mounting international and domestic pressure.

“India is exerting pressure to conduct these elections, while the people in the North are also demanding governance under the Provincial Council system. They are awaiting the polls,” he said.

Announcing his own political intentions, Dissanayake said he hoped to contest as the Chief Ministerial candidate for the Central Province at the next Provincial Council election.

“I intend to contest as the Chief Ministerial candidate for the Central Province. Having served as a Governor, I understand the extent of service that can be delivered to the people through a Provincial Council,” he said.

Recalling the history of constitutional devolution, Dissanayake said his late father, Gamini Dissanayake, had played a significant role in the introduction of the 13th Amendment to the Constitution of Sri Lanka.

by SK Samaranayake

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