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Lanka plans $1.6 bn in cyclone recovery spending in 2026
Colombo (AFP) – Sri Lanka’s government announced plans on Thursday for $1.6 billion in extra spending in 2026 to fund the country’s recovery from Cyclone Ditwah, which killed more than 640 people.The natural disaster affected 2.3 million people, more than 10 percent of Sri Lanka’s population, and floods and landslides caused by the cyclone left extensive damage throughout the country.
The government convened parliament on Thursday, interrupting a month-long recess, to discuss what President Anura Kumara Dissanayake has described as the most challenging natural disaster to hit the island.
Dissanayake presented a request for an additional 500 billion rupees ($1.66 billion) for rebuilding devastated homes, roads, bridges and railways, as well as for cash handouts to help people regain lost livelihoods.
“We need to allocate an additional 500 billion rupees for disaster relief and reconstruction over and above the money allocated for government spending in calendar 2026,” Dissanayake told parliament.
The national assembly, where his party holds a more than two-thirds majority, is expected to approve the mini-budget on Friday.However, Dissanayake said the government does not intend to raise its borrowing limit to meet the additional expenditure.
He previously said he was banking heavily on foreign grants, and the finance ministry on Wednesday announced that it would call an international donor conference early next month.
The government has already asked the International Monetary Fund (IMF) for $200 million from a rapid relief fund and has secured World Bank agreement to repurpose $120 million from an ongoing project for disaster recovery spending.
On Tuesday, Sri Lanka also secured a $200 million loan from the Asian Development Bank to finance water management, the first such funding since the cyclone.
The finance ministry said the funds would be used to complete a canal network in the North-Central Province (NCP), which was among the worst affected by flooding last month.
“The objective of the project is to enhance agricultural productivity, farmer incomes and climate resilience in the NCP,” the ministry said in a statement.
The World Bank has said it is in the process of assessing the damage caused by the cyclone, while Colombo has said preliminary estimates suggest it may need up to $7 billion to rebuild.
The cyclone struck as the country was emerging from its worst ever economic meltdown in 2022, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.
Following a $2.9 billion bailout from the IMF approved in early 2023, the country’s economy has stabilised.
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Pakistan naval trio leaves Colombo after goodwill visit
Wrapping up their goodwill and replenishment visit, the Pakistan Navy ships ‘PNS Taimur’ and ‘PNS Aslat’, along with the submarine ‘PNS/M Hangor’, departed the island on 04 Jun 26. The naval units, which arrived in Sri Lanka on 01 June, were accorded a traditional naval send-off by the Sri Lanka Navy at the Port of Colombo, upon their departure.
During their stay, the Commanding Officers of Pakistan Navy ships and submarine called on the Commander Western Naval Area and the Flag Officer Commanding Naval Fleet at the Western Naval Command Headquarters, where discussions were held on several matters of mutual interest.
Meanwhile, Sri Lanka Navy personnel had the opportunity to visit the visiting Pakistan Navy ships and submarine. Furthermore, the crews of the visiting vessels explored the rich heritage of Sri Lanka, taking time to tour several culturally significant landmarks across the island.
News
China, Lanka intensify cooperation to fight cross-border crimes spreading across Asia and beyond
China and Sri Lanka have intensified joint law enforcement efforts to combat cross-border online gambling and telecom fraud, crimes that authorities warn are increasingly spreading across Asia and beyond.
The Chinese Embassy in Colombo said both countries are working closely to dismantle scam centres and fraud networks that have relocated to Sri Lanka from other parts of Southeast Asia. The Embassy noted that such operations often intertwine with human trafficking and other serious crimes, posing grave risks to public security and social stability.
China’s position on cross-border gambling remains firm: Chinese capital is prohibited from investing in overseas casinos, citizens are barred from operating them, and foreign casinos are forbidden from soliciting Chinese nationals. The Embassy stressed that gambling “almost invariably leads to financial ruin,” with tens of thousands of Chinese citizens suffering losses and harm. Recent amendments to China’s Criminal Law have criminalised cross-border gambling activities.
The Embassy pointed out that Sri Lankan authorities have carried out multiple raids in recent months, dismantling gambling and fraud dens and arresting suspects from several countries. Several Chinese nationals, involved in fraud-related crimes, have been handed over to Chinese authorities, producing what officials described as a strong deterrent effect.
The Chinese Embassy praised the efforts of Sri Lanka’s ministries of Foreign Affairs, Finance, and Public Security, particularly immigration and police officials, for their cooperation.
It warned that without firm and immediate measures, the spread of illegal gambling and fraud could damage Sri Lanka’s international image, undermine social stability, and harm the safety and security of its people.
China has already conducted similar law enforcement cooperation with countries including Spain, the UAE, Myanmar, and Cambodia, leading to arrests and repatriations of overseas fraud suspects. It has also proposed the creation of an international alliance against telecom and online fraud to coordinate global efforts, it said.
Going forward, China pledged to actively implement the Global Security Initiative and Global Civilization Initiative, while continuing to deepen law enforcement and security cooperation with Sri Lanka.
The Embassy said these efforts aim to safeguard lives and property, protect financial security, and build a “clean, safe, and beautiful Sri Lanka,” while contributing to a new global framework for combating transnational crime.
News
Asst. Manager, security officer arrested over Rs 30 mn snatch at Horana PB branch
An assistant manager and a security officer, attached to a state bank branch in Horana, have been arrested in connection with the robbery of more than Rs. 30 million that was being transported to replenish automated teller machines (ATMs), Police said.
The two suspects were taken into custody on Friday after statements were recorded from them regarding the incident, which occurred on Wednesday afternoon at the Horana branch of the People’s Bank.
According to Police, a bank employee was carrying two bags containing cash through the rear entrance of the bank at around 2.45 p.m. when an individual, who had arrived on foot, allegedly snatched the bags and fled the scene.
The stolen money, amounting to approximately Rs. 30.5 million, had been prepared for distribution to ATM machines and transportation to other bank branches. Earlier reports had estimated the loss at around Rs. 35 million.
Investigators subsequently arrested a suspect believed to have been directly involved in the robbery and recovered Rs. 17 million of the stolen cash.
Police have not disclosed the exact circumstances that led to the arrest of the assistant manager and security officer but said investigations uncovered information linking them to the incident.
The Western Province North Crime Division is conducting further investigations to determine whether additional suspects were involved and to recover the remaining stolen money.
The daring daylight robbery has raised concerns over security procedures employed during transportation of large sums of cash to/from banking institutions.Further investigations are continuing.
by Norman Palihawadane
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