News
Large majorities of Sri Lankan voters want the government to prioritize spending increases on health and education
A large majorities of voters want the government to increase spending on health and education, according to the latest findings from the Sri Lanka Opinion Tracker Survey (SLOTS).Since September 2022, as the economic crisis forced the government to rethink budget priorities, SLOTS has regularly asked survey respondents to identify their top two priorities for increasing government spending and their top two priorities for cutting government spending.
Throughout 2024, the top priorities for Sri Lankans for increased government spending have consistently been health (78%) and education (64%). These were also the only areas where spending increases were supported by majorities of Sri Lankans, with support cutting across all demographics. Agriculture was the next highest priority for increased spending (33%), followed by food assistance (9%), housing (4%), and Samurdhi/Aswesuma (3%).
Not surprisingly, SLOTS respondents have been more reluctant to identify priorities for cutting spending, and only one spending category—housing—received majority support for reductions. When asked what they would prioritize for spending cuts if the government lacked funds, the highest ranked items were housing (51%) and food assistance (44%), followed by Samurdhi/Aswesuma (22%), the police (14%), roads (13%), and the military (12%).
Support for increasing government spending on health and education was widespread across all demographics. Both poor and better-off Sri Lankans rank health (71% vs. 79%) as their top priority for increased spending. The better-off were more likely to prioritize education (70% vs. 53%), but both the poor and the rich agreed on the need to increase spending in these two areas. There were few differences based on age, although youth (18–29 years) were more likely to prioritize education spending compared to older adults (60+).
Sri Lankans (17%) than for the better-off (5%). Similarly, one-fourth of the poor (29%) prioritized it for spending cuts, while nearly half of the better-off (49%) supported reducing spending on food assistance. Similar preferences were seen for Samurdhi/Aswesuma, with the poor much more likely to prioritize it for increases in spending, while the better-off much more likely to prioritize it for spending cuts.
There was no support for prioritizing the army or the police for spending increases, and one in eight Sri Lankans prioritize either for reducing spending. However, poor Sri Lankans were more likely to cite the army or police as a priority for cutting spending.There are notable differences in spending priorities among different ethnic groups. Sinhala adults were more likely than other ethnic groups to prioritize health (82%) and education (66%).
COPF final report on USD 2.5 mn cyber fraud recommends action against all responsible
The US$2.5 million loss incurred during Sri Lanka’s foreign debt repayment to Australia was a clear case of a cybercrime and theft, Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva told Parliament yesterday.
Presenting the COPF final report on the cyber fraud, Dr. de Silva said the incident amounted to a serious financial crime and called for a comprehensive investigation, by law enforcement authorities, to identify and prosecute all those responsible.
The report revealed serious governance, procedural and operational failures that enabled the fraudulent transfer of public funds, while recommending sweeping reforms to strengthen cybersecurity, financial controls and public debt management systems.
According to the report, officials of the Treasury and the Central Bank bore responsibility for governance lapses that contributed to the failures. It also highlighted the fact that the Ministry of Finance was operating an outdated Microsoft Exchange Server after security support had ended, while basic safeguards, such as multi-factor authentication, had not been implemented.
The COPF said suspicious payment instructions linked to debt repayments involving India, the United Kingdom, Germany and Belgium had also been detected, preventing further losses. However, the US$ 2.5 million fraud materialised only in the repayment transaction involving Australia.
The report has noted that officials had failed to verify lender email domains, relied on unverified email communications and lacked adequate internal controls, allowing the fraud to continue for months.
Although the investigation uncovered system-wide weaknesses across several institutions, only four mid-level Finance Ministry officials had been suspended so far, the report said.
The COPF has recommended a special audit of the foreign debt repayment process, strengthened cybersecurity measures across state institutions, updated financial regulations and improvements to public debt management systems.
by Saman Indrajith
News
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
Opposition Leader Sajith Premadasa, together with Opposition MPs, yesterday signed a No-Confidence Motion (NCM) in Parliament against Justice Minister Harshana Nanayakkara.The move comes in response to the unrest at the Negombo Prison, where both prison officers and inmates were killed.
Opposition members said the Minister had failed to fulfill his responsibility and accountability regarding their safety.According to the Opposition group, the NCM seeks to hold the Minister directly accountable for lapses in ensuring protection within the prison system.
The Attorney General yesterday informed the Supreme Court that the government has decided to review the legality of agreements entered into by the previous administration to hand over the country’s electronic visa issuance operations to private companies.
Additional Solicitor General Viveka Siriwardena, appearing for the Attorney General, made the submission when the Supreme Court took up the fundamental rights petitions filed by former MPs President’s Counsel M.A. Sumanthiran, Patali Champika Ranawaka, and Rauff Hakeem, challenging the previous Cabinet’s decision to outsource the e-visa system.
The petitions were heard before a three-judge bench, comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli and Arjuna Obeyesekere.
The Additional Solicitor General informed court that the current Cabinet had appointed a subcommittee to examine the legality of the agreements with the private companies and requested time to report on its findings, stating that the review was still underway.
President’s Counsel Sumanthiran, appearing as one of the petitioners, told the court that although the present government had indicated its intention to cancel the transaction, the petitioners wished to proceed with the case.
He noted that members of the current Cabinet had been named as respondents in the petitions.The Supreme Court directed the petitioners to issue notice on the members of the current Cabinet, named as respondents, and fixed September 29 for further proceedings.
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US$ 2.5 mn cyber heist exposes system failures
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
AG informs SC of e-visa agreement review
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