News
Subdued Christmas awaits crisis-hit Sri Lankans
High inflation and cost of living stemming from ongoing economic crisis have dampened Christmas celebrations
(UCAN) For Nirmala Fernando, this year’s Christmas is quite different from the chaotic previous year, when millions in Sri Lanka stood in kilometers-long lines to buy essential goods such as cooking gas, milk powder, and fuel.
“There was an acute shortage last year. But this year, we have little money and everything is expensive. We cannot buy much,” the mother of two told UCA News as she did her Christmas shopping in Pettah, a market area in Colombo.
Every year, the family used to invite their relatives for Christmas dinner, but not this year considering the expenses. Her husband, a contractor in the construction industry, is the breadwinner of the family along with her in-laws.
“We limited our Christmas shopping with some gifts for the kids and other essential goods. We fear prices will go up further in January next year with more taxes,” she said.
Like Fernando, for thousands of Catholic families, this year’s Christmas is a low-key affair due to ongoing economic hardships.
After the country declared bankruptcy on its foreign loans last April, the government of President Ranil Wickremesinghe decided to go for an International Monetary Fund (IMF) bailout package.
His predecessor Gotabaya Rajapaksa was forced to flee the country in July 2022 following nationwide protests after an unprecedented economic crisis hit the country since 2019.
The crisis continues with high inflation and a near depletion of foreign exchange reserves, making essential commodities expensive.As part of the US$ 2.7 billion IMF bailout package, the second tranche of US$ 337 million, was approved on Dec. 14.
Just hours before the approval, the Sri Lankan Parliament approved the annual budget by majority votes, which included a tax hike from 15 percent to 18 percent on goods, and scrapped tax amnesty given to all other products as required by IMF to increase local revenues.
The new tax scheme which includes tax on locally manufactured products will come into effect from January 1. Many fear that the prices of goods, particularly imported items will go further up once the new taxes come into effect.
At the bustling retail market of Pettah in Colombo where it used to glow with seasonal decorations and Christmas trees throughout the city in the past, the festival mood is slow to pick up despite government initiatives to promote the tourism industry.
People are slow to spend because of unprecedented price hikes, higher taxes, and fluctuating inflation, business owners say.
“Not many people are buying Christmas or seasonal goods these days compared to previous years. People don’t have extra money on their hands. They prioritize buying essential items,” said S. Manoharan, a retail businessman in Pettah.
He sells Christmas trees, decoration balls, fairy lights, and Santa hats The price of onions spiked to a staggering 550 rupees (US$1.71) per kilogram after the tax hike was announced, he pointed out.
Local media reports suggest that even eggs are short of supplies during the Christmas and New Year holidays, prompting the government to place an import order of 15 million eggs from India.Sri Lanka’s poultry industry collapsed last year. The price of one piece of egg climbed to 65 rupees in recent weeks.
The price hike of ingredients has pushed up the price of cakes. Many families are unable to afford butter and chocolate cakes during this festive season which are now being sold at 1,350 rupees per kilogram.
A Christmas wreath is sold for around 700 rupees and starting prices of plastic-made two-feet Christmas trees are at 8,000 rupees.
“Considering the unaffordability of the people, we have introduced discounts for some of the decoration items for up to twenty percent, but we don’t see much enthusiasm among the public in buying them,” Manoharan said.
“Many do visit the shops but leave after inquiring about prices,” he lamented.
In the Tamil minority heartland of northern Sri Lanka, the Christmas mood has not yet picked up due to heavy rain and flooding across the region in the past few days.
Many affected families, who took shelter in temporary evacuation centers and at the homes of relatives, have not returned home yet.
The severe economic hardships due to the increased tax burden and cost of living explain why many people are planning to celebrate Christmas and New Year modestly, said Father Anthonypillai Gnanapragasam, the administrator of the popular Our Lady of Madhu Catholic shrine in Mannar, Northern Province.
“Whatever the difficulties they find themselves in, as Jesus Christ showed to us to be fulfilled and hopeful during these difficult times. I believe people will mark the season with simple joy and be kind to each other more,” Gnanapragasam told UCA News.
“After all, the difficulties and hardships are not something new for folks here as they lived through the war period and came out of it with the support of their religious faith. I hope they will come out from the current economic challenges too soon,” he said.
News
NPP: Speaker won’t step down, CIABOC can investigate him
* New Auditor General should not have been sworn in before Speaker – Opp.
* Suspended House Dy. Sec. Gen. Chaminda Kularatne takes his case to CA today
General Secretary of the National People’s Power (NPP) Dr. Nihal Abeysinghe yesterday said that there was no need for Speaker Dr. Jagath Wickramaratne to step down in view of the complaint lodged against him with the CIABOC (Commission to Investigate Allegations of Bribery or Corruption).
NPP General Secretary said so in response to The Island query whether the parliamentary group of the ruling party discussed the growing Opposition calls for the Speaker, who is also the Chairman of the Constitutional Council, to step down to facilitate the investigation.
The NPP parliamentary group consists of 159 MPs, including 18 National List (NL) members.
NL member Dr. Abeysinghe asked whether any other person, who had been investigated by the CIABOC, stepped down from his or her position to facilitate the inquiry.
The top official emphasised that the CIABOC could go ahead with its investigation without any hindrance.

Chamindra and Dr. Jagath
Opposition sources said that there hadn’t been a similar situation before and the CIABOC investigation into Speaker Dr. Wickramaratne is unprecedented as he heads the 10-member CC responsible and directly involved in all key appointments, including that of members to the CIABOC.
Sources pointed out that the newly appointed Auditor General, Ms. Samudrika Jayaratne, took the oath of secrecy before the Speaker on 5 February in Parliament after suspended Deputy General Secretary of Parliament Chaminda Kularatne complained to CIABOC.
In accordance with Section 9 of the National Audit Act, No. 19 of 2018, Jayaratne took the oath of secrecy in her capacity as the Auditor General of the National Audit Office and Chairperson of the Audit Service Commission.
Sources said that Kularatne would move the Court of Appeal today (10) against his removal at the behest of the Staff Advisory Committee, headed by the Speaker.
By Shamindra Ferdinando
News
Trinco Buddha statue case: All suspects, including 4 monks re-remanded till 11 Feb.
The Trincomalee Magistrate’s Court yesterday (09) further remanded 10 persons, including four Buddhist monks, arrested on 19 January, 2026, for allegedly placing a Buddha statue in the coastal reservation, on 16 January.
The Buddhist monks, including Ven. Balangoda Kassapa Thera, and six other individuals, were further remanded until 11 February.
They have been accused of violating the Coast Conservation Act by placing a Buddha statue on a block of land belonging to the Trincomalee Bodhiraja Temple.
Of the four monks, Ven Balangoda Kassapa Thera and Ven Trincomalee Kalyanawansa Tissa Thera moved the Court of Appeal against the Magistrate’s Court decision. The case was heard on 22 January before a Bench comprising the President of the Court of Appeal, Justice Rohantha Abeysuriya, and Justice K. Priyantha Fernando.
Manohara de Silva, PC, and President’s Counsel Uditha Igalahewa, PC, appearing for the petitioners, urged the Court to take up the matter urgently, describing it as a case of exceptional importance.
However, the Court of Appeal on 3 February dismissed the petitions against the remanding of Ven Balangoda Kassapa Thera and Ven Trincomalee Kalyanawansa Tissa Thera.
The order was issued by the Court of Appeal bench consisting of the President of the Court of Appeal, Justice Rohantha Abesuriya and Justice Priyantha Fernando.
News
Pakistan HC commemorates Kashmir Solidarity Day
The Pakistan High Commission in Colombo recently organised a seminar and photo exhibition at the HC premises to commemorate Kashmir Solidarity Day. The following is the text of the statement issued by the PHC: “The event highlighted Pakistan’s continued support for the Kashmiri people and emphasised the importance of a peaceful and just resolution of the Jammu and Kashmir dispute. Members of the Pakistani community, friends of Kashmir, and local journalists attended the event.
The seminar concluded with remarks by the High Commissioner of the Islamic Republic of Pakistan, Major General (R) Faheem-ul-Aziz, HI (M). He reaffirmed Pakistan’s principled stance on the Jammu & Kashmir issue and underscored the need for sustained international engagement. He noted that the situation in Indian Illegally Occupied Jammu & Kashmir (IIOJK) has remained a matter of concern for decades and called upon the international community, particularly the United Nations, to play its role in promoting peace, stability, and respect for human rights.
The High Commissioner emphasised that the Jammu and Kashmir dispute should be resolved in accordance with international law and relevant UN Security Council resolutions, cautioning that prolonged tensions could have broader implications for regional peace and security.
The event featured keynote addresses by Shiraz Yunus and Ms. Suriya Rizvi, who highlighted the importance of dialogue, interfaith harmony, and peaceful coexistence. They also drew attention to humanitarian concerns and stressed the need for safeguarding fundamental rights in the region.
Earlier, messages from the President and the Prime Minister of Pakistan, issued on the occasion of Kashmir Solidarity Day, were read out by the Press Attaché and the Trade & Investment Attaché, respectively.
As part of the Photo Exhibition, photographs and digital presentations, depicting the humanitarian situation in IIOJK, were displayed during the seminar.”
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