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Utilize capital allocated by the government effectively to reach targeted economic development goals – President

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President Anura Kumara Dissanayake emphasized that this year’s budget has allocated the highest capital expenditure by a government in recent history for development activities, amounting to nearly Rs. 1,400 billion. The President stated that it is the responsibility of both the political leadership and state officials to ensure that these funds are utilized effectively to meet the economic growth targets before the end of this year.

President Dissanayake further stated that the general public, who are not involved, have fallen victim to the choices made by the political authority and state officials, stressing that this situation must not persist.

The President made these remarks on Friday (11) while attending the Matara District Special Coordination Committee meeting held at the auditorium of the Matara District Secretariat.

Highlighting that the government expects an economic growth rate of 5% this year, the President stated that increased state investments will contribute significantly to this growth. He added that the country now has the opportunity to restart its development efforts.

The President advised that if the allocated capital expenditure is not used as intended, the entire development cycle could collapse. He emphasised that everyone must commit to spending the funds effectively. The President also recalled that the country had a history of not receiving the allocated funds for capital expenditure in a timely manner.

During the meeting, the allocations made for development projects in the Matara District under the 2025 Budget at the level of ministries, departments and institutions, along with the progress of the projects that have already been initiated, were reviewed.

Discussions were also held regarding issues in the fields of agriculture, fisheries, health, education, rural road development, land and irrigation, along with potential solutions.

The President paid special attention to the issue of the Nilwala River Salinity Barrier, highlighting the necessity to address the longstanding problems faced by the local community. He directed that a Committee comprising specialists in the relevant fields be established within a month to evaluate previous findings of the investigation reports conducted on this matter and to prepare a report.

The President also highlighted the need for a comprehensive master plan to fully manage the flood situation in the Matara District. He suggested that the Asian Development Bank or the World Bank carry out a renewed study on the matter. In the meantime, he stressed the importance of implementing short-term solutions to address the day-to-day challenges people face until long-term solutions become operational.

Attention was also drawn to the waste management problems in the district and the measures being taken to address them.

The President noted the importance of using currently unused large government buildings in the district for productive development activities. Referring to the Matara Cultural Centre, he mentioned that despite the significant funds spent on its construction, it has not yet been utilised for any effective purpose. He instructed officials to submit urgent proposals to make a final decision regarding the deteriorating structure.

The proposed Polhena Cricket Training School was also a topic of discussion, and the President directed that a proposal be submitted concerning this matter. He guaranteed that measures would be taken to secure Cabinet approval for the project.

The meeting was attended by Co-Chairs of the Matara District Coordination Committee, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Southern Province Governor, Bandula Harischandra and Minister of Women and Child Affairs, Saroja Paulraj. Also present were public representatives of the Matara district including Members of Parliament Lal Premanath, Ajantha Gammaddage, Chathura Galappaththi, Arkam Ilyas, L. M. Abeywickrama, as well as government officials including Matara District Secretary, Chandana Tilakaratne.



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Implementation of water supply projects in small town and rural areas.

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Access to safe drinking water for populations residing in small towns and rural areas of Sri Lanka has not yet been fully ensured, and this continues to pose a major challenge to the country’s social and economic development.

With a view to overcome this situation, a programme has been planned to provide clean drinking water to approximately 600,000 families living in semi-urban and rural areas through the implementation of 300 projects covering 50 small towns and rural areas.

The projects are aimed at establishing safe, reliable and sustainable drinking water supply systems, with water to be treated through modern purification technologies, including chlorination and filtration systems, in conformity with national and international drinking water standards.

Accordingly, having considered the resolution furnished by the Minister of Housing, Construction and Water Supply, the Cabinet of Ministers granted approval for the implementation of the proposed programme by the National Water Supply and Drainage Board and the National Community Water Supply Department during the period 2027–2029, subject to the conduct of a feasibility study on the proposed programme and inclusion in the Public Investment Programme based on its outcome.

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Cabinet nod to submit Import and Export (Control) Regulations No. 04 of 2026 to Parliament for its concurrence

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Hydrochlorofluorocarbons (HCFCs), which are chemical compounds widely used in refrigerators and air conditioning units, are being globally phased out under the Montreal Protocol due to their high potential for ozone layer depletion and global warming.

Sri Lanka has likewise committed to phasing out these chemical substances by the year 2030 in a stepwise manner. Accordingly,
regulations under the Import and Export (Control) Act, No. 1 of 1969, namely the Import and Export (Control) Regulations No. 04 of 2026, published in Extraordinary Gazette Notification No. 2487/29 dated 2026-05-07, have been issued, prohibiting, with effect from 2026-06-06, the importation of equipment and appliances that operate solely on hydrochlorofluorocarbons, and prohibiting, with effect from 2028-01-01, the importation of compressors used as components in refrigeration systems of equipment and appliances that operate solely on hydrochlorofluorocarbons.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the  President in his capacity as
the Minister of Finance, Planning and Economic Development to submit the aforementioned Regulations to Parliament for its concurrence.

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Declaration of Elephant Migratory Corridors to minimize HEC in Monaragala and Hambantota districts

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Wild elephants inhabit approximately two-thirds of the land area of Sri Lanka, and it has been identified that the rapid obstruction of elephant habitats and migratory corridors due to various development projects and human activities has directly contributed to the escalation of human–elephant conflict.

It has been recognised that, in order to mitigate such conflict to a certain extent, the protection of wild elephant habitats and migratory corridors must be undertaken as a matter of urgency.

The Department of Wildlife Conservation is currently engaged in identifying wild elephant migratory corridors in collaboration with relevant Divisional Secretaries, stakeholder agencies, and organisations.

Under the Wild Elephant Migratory Corridor Identification Programme in Monaragala District, the Wild Elephant Migratory Corridor from Handapanagala to Demodara
across Menik Ganga (River Menik) up to Yala National Park  has been identified, and approval has been granted by the Monaragala District Coordinating Committee for that.

The Elephant Migratory Corridor from Yala National Park’s Zone VI -Lunugamvehera National Park to Udawalawe National Park has already been declared as the Wetahira Kanda Nature Reserve in 2002.

Within this area, five (05) licensed land plots have been identified, and these lands have not yet been developed.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Environment to take the following measures:

To declare, under the provisions of the Flora and Fauna Protection Ordinance, the elephant migratory corridor from Handapanagala in Monaragala District to Demodara across Menik Ganga up to Yala National Park as a sanctuary.

To provide alternative land outside the wildlife reserve area in lieu of the five (05) licensed land plots located within the Wetahira Kanda Nature Reserve area, and to re-declare the Wetahira Kanda Nature Reserve as an elephant migratory corridor.

To acquire, upon payment of compensation, land parcels containing buildings constructed in a manner that obstruct the Koholankala elephant corridor in the Hambantota District, and to declare the relevant area of the Hambantota Wild Elephant Management Reserve as a sanctuary.

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