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Dr. Coomaraswamy advises next administration to govern by consensus and consistency

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Dr. Indrajit Coomaraswamy

… insists on continuation of IMF programme

Former Central Bank Governor Dr. Indrajit Coomaraswamy has recently said the next new government’s slogan should be ‘consensus and consistency’ in implementing the economic policy reform framework that has been agreed with the IMF to achieve economic growth targets and stability.

Dr. Coomaraswamy said so at a webinar jointly hosted by the Pathfinder Foundation (PF) and the Institute of South Asian Studies (ISAS) at the National University of Singapore that dealt with domestic politics of South Asia, with a special emphasis on Sri Lanka. The webinar, held at the River Point, Headquarters of the PF, brought together leading experts to explore the socio-economic and political challenges faced by Sri Lanka as the nation approaches the Presidential Election on 21st September.

The webinar featured distinguished speakers, each providing unique insights into the multifaceted political and economic issues that will shape Sri Lanka’s future.

Dr. Rajni Gamage, Research Fellow at ISAS, delved into the current political landscape in Sri Lanka and the indicative policy agenda of leading presidential candidates and political parties that would be employed to address the development challenges the country faces. She emphasized the importance of the election, the first since the severe economic crisis, noting that it is being held under intense public scrutiny. Dr. Gamage highlighted that several prominent political leaders were contesting in an environment where the electorate was more vigilant than ever.

Dr. Indrajit Coomaraswamy, former Governor of the Central Bank and Distinguished Fellow (PF), speaking on the current socio-economic dynamics in Sri Lanka, concentrated on three crucial areas, namely, recent macro-economic performance and policies, poverty dynamics in the country and the need for addressing corruption vulnerabilities. He highlighted that in terms of macroeconomic management, there has been an impressive turnaround in the economy. These include economic growth turning into positive after six quarters of consecutive negative contraction, dramatic reduction in both inflation and interest rates, healthy performance in government revenue collection and impressive build-up of external foreign reserve, which was precariously low at US$ 20 million at the time of the crisis has now reached US$ 5.6 billion. He further underscored the importance of continued commitment to implementing the IMF reform package under the Extended Fund Facility (EFF), of which two reviews have been completed. Finally, he emphasized that the slogan for the next new government should be “consensus and consistency’’ in implementing the economic policy reform framework that has been agreed to achieve economic growth targets and stability.

Addressing the socio-political undercurrents, Dr. Paikiasothy Saravanamuttu, Executive Director of the Centre for Policy Alternatives, provided insights into the rise of populism in Sri Lanka. He highlighted the potential backlash political parties may face if they fail to deliver their promises. Dr. Saravanamuttu emphasized the necessity of strong and decisive leadership to navigate the complexities of the current political environment, warning that the stakes are higher than ever in the upcoming elections.

Dr. Chulanee Attanayake, a Non-Resident Fellow at ISAS, offered a comprehensive analysis of regional geopolitics and its potential impact on Sri Lanka’s elections. She examined the influence of global superpowers, focusing on India, China, and the United States on the next government. Dr. Attanayake highlighted the strategic importance of Sri Lanka within the broader South Asian context and discussed how regional dynamics could shape the country’s political and economic future.

The webinar saw active participation from a diverse audience, including academics, policy analysts, and regional experts. The Q&A sessions were particularly engaging, with participants posing several focused questions on the implications of Sri Lanka’s political dynamics, its foreign policy, the role of political parties in shaping the electoral landscape, and the potential outcome of the Presidential Election.

The Presidential Election is poised to be a pivotal moment for Sri Lanka, marking the first major political event after the country’s economic crisis. As highlighted during the webinar, the next government will face the dual challenges of firm commitment to growth-enhancing economic reforms while ensuring a delicate balance to manage geopolitical pressures.

The entire webinar is available on Pathfinder Foundation’s social media platforms, YouTube and Facebook.



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Elders’ home devastated by fire was a ‘house of horror’: Witnesses

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Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

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CERT : AI-generated videos depicting Prez, PM lure public into financial scams

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Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

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New tax law comes into force

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Speaker Dr Jagath Wickramaratne endorsing the certificate on a Bill (File)

Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.

The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.

The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.

The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.

The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.

The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.

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