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Indian support has made ‘world of difference’ to Lanka – FM Peiris

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‘Unresolved conflict over fishing rights is a constant irritant in bilateral relations’

India’s support has made a ‘world of difference’ to Sri Lanka’s economic situation, said Sri Lankan Foreign Minister G.L. Peiris, on his first visit to India since he was appointed last year, making it clear that the flurry of agreements announced in recent weeks have allowed the neighbours to move on from the problems of the “immediate past”.

In an interview with The Hindu, Prof. Peiris cautioned, however, that the unresolved conflict over fishing rights WAS a ‘constant irritant’ in bilateral relations, and the recent clashes between Indian and Sri Lankan fishermen that led to the death of two Sri Lankans, was a ‘flashpoint’ in ties that he hopes to resolve through talks.

“There’s no doubt whatsoever that Indian support at this critical juncture has made a world of difference. It has helped us to tide over the immediate difficulties which were obviously acute,” Mr. Peiris told The Hindu, referring to a series of announcements, including one billion dollars in various lines of credit, a currency swap arrangement of $400 million and a debt deferral of $515 million for two months from India.

In addition, India and Sri Lanka concluded a long pending agreement to jointly develop the oil tank facilities in Trincomalee, and have planned a number of infrastructure projects involving the private sector, which will be further discussed when Finance Minister Basil Rajapaksa visits Delhi in the next few weeks. Sri Lanka has also invited Prime Minister Narendra Modi to attend the BIMSTEC summit in Colombo on March 30, and hold “substantive” bilateral talks.

“All of this has engendered a degree of confidence which we didn’t see in the immediate past. And it has brought into being very special relation… there is a feeling that India has always stepped in when Sri Lanka needed it,” Mr. Peiris added.

Ties between India and Sri Lanka plummeted in February 2021 over the Rajapaksa government’s decision to cancel an MoU with India and Japan for Colombo’s East Coast Terminal project, which it later cleared for a Chinese company. Several other projects involving India had also been delayed for what Mr. Peiris called “logistical issues and bureaucratic reasons”. Subsequently, Sri Lanka awarded the West Coast Terminal project to the Adani group, and after a number of rounds of talks, including calls between PM and President Gotabaya, as well as three meetings between the foreign ministers on the sidelines of events in New York, Dhaka and Abu Dhabi, relations have seen a “new enthusiasm and a fresh energy”, he said.

Peiris met External Affairs Minister S. Jaishankar and Foreign Secretary Harsh Shringla on Monday, as a part of his three-day visit. In a tweet, Mr. Jaishankar said they held “productive talks,” which included discussions on economic cooperation, energy security, pending agreements on infrastructural projects, and agreed to schedule bilateral mechanism talks on the fishing rights issue at an “early” date.

Peiris said in the interview that he also hoped to consult India and other BIMSTEC members, including Bangladesh, Bhutan, Nepal and Thailand about the best way to tackle the “problem” of whether to invite Myanmar to the summit, or to follow the ASEAN grouping decision to exclude the military regime that took power in a coup last year.

Peiris also said apprehensions in India over Sri Lanka’s close ties with China were not “logical”, and the relationship with China was not at the “expense of India”.

“We are part of the Belt and Road Initiative. China has played a significant role with regard to the development of our ports and harbours and infrastructure of which we are appreciative,” he said, adding that Colombo hoped that China will soon restructure Sri Lanka’s debt, given its economic problems, a request made to Chinese Foreign Minister Wang Yi during his visit to the island last month.

When asked about the issue of Tamil reconciliation and devolution of power to the North and East, that India has consistently pushed for, Mr. Peiris said a committee of experts would submit a draft on the issue within two months to the President’s Council, but added that no decision can be implemented unless there is “sufficient consensus” from the Sri Lanka’s Sinhala majority. In January, several legislators from the North and East wrote a letter directly to Prime Minister Modi, seeking India’s intervention in ensuring the Sri Lanka government keeps its commitment to the process.

Days after India announced a slew of measures to help Sri Lanka during its economic crisis, and the ExIm bank signed an agreement to provide a Line of Credit of $500 million, Sri Lankan Foreign Minister G.L. Peiris arrived in Delhi for a meeting with External Affairs Minister S. Jaishankar, his first visit to India since he was appointed Foreign Minister last August. In an interview to The Hindu he spoke of plans to take bilateral ties to a new level, even as he cautioned that clashes over fishing rights had become a “flashpoint” in the relationship



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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

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Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

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CEB demands 11.57 percent power tariff hike in first quarter

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The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️

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Health Minister sends letter of demand for one billion rupees in damages

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Ondansetron controversy

Minister of Health and Mass Media Dr Nalinda Jayatissa has sent a letter of demand for Rs. 1 billion in damages from YouTube content creator Dharmasri Kariyawasam, accusing him of disseminating false and defamatory material linking the Minister to the importation of Ondansetron and inciting public unrest.

The notice, sent through the Minister’s lawyers, states that investigations are currently under way into 10 medicines, including Ondansetron Injection, manufactured by India-based Maan Pharmaceutical Limited.

Ondansetron Injection was among nine injectable drugs recently suspended by the National Medicines Regulatory Authority (NMRA) following reports of patients administered with the drug suffering adverse complications.

Despite the ongoing investigations, Kariyawasam allegedly aired a widely viewed programme on his YouTube channel titled “The hidden story of the Indian drug that claimed lives, Mayor Balthazaar’s relative, and Minister Nalinda’s cover-up.”

According to the letter of demand, the programme falsely portrayed Minister Jayatissa as being directly responsible for importing the drug, colluding with the supplier, and attempting to conceal the issue, while depicting him as indifferent to public suffering.

The Minister’s lawyers maintain that these allegations are entirely false and defamatory, citing passages in which Kariyawasam allegedly accused Jayatissa of lying about the supplier, concealing facts related to PTC Medicals (Pvt) Ltd., the actual importer, and showing a lack of concern over deaths purportedly linked to the drug.

The programme also claimed links between the directors of PTC Medicals and family members of Colombo Mayor Vraîe Cally Balthazaar, implying political favouritism.

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