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Lankan exporters receive crucial support to enter EU-market
Sri Lankan exporters are getting crucial support from key institutions in Europe to successfully meet with the standards the European importers require when importing goods and services from Sri Lanka.
These sustainability standards are partially politically driven, but they are also more and more consumer and industry driven. Besides, in line with the existing official legally binding standards, European importers require more and more consumer and industry driven standards such as Fair trade, BSCI, SA8000 and IFS.
The Delegation of German Industry and Commerce (AHK Sri Lanka) and the Friedrich Naumann Foundation for Freedom (FNF) co-organized their second conference on “Sustainable Supply Chains as drivers of global competitiveness”, in Colombo on Wednesday.
Since September 2020, the two organizations in cooperation with Loening Human Rights and Responsible Business have conducted several training sessions, individual gap assessments and covered the preconditions for certifications for Sri Lankan exporters in rubber, apparel, and food products sectors. And all project partners agreed to extend the project to the Sri Lankan tourism sector.
Chief Delegate of German Industry and Commerce and Industry in Sri Lanka Andreas Hergenroether said: “The major reason to partner for the initiative is to support Sri Lankan exporters to obtain broader market access and to enable German/European importers to import according to international sustainability standards. Sustainability standards are a reality. They are partially politically driven, but they are also more and more consumer and industry driven”.
Country Head for Sri Lanka and Bangladesh of the Friedrich Naumann Foundation for Freedom Hubertus von Welck underlined that the initiative “Sustainable supply chains as driver for global competitiveness” had been taken up and was now been extended as a contribution to the restart of the Sri Lankan economy to overcome the Covid-19 pandemic as fast as possible. He emphasised that companies should be open for standards under the UN Guiding Principles and incorporate those in their in-house procedures”.
In a video message German Ambassador to Sri Lanka and the Maldives Holger Seubert pointed out the relevance of the subject with regards to the upcoming Supply Chain Law in Germany. “A joint inter-ministerial draft law is to be presented in mid-March to the German parliament. German importers will be under the obligation to continuously verify that their suppliers respect United Nation Guiding Principles (UNGP) of business and human rights. Violations will be sanctioned with penalties up to 10% of the importer’s annual turnover and exclusion from public tenders up to three years.”
During the panel discussion with company representatives of the targeted sectors of apparel, food and tourism, panellists stressed how much their businesses were related to consumer driven sustainability requirements and how important the required documentation of UNGPs conform processes was.
News
Removing monk’s robes matter for Sangha to decide: Mahanayake Theras
The Mahanayaka Theras of all Nikayas have protested against Bodu Bala Sena (BBS) General Secretary Ven. Galagodaaththe Gnanasara Thera, who is serving a prison sentence for contempt of court, being produced before court in civilian attire.
In a letter to the Commissioner General of Prisons, the Mahanayaka Theras have said they were surprised and concerned by the decision to remove the monk’s robes.
The letter has been signed by Most Ven. Thibbotuwawe Sri Siddhartha Sumangala Thera of the Malwatu Chapter, Most Ven. Warakagoda Sri Gnanarathana Thera of the Asgiri Chapter, Most Ven. Karagoda-Uyangoda Maithri Murthi Thera of the Amarapura Maha Nikaya and Most Ven. Makulawe Sri Wimala Thera of the Ramanna Maha Nikaya.
The Mahanayaka Theras have said they respect the Constitution and the judicial process, but maintained that removing a monk’s robes or ending his status as a member of the Buddhist Order is a matter that should be decided by the Maha Sangha.
They have said the relevant Sangha Council has not determined that Ven. Gnanasara Thera committed a Parajika offence or any other offence warranting his removal from the Buddhist Order.
The Mahanayaka Theras have also referred to Regulation 550 of the Prison Standing Orders, which they say stipulates that convicted prisoners should not be taken to court in prison uniform and should be allowed to wear the type of clothing they normally wore before their conviction. In the case of a Buddhist monk, they have said, this means his monastic robes.
They also referred to the United Nations Standard Minimum Rules for the Treatment of Prisoners, which provide for prisoners taken outside prison to be allowed to wear their own clothing or other unobtrusive clothing.
The Mahanayaka Theras have requested the Commissioner General of Prisons to allow Ven. Gnanasara Thera to wear his robes when appearing in court and to maintain his status as a monk while he remains in prison.
Prisons authorities have said that the clothing decision was made under prison regulations, and the Prisons Department has stated that prisoners serving sentences of more than three years are required to wear prison-issued clothing when produced before court.
News
NDB fraud Rs 60mn more than reported
The Committee on Public Finance has said that the actual losses suffered by the NDB bank are much more than what was initially reported. When compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud had increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion, the committee said.
When compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.
The has committee issued the following statement: The Committee on Public Finance recently summoned officials of the Central Bank of Sri Lanka to Parliament to inquire into the financial irregularities identified at NDB Bank and the final audit report relating to the matter.
The Committee meeting, chaired by Member of Parliament Dr. Harsha de Silva, discussed irregularities identified in NDB Bank’s financial statements, shortcomings in the audit process, and the relevant audit reports.
The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Ajith Agalakada, Nimal Palihena, Wijesiri Basnayake, M.K.M. Aslam, Champika Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.
The Committee also focused on the findings of the investigation conducted by the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAAMB), as well as the findings revealed through the investigation conducted by Deloitte Touche Tohmatsu India LLP. In particular, the Committee inquired into the failure of the external auditors to identify irregularities in NDB Bank’s financial statements.
The accountability of senior management with regard to corporate governance and risk management in relation to the financial irregularities was also discussed.
As a significant proportion of NDB Bank’s shares are held by institutions representing public and state funds, the Committee also considered the potential impact of such financial irregularities on public funds and the general public.
The Committee also discussed the progress made by LankaPay in establishing a centralized fraud monitoring system to prevent fraud within the financial system. The need to strengthen fraud monitoring systems at the individual bank level to monitor transactions carried out within each bank was also emphasized.
Accordingly, the following observations are included in the final audit report concerning the financial irregularities at NDB Bank:
1. The audit covers the period from 1 April 2016 to 31 March 2026. The audit report specifically identifies the financial impact arising from fraudulent transactions amounting to Rs. 13,639,664,684 (Rs. 13.6 billion).
2. According to the disclosure made on 29 September 2026, the financial impact arising from the fraudulent transactions is as follows:
· Rs. 1.5 billion for the period prior to 1 January 2025;
· Rs. 9.6 billion during 2025; and
· Rs. 2.5 billion for the quarter ended 31 March 2026.
3. Compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud has increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion. Compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.
4. The final audit report has also confirmed the previous disclosures that no customer accounts were affected as a result of the fraud incident.
5. The report has identified several governance failures at NDB relating to the processing of CEFT transactions, user-level activities within the Core Banking System, and the management of user credentials and access information. In addition, shortcomings have been identified in several operational areas, including transaction monitoring, daily account reconciliation, financial compliance, internal audit, branch network management, and operational risk management.
The audit report has made comprehensive recommendations to strengthen the control mechanisms, governance structures, and processes relating to the above-mentioned activities of the bank.
News
President orders review of laws on treatment of imprisoned monks
President Anura Kumara Dissanayake has ordered the formation of a committee to review the laws and regulations on how Buddhist monks serving prison sentences are treated, including the procedures that apply when they are taken out of prison.
He revealed this at a special meeting with Maha Sangha representatives held yesterday (8) at the Presidential Secretariat. The meeting was called after concerns were raised over how Ven. Galagoda Aththe Gnanasara Thera was treated when he was taken from prison to court.
The committee will recommend amendments to existing laws and, where needed, new prison standing orders and regulations. Its members will be drawn from the Attorney General’s Department, the Ministries of Justice, Public Administration, and Buddha Sasana, Religious and Cultural Affairs, and the Department of Prisons, including the Commissioner General of Prisons. It has been given two weeks to review the current legal provisions and submit its recommendations. The President added that any changes specific to Buddhist monks would be made in consultation with the Maha Sangha.
Outlining the legal background, the President said prison administration was governed by the Prisons Ordinance of 1877, along with the regulations and standing orders issued under it. That framework mostly addressed prisoners in general, he said, and had few provisions dealing specifically with Buddhist monks.
The meeting was attended by senior Maha Sangha members representing the Siyam, Amarapura and Ramanna Nikayas, along with Minister of Buddhasasana, Religious and Cultural Affairs Hiniduma Sunil Senevi and Minister of Justice Harshana Nanayakkara.
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