Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa yesterday (26) said that funds were available to conduct Provincial Council polls.

He said so at the post-Cabinet media briefing in response to a media query regarding JVP General Secretary Tilvin Silva’s declaration in Jaffna that PC polls wouldn’t be held this year as funds allocated for that purpose were utilised to provide relief for Ditwah cyclone victims.

Minister Jayatissa said that the main obstacle to holding the Provincial Council election lies in the existing legal framework.

The Minister noted that a parliamentary committee was examining the matter and working towards resolving the legal issues.

He added that, once the necessary legal provisions are enacted, the Provincial Council election can be conducted without delay.

As the Sri Pada pilgrimage season commences, the Police Media Division has reported the arrest of 322 individuals in possession of various illegal narcotics while travelling to pay homage to the sacred Sri Pada site.

Among the substances seized by authorities were heroin, Ice (crystal methamphetamine), hashish, kush, mawa, cannabis, madana modaka, and illicit prescription pills.

Following their apprehension, the suspects were produced before the courts, where they pleaded guilty to the charges. The court subsequently imposed fines totaling Rs. 2,065,000 against the offenders.

The arrests were the result of a series of coordinated raids and rigorous security inspections conducted by special police teams across the Hatton police division. The operations were specifically targeted at key transit points, including Hatton, Polpitiya, Ginigathhena, and Nallathanniya, to ensure the safety and sanctity of the pilgrimage route.

The Police Media Division emphasised that these measures are part of an ongoing effort to curb the smuggling and consumption of drugs during the sacred pilgrimage period. They warned that police surveillance would be intensified throughout the season to prevent further incidents of this nature and to maintain order among the thousands of devotees visiting the holy site.

By S. K. Samaranayake

Central Bank Governor Dr. Nandalal Weerasinghe asserted yesterday that Sri Lanka’s latest round of coordinated policy tightening had already begun restoring economic stability, effectively containing external sector pressures and inflation risks. He stressed that more drastic emergency interventions are unnecessary at this stage.

Speaking to the media, following the announcement of the Monetary Policy Review—which raised the Overnight Policy Rate by 100 basis points to 8.75 percent—Governor Weerasinghe said the government and the Central Bank had succeeded in regaining control over currency market conditions.

“The current adjustments are sufficient,” he said, adding that the combined fiscal and monetary measures introduced last week were delivering the intended results, particularly in stabilising the exchange rate and easing pressure in the dollar market.

Despite ongoing global uncertainties, linked to the Middle East tensions and elevated oil prices, the Governor indicated that policymakers did not currently see a need to escalate intervention measures.

“Although there are other policy tools available, there is no need,” he reiterated.

Market participants are likely to interpret the Governor’s remarks as an effort by the authorities to quell speculation that Sri Lanka could impose tougher restrictions or aggressive administrative controls if pressure on the rupee intensifies further.

Instead, Dr. Weerasinghe appeared to signal that a calibrated combination of tighter fiscal discipline, credit controls, and monetary tightening is already sufficient to cool excessive demand conditions in the economy.

Last week, the government imposed a surcharge on vehicle imports, while the Central Bank tightened lending rules—reducing loan-to-value ratios for vehicle financing and capping gold-backed lending at 70 percent. The Central Bank believes these measures will help contain strong private sector credit growth, which has been fuelling import demand and straining foreign exchange liquidity.

“These measures have already stabilised the exchange rate,” the Governor said. “The supply and demand for US dollars are under control.”

An economist who spoke to The Island noted that the Governor’s comments carry an important policy message: Sri Lanka is attempting to avoid both extremes—neither allowing imbalances to build unchecked nor overreacting with destabilising emergency restrictions.

“Instead, authorities appear to be pursuing a middle path aimed at slowing credit-fuelled import demand while averting higher inflation expectations and severe external vulnerabilities,” the economist said.

The latest rate hike also signals that the Central Bank remains focused on anchoring inflation expectations, after April inflation accelerated to 5.4 percent—following energy price adjustments linked to global oil market disruptions.

By emphasising that no additional tools were currently necessary, the Governor sought to reassure investors and businesses that the situation remained manageable within the framework of conventional macroeconomic policy rather than crisis management.

By Sanath Nanayakkare