Politics & Government Impact
View all(59)Sajith Urges Govt. to Prevent Relief Disruptions Amid Cyclone Recovery ⛈️
Opposition Leader Sajith Premadasa has called for immediate government intervention to ensure internal administrative disputes do not stall relief efforts for victims of Cyclone Ditwah. The appeal follows a breakdown in coordination as the recovery process enters a critical phase. • Current Crisis: Disaster relief officers and Grama Niladharis (village-level officials) have launched trade union action, withdrawing from relief duties as of yesterday. • Officer Grievances: Unions allege that despite working continuously for over 93 days since the cyclone’s devastation, the Government has failed to address unresolved operational and administrative issues. • Political Stance: Premadasa emphasized that the welfare of affected families is "far too important" to be hindered by "confusion or lack of coordination" between the state and ground-level officers. • Government Response: Presidential Secretary Dr. Nandika Sanath Kumanayake has ordered an acceleration of recovery measures, chairing a National Council for Disaster Management meeting to bridge gaps between state institutions. The disruption threatens the delivery of essential support to communities still awaiting assistance following one of the most significant weather events in recent months.
🇪🇺 EU Boosts Cyclone Relief with Additional €1 Million 📈
The European Union has allocated an additional €1 million (approx. Rs 370 million) to address the lingering humanitarian impact of Tropical Cyclone Ditwah in Sri Lanka. • Total Assistance: This latest injection brings the total emergency humanitarian funding to €3.35 million, supplemented by technical expertise and in-kind aid from France, Germany, Italy, and Luxembourg. • Impact Context: The funding targets recovery from the November 2025 cyclone which triggered floods and landslides across all 25 districts, severely damaging infrastructure, housing, and livelihoods. • Implementation: Funds will be channeled through humanitarian partner organizations to restore basic services and support ongoing relief operations for affected communities. • Economic Resilience: These efforts are critical for stabilizing local economies and ensuring the recovery of the agricultural and informal labor sectors in high-impact regions.
🏠 Cabinet Greenlights National Housing Operational Committee to Tackle Homelessness
The Cabinet of Ministers has approved the formation of a National Housing Operational Committee to streamline fragmented housing initiatives and address significant homelessness identified in the 2024 Census. • Financial Allocation: A substantial Rs. 100 billion has been earmarked for the construction of new houses in 2026. • Strategic Objective: The committee will unify efforts across multiple Ministries, provincial councils, and the private sector to move away from the current dispersed approach and implement a cohesive national program. • Target Demographics: Focus remains on vulnerable segments, including low-income earners, estate communities, fishing communities, and the urban homeless. • Operational Scope: The body will provide technical guidance and monitor projects based on economic productivity, social cohesion, and environmental protection. 📈 This move aims to optimize resource allocation and ensure housing projects meet national development goals more efficiently.
Prof. Susiripala Manawadu Appointed Southern Province Governor 🏛️
President Anura Kumara Dissanayake has officially appointed Prof. Susiripala Manawadu as the new Governor of the Southern Province, effective from 24 February 2026. • Legal Framework: The appointment was made under Article 154B of the Constitution, marking a key administrative leadership transition for the region. • Professional Background: • Currently serves as Vice Chairman of the State Advisory Sub-Committee on Radio, Newspapers and Social Media for the Arts Council of Sri Lanka. • Previously held the position of Head of the Department of Sinhala at the University of Ruhuna. • Served as Senior Assistant Librarian at the University of Ruhuna. • Significance: The appointment brings an academic and administrative background to the provincial leadership, likely impacting regional governance and education sector coordination within the Southern Province.
National Reconciliation: Strategic Framework for Disciplined Pluralism 📈
• Overall Strategy The report outlines a transition from reactive coexistence to resilient cohesion through structured pluralism. It emphasizes that managing diversity, rather than enforcing uniformity, is a national security necessity to prevent radicalization and institutional fragility. • Security & Governance Pillars Institutional Design: Proposes district-level interfaith councils, early-warning mechanisms for hate speech, and structured engagement between religious leaders and security institutions. Calibrated Accountability: Advocates for "proportional justice" to build state legitimacy. Key focus areas include strengthening independent oversight in counter-terrorism and ensuring due process to avoid collective suspicion. Digital Governance: Addresses algorithmic fragmentation through rapid-response fact-checking and cross-platform monitoring of extremist content. • Social & Civic Incentives Civic Rewards: Recommends national awards and recognition frameworks for interfaith collaboration and community reconciliation initiatives to balance punitive measures. Education: Integration of digital literacy and intra-faith reform to reduce ideological distortion and narratives of supremacy. • Economic & National Context Based on the reflection, Sri Lanka’s economic recovery and long-term stability are fundamentally linked to a robust social fabric. Without institutionalized reconciliation, national progress remains "brittle" against polarization and external ideological currents. _Data based on policy analysis and national reconciliation framework._
Ministry Highlights Record Earnings & Strategic Digital Shift 📈
The Ministry of Foreign Affairs, Foreign Employment & Tourism hosted a media reception on February 20, 2026, outlining key economic achievements and future digital reforms under the "A Thriving Nation – A Beautiful Life" policy framework. • Economic Performance (2025): The Minister reported a combined revenue of approx. US$ 11 Bn from key sectors: Tourism: Recorded 2.36 million arrivals, generating US$ 3.2 Bn. Foreign Employment: Migrant worker remittances exceeded US$ 7.8 Bn. • Key National Initiatives: The government emphasized the importance of Sri Lanka Expo 2026, positioned as a flagship platform to drive global trade, investment, and innovation. • Digital Transformation: The Ministry is transitioning to an AI-enabled communication framework and a unified digital platform. This initiative aims to link all Sri Lanka Missions abroad to enhance public diplomacy and service delivery through increased transparency. • Strategic Outlook: Officials underscored the role of responsible media in strengthening Sri Lanka's international image and supporting national growth via accurate reporting on diplomatic and economic reforms.
Cabinet Approves Bill to Amend Social Security Levy 📈
• Key Update: The Cabinet has cleared a draft Bill to amend the Social Security Contribution Levy (SSCL) Act, No. 25 of 2022. The legislation aligns with the 2026 Budget proposals to modernize the tax framework. • Tax Base Expansion: While specific rate changes were not confirmed by the Cabinet Spokesman, the 2026 Budget previously proposed reducing the registration threshold from Rs. 60 Mn to Rs. 36 Mn annual turnover (effective April 1, 2026), likely bringing more SMEs into the tax net. • Sector Impact: • Automotive: Proposed shifting of SSCL collection to the point of import or manufacture, exempting subsequent resale. • Agri-Commodities: Coconut oil and palm oil imports are expected to move from the Special Commodity Levy to the standard SSCL/VAT structure. • Manufacturing: Continued focus on leveling the playing field for local producers against imported goods like textiles. • Status: The Bill has received Attorney General clearance and will be gazetted before being presented to Parliament for final approval.
CMC Corruption Probe: Public Complaints Deadline Extended 📈
The Presidential Commission of Inquiry (PCoI) investigating alleged corruption within the Colombo Municipal Council (CMC) has extended the deadline for public submissions to 16 March 2026. • Investigation Scope: Probing fraud, misuse of power, and procurement violations spanning a 15-year period from 2010 to 2025. • Key Focus Areas: Investigations include unlawful recruitments, irregularities in property leasing, and serious losses to state revenue or assets. • Submission Details: • Written complaints accepted in Sinhala, Tamil, or English. • Address: No. 152, Galle Road, Colombo 03. • Required: Name, address, contact number, and NIC/Passport number. • _Note_: Anonymous submissions are permitted upon explicit request. • Oral Submissions: Appointments must be secured by 16 March 2026 via 011 2 301 735. The commission aims to identify individuals responsible for financial irregularities that have historically impacted local government efficiency and infrastructure development in the capital.
⚖️ Daisy Forrest Released from Money Laundering Case The Colombo High Court has ordered the release of Daisy Forrest, grandmother of Yoshitha Rajapaksa, from the long-standing case filed under the Prevention of Money Laundering Act.
• Court Decision: High Court Judge Udesh Ranatunga issued the order after reviewing a special psychiatric report from the Colombo Judicial Medical Officer. • Medical Grounds: A panel of specialist doctors certified that the 98-year-old accused is not in a suitable mental condition to stand trial. • Remaining Accused: While Forrest has been discharged, the Attorney General’s Department confirmed that proceedings will continue against the first accused, Yoshitha Rajapaksa. • Case Background: The legal action involves allegations of laundering approximately Rs. 59 million (with some reports citing up to Rs. 73 million) through three private bank accounts. • Legal Procedure: The prosecution will file an amended indictment to proceed with the trial solely against Rajapaksa. Based on official court submissions as of February 25, 2026.
📈 Sri Lanka Economic Summary: The Reality of 2026
The "new era" of governance faces a transition from campaign rhetoric to "structural compliance." Despite promises of radical change, the National People's Power (NPP) administration has largely maintained established macroeconomic frameworks to ensure stability. • Overall Fiscal Figures GDP Growth: Projected at 3.1% for 2026, following a recovery phase. Budget 2026: Targets total revenue of Rs. 5,300 Bn against an expenditure of Rs. 7,057 Bn. Primary Balance: A surplus goal of 2.3% of GDP is maintained to meet IMF debt sustainability targets. Public Debt: Projected to decline to 96.8% of GDP by year-end, down from 114.2% in 2022. • Sector & Policy Breakdowns Energy: Despite pledges to slash tariffs by 30%, electricity rates remain tied to global oil prices and a depreciating Rupee; CEB is managing a Rs. 22.7 Bn revenue requirement for Q1 2026. Taxation: VAT and SSCL registration thresholds will be lowered from Rs. 60 Mn to Rs. 36 Mn annually, effective April 1, 2026, to broaden the tax base. Apparel & Manufacturing: Sector faces pressure from global tariff volatility and the requirement to reapply for EU GSP+ benefits in 2026. Accountability: Anti-corruption efforts have shifted toward "performative accountability" with high-profile arrests, but have yet to recover significant "stolen assets" to plug the budget deficit. • Top Challenges External Shocks: Recovery was hampered by Cyclone Ditwah, causing an estimated US$ 4.1 Bn in damage. Debt Servicing: Sri Lanka continues to service foreign debt, with full repayments scheduled to resume in 2028.
Trump Proposes Replacing Income Tax with Tariffs in 2026 Address 📈
U.S. President Donald Trump, in his 2026 State of the Union address, doubled down on a protectionist agenda, claiming tariffs will eventually replace the modern income tax system to "take the burden off Americans." • New 15% Global Tariff: Following a Supreme Court ruling that struck down previous emergency duties, a new 15% import surcharge has been signed under Section 122 of the Trade Act. This "temporary" measure (valid for 150 days) takes effect almost immediately. • Impact on Sri Lanka: The U.S. remains Sri Lanka's largest export market (US$ 2.8–3.0 Bn annually). While the new 15% rate is lower than the 20%–44% levels negotiated or threatened in 2025, it still disrupts stable market access for local exporters. • Apparel & Textiles: This sector is most vulnerable, accounting for nearly 40% of Sri Lanka's U.S. exports. Industry experts warn that even a 15% duty keeps local garments more expensive than regional rivals like Vietnam or Indonesia, risking a volume drop of 10%–15%. • Key Sectors at Risk: • Rubber: Previously projected to see a 40%+ export decline under high-tariff scenarios. • Tea & Coconut: Facing increased pricing pressure in a critical hard-currency market. • Economic Outlook: Based on provisional 2026 data, the U.S. trade-weighted effective tariff rate remains at historic highs. Sri Lankan officials continue to lobby for reciprocal "deals" to avoid long-term diversions of orders to competing hubs.
New Envoys from Cuba, Qatar, and Slovenia Present Credentials 🤝
Ambassadors-designate from Cuba, Qatar, and Slovenia formally presented their Letters of Credence to President Anura Kumara Dissanayake at the Presidential Secretariat on February 24, 2026. • Diplomatic Appointments: Cuba: Ambassador Patricia Lázara Pego Guerra (Resident in Colombo). Qatar: Ambassador Hamad Mohammed Abdullah Al-Sanad Al-Dosari (Resident in Colombo). Slovenia: Ambassador Tomaž Mencin (Resident in New Delhi). • Strategic Context: The formalization of these ties facilitates continued cooperation in key sectors, including Foreign Employment, Tourism, and trade. Both the Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, and the Secretary to the President, Dr. Nandika Sanath Kumanayake, were present. Following the ceremony, discussions were held on strengthening bilateral relations between Sri Lanka and the respective nations. (Based on provisional reporting from the Presidential Secretariat) 📈 ---