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Politics & government impact News

144 articles

Easter Without Answers: Pressure Mounts on NPP Over Justice 📈

Nearly seven years after the Easter Sunday bombings, the National People’s Power (NPP) government faces growing scrutiny over a perceived lack of "political will" to prosecute high-level perpetrators, despite holding a 159-seat parliamentary majority. • Current Investigative Status Probes have seen "procedural motion without prosecutorial momentum." While the Criminal Investigation Department (CID) was restored under Shani Abeysekera in mid-2025, no major arrests or indictments of high-ranking officials have followed. • Key Intelligence Concerns Serious questions remain regarding the State Intelligence Service (SIS) and Military Intelligence. Suresh Sallay: The former SIS chief was dismissed in October 2024 but has not faced public questioning or indictment. Security Complicity: Internal reports suggest possible "willful blindness" within the security apparatus that allowed the attacks to occur. • Political Challenges & Risks Analysts suggest the delay is rooted in political complexities: Institutional Resistance: Fear of confronting entrenched security and military networks. Destabilization: Potential for investigations to unravel long-standing national security narratives. Impunity: Continued lack of reinvestigation into figures like "Pillayan" reinforces concerns over a culture of legal exemptions for the powerful. • Social Impact The Catholic Church, led by Cardinal Malcolm Ranjith, remains a primary voice for accountability. Failure to act is seen as a "mirror" to Sri Lanka’s struggle with holding power to account, risking public trust in the NPP’s promise of "system change."

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📈 Presidential Task Force (PTF) Set to Lead National Recovery from Cyclone Ditwah

President Anura Kumara Dissanayake has established a high-powered, 25-member Presidential Task Force to spearhead the "Rebuilding Sri Lanka" program. Chaired by Prime Minister Harini Amarasuriya, the PTF aims to move beyond immediate relief toward long-term national resilience following the devastation of Cyclone Ditwah. • Economic Impact & Funding: - Initial direct physical damage is estimated by the World Bank at US$ 4.1 Bn (~4% of GDP), with total costs potentially reaching US$ 16 Bn. - A Rs. 500 Bn supplementary budget for 2026 has been proposed for reconstruction. - Funding will be managed via the Rebuilding Sri Lanka Fund, utilizing re-purposed development projects and donor support. • Sectoral Priorities & Committees: - Agriculture: Over 227,000 farmers affected; 814 Mn in damages to paddy and livestock, threatening 2026 Maha crop yields. - Infrastructure: US$ 1.74 Bn in damages to roads, bridges, and railways; focus on "Building Back Better" with climate-resilient standards. - Housing: 91,000+ homes damaged or destroyed; US$ 985 Mn in estimated losses to residential buildings. - SMEs & Livelihoods: Targeted support for MSMEs and informal workers through micro-enterprise recovery grants and cash-for-work programs. • Strategic Governance: - The PTF centralizes authority to resolve cross-ministerial bottlenecks and reduce institutional silos. - Key committees include Finance & Funding, Restoration of Public Infrastructure, and Revival of Local Economies. - Integration of a GIS-enabled digital registry is planned to improve data transparency and decision-making. _Summary based on provisional data and official gazette notifications as of January 2026._

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### ITAK Declines Support for No-Confidence Motion Against PM 📈

The Ilankai Tamil Arasu Kachchi (ITAK) has officially announced it will not support the proposed no-confidence motion (NCM) against Prime Minister and Education Minister Dr. Harini Amarasuriya. The party characterized the move by the opposition as "politically motivated" and lacking credible evidence. Key Parliamentary Developments: • ITAK Decision: The party will neither sign the NCM nor vote against the PM, citing a lack of substantive proof for allegations. • Sector Focus: The motion stems from controversies regarding new education modules; however, ITAK noted that the problematic content has already been withdrawn. • Opposition Action: Opposition MPs, led by the SJB, continue to collect signatures for the PM's removal from her dual portfolios. Economic & Social Context: • Education Reform: ITAK highlighted the urgent need for reforms, noting that Sri Lankan primary education currently lags behind international standards. • National Stability: The party emphasized that political disagreements should not devolve into personal attacks, especially those targeting women in leadership. • Community Concerns: While acknowledging unresolved issues within the Tamil community, ITAK prioritizes "principled opposition" over what they termed defamatory political reprisal. ITAK reiterated that the focus should remain on improving long-term learning outcomes rather than seeking the resignation of the Minister over settled module errors.

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📈 Open Letter to President Alleges Misuse of State Assets at Royal College

A formal complaint by Royal College alumnus Padmasena Dissanayake has called for a probe into the Royal College Union (RCU), alleging the illegal diversion of state revenue into a private entity. • Allegations of Financial Misappropriation The letter claims the RCU—which recently identified as a private entity before the RTIC—is managing and collecting revenue from state-owned assets, including sports complexes and car parks. This reportedly violates Ministry of Education Circular 52/2023, which mandates that such income be managed by the School Development Society (SDS). • Key Financial Figures RCU Assets: Reported to hold Rs. 759.85 Mn in debentures, allegedly "harvested" from school property. Historical Fraud: Allegation of Rs. 17.6 Mn in misappropriated rugby gate collections from 2017-2018. SDS Status: The 2024 audited accounts of the SDS received a "Disclaimer of Opinion," signaling a total failure in financial transparency. • Legal & National Implications The petition urges the President to enforce the Anti-Corruption Act, No. 9 of 2023 and the Offences against Public Property Act. It warns that allowing a private alumni body to supersede state ownership could create a "blueprint for corruption" across the education sector. • Requested Actions Directing the Ministry to reclaim assets, placing income under the SDS, and conducting a forensic audit of the RCU’s wealth to ensure the rule of law is upheld.

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### Emergency Extended for Disaster Recovery 📈

The state of emergency in Sri Lanka is expected to remain in force for a further two months to facilitate ongoing recovery efforts following the devastation of Cyclone Ditwah. Public Security Minister Ananda Wijepala briefed Parliament this week on the necessity of the extension for national stability and rehabilitation. • Resettlement & Safety: The extension is primarily required to manage the relocation of thousands of displaced families. Permanent resettlement in high-risk areas is currently on hold pending safety clearances from the National Building Research Organisation (NBRO). • Economic Impact: Cyclone Ditwah has caused significant disruption to the 2026 economic outlook. A World Bank assessment estimated direct physical damages at US$ 4.1 Bn (approx. 4% of GDP). Key sectors affected include: Infrastructure: US$ 1.73 Bn in losses to roads, bridges, and railways. Agriculture: US$ 814 Mn in damage, threatening food security. Housing: Nearly 100,000 homes damaged or destroyed. • Legislative Support: Parliament recently approved a Rs. 500 Bn supplementary estimate to restore livelihoods. The emergency regulations allow for the appointment of a Commissioner-General of Essential Services to ensure the uninterrupted supply of food and medicine. • Current Status: While many have left safety centers, over 34,000 individuals remain displaced as of early January. The government is also preparing to apply for the UN’s "Loss and Damage" fund to cover climate-related costs. _Note: Based on provisional disaster management and parliamentary data._

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## 📈 Trump’s "New-Old" World Order: Implications for Sri Lanka

The 2026 U.S. National Security Strategy and the recent invasion of Venezuela signal a shift toward raw unilateralism and "America First" realism, abandoning the traditional rules-based international order. • Geopolitical Shift: The "Trump Corollary" to the Monroe Doctrine asserts U.S. dominance over the Western Hemisphere, prioritizing economic pre-eminence and access to strategic assets (e.g., oil in Venezuela, rare earth minerals in Greenland) over multilateral diplomacy. • Key Economic Drivers: • Energy & Mining: Direct military and corporate focus on securing oil and mineral supply chains. • Trade Barriers: Implementation of 20% "reciprocal" tariffs by the U.S. challenges Sri Lanka’s apparel & textiles exports and overall ICT/BPM growth. • EU Relations: U.S. support for far-right "patriotic" parties in Europe may disrupt EU integration and the GSP+ trade benefits Sri Lanka is set to reapply for in 2026. • Strategic Path for Sri Lanka: • Neutrality: Lessons from Finland and Austria suggest maintaining sovereignty through flexible neutrality. • Regional Stability: Adherence to the NPP’s policy of balanced relations with India and China is critical, especially as major powers prioritize their own interests (e.g., China’s pragmatic oil deals with the U.S.). • Domestic Resilience: Focusing on internal stability and avoiding the "crosshairs" of global powers is essential while navigating a more volatile, fragmented global market. • Outlook: U.S. domestic opposition and the 2028 election cycle may eventually moderate this extreme unilateralism. For now, Sri Lanka must prioritize pragmatic diplomacy to safeguard its export-led industrialization and debt sustainability.

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🇱🇰 Central Hills Policy Debate: Avoiding Past Mistakes & Embracing Sustainable Planning ⛰️

The Sri Lankan government is facing critical decisions regarding development in the central hills, with proposals sparking debate: • Proposed Policies: • President aims to halt new construction above 5,000 feet elevation and relocate residents. • A Minister suggested moving Kandy city entirely to Ampara or Polonnaruwa. • Critics argue these ideas lack scientific basis and could lead to arbitrary decisions, similar to post-tsunami construction bans that affected homeowners. • National Physical Policy and Plan 2050 (NPPP 2050): • This plan, approved in 2019 after extensive consultation, designates a "central environmental fragile area" spanning Kandy, Nuwara Eliya, Kegalla, and parts of other districts. • It advocates for strictly regulated physical development and attracting youth to identified economic zones, particularly the Colombo-Trincomalee corridor. • The government is urged to follow NPPP 2050 as an evidence-based roadmap. • Expressway Concerns: • The National Physical Planning Department objects to new expressways through fragile terrain. • Ruwanpura Expressway (allocated Rs. 1,500 Mn in 2026 Budget) and Central Expressway Phase III (Pothuhera-Galagedara) (Rs. 10,500 Mn) are cited. • Building expressways contradicts the goal of discouraging population growth in these areas. Funds could be reallocated to repair damaged existing roads. • Upcountry Railway Investment: • The upcountry line suffered significant cyclone/landslide damage, is costly to maintain, and does not meet international safety standards (speeds as low as 15 kmph). • The 2026 Budget allocates Rs. 35.5 Bn for railway capital expenditure, with only Rs. 100 Mn for the Kandy-Kadugannawa line. • Suggestion: Instead of public funds for upgrades that increase losses, develop the upcountry line as a public-private partnership for luxury train tourism, leveraging its scenic route for economic value with minimal environmental harm.

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📈 Sri Lanka Proposes Bold 'Single National Asset Tax' (SNAT) for Disaster Recovery & Economic Revolution

An open letter to President Anura Kumara Dissanayake proposes a radical tax overhaul to address a devastating cyclone's aftermath and a "broken" tax system. • Current Challenge: A recent cyclone left over 2 million in crisis, requiring massive funding. Existing tax revenue from local property taxes and vehicle licenses is only Rs. 74.7 Bn (2022), just 2.1% of total government revenue. • The SNAT Solution: Introduce a Single National Asset Tax (SNAT) by applying a 100x multiplier to the 2024 local council tax bill for immovable property and luxury vehicles. • This is projected to generate Rs. 7,500 Bn (Rs. 7.5 Trillion) annually. • This revenue would fund cyclone relief (est. Rs. 600 Bn) and create a significant surplus. • Wealth Distribution: The proposal highlights that the top 7% of Sri Lankans hold 65-70% of national wealth, primarily in real estate and business capital. SNAT aims to target these visible assets. • Abolishing Other Taxes: The SNAT is envisioned to replace major taxes, including: • Corporate Income Tax • Personal Income Tax (to counter brain drain) • Value Added Tax (VAT) (to combat inflation) • Capital Gains Tax • Tax on Interest Income • Anticipated Impact: • Prices: A drastic fall in cost of living (potentially halving prices). • Exports & Investment: Boost hyper-competitiveness, attract Foreign Direct Investments. • Currency: Strengthen the Rupee. • Brain Drain: Reverse the outflow of professionals. • Poverty Reduction: Lift millions out of poverty through job creation. • Financial Liberation: Reduce lending rates to 3-5%. • Mechanism & Safeguards: • SNAT is an annual levy on immovable property and luxury vehicles. • Full exemption for properties with 2024 local council rates of Rs. 2,500 or less (properties ~Rs. 1 million) and for motorcycles/three-wheelers. • Uses 2024 council tax bill as a fixed base for 10 years.

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🚨 President AKD reviews post-Ditwah recovery in Mannar & Puttalam 🇱🇰

President Anura Kumara Dissanayake visited Mannar and Puttalam districts to assess disaster recovery efforts and expedite relief for communities affected by the recent Ditwah disaster. • In Mannar: • Focus on fishing communities: ~12,000 fishermen impacted by floods, unable to fish. Government to provide dry rations and engage Chinese Embassy for fishing gear donation. • Flood Control: Instructions to proceed with a permanent flood control project after studies. • Housing: 70 families lost homes; committee to identify resettlement land within two weeks. • Illegal Encroachments: Strict action against obstructions in Yodha Wewa sanctuary. • Assistance: Rs. 15,000 for schoolchildren to be disbursed promptly. • Infrastructure: Discussions on restoring health services, education, roads, bridges, water, and electricity. • In Puttalam: • Livelihoods: Top priority to restore agriculture, fisheries, and industrial sectors; expedite compensation. • Housing: 627 houses completely destroyed, 20,813 partially damaged. • Completely destroyed: Rs. 5 Mn for land purchase (if no Govt. land) and new houses valued at Rs. 5 Mn. • Infrastructure: Expedite reconstruction of damaged highways and bridges. Temporary bridge for Lower Kala Oya to support tourism. • Agriculture: Ensure conducive environment for Maha cultivation, compensation before Dec 25. Soil conservation in Kalpitiya. • Livestock: Fair compensation, introduce legislation for farm registration. • Fisheries: Assistance for boat repairs and concessional loans for prawn farmers. • Health: Chilaw Hospital operations expected to resume next week. President Dissanayake emphasized protecting fishing community rights, accelerating compensation payments, and ensuring future infrastructure projects deliver tangible economic benefits.

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🚨 Sri Lanka Declares Emergency Amid Cyclone Ditwah Devastation & Free Speech Concerns 🚨

Following the severe devastation by Cyclone Ditwah, President Anura Kumara Dissanayake declared a State of Public Emergency nationwide. • Emergency Powers: Regulations grant broad powers of search, seizure, arrest, and detention without warrant for offences related to violence, property damage, or public order. Government states these are necessary to accelerate disaster response and aid thousands of affected families. • Watagala's Controversial Remarks: Public Security and Parliamentary Affairs Deputy Minister Sunil Watagala instructed police to use these regulations against individuals engaging in "defamatory campaigns" targeting the President and ministers on social media. He described such criticism as "unbearable" and aimed at "manipulating public opinion." • Media Freedom Concerns: The Sri Lanka Working Journalists Association (SLWJA) condemned Watagala's remarks, calling it a "worrying trend" and an attempt to suppress freedom of expression under the guise of disaster management. • Government Under Fire: This comes as the government faces widespread criticism for allegedly failing to act decisively despite prior warnings from the Department of Meteorology and Department of Irrigation. The economic loss from Cyclone Ditwah is said to far exceed that of the 2004 Boxing Day Tsunami. • The article suggests ruling party politicians should focus on restoring livelihoods decimated by the cyclone rather than getting distracted by political criticism.

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🚨 Sri Lanka's Disaster Response: A Tale of Two Funds 🇱🇰

Sri Lanka faced two major disaster relief efforts, offering a stark contrast in governance and transparency: the "Helping Hambantota" fund in 2004 and the "Rebuilding Sri Lanka Fund" in 2025. • Helping Hambantota (2004): • Established after the devastating tsunami, led by then PM Mahinda Rajapaksa. • Became a national scandal when Rs. 82 Mn intended for relief was allegedly transferred from an official fund to a private "Helping Hambantota" account. • A CID investigation was quashed by then Chief Justice Sarath N. Silva, who later publicly apologized. • This episode deeply eroded public trust in disaster relief management. • Rebuilding Sri Lanka Fund (2025): • Formed in response to catastrophic floods and landslides (Cyclone Ditwah) in November 2025, led by President Anura Kumara Dissanayake (AKD). • Established as a statutory entity under the Presidential Secretariat, managed by highly qualified professionals, not family members. • Emphasizes transparency, with a management committee chaired by the Labour Minister and Finance and Planning Deputy Minister. • Garnered unprecedented local and international support due to perceived integrity and swift, compassionate government action. • A generous relief package was announced within seven days for affected citizens. • Key Difference: The 2025 fund signifies a shift towards integrity, transparency, and collective responsibility, aiming to rebuild trust shattered by past misgovernance.

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Cyclone Ditwah Recovery: President Reviews Nuwara Eliya & Badulla Efforts 🇱🇰

President Anura Kumara Dissanayake visited Nuwara Eliya and Badulla to accelerate post-Cyclone Ditwah recovery, focusing on restoring services and supporting affected communities. • Nuwara Eliya District: • 63,121 people from 19,780 families affected by landslides and flooding. • Emphasis on restoring electricity, water, communications, and irrigation. • Agriculture: Vegetable and potato output fell by 25%; officials ordered urgent reports on crop damage, compensation, and seed distribution to restart cultivation. Maha season paddy cultivation irrigation systems to be repaired immediately. • Infrastructure: Government to take over and repair 611 estate-related roads; swift reconstruction of collapsed Agarapathana Bridge ordered. • Education: 490 of 551 damaged schools to reopen by December 16; alternative arrangements for others. • Recruitment of retired technical staff for National Building Research Organisation (NBRO) ordered. • Badulla District: • 64,140 people from 19,133 families affected; 418 houses fully destroyed, 7,703 partially damaged. • Priority on safe life, supervised resettlement, and completing essential repairs before December 31 using 2025 allocations. • 90% of damaged power network restored; water supply and communications returning to normal. • Road repairs across all classifications (national, provincial, local) to begin in January. • Rs. 15,000 allowance for affected schoolchildren and Rs. 25,000 for cleaning religious sites. • Swift compensation for 6,711 acres of damaged agricultural land; temporary water delivery to salvage Maha season. • Overall Directives: President stressed effective coordination, avoiding delays, and ensuring no shortage of funds for relief or restoration. He highlighted the central highlands' importance for environmental stability and the need for long-term disaster prevention and planning.

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🇱🇰 President Signals Major Rights Reforms ⚖️

President Anura Kumara Dissanayake outlined a comprehensive reform agenda to overhaul Sri Lanka's security laws and strengthen human rights, emphasizing action over declarations. • Security Law Overhaul: The President stated that laws like the Prevention of Terrorism Act (PTA) and the Online Safety Act have "no place in a democratic system" and have been used as tools of repression. • PTA Reform: Committed to repealing and replacing the PTA with legislation that balances security with civil liberties, ensures judicial oversight, ends indefinite detention, and meets international human rights standards. • Online Safety Act Revision: Aims to protect free expression while addressing genuine harms, focusing on preventing real harm, not silencing criticism, and will involve collaboration with civil society and experts. • Building Trust & Accountability: • Credibility will be earned through concrete steps: systematically releasing political prisoners, reviewing improper detentions, allowing peaceful protests, and strengthening independent institutions. • The goal is not to erase history but to prevent recurrence of past horrors, building institutions that protect everyone equally. • Long-Term Vision: Constitutional reform, equal citizenship, accountability, and protection of vulnerable communities are essential for a durable rights-based order, ensuring future generations inherit stronger institutions.

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🌪️ President Reviews Cyclone Ditwah Relief Efforts Across Districts 🇱🇰

President Anura Kumara Dissanayake toured Kandy, Matale, Anuradhapura, and Kurunegala over the weekend, assessing Cyclone Ditwah's impact and expediting relief. Key directives and updates: • Kandy: Directed officials to accelerate road, water, and electricity restoration, aiming for temporary repairs within 25 days. Water supply to be fully restored in 3 days, electricity by December 31. Emphasised rapid compensation for damaged paddy and vegetable lands and a long-term plan for the Central Highlands. • Matale: Reviewed restoration of infrastructure, stressing accurate data for farmer compensation. Urged urgent drinking water restoration, closing telecom gaps, and reopening schools by December 16. Over 11,000 people affected. • Anuradhapura: Instructed officials to prepare damaged paddy lands for re-cultivation before the Maha season. Compensation lists and funding due by Friday, with provisional water supply arranged. Electricity and water connections are near-total restoration. • Kurunegala: Announced strengthened laws against unauthorised construction and a new legal-policy unit under the Reconstruction Presidential Task Force. All damaged Provincial and Local Council roads to be repaired within two weeks. 12,729 hectares of paddy land damaged, with 7,215 hectares still cultivable. Temporary water supply and timely seed/fertiliser distribution pressed. Across all districts, the President reiterated the need for strong coordination, timely data, and rapid payments to restore livelihoods. A Rs. 10 million donation from North Western Provincial cooperative groups was received.

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🚨 TISL Demands Transparency & Accountability for Disaster Relief Funds

• Transparency International Sri Lanka (TISL) has called for rigorous oversight and accountability in the use of public funds for Cyclone Ditwah relief, citing past issues of mismanagement and insufficient transparency in national crises. • Government Financial Commitments: President A.K. Dissanayake announced an initial reserve of Rs. 30 Billion for urgent relief needs. • The expenditure limit per District Secretariat was increased to Rs. 50 Million, with restrictions removed for swift area response. • A special fund for infrastructure reconstruction has also been established, with fundraising initiated. • Accountability Calls: TISL urged public officials to maintain transparency, efficiency, and responsible financial management, especially during emergency procurement. • Key Fund Structure Demands: TISL stressed that the Management Committee of the 'Rebuilding Sri Lanka' Fund requires a robust structure based on: • Gender diversity and Civil Society Organisation (CSO) representation for equitable recovery and independent oversight. • Complete transparency, independent auditing, and disclosure of beneficial ownership to safeguard against corruption. • CSO Consultations: In a Nov 29 consultation, CSOs requested clearer directions for district authorities to partner with them, addressed gaps in Tamil communication, and called for smoother relief facilitation. The President agreed to appoint focal points for continued coordination. • TISL emphasizes a shared duty between the Government and the public to uphold fairness and integrity in the distribution and use of relief funds.

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SL Pivots from Stabilisation to Transformative Reform 🔄

The Government, elected in 2024, inherited a country in deep crisis, with public debt at 115% of GDP and external debt consuming 46% of export earnings, following the 2022 default. The initial year focused pragmatically on stabilisation, maintaining the IMF program, and restoring fiscal discipline. • However, stabilisation alone is deemed insufficient given the risk of renewed debt distress post-2028 and "regressive conditionalities." The Rupee has depreciated by approximately 6% since Dec 2024 despite favourable external conditions, and 2025 foreign reserves are projected to remain below the $7 Bn target. • The next phase demands a strategic pivot toward "people- and environment-centred development." The 2027 Budget is targeted to reassert national priorities, including food and energy sovereignty, industrial revitalisation, and promotion of value-added exports. • This shift will require progressive taxation, Central Bank reform for developmental financing, and key governance reforms, such as abolishing the Executive Presidency. • Long-term fiscal concerns remain high: Debt-to-GDP is projected to be around 95%, and a second debt restructuring may be unavoidable, as debt servicing will consume nearly 30% of Government revenue by the end of the IMF program. • Reasons for optimism include the strength of democracy, strategic Indian Ocean positioning, and a literate populace capable of supporting a knowledge-based economy.

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Major Administrative Reorganisation: Key Institutions Reassigned 📈

President Anura Kumara Disanayake issued a special gazette (Oct 18, 2025) detailing an extensive administrative reorganisation, reallocating institutions across ministries following the Cabinet reshuffle to streamline oversight. • Finance & Regulation: The Ministry of Finance, Economic Development and Fiscal Management now includes Hotel Developers (Lanka) Ltd. and the Casino Regulatory Authority, consolidating oversight of state enterprises and gaming regulation. • Power & Energy: Lanka Electricity Company Ltd. (LECO) and its subsidiaries are added to the Ministry of Power and Energy. Nuclear oversight (Atomic Energy Board/Council) is shifted to the Ministry of Science and Technology. • Ports, Aviation & Transport: • Ministry of Ports & Civil Aviation Services now supervises the SL Ports Authority, Lanka Shipping Corp., and SriLankan Airlines Ltd. • The new Ministry of Transport, Highways & Urban Development oversees 17 institutions, including Road Development Authority (RDA) and Sri Lanka Railways. • Security & Governance: • Civil Security Department (CSD) moved from Defence to the Ministry of Public Security. • Commission for Online Safety and Colombo Lotus Tower Management Company added to the Ministry of Digital Economy. • Health & Trade: Sri Lanka Triposha Ltd. is reassigned to the Ministry of Trade, Food Security and Cooperative Development. This major administrative move is intended to consolidate functions under the reconstituted Cabinet structure.

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