AGP Executive Report

Judiciary Reform: Cabinet approved a proposal to extend judges’ retirement age by two years, requiring a constitutional amendment and a two-thirds majority in Parliament, drawing opposition from BASL and legal circles. Public Safety & Culture: Kavadi dances were allowed at Devinuwara Esala Perahera after police raised earlier security concerns; extra police and STF personnel will be deployed for the event. Maritime Security: U.S. and Sri Lanka launched CARAT 2026 in Trincomalee/Colombo, featuring a U.S. Navy P-8A Poseidon and joint shore/at-sea drills to boost interoperability and disaster response. Governance & Economy: S&P affirmed Sri Lanka’s foreign currency ratings at CCC+/C with a stable outlook, citing revenue growth and lower debt servicing, while warning energy import costs could weigh on growth. Anti-Corruption/Crime: A former DMT officer was arrested over alleged illegal vehicle transfers involving customs-duty evasion; a garment business owner was further remanded after a customs-related import allegation. Wildlife Management: DWC received 16 double cabs and 181 motorcycles to strengthen field operations and reduce human-elephant conflict. Sports: President met the SLC cricket transformation committee to discuss challenges in developing cricket.

Supreme Court tenure debate: SLPP organiser Namal Rajapaksa says any move to extend Supreme Court judges’ retirement age must go to the public via a referendum, while also criticising the Government over taxes, cost of living and crime handling. US tariff relief: The Ceylon Chamber of Commerce welcomed a reduction in the US labour-related tariff on Sri Lankan exports from 12.5% to 10%, crediting sustained engagement with US counterparts and calling it a boost for exporters. Import controls row: Opposition MP Harsha de Silva warned new import control rules could add compliance costs for legitimate firms, arguing the real problem is weak enforcement and poor coordination that enabled about $715m in “phantom” advance import remittances. Weather & El Niño: IMD forecasts heavy to extremely heavy rainfall in parts of India, while Sri Lanka’s El Niño-linked risk is being watched closely as rainfall depends on Indian Ocean climate interactions. Digital services: HUTCH Enterprise and IRCSL launched a nationwide vehicle insurance verification service via *1338# and SMS, cutting the need for physical certificates. Business & payments: Singer Sri Lanka partnered with Dialog Pay to enable QR payments across 420 showrooms. Crime: A Canadian was arrested at BIA with over 20kg of hashish worth about Rs. 201.89m. Governance push: A commentary for Integrity Week argues anti-corruption reforms must embed “integrity” inside everyday public service through empowered Internal Affairs Units.

Consumer Protection: A hotel in Ella was fined Rs. 1 million by the Bandarawela Magistrate’s Court after admitting it sold bottled drinking water above the legal maximum price, following a Consumer Affairs Authority raid on July 10. Public Safety: Sri Lanka’s Fire Service Department reported 258 fire incidents in Colombo and suburbs since January, citing weak fire safety at workplaces, unsafe electrical practices and dry weather as key causes. Crime & Enforcement: The OIC of Homagama Divisional Crimes Investigation Unit was arrested over an accident involving two women on a motorcycle, with a medical test underway to check alcohol influence; separately, Customs arrested two suspects at BIA for attempting to smuggle 64 foreign pigeons worth over Rs. 3.4 million back to Italy. Weather Watch: The Met Department expects slightly more rainfall in the south-west from July 28, with showers possible in several provinces and strong winds in parts of the island. Judicial Politics: SLPP MP Namal Rajapaksa said any move to extend Supreme Court judges’ retirement age should be decided by the public via a referendum. Dhamma School Update: Sri Lanka’s Riyadh-based Sri Vijaya Buddhist Dhamma School was not closed, embassy-linked claims were rejected as false, with activities only temporarily suspended after relocation. Drowning Prevention Push: A multi-stakeholder national mechanism for drowning prevention and lifesaving is being set up, with water safety education proposed for school curricula.

Provincial Politics: Nepal’s Nepali Congress has ended its governing alliance with CPN-UML across all seven provinces, triggering resignations and reshuffling as Congress-UML ties fracture. Sri Lanka–India Security & Sovereignty: Staff talks between Sri Lanka and India highlighted maritime security and cyber cooperation, but also raised concerns over power imbalances and disputes like illegal fishing. Immigration Enforcement: A Colombo Port City clash involving Chinese nationals has reignited debate over weak monitoring of foreigners on tourist visas, despite laws barring work or business. Economy & Trade Controls: Sri Lanka plans to restore criminal sanctions for serious foreign exchange offences after a reported $715m forex fraud exposed gaps in the Foreign Exchange Act. Environment: Eight mangrove ecosystems in Puttalam are set to be declared protected reserves, with Negombo mangroves marked for conservation. Public Safety: A restaurant owner was injured in a Bellanwila shooting; police are investigating. Sports (Sri Lanka-linked): Former Sri Lanka Cricket president Upali Dharmadasa has died at 72.

LPL Integrity: Sri Lanka Cricket says it has terminated the Jaffna Kings franchise agreement after alleged breaches of anti-corruption and integrity rules, with the event rights partner set to take over obligations including player payments. Northern Security: Nine people were arrested after an attack on Wildlife and STF officers during a forest reserve raid in Akkarayankulam, Kilinochchi; warning shots were fired and heavy machinery seized. Rail Disruption: A night mail train derailed near Senarathgama Railway Station after two locomotive wheels came off track, curtailing the KKS–Colombo Fort service to Anuradhapura while a relief train re-rails the engine. Dengue Response: Sri Lanka and the US discussed dengue control collaboration as cases surge, while doctors warned patients against unverified home remedies and said a special dengue clinic will open at Borella National Ayurveda Hospital on July 31. Customs Pressure: Import container clearance is under fire as stakeholders say over 65% of laden containers still face physical inspection, driving delays, congestion and higher costs. Politics & Governance: SLPP Jaffna District Organizer appointment was handed to G. Cassilingham, while Parliament debates a proposed extension of judges’ retirement age. Agriculture: Paddy cultivators in Anuradhapura protested over low guaranteed prices, demanding Rs.150 per kilo.

Asian Games Cricket Draw: Bangladesh, India, Pakistan and Sri Lanka have all secured direct knockout berths for Asian Games 2026 men’s T20 cricket, with the remaining teams (Afghanistan, Japan, Nepal, Hong Kong, Malaysia and Oman) set for a preliminary round in Nagoya. Women’s Cricket Fixtures: The women’s quarter-finals run Sept 17-22, with India vs Japan, Bangladesh vs China, Sri Lanka vs Malaysia and Pakistan vs Thailand. Port City Colombo Investment: Port City Colombo has attracted US$ 2.19bn in investments so far, with 176 investments recorded and nearly 9,900 jobs generated, according to a minister’s statement in Parliament. Diplomatic Appointments: Sri Lanka’s government has extended ambassador tenures to six countries (Bangladesh, Bahrain, Brazil, Myanmar, Egypt and Austria) until new appointments are finalised. Justice and Politics: A no-confidence motion against Justice Minister Harshana Nanayakkara was defeated in Parliament, while the Eknaligoda trial allowed the prosecution to recall a key witness. Crime and Courts: A 39-year-old died in a Wattala hotel shooting linked to rival drug factions; former Southern Province Chief Secretary Pillayan was remanded until Aug 4. Public Transport: Colombo Fort–Talaimannar train services resume after Cyclone Ditwah. Public Safety: A fatal factory fire in Homagama is under investigation, with officials probing compliance with fire safety rules.

Parliament & Justice: A no-confidence motion against Justice Minister Harshana Nanayakkara was defeated in Sri Lanka’s Parliament by 116 votes (36 for, 152 against), with some MPs absent. Prison Reform: The Justice Minister says Sri Lanka is considering house arrest and other technology-based alternatives to ease severe prison overcrowding, citing delays in Government Analyst reports. Corruption Probe: CIABOC arrested former Southern Province Chief Secretary Rannulu Chandrasiri de Zoysa over alleged procurement irregularities in a Rs. 16.5m chair project. Health & Consumer Safety: The Consumer Affairs Authority fined 23 private hospitals and labs nearly Rs. 5.8m after raids found expired chemicals and medicines used in testing and stored improperly. Crime: Four suspects were arrested over a fatal shooting at a Wattala birthday party; the intended target was allegedly linked to drug trafficking. Education: A/L candidates can amend admission cards online until Aug. 3 (no extension). Economy & Markets: Sri Lankan shares closed slightly lower as healthcare stocks dragged the CSE. US Trade Shock (Global, with Sri Lanka listed): The US imposed new forced-labour tariffs on 60 partners, with Sri Lanka facing a 10% duty under the revised Section 301 rates. Sports: West Indies named a Pakistan Test squad including Joshua Bishop; coach Daren Sammy says Alzarri Joseph declined selection.

US Tariffs Over Forced Labour: The Trump administration will impose new 10%–12.5% tariffs on imports from 60 economies from Friday under Section 301, replacing a temporary 10% global duty. Sri Lanka is listed among countries facing the lower 10% rate, after Washington said partners failed to ban or enforce forced-labour imports. LPL Match-Fixing Fallout: Lanka Premier League organisers terminated the Jaffna Kings franchise agreement after co-owner Manjot Kalra’s arrest over alleged match-fixing and financial collapse; IPG and Sri Lanka Cricket took full operational control, with the tournament set to continue. Negombo Prison Deaths: A court heard 17 of 28 Negombo Prison deaths were from gunshot injuries, with CID investigations continuing. Colombo Port City Chinese Case: Police are probing a Port City clash involving Chinese nationals, including an alleged abduction and a body found in Eheliyagoda; the Chinese Embassy says it is monitoring and urges a full investigation. Digital ID Funding Gap: Sri Lanka’s SL-UDI project funding talks with India are ongoing after bids exceeded the initial grant, with an announcement expected soon. Tea Exports: Tea export volumes fell again in June, though rupee earnings per kilogram rose. Cinnamon Push: Sri Lanka targets US$300m in cinnamon exports as Alba-grade farm-gate prices hit a record Rs. 7,500/kg. Compliance Warning: CPA Australia urged ethical governance as AI reshapes finance, stressing human judgment and professional skepticism. Dengue Response: Sri Lanka is using drones to locate mosquito breeding sites as cases surge.

Port City Violence: Police say the body of an abducted Chinese national was found in Eheliyagoda, after an earlier Port City clash where attackers allegedly abducted a man and fled, leaving behind a van and an air pistol; separately, two Chinese nationals were arrested at BIA while trying to leave for Singapore. Crime & Safety: A shooting near Kuppiyawatta Cemetery in Dematagoda left one person injured, while police also found a pistol and communication device in a vehicle linked to the Port City clash. Courts: Former President Gotabaya Rajapaksa appeared before the Court of Appeal over his arrest-prevention writ petition. Dengue Response: Sri Lanka deployed military drones and troops to hunt mosquito breeding sites as dengue cases surge, with DENV-2 blamed for much of the outbreak. Economy/Trade Controls: Parliament introduced new import-export regulations to curb illicit capital outflows via advance payment loopholes, including mandatory customs registration before banks issue advance payments. Public Services: EPF database and digital EPF services will be unavailable on July 30–31 for maintenance. Sports (Sri Lanka-linked): India U19 beat Sri Lanka U19 by 211 runs to win the youth Test series 1-0.

Finance & Markets: The Colombo stock market snapped a three-session slide after the Central Bank kept rates steady, with the ASPI edging up to 21,149.56 and turnover topping Rs. 3.5 billion, while foreign investors remained net sellers. Monetary Policy: At the T-bill auction, the 91-day weighted average yield slipped 18 bps to 9.95%, with the 182-day at 10.24% and the 364-day holding around 10.20%. Public Finance & Governance: The President’s Office named Noor Rizna Anees as chair of the Finance Commission, alongside new members, as the body gears up for fresh challenges. Business & Investment: The SEC and CSE launched “A Share for Everyone, A Unit for Everyone” investor forums in Monaragala and Batticaloa to broaden participation, drawing 500+ attendees. Sports (Sri Lanka): Kusal Mendis was ruled out of the Lanka Premier League 2026 with a hamstring injury, while Ravindra Wijegunaratne was granted bail in a former Navy abduction case. International Ties: Sri Lanka’s FM Vijitha Herath met Pakistan’s Ishaq Dar on the sidelines of the ASEAN Regional Forum in Manila, reaffirming cooperation on trade, connectivity, defence and people-to-people links. Education/Justice: A controversy over an alleged character certificate at C. W. W. Kannangara College has reached police, with an inquiry set to begin. Health: Dengue remains a major concern, with reports of rising cases and deaths continuing to drive emergency response.

Education Digital Push: Prime Minister Dr. Harini Amarasuriya reviewed progress on Sri Lanka’s education digitalisation, including smart boards, internet and computers, and said the NEMIS HRM module is finished in four provinces with the rest due in three months. Customs Crackdown: Police seized over 300 illegally imported high-end smartphones, including new iPhones, worth about Rs. 50 million, and arrested a suspect in Colombo’s Liberty Plaza raid. Transport Appointment: President Anura Kumara Dissanayake appointed Eng. (Dr.) Asiri Karunawardena as Secretary to the Ministry of Transport, Highways and Urban Development. Commonwealth Games Focus: Para-athlete Palitha Bandara will captain Sri Lanka’s 40-member Glasgow 2026 contingent and serve as flag bearer; Sri Lanka begins competition July 24 across seven sports. Sports & Local Football: Sea Hawks edged Red Star 1-0 in the Super League opener week, with Mohamed Hasmeer scoring the winner. Dengue & Public Health: Sri Lanka’s dengue situation remains severe, with reports of cases and deaths continuing to rise. Justice Motion: Parliament is set to debate the no-confidence motion against Justice Minister Harshana Nanayakkara on Friday over the Negombo prison clash. Microfinance Crisis: Avanka Lanka Foundation urged President Dissanayake to allow village-based thrift and credit cooperatives for debt-trapped microfinance victims after the new law.

Dengue Emergency: Sri Lanka is battling its worst dengue outbreak in nearly a decade, with 76,044 infections and 53 deaths since January; health services are overwhelmed and the government has deployed Air Force drones to spot mosquito breeding sites and launched army-police home and site inspections to drain standing water. Vaccine Watch: Sri Lanka’s NMRA has set up an eight-member expert panel to assess the suitability of Japan-manufactured Qdenga, as cases surge past 77,000 and 162 MOH divisions remain high-risk. Parliament & Courts: A no-confidence motion against Justice Minister Harshana Nanayakkara has been handed to the Speaker with 37 MPs signing, while Basil Rajapaksa faces a reissued arrest warrant after failing to appear in a Matara land case. Anti-Corruption Tools: Parliament’s Standing Orders now allow COPE/COPA reports to be forwarded to the CID or the bribery/corruption commission as formal complaints. Finance & Business: CBSL’s FIU imposed Rs. 14.6m in AML/CFT penalties on 12 institutions; in the private sector, LB CIM launched a UnionPay-backed Virtual Debit Card, and Abans Finance opened four new branches while MI Finance raised Rs. 1.1b via an oversubscribed rights issue. Insurance Push: IRCSL and IASL plan insurance awareness programmes in Kurunegala and Kuliyapitiya to expand financial literacy and insurance inclusion.

Homagama Factory Fire: A helmet manufacturing blaze in Katuwana Industrial Zone, Homagama, killed five workers and injured others; police suspect an electrical leakage from a ceiling fan, while Labour officials have been ordered to investigate fire safety, emergency evacuation and compliance with the Factories Ordinance. Consumer Protection Crackdown: The Consumer Affairs Authority carried out 112 emergency raids near bus stands and transport hubs, flagging overpricing beyond MRP, missing price displays, incomplete batch/expiry details and sale of expired items, with legal action to follow. Foreign Employment Overhaul: Cabinet approved drafting a new law to modernise Sri Lanka’s foreign employment sector and replace the 1985 SLBFE Act, aiming to strengthen protections for migrant workers. Transport Upgrade: Cabinet cleared procurement of 600 deluxe air-conditioned SLTB buses to meet updated long-distance safety standards. Economy Watch: Inflation rose to 6.5% in June, up from 5.4% in May. Dengue Alert: Health Minister Nalinda Jayatissa warned dengue transmission risk stays elevated for the next three weeks, urging continuous clean-up. International Travel: Taiwan suspended tourist visa applications from Sri Lankan nationals, limiting eligibility to specific approved purposes. Energy Planning: Sri Lanka plans a 1,200MW battery storage system within two years to stabilise the grid as renewables expand.

Tax Reform Watch: Arutha Research warns Sri Lanka’s Inland Revenue Department reforms could stall because institutional weaknesses remain—staff shortages, tech gaps, manual processes and outdated compliance methods. Rates and Credit: KPMG flags a “rate reality check” for lending as private credit-to-GDP is still below pre-crisis levels, even while growth and external balances improve. Sovereign Rating Push: Treasury says Sri Lanka is targeting a move from CCC+ to B- by early 2027, ahead of a planned $1.5bn market return in 2027-28. Finance Commission Update: President Anura Kumara Dissanayake appoints N. R. Anees as new Chairperson of the Finance Commission, with J. M. C. J. Wijetunga and K. Karunaharan as members. Regulatory Enforcement: The Central Bank’s FIU issues Rs.14.6m in penalties to 11 firms for Financial Transactions Reporting Act non-compliance. Transport Disruption: Train No. 1164 derails again at Colombo Fort, blocking platforms and likely causing delays. Dengue Focus: Universities get new dengue surveillance and prevention guidelines, with officials urging stronger community cooperation. Port of Colombo Boost: IFC and HSBC back up to $40m to modernise and decarbonise Colombo Port’s South Asia Gateway Terminal. Crime/Justice: Kuwait foils A4 drug smuggling hidden in light bulbs, arresting two Sri Lankans. Economy/Markets: Colombo bourse opens lower as broad-based selling offsets institutional activity.

Port of Colombo Upgrade: IFC and HSBC committed up to US$40m to modernize and decarbonize South Asia Gateway Terminals, including new twin-lift ship-to-shore cranes to boost efficiency and cut energy use. Central Bank Watch: A Reuters poll says Sri Lanka’s central bank is likely to hold its policy rate at 8.75% as inflation rises and reserves fall, with energy costs still weighing on the economy. Dengue Surge: Dengue cases climbed to 76,044 with 53 deaths; 162 MOH divisions were flagged as high-risk zones, as health authorities push stronger surveillance and prevention. Liquor Tax Crackdown: The Attorney General told the Supreme Court it will seek action in the District Court to recover over Rs. 6bn in liquor tax arrears. Anti-Money Laundering Enforcement: The Central Bank FIU imposed Rs. 14.6m in penalties on 11 firms for breaches of the Financial Transactions Reporting Act, including missed cash and transfer reporting. Local Governance & Safety: Parliament is set to debate accountability items, while police launched a real-time website to manage traffic and parking during the Esala Perahera in Kataragama. Transport Incident: A train bound for Rambukkana derailed at Colombo Fort, blocking two platforms and likely causing delays. Public Health Incident: Five Grade 6 students were hospitalized after suspected toxic seed consumption in Kantale; samples were sent for analysis.

Sports & Local Spotlight: Arunachal MMA star Sonam Zomba became the first-ever Karma Fight League world strawweight champion, beating Sri Lanka’s Chathuri Siriwardana at the SLECC in Colombo on 18 July, with local officials praising the win. Business & Regional Ties: Softlogic Life bought a 60% stake in Bangladesh’s Diamond Life Insurance for about $1.9m, its first international acquisition, as it targets growth in a low-penetration life insurance market. Digital Trust & Policy: A new commentary argues Sri Lanka can turn its Personal Data Protection Act into “verifiable digital trust” infrastructure, saying laws set duties but technology makes them real. Public Life & Economy: A fresh analysis highlights President Anura Kumara Dissanayake’s strong approval (75.5%) but warns the real test is delivery on cost-of-living pressures. Health & Food Prices: The All Ceylon Egg Producers’ Association says egg prices will rise from 20 July due to feed shortages and a 20–30% drop in production. Crime & Justice: Police remanded former India U-19 player Manjot Kalra until 31 July over alleged corruption linked to LPL 2026, including claims he approached players with offers to influence matches. Travel & Connectivity: Vietnam Airlines announced new route expansion including Colombo, with services starting 16 August 2026.