SRI LANKA NEWS
June 2026
Compiled by Victor Melder
Sri Lanka’s oil import bill surged by 150% year-on-year (YoY) to $ 886 million in April from $ 630.1 million in March, registering the highest fuel bill so far for 2026 amid rising global energy prices following the Mideast crisis. The Central Bank of Sri Lanka (CBSL) said this was driven by higher global oil prices triggered by the ongoing Middle East conflict and increased import volumes. The April fuel import bill alone accounted for 36% of the total monthly expenditure on imports of $ 2,457 million, the data showed .During the month, Sri Lanka imported crude oil worth $ 108.1 million, refined petroleum amounting to $ 734.6 million, and coal worth $ 43.4 million. This also pushed the first four months’ fuel import bill up by 53.6% YoY to over $ 2.16 billion, compared to $ 1.41 billion in the same period in 2025. Last week, President Anura Kumara Dissanayake warned of mounting pressure on the economy as the country’s oil import bill surged more than six fold between February and May amid rising global energy prices and growing subsidy costs. He said oil imports had risen significantly, with May imports projected to reach $ 522 million. “Compared with February, oil imports have increased more than six times,” he said, highlighting the growing strain on foreign exchange outflows. The President said the actual cost of a litre of diesel was around Rs. 720, while it continued to be sold to consumers at Rs. 392, resulting in substantial losses being absorbed by the Government and the Ceylon Petroleum Corporation (CPC). Dissanayake also stressed the need to reduce fuel consumption, warning that maintaining existing consumption levels at elevated prices would accelerate dollar outflows and place additional pressure on the economy. (Financial Times, 1.6.2026.H
eadline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), spiked in May as expected due to the impact of the Mideast war. The Central Bank of Sri Lanka (CBSL) last week said headline inflation YoY accelerated to 5.5% in May at a faster pace compared to 5.4% in April, 2.2% in March, and 1.6% in February, which was lower than 2.3% in January. Inflation was stable at 2.1% in October, November, and December 2025. Food inflation YoY decelerated sharply to 0.9% in May from 2.8% in April, 0.7% in March, and 0.2% in February, but remained relatively lower than 3.3% in January and 3% in December 2025.
Non-food inflation YoY accelerated to 7.8% in May, up from 6.8% in April, up significantly from 2.9% in March, and up from 2.3% in February and 1.8% in January. On a month-on-month (M-o-M) basis, the CCPI recorded an increase of 0.9% in May, a sharp increase from 2.99% in April and 0.25% in March, and compared to a 0.85% decrease in February. The May increase was driven by the non-food category, which contributed 0.6 percentage points, largely owing to the increase in prices of the housing, water, electricity, gas and other fuels, and transport subcategories, while the food category contributed 0.3 percentage points, the CBSL said. In April, the non-food category contributed 2.43 percentage points, also due to higher transportation costs, while the food category contributed 0.56 percentage points to the M-o-M CCPI increase. Core inflation YoY accelerated to 3.9% in May, increasing from 3.8% in April, 2.5% in March, and 2.1% in February. “Amid the fluid nature of the tensions in the Middle East and the wide-ranging spillovers across both global and domestic economic activity, the domestic inflation outlook remains subject to elevated uncertainty. Inflation projections made at the monetary policy round in May 2026 based on currently available information and assumptions indicate that headline inflation is likely to remain above the target of 5% in the period ahead, before easing and stabilising around the target over the medium term, supported by appropriate policy measures,” the CBSL said.
In March, the CBSL had forecast inflation to reach the target of 5% in the second quarter of 2026, earlier than previously anticipated. (Financial Times, 1.6.2026)
Sri Lanka spends more than Rs. 5 billion each year on rabies prevention and control, according to the National Rabies Control Campaign. Director, he said special interventions are already underway with the aim of eliminating rabies deaths in the country by 2030. Dr. Gamage noted that Sri Lanka has made significant progress in reducing rabies-related deaths over the past five decades. He said fatalities declined to 20 in 2024 and further dropped to 14 in 2025, while three deaths were reported during the first quarter of 2026. “Our goal is to reduce rabies deaths to zero by 2030 and create a country where no one dies from this disease,” he said. He added that the government spends around Rs. 800 million annually on human rabies prevention and treatment, while a further Rs. 2.5 billion is allocated each year for vaccination of dogs and other animals. “Overall, the government spends more than Rs. 5 billion annually on rabies control,” Dr. Gamage said.He also highlighted that nearly 99% of rabies deaths in Sri Lanka are caused by dog bites. Current estimates place the country’s dog population at around 2.7 million, with roughly one dog for every eight people, though he noted the ratio varies across regions. (Daily Mirror, 2.6.2026)
As the cost of everyday essentials continue to rise, Sri Lankans now need at least Rs. 17,117 a month per person to meet their basic needs, according to the latest official figures. According to the latest figures released by the Department of Census and Statistics, the national official poverty line increased to Rs. 17,117 per person per month in April 2026, up from Rs. 16,690 recorded in March. The poverty line represents the minimum monthly expenditure required for an individual to meet basic needs such as food and other essential expenses. The latest increase signals a continued rise in living costs faced by families nationwide. The figures also illustrate how dramatically the cost of basic living has changed over the past decade. In 2012/13, a person needed just Rs. 5,223 per month to meet minimum living requirements. By 2019, that figure had risen to Rs. 6,966. Today, it has more than tripled, surpassing Rs. 17,000 amid years of inflation and economic challenges. Residents in urban and highly populated districts continue to face the highest costs. The Colombo district, which maintains the highest living costs in the country, saw its poverty line jump from Rs. 18,000 in March to Rs. 18,461 in April. Similarly, Gampaha rose from Rs. 17,908 to Rs. 18,367, while Kalutara increased from Rs. 17,520 to Rs. 17,968. Nuwara Eliya also breached the 18,000 mark, moving from Rs. 17,551 in March to Rs. 18,001 in April. Meanwhile, districts with comparatively lower living costs also experienced increases. For instance, Monaragala, which held the lowest threshold in both months, moved from Rs. 15,958 in March to Rs. 16,367 in April. Kilinochchi increased from Rs. 16,124 to Rs. 16,537, and Hambantota from Rs. 16,216 to Rs. 16,631. (Daily Mirror, 3.6.2026)
The Government is set to strengthen its environmental protection efforts by designating five forests in the Anuradhapura District as protected reserves on 5 June, with a strong focus on safeguarding the ancient Ellanga wewa cascade system and preserving critical ecosystems. The initiative, which will be implemented under the national ‘Wanaspathi’ program in line with World Environment Day, also includes plans to open three designated elephant corridors aimed at mitigating the growing human-elephant conflict. The primary objective of declaring these areas as protected reserves is to conserve the wewa cascade system, locally known as the Ellanga system, a centuries-old irrigation network that remains vital to water security, agriculture, and ecological sustainability in the dry zone of Sri Lanka. In addition to safeguarding water resources, the initiative is expected to play a critical role in managing human-elephant conflict and conserving biodiversity, particularly in regions where wildlife movement overlaps with human settlements. Addressing the media yesterday, Environment Minister Dhammika Patabendi said forests located in ecologically sensitive areas will be declared forest reserves on 5 June in line with World Environment Day. He said the move will increase the country’s total number of protected forest reserves to 86. The forest areas to be gazetted as protected reserves include the Ritigala Forest Reserve, Aliya Wetunu Wewa Reserve, Bulagala Reserve, Koonketiyawa Reserve, and Kallankeeya Reserve. Together, these five forest zones cover a total extent of 2,169 hectares. Environment Ministry Adviser Dr. Ravindra Kariyawasam highlighted the ecological and strategic importance of these forests, particularly Ritigala, noting their role in supporting both wildlife and water systems. “The main objectives of declaring these areas as protected reserves are to manage the human-elephant conflict, conserve biodiversity, and protect ecosystems including the Ellanga system. In the Ritigala region, a significant number of elephants move in search of food, particularly towards Palugas Wewa, Bellankadawila, and several smaller wewas located in the upper areas. This forest can also be identified as a major water catchment that supplies these areas. Therefore, the primary basis for conserving Ritigala as a protected reserve is to manage the human-elephant conflict, while also safeguarding water and food resources for wildlife. Through this initiative, the Government is taking steps to protect these forests as part of its contribution to conservation,” he said. (Financial Times, 2.6.2026)
The Sri Lanka Police have revealed disturbing new details surrounding the fatal Meegoda crash on Sunday, with authorities indicating that the incident resulting in six deaths is being investigated as a possible intentional act leading to multiple deaths. Deputy Inspector General – Traffic Control and Road Safety W.P.J. Senadheera outlined the sequence of events and the condition of the suspect at the time of the arrest.
“Police ordered the cab to stop. It did not stop. Police pursued it from behind and, after a great deal of effort, managed to bring the vehicle to a halt. Upon inspection, the driver was found to be under the influence of alcohol at that time. It was also revealed that there were two other individuals in the vehicle, and they had fled the scene. At that point, it was discovered that the driver did not possess a valid driving licence. Although the vehicle documents were valid, it was clear that the driver had consumed alcohol. It is evident that his mental state was impaired,” he said. He further stated that the accident could have been prevented even after the initial impact. “When we look at the incident, it is clear that this accident could have been avoided. Even after hitting the first victims, the vehicle could have been stopped. However, it was not stopped and continued forward, ultimately causing the deaths of six individuals and seriously injuring others. Therefore, Police investigations are being conducted treating this as seven counts of grave and intentional homicide,” Senadheera added. The Sri Lanka Police have raised alarm over a sharp spike in road accidents during the Vesak holiday period, revealing grim statistics that highlight growing road safety concerns.. According to Deputy Inspector General (DIG) W.P.J. Senadheera, a total of 19 road accidents were reported over just two Vesak days, resulting in 24 fatalities. “Within these two days, 19 road accidents were reported, resulting in 24 deaths. There were also 26 serious accidents, 96 minor accidents, and 19 incidents involving property damage. Among those who died were 13 pedestrians, seven motorcyclists, one pillion rider, one cyclist, one driver, and one passenger,” he said. (Financial Times,, 2.6.2026)
Eleven persons have been killed and three others reported missing following a fire that broke out at an elders’ home in Anguruwatota, Horana last evening (03), Police said. Seven persons who sustained injuries in the incident have been admitted to the Horana District Hospital for treatment. According to Police, 72 residents were at the elders’ home when the fire erupted. Police officers, firefighters, emergency service personnel and local residents joined rescue efforts and succeeded in bringing 44 occupants to safety without injuries. The fire had spread rapidly through parts of the building before being brought under control after an intensive firefighting operation. Police said investigations have been launched to ascertain the cause of the fire, while efforts are continuing to trace the three persons reported missing. (Daily News, 4.6.2026)
The newly established butterfly garden at Ridiyagama Safari Park was officially opened to the public yesterday under the patronage of Environment Minister Dr. Dammika Patabendi. According to the Department of National Zoological Gardens, the butterfly garden has been developed with the aim of conserving local butterfly species, protecting endangered plants and insects, and creating an environmentally sustainable green zone. The department stated that the project is also intended to raise public awareness about the importance of conserving threatened flora and fauna. Through educational programs and interactive experiences, the initiative seeks to encourage environmentally responsible attitudes among children and young people while promoting greater public participation in biodiversity conservation efforts. In addition, the butterfly garden is expected to provide opportunities for ecological research and environmental education, supporting scientific studies related to conservation and biodiversity. Officials noted that the facility is likely to become a popular attraction for both local and foreign tourists, offering visitors a unique opportunity to learn about nature while enjoying a family-friendly recreational experience. The project is also expected to contribute to the growth of the tourism sector and create economic opportunities for local communities and businesses in the surrounding area. (Daily News, 5.6.2026)
Some 267,138 children have dropped out of schools between the years 2018 to 2024, Prime Minister Harini Amarasuriya told Parliament today. The Prime Minister came up with this information as response to an oral question raised by MP Hesha Withanage. She said there is no data available on school dropouts from the year 2010 up to 2017.MP Withanage who responded said non availability of data on school dropouts is humiliating. “ It is a shame that this important data pertaining to school children are missing,” he said. (Daily Mirror, 10.6.2026)
Heavy rains and strong winds linked to the developing South-West monsoon have left one person dead and affected over 7,700 people across several districts, a spokesman for the Disaster Management Centre (DMC) said, citing increasing risks of landslides and floods in vulnerable areas. According to the DMC, 7,757 people from 1,966 families have been affected by the prevailing adverse weather. Two hundred and one people have been relocated to six safety centres, while two houses were completely destroyed and 123 houses were left partially damaged. Director (Human Resources) of the DMC, J. M. A. R. Jayaratne said 20 Divisional Secretariat Divisions in four districts had been impacted by the severe weather. The DMC also confirmed one death linked to the inclement weather. The victim, a 64-year-old resident of the Divulapitiya Divisional Secretariat Division in the Gampaha district, was reportedly swept away by strong currents on Friday, May 22. The National Building Research Organisation (NBRO) issued landslide early warnings for several districts due to heavy rain recorded during the past 24 hours. The Director of the Landslide Research and Risk Management Division of the NBRO has called upon the public to remain alert for early signs of landslides, including cracks on the ground, subsidence, leaning trees or electricity poles, cracks in walls and floors, and the sudden emergence of muddy water or springs. (Sunday Observer, 7.6.2026)
The Government’s fiscal position strengthened significantly during the first quarter of 2026, with the Government recording a sharp increase in revenue and maintaining the Budget in surplus, according to latest data released by the Central Bank of Sri Lanka (CBSL). The Government recorded a primary surplus of Rs. 709.6 billion during January-March 2026, up 78.5% from Rs. 397.47 billion in the corresponding period of 2025, reflecting continued improvement in revenue collection and fiscal consolidation efforts. At the same time, the overall Budget balance recorded a surplus of Rs. 116.35 billion, compared to a deficit of Rs. 234.46 billion a year earlier, marking a turnaround of Rs. 350.81 billion year-on-year (YoY). Total revenue and grants increased by 40.5% YoY to Rs. 1.5 trillion during the first three months of the year from Rs. 1.07 trillion in the corresponding period of 2025. Revenue increased to Rs. 1.5 trillion from Rs. 1.07 trillion a year earlier, supported by strong growth in both tax and non-tax revenue. Tax revenue rose 36.4% YoY to Rs. 1.34 trillion from Rs. 985.88 billion, while non-tax revenue increased 91.2% to Rs. 153.88 billion from Rs. 80.46 billion. Grants remained marginal at Rs. 0.47 billion. Meanwhile, total expenditure and lending minus repayments increased by 6.2% YoY to Rs. 1.38 trillion from Rs. 1.3 trillion. Recurrent expenditure rose 4.7% to Rs. 1.28 trillion from Rs. 1.22 trillion, while capital expenditure and lending minus repayments increased 29.2% to Rs. 106 billion from Rs. 82.06 billion. The stronger revenue performance enabled the Government to maintain a surplus position during the quarter, with revenue and grants exceeding total expenditure and lending minus repayments by Rs. 116.35 billion. (Financial Times, 8.6.2026)
Private sector borrowing from the banking system moderated in April, with total outstanding credit increasing by Rs. 100.6 billion month-on-month (M-o-M) to Rs. 10.8 trillion following the sharp expansion recorded in March. This is the third-lowest monthly expansion in private sector credit during the past 12 months, after Rs. 83 billion in January 2026 and Rs. 87 billion in April 2025. The highest was Rs. 263 billion in November 2025, followed by Rs. 258 billion in March 2026. According to the latest Central Bank of Sri Lanka (CBSL) data, total outstanding banking sector credit to the private sector rose to Rs. 10.8 trillion in April from Rs. 10.7 trillion in March, reflecting a 0.9% M-o-M increase. On a year-on-year (YoY) basis, private sector credit expanded by 27%, marginally lower than the 27.1% growth recorded in March. Lending by domestic banking units (DBUs) continued to account for the bulk of private sector credit, increasing by Rs. 97 billion or 1% M-o-M to Rs. 10.24 trillion in April from Rs. 10.14 trillion in March. However, annual growth in DBU lending eased slightly to 29.1% from 29.3% in March. Credit extended through offshore banking units (OBUs) rose by Rs. 3.4 billion or 0.6% M-o-M to Rs. 559.6 billion in April from Rs. 556.2 billion in March. Despite the increase, outstanding OBU credit remained lower than a year earlier, contracting by 2.2% YoY in April compared with the 2.7% decline recorded in March. Net credit to the Government from the banking system increased by Rs. 20.5 billion in April to Rs. 8.15 trillion from Rs. 8.13 trillion in March. However, on an annual basis, Government credit remained in contraction, declining by 2.7% YoY. Outstanding credit to public corporations and State-owned enterprises edged up by Rs. 2.2 billion to Rs. 413.5 billion in April from Rs. 411.2 billion in March. Nevertheless, lending to public corporations continued to contract sharply on a YoY basis, declining by 31.6% compared with a 31.2% contraction in March. The CBSL’s Weekly Economic Indicators report showed broad money (M2b) expanded by 11.6% YoY in April, while private sector credit growth remained elevated despite the moderation in monthly borrowing.(Financial Times, 86.2026)
Sri Lanka’s wild elephant population has increased to an estimated 7,451 animals, according to the latest nationwide elephant survey conducted by the Department of Wildlife Conservation in 2024, the survey showed a significant increase in the country’s elephant population compared to previous counts carried out over the past three decades. According to official records, Sri Lanka’s wild elephant population stood at 1,967 in 1993. A subsequent elephant census conducted in 2011 recorded 5,879 elephants across the country. “The 2024 elephant survey has reported that there are at least 7,451 wild elephants in Sri Lanka. Accordingly, the elephant population has increased by about 26.7%,” Patabendi said.He also noted that the number of tuskers in the country had increased by 9.2%, indicating growth within the population of elephants with tusks.“The population of tuskers has increased by 9.2%, and overall, we can clearly see growth in Sri Lanka’s elephant population,” the minister said. (Newswire, 11.6.2026)
Sri Lanka may be forced to purify and distribute seawater for drinking purposes if a forecasted severe El Niño event leads to a prolonged drought and depletes the country’s main water sources, the Disaster Management Centre (DMC) warned. The anticipated El Niño anomaly could reach unprecedented levels, posing a significant threat to the nation’s water security. He said the country must urgently strengthen preparedness measures, noting that the National Disaster Services Centre currently has only a limited number of water bowsers available for emergency distribution. Dharmatilaka cautioned that existing resources may not be sufficient if prolonged dry weather conditions set in. “This El Niño condition could dry up water sources, leaving no sources to obtain water. We may even have to consider purifying and distributing seawater,” he said. Meanwhile, Sri Lanka’s Department of Meteorology has also forecast dry conditions during July and August, with rainfall expected to drop significantly due to the climate pattern. Officials warned that reduced rainfall could disrupt both drinking water supply and agricultural activities across the country. (Daily Mirror, 11.6.2026)
A recent survey has revealed that the majority of children under five years of age suffering from malnutrition in the country are from the Uva province. Medical Specialist and Nutritionist Dr. Wasana Marasinghe told the media yesterday during a public awareness programme in this regard that several of them are underweight and that there are few overweight children as well. The programme organised on the instructions of Director of the Badulla teaching hospital Dr. Himali Wijegunasekara that highlighted on promoting nutrition of children and the dietary habits conducive for a healthy life included a demonstration and an exhibition and video shows. The demonstration which set off from the Badulla teaching hospital proceeded through Badulla town with the participation of the Hospital Director Dr. Mrs.Wijegunasekara, Mayor of Badulla Nandana Hapugoda ,Dean of the Facalty of Medicine, Uva Wellassa University Prof. Muditha Vidana Pathirana, medical officers ,nursing officers, public health inspectors, trainees of the nursing school, school children and police officers. (Daily Mirror, 11.6.2026)
Sri Lanka has made a significant leap in the Global Peace Index (GPI) 2026, rising 30 places to 67th globally from 97th in 2025, according to the Institute for Economics & Peace (IEP). The country recorded the largest percentage improvement in South Asia, with its overall peace score improving by 2.3%. The report ranks Sri Lanka as the second most peaceful nation in South Asia behind Bhutan (16th), ahead of Nepal (111th), Bangladesh (117th), India (127th), Pakistan (152nd), and Afghanistan (157th). The improvement was driven by a 6.4% gain in the Militarisation domain, including a 40.8% improvement in the UN peacekeeping funding indicator, while the Safety and Security domain improved by 1.8%, supported by a 25% reduction in political instability. IEP attributed the progress to Sri Lanka’s economic recovery following the 2022 crisis, with GDP growth reaching 5% in 2024, negative inflation, and a debt restructuring agreement with international bondholders that boosted fiscal stability and investor confidence. Despite the gains, the report noted ongoing risks, including a debt-to-GDP ratio of 101% and heavy dependence on energy imports, which continue to pose challenges to long-term stability. (Daily News, 11.6.2026)
There is a backlog of 1.1 million court cases in Sri Lanka, National People’s Power (NPP) MP Hiruni Wijesinghe told Parliament. This she said means that there 1.1 million cases in Sri Lankan courts . “Our government received a mandate to rectify these shortcomings and we will focus on rectifying these shortcomings” she added. Minister of Justice Harshana Nanayakkara also assured that shortcomings that exist in the Judiciary will be resolved soon. He came up with this remark when Opposition MPs highlighted about the non- appointment of Judges to fill vacancies that exist in Supreme Court and the Appeal Court. This was highlighted by MPs Chamara Sampath Dassanayake and Ajith P. Perera. (Daily Mirror, 12.6.2026)
Sri Lanka has secured more than US$ 1.85 billion in foreign loans since the current government came to power, according to information disclosed in Parliament. The details were revealed by the Ministry of Finance, Planning and Economic Affairs in response to a query raised by Member of Parliament Dayasiri Jayasekara.According to the Ministry, the country obtained foreign loans amounting to US$ 1,854.77 million between the 2024 Presidential Election and May 5, 2026, excluding financial assistance received from the International Monetary Fund (IMF). The loans were secured for 18 development projects that had been agreed upon prior to the Presidential Election. The financing package includes both bilateral and multilateral loans. The Ministry further stated that the funds were obtained from several countries, including Japan, South Korea, Saudi Arabia, the Netherlands and India.Meanwhile, Deputy Minister of Finance and Planning Dr. Anil Jayantha recently informed Parliament that Sri Lanka’s total outstanding debt currently stands at approximately US$ 102.02 billion. Despite concerns regarding the country’s debt burden, Minister of Rural Development, Social Security and Community Empowerment Upali Pannilage said the government has succeeded in achieving economic progress and stability . However, former President Ranil Wickremesinghe offered a contrasting assessment, warning that the country’s economy is heading towards a serious crisis. Addressing a recent meeting of the Working Committee of the United National Party (UNP), the former President noted that the government is facing difficulties across multiple sectors and cautioned that signs of economic deterioration would become increasingly evident in the near future. (Ada Derana News, 14.6.2026)
Sri Lanka’s economy has begun to crash and one will be able see a complete crash before long, former President Ranil Wickremesinghe said. “The Government is stuck from all sides. There is the economic downturn from one side while there are violations of human rights from the other. We are able to see suppression of ex-servicemen while the Buddhist monks are suffering the same fate. The government will take control of Buddhist associations before long. Also one will be able to see the Sri Lankan economy crashing before long,” Wickremesinghe told the UNP working committee. Furthermore, the former President stressed the need for a greater bond between opposition parties. “Some opposition parties have come together in the form of a joint opposition. However, this collective has to be expanded. We are currently conferring with a number of other parties to expand the joint opposition,” he said. (Daily Mirror, 15.6.2026)
The Rescue, Rehabilitation and Insolvency (Corporate and Personal) Bill has officially become law, with Speaker of Parliament Jagath Wickramaratne today (17) endorsing the certificate on the legislation. The Bill was first read in Parliament on 17 March 2026 and was subsequently passed by Parliament following a debate held on 6 May 2026. The Act provides for the amendment of the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act, the Companies Act, No. 7 of 2007, the Inland Revenue Act, No. 24 of 2017. The Act introduces specific procedures relating to personal insolvency, including provisions for debt protection, moratoria, and debt restructuring, while ensuring the protection of a debtor’s reasonable income and essential assets. In addition, the legislation addresses matters relating to corporate governance, receivership, and cross-border insolvency, with a view to enhancing predictability and confidence in the credit market. The Act is also intended to provide a fresh start for honest individual debtors and establish a structured mechanism for the rehabilitation of distressed but fundamentally viable companies. Accordingly, the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Bill shall come into force as the Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act, No. 12 of 2026. (Newswire, 17.6.2026)
The National Council for Road Safety announced that the mandatory enforcement of Sri Lanka’s seat belt law comes into effect from today (20), following the conclusion of the grace period granted for motorists. Accordingly, wearing seat belts is now compulsory while driving. In addition, all passengers travelling in vehicles on expressways are required to wear seat belts. The government has also taken steps to make seat belt use mandatory for passengers travelling in both the front and rear seats of vehicles. The grace period provided to facilitate the implementation of the new regulation ended yesterday (19), and authorities said the law will now be strictly enforced. Under the new rules, on normal roads, both the driver and the front-seat passenger must wear seat belts. On expressways, the driver and all passengers travelling in the vehicle are required to wear seat belts. (Daily Mirror, 21.6.2026)
A mahout and his assistant were killed after an elephant attacked them near the Rakwana Sri Ubhaya Thilakarama Viharaya, where the animal had been brought for the 78th Poson Perahera. According to reports, the elephant became agitated while being taken to the Rakwana River for water and fatally attacked the assistant. The chief mahout, who rushed to help, was also attacked and killed. The elephant later fled into a nearby paddy field, while wildlife officers have launched efforts to tranquilize and capture the animal. (The Morning, 23.6.2026)
Sri Lanka’s tea exports rebounded in May, with shipments rising 7.5% year-on-year (YoY), but cumulative exports for the first five months of 2026 remained below last year’s levels, highlighting ongoing challenges facing the country’s largest agricultural export sector. According to data analysed by Forbes & Walker Research, tea exports in May increased to 23.51 million kilos (Mn/Kgs) from 21.87 Mn/Kgs a year earlier, recording a gain of 1.64 Mn/Kgs. All export categories, except Green Tea, posted YoY growth during the month. Despite the increase in volumes, export prices remained under pressure. The average Free on Board (FOB) value declined marginally by Rs. 3.61 YoY to Rs. 1,800.70 per kilogram from Rs. 1,804.31 in May 2025. The stronger May performance was insufficient to reverse the decline recorded earlier in the year. Cumulative exports for January-May 2026 stood at 101.85 Mn/Kgs, down 1.43 Mn/Kgs from the 103.28 Mn/Kgs exported during the corresponding period of 2025. All major export segments, except Instant Tea and Green Tea, registered lower volumes during the first five months of the year. Nevertheless, the sector delivered improved returns in local currency terms. Average FOB value for the January-May period increased by Rs. 41.12 to Rs. 1,797.58 per kilogram, compared with Rs. 1,756.46 a year earlier. bIn contrast, the average dollar-denominated FOB value declined to $ 5.72 per kilogram from $ 5.91 during the same period last year, reflecting weaker international prices. On the market front, Türkey consolidated its position as the largest buyer of Ceylon Tea, importing 14.95 Mn/Kgs during the first five months of the year, a sharp 159% increase compared with the corresponding period of 2025. The surge enabled Türkiye to widen its lead over Iraq, traditionally Sri Lanka’s largest tea market. Iraqi imports fell 18% YoY to 11.82 Mn/Kgs from 14.47 Mn/Kgs.. Russia remained the third largest destination for Ceylon Tea, with imports rising 8% YoY to 9.83 Mn/Kgs.. (Financial Times, 23.6.2026)
The National Consumer Price Index (NCPI)-based headline inflation accelerated to 5.4% year-on-year (YoY) in May 2026 from 4.7% in April, according to data released by the Department of Census and Statistics. The latest reading marks the third consecutive monthly increase in inflation after headline inflation stood at 1.1% in February. Food inflation rose to 1.5% in May from 1.1% in April, while non-food inflation increased to 8.6% from 7.8%. Core inflation, which excludes food, energy and transport items, edged up to 4.5% in May from 4.4% in the previous month. Of the 5.4% headline inflation rate, food items contributed 0.7 percentage points, while non-food items accounted for 4.7 percentage points. Within the non-food category, price increases were recorded in transport, housing, water, electricity, gas and other fuels, restaurants and hotels, clothing and footwear, and household maintenance. The increase in transport costs reflected higher petrol prices during the month, while housing and utility costs were affected by increases in LP gas prices. Within the food category, prices increased for vegetables, fresh fish, onions, dried fish, milk powder and dairy products. These increases were partially offset by lower prices for rice, coconuts, eggs, potatoes, sugar and coconut oil. The latest inflation reading places headline inflation within the Central Bank’s medium-term target range, with inflation reaching 5.4% in May. (Financial Times, 24.6.2026)
More than Rs. 226 billion worth of narcotic drugs have been seized by law enforcement authorities since the beginning of 2025, with Public Security Minister Ananda Wijepala yesterday disclosing large-scale recoveries, as well as instances of drug trafficking involving narcotics held in Court custody. Responding to a question raised by MP Ravi Karunanayake in Parliament, Wijepala said narcotics valued at Rs. 154 billion were recovered during 2025, while seizures worth a further Rs. 72.3 billion were recorded between 1 January and 30 April 2026. The Minister said authorities recovered 1,571.3 kg of heroin, 14,714 kg of cannabis, 37.9 kg of cocaine, 699 kg of hashish, 2,741 kg of crystal methamphetamine (ICE), 615,000 narcotic capsules, and 3 million tablets during 2025. During the first four months of 2026, recoveries included 1,189.7 kg of heroin, 3,184 kg of cannabis, 261 kg of cocaine, 1,260 kg of hashish, 779,460 narcotic capsules, and 651,101 tablets. The Minister also revealed what he described as serious irregularities involving narcotics retained as Court productions and samples submitted to the Government Analyst.“One instance has been reported from the Colombo Magistrate’s Court where the officer in charge of production items had sold 750 g of heroin. A Court case is pending over the matter,” Wijepala told Parliament. He said a second incident involved an attempt by an officer attached to the Government Analyst’s Department to sell 250 g of crystal methamphetamine. Wijepala explained that narcotics recovered by law enforcement agencies are typically retained in Court vaults as production items until legal proceedings are concluded, with access controlled by officers responsible for custody of the exhibits. He said investigations had revealed that approximately 80,000 kg of various narcotic substances are currently being held pending destruction. The Minister also disclosed that the Government has spent Rs. 780 million on reward payments to Police officers and other informants who contributed to the detection and recovery of narcotics. (Financial Times, 25.6.2026)
Sri Lanka’s dengue outbreak has reached epidemic levels, with cases crossing the 50,000 mark, health authorities confirmed to Daily Mirror. Director of the National Dengue Control Unit, Dr. Kapila Kannangara, told the Daily Mirror that the rapid increase in cases indicates the country has now reached the epidemic level and that urgent preventive measures are needed to prevent the situation from worsening. “We are now reporting around 600 to 700 dengue cases a day, and the total number of cases has exceeded 50,000. The disease has reached epidemic proportions,” he said. Dr. Kannangara warned that favourable weather conditions, widespread mosquito breeding and inadequate public participation in dengue control activities continue to fuel the spread of the disease. He said health authorities recently conducted a special dengue control program in 600 high-risk Grama Niladhari divisions identified as dengue hotspots during the ongoing southwest monsoon season. The campaign focused on eliminating mosquito breeding sites through coordinated clean-up operations and public awareness programs involving government institutions, schools and local government authorities. A circular outlining short-term dengue prevention measures has also been issued to support the program. During the island-wide mosquito eradication drive, thousands of mosquito breeding sites were detected. “With the massive prevention measures are in place, the situation is under control and we are about to see the results in weeks to come,” he said. Dr. Kannangara urged the public to inspect their homes and surroundings regularly, remove stagnant water where mosquitoes breed and cooperate with health inspection teams. He stressed that public participation remains the most effective way to reduce mosquito breeding and prevent the number of dengue infections from increasing further. Sri Lanka has reached dengue epidemic levels on several occasions in recent years, including in 2017, 2019 and 2023. Among these, the 2017 outbreak remains the worst in the country’s history, with the highest number of reported cases (186,101) and deaths (440), placing severe strain on the healthcare system. (Daily Mirror, 27.6.2026).
Vraie Cally Balthazaar says around Rs. 36 billion has been invested to modernise and expand Colombo’s sewerage network under the Greater Colombo Wastewater Management Improvement Investment Program. In a post shared on social media, the Colombo Mayor said the program was initially financed by the Asian Development Bank and is currently supported by the Treasury and the European Investment Bank. Key initiatives under the program include the Rs. 8 billion Kirula and Narahenpita Sewerage Project, aimed at extending sewer connections to areas that previously lacked access, and the Rs. 7.5 billion Southern Rehabilitation Project, which focuses on upgrading and restoring ageing sewer infrastructure across several parts of Colombo. Balthazaar pointed out that much of Colombo’s sewer system dates back more than 120 years. Although the network still serves a significant portion of the city, some communities remain without sewer connections, while sections of the existing infrastructure are in urgent need of rehabilitation. She acknowledged that ongoing construction activities may cause temporary disruptions but stressed that the projects would provide lasting benefits in terms of public health, sanitation, environmental protection and the city’s long-term development. (Daily News, 27.6.2026)
