Sri Lanka arrests former Navy chief

Friday July 3, 2026 11:58 am ECONOMYNEXT – Sri Lanka’s former Navy Commander Wasantha Karannagoda has been arrested by the Commission to Investigate Allegations of Bribery or Corruption on charges related to recruitment of a former president’s son. He is accused of committing co…

Friday July 3, 2026 11:58 am

ECONOMYNEXT – Sri Lanka’s former Navy Commander Wasantha Karannagoda has been arrested by the Commission to Investigate Allegations of Bribery or Corruption on charges related to recruitment of a former president’s son. He is accused of committing corruption by recruiting a student officer in the executive branch who did not meet the prescribed qualifications for recruitment and by providing him with the opportunity to attend a training course at the British Royal Naval College at government expense, contrary to the procedures that existed until then. Yoshitha Rajapaksa, who did not meet the prescribed qualifications for recruitment to the Sri Lanka Navy, joined the force in 2006. In 2023, Admiral Karannagoda, Sri Lanka’s war-time Navy Commander, was blacklisted and barred from entering the United States for alleged violations of human rights. The US State Department said at the time that the US is designating Karannagoda for “a gross violation of human rights during his tenure as a Naval Commander”. “The allegation that Wasantha Karannagoda committed a gross human rights violation, documented by NGOs and independent investigations, is serious and credible. By designating Wasantha Karannagoda, the United States reaffirms its commitment to upholding human rights, ending impunity for human rights violators, acknowledging the suffering of victims and survivors, and promoting accountability for perpetrators in Sri Lanka,” the State Department said. Karannagoda was appointed as Governor of the Northern Province by then President Gotabaya Rajapaksa in December 2021. He served as Navy Commander in the final phase of the Sri Lankan government’s war against the separatist Liberation Tigers of Tamil Elam (LTTE) and also served as Secretary to the Ministry of Transport following the end of the war. Karannagoda was a defendant in an alleged abduction case over the disappearance of 11 youths in Colombo in 2008 and 2009, but charges against him were dropped in October 2021. The Attorney General’s Department that some month informed Sri Lanka’s Court of Appeal that the charges against the former commander would not be taken forward. The US, as a member of the core group of countries on Sri Lanka at the United Nations Human Rights Council (UNHRC), has been pushing for accountability for alleged violations of human rights during the final phase of the Sri Lankan government’s armed conflict with the separatist Tamil Tigers. (Colombo/Jul3/2026)

Friday July 3, 2026 11:45 am

ECONOMYNEXT – Sri Lanka’s central bank (CBSL) has cancelled the finance business license of Nation Lanka Finance PLC (NLFP) with effect from July 3, and will proceed with winding up the company. The decision follows extensive, unsuccessful resolution efforts initiated in July 2025 due to NLFP’s continuous violations of the Finance Business Act. Despite exploring structural options, acquisition possibilities, and seeking investor expressions of interest, the central bank noted that a sustainable outcome was not achieved, prompting the cancellation to protect stakeholders. The CBSL stated: “In light of the continued deterioration of the company’s financial position, and considering that the continuation of its current status would be further detrimental to the interests of depositors and other stakeholders, CBSL has decided, as a final step in the resolution process, to cancel the license issued to NLFP to carry on finance business with effect from 03.07.2026” The Sri Lanka Deposit Insurance Scheme will compensate insured depositors up to a maximum of Rs. 1,100,000 per depositor, fully settling approximately 99.1% of NLFP’s total depositors. (Colombo/July03/2026)

Friday July 3, 2026 11:37 am

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading flat midday Friday, CSE data showed, with the benchmark All Share Price Index moving up a marginal 0.03 percent. The ASPI was up 7.46 points at 22,229.37, while the more liquid S&P SL20 was up 0.11 percent, or 6.54 points, at 6,211.08. Positive contributors to the ASPI included Dialog Axiata (up 1.09 percent at 46.40 rupees), DFCC Bank (up 0.75 percent at 134.00 rupees), Vallibel One (up 1.47 percent at 96.50 rupees), and Singer Finance (Lanka) (up 2.13 percent at 52.80 rupees). Janashakthi Insurance (down 5.27 percent at 43.10 rupees), National Development Bank (down 0.88 percent at 112.00 rupees), Nations Trust Bank (down 0.79 percent at 315.00 rupees), Hikkaduwa Beach Resorts (down 1.89 percent at 5.20 rupees), and Hatton National Bank (down 0.06 percent at 400.00 rupees) were among the negative contributors and notable decliners. Market turnover was 433 million rupees. Banks led turnover with 279.8 million rupees. Hikkaduwa Beach Resorts announced the reopening of its hotel, Citrus Hikkaduwa, from July 1, following the completion of scheduled refurbishment and upgrades. The share was trading at 5.20 rupees, down 1.89 percent. Meanwhile, Singer Finance (Lanka) said its total asset base surpassed 100 billion rupees in the first quarter of the 2026/27 financial year, according to its unaudited management accounts. The share was up 0.58 percent, at 52 rupees. (Colombo/July03/2026)

Friday July 3, 2026 11:05 am

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 335.25/35 to the US dollar in the spot market on Friday, stronger from 335.90/336.00 the previous day, while bond yields edged up slightly on profit taking, dealers said. The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 331.50 buying, 340.50 selling; the euro was 376.7044 selling, 390.6214 buying; and the pound was 441.8540 buying, 455.8996 selling. A bond maturing on 01.08.2030 was quoted at 11.25/28 percent, up from 11.18/25 percent. A bond maturing on 15.10.2030 was quoted at 11.25/32 percent, up from 11.20/27 percent. A bond maturing on 15.12.2032 was quoted at 11.55/60 percent, up from 11.50/60 percent. A bond maturing on 15.01.2033 was quoted at 11.57/63 percent. A bond maturing on 01.11.2033 was quoted flat at 11.60/70 percent. A bond maturing on 15.03.2035 was quoted at 11.70/75 percent. (Colombo/Jul2/2026)

Friday July 3, 2026 10:45 am

ECONOMYNEXT – Sri Lanka has sold 7,731 million rupees of treasury bills offered on tap at an average rate of 10.30 percent, the public debt management office said, bringing the total of bills sold this week to 107,731 million rupees. Total market subscription was 7,73 million rupees. The debt office sold a 6-month bill at 10.30 percent. On Wednesday (1) the debt office raised 100 billion rupees of 3, 6 and 12 month bills. The 6 and 112 month bills were later offered on tap. Sri Lanka Treasury bill yields rise, all bills sold The date of settlement is July 3. (Colombo/Jul3/2026)

Thursday July 2, 2026 6:00 pm

ECONOMYNEXT – As Sri Lanka scales renewable and storage capacity, clearly defined technical standards and frameworks are essential to ensure system reliability and investor confidence, speakers at an energy security forum have said. The Ceylon Chamber of Commerce hosted the discussion on “Energy Transition in Sri Lanka: Strategic Insights from Global Markets”, bringing together the public and private sectors to examine opportunities and challenges in the country’s evolving energy landscape. “As Sri Lanka continues its efforts to build a more sustainable and secure energy future, forums of this nature provide an important opportunity for dialogue, knowledge sharing, and collaboration among stakeholders,” the Ceylon Chamber of Commerce said. Speakers raised the need for creating an enabling environment that attracts investment, including the technical and safety standards required to protect consumers and businesses as storage and solar adoption scales nationally. The role of emerging technologies, technical standards, skills development, and industry–academia collaboration in supporting the next phase of Sri Lanka’s energy transition was discussed. The discussion also considered the importance of reliable energy infrastructure in meeting the growing demands of digital transformation, including emerging technologies such as artificial intelligence, electric mobility, and data centres. The programme covered Sri Lanka’s energy future, including renewable energy development, energy security, regulatory and policy frameworks, electricity sector reforms, energy storage systems, grid modernization, investment and financing considerations, and international experiences in energy transition. Speakers highlighted the importance of aligning energy policy with broader economic development objectives, recognizing that affordable, reliable, and sustainable energy is a critical enabler of competitiveness, industrial growth, and national resilience. will continue working with industry and government stakeholders to develop evidence-based policy recommendations, including technical and safety standards, supporting Sri Lanka’s energy transition. (Colombo/Jul2/2026)

Thursday July 2, 2026 5:35 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 335.90/336.00 to the US dollar in the spot market on Thursday, from 336.20/40 the previous day, while bond yields were down, dealers said. The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 331.75 buying, 340.75 selling; the euro was 375.0737 selling, 388.9907 buying; and the pound was 439.7166 buying, 453.7622 selling. A bond maturing on 15.09.2027 closed at 10.35/45 percent, down from 10.35/50 percent. A bond maturing on 15.03.2028 closed at 10.53/62 percent, down from 10.55/65 percent. A bond maturing on 15.12.2029 closed at 10.90/11.00 percent, down from 11.00/05 percent. A bond maturing on 01.08.2030 closed at 11.18/25 percent, down from 11.30/38 percent. A bond maturing on 15.10.2030 closed at 11.20/27 percent. A bond maturing on 15.12.2032 closed at 11.50/60 percent. A bond maturing on 01.11.2033 closed at 11.60/70 percent, down from 11.65/75 percent. A bond maturing on 15.06.2034 closed at 11.65/75 percent. (Colombo/Jul2/2026)