AGP Executive Report

Easter Sunday Justice & Custody: Former SIS chief Maj. Gen. (Ret.) Suresh Sallay has been admitted to Colombo’s National Hospital amid growing claims of ill-treatment, as his hunger strike and a wider dispute over his CID detention intensify; police deny mistreatment and the case remains tied to the Easter Sunday investigation. Rule of Law Pushback: Saliya Pieris (former BASL chief) renewed criticism of PTA/ICCPR Act/Emergency-style laws, arguing they enable prolonged detention and a culture of torture, and that custody decisions must rest with judges. Debt Row: A Sri Lanka Human Rights Centre statement challenges figures cited in a debt-payment report, saying the USD 8.094m figure is accounting totals and that foreign debt rose by USD 788m and domestic debt by Rs. 490bn in early 2026. Macroeconomic Pressure: Central Bank data shows foreigners sold about US$14.7m in government securities in the week to June 4, with continued rupee weakness despite a 100 bps rate hike. Governance & Oversight: UNP questions why a Freedom of Information request about CID travel costs to London remains unanswered for months. Public Health: Dengue cases climbed to 35,228, up 30–40%, prompting a nationwide mosquito-control drive with police and armed forces support. Local Administration: Customs says vehicle imports haven’t fallen as expected after a surcharge, with imports still a major share of Customs revenue.

IMF & Treasury Cybersecurity: The IMF granted Sri Lanka a waiver after a $2.5m missed external debt payment linked to a Treasury phishing scam, saying the breach was “minor” and corrective steps were taken—raising fresh questions about safeguards at the finance ministry. SOE Performance: Sri Lanka’s state-owned enterprises posted weaker overall profits in 2025 as CEB swung from profit to a Rs. 38.7b loss, dragging the sector’s combined earnings down 17.6% to Rs. 444.4b, while other SOEs improved. Political Debate on Defections: A proposed “crossover ban” anti-defection law is reigniting debate over whether it protects voters’ mandates or simply locks power in party leaderships, with government and opposition trading accusations. Legal/Detention Claims: Opposition-linked criticism continues over the treatment of former SIS chief Suresh Sallay in CID custody, with police rejecting claims of mistreatment and his wife alleging torture and denial of medical care. Education Policy: Prime Minister Harini Amarasuriya says Sri Lanka will introduce a common preschool curriculum by 2027, with stronger provincial supervision and monitoring. Tourism & Infrastructure: Prime and Melwa unveiled the Prime Marina Sales Suite at Port City Colombo, while commentary highlights that Sri Lanka’s tourism push still hinges on fixing the first impression—especially Bandaranaike International Airport. Sports (Sri Lanka-linked): West Indies fast bowler Shamar Joseph will miss the final ODI vs Sri Lanka due to personal reasons; Sri Lanka’s cricket scene also intersects with India’s teen call-up story as Vaibhav Sooryavanshi’s parents may travel with him.

Transport Disruption: Private bus operators in Sri Lanka plan to cut services by about 50% from June 8, prioritising only peak-hour school and office routes after fare and fuel-relief requests were not met. Public Administration: Divisional Secretaries and Assistant Divisional Secretaries say they will boycott all Monday official meetings—physical and online—starting June 8, citing Public Day rules meant to keep officials available for citizens. Higher Education Policy: Sri Lanka’s Ministry of Education has opened a public consultation and online survey to shape a new National Higher Education Policy Framework, with input sought from students, academics and stakeholders. Easter Sunday Custody Row: Police rejected claims of mistreatment in the CID detention of former intelligence chief Suresh Sallay, while opposition figures allege a hunger strike over alleged degrading conditions. Regional Cooperation: Nepal’s PM urged BIMSTEC members, including Sri Lanka, to strengthen connectivity and jointly tackle climate change and natural disasters. Food Security Pressure: WFP warns the Iran conflict is worsening hunger, estimating additional acute food insecurity in Sri Lanka alongside Somalia and Afghanistan.

Custody Rights Clash: Sri Lanka Police rejected claims by former MP Udaya Gammanpila that retired Major General Suresh Sallay is on hunger strike and facing inhumane treatment in CID custody, saying he is handled under standard legal procedures and urging restraint since the matter is before courts. Detention Allegations Escalate: A separate formal complaint to the IGP from Sallay’s wife alleges torture, denial of medical care, and degrading conditions, including confinement in a tiny cell, and warns of worsening health. Rupee & Credit Policy Debate: A commentary argues CBSL’s recent rate hike to curb rupee depreciation and private credit growth was reactive, contrasting it with earlier signals and IMF expectations on credit limits. Cybercrime Safe Havens: Another piece flags a growing pattern of cybercrime arrests involving foreign nationals operating from Colombo apartments, pointing to failures in immigration control and regulatory oversight. Agriculture & Rice Prices: Dudley Sirisena criticises the government’s rice import decision for driving down paddy prices and says guaranteed paddy prices distort cultivation choices. Regional Security/Cooperation: BIMSTEC’s SG says the bloc is set to become a stronger platform for regional cooperation and security. Sports Spillover with Sri Lanka Link: West Indies coach Daren Sammy looks ahead to the 2nd ODI at Sabina Park after a first-match loss to Sri Lanka; meanwhile India’s India A and T20 squads include players touring Sri Lanka and the region.

Judiciary Watch: Lawyers’ Collective warns that any move to extend the retirement age of Supreme Court and Court of Appeal judges could undermine judicial independence, arguing it may amount to “court-packing” if it applies to sitting judges. Anti-Corruption & Governance: Government reviews implementation of the National Anti-Corruption Action Plan, with COPF raising concerns over Samurdhi Bank audits and cyber security. Environment & Reporting: EU-backed revised National Green Reporting System Guidelines were launched by President Anura Kumara Dissanayake, modernising Sri Lanka’s sustainability reporting to align with GRI standards. Public Finance & Trade: Sri Lanka is pressing ahead with joining RCEP, submitting responses to preliminary questionnaires and setting up institutional arrangements to meet bloc requirements. Social Policy: Health officials say about one in five children under five suffer malnutrition, linking the crisis to long-term health risks. Transport & Digital Services: SLT-MOBITEL helped digitise and modernise Colombo’s Central Bus Stand with real-time displays and Wi‑Fi, as part of a broader push for citizen-focused public services. Humanitarian & Elder Care: HelpAge received new co-branded collection tills from Seylan Bank to fund free cataract surgeries for underprivileged elderly people. Vehicle Imports: Customs says the 50% surcharge on vehicle import duties hasn’t significantly reduced imports, with vehicle-related revenue still forming over 30% of total Customs receipts.

Green Governance: President Anura Kumara Dissanayake launched revised EU-backed green reporting guidelines, updating Sri Lanka’s National Green Reporting System to align with Global Reporting Initiative standards and help firms meet international ESG expectations. Anti-Corruption Oversight: The government reviewed implementation of the National Anti-Corruption Action Plan 2025–2029, focusing on integrity and Internal Affairs Units in revenue agencies like Customs, Inland Revenue and Excise. Judiciary Under Scrutiny: A legal commentary alleges the Judicial Service Commission has compromised judicial independence by penalising subordinate judges and using administrative authority in ways that affected dozens of officers. Security & Law: Police arrested a 24-year-old in Kilinochchi for allegedly promoting the banned LTTE via edited social media content, with the suspect remanded under the Prevention of Terrorism Act. Public Health: A special dengue mosquito control programme is set for June 8–10 across 74 MOH divisions in 14 districts, with police and tri-forces support and legal action planned against breeding sites. Regional/Defence Ties: The US transferred 10 TH-57 Sea Ranger helicopters to the SLAF under its Excess Defence Articles programme, while the US-Sri Lanka maritime partnership also marked the commissioning of SLNS Samudravijaya. Climate Risk Debate: World Environment Day events included new forest reserve declarations, but civil society warned Sri Lanka could become “climate orphans” without stronger guidance and adaptation.

IMF Talks & Social Welfare: The IMF says Sri Lanka should first “finish the line” on the current EFF, with any successor programme still “to be discussed,” while stressing a social spending floor and Aswesuma recertification to better target support for the poor. Banking Restructure Claims: Opposition MP Ravi Karunanayake alleges leaked plans to restructure Bank of Ceylon and People’s Bank, possibly via public share offers, and says he’ll raise it in Parliament. Public Property Act Move: Courts are set to use the Public Property Act in the Deega Danthu case, with police ordered to value the tusker and prepare charges over an alleged illegal electric fence. Health & Safety: A dengue mosquito control drive is planned for June 8-10 across 74 MOH divisions, while a separate fire at an unregistered elderly care home in Anguruwatota killed 12 and led to the director’s arrest. Labour Diplomacy: Labour Minister Dr. Anil Jayantha Fernando heads to the ILO’s Geneva conference, focused on decent work, digital economy challenges, gender equality, and social dialogue. Security Concern: Indian intelligence reports flag Batticaloa as a Wahhabism hotspot tied to Saudi-linked networks, warning of possible ISI-backed radicalisation spillover.

Disaster Preparedness & Climate Resilience: Sri Lanka launched the National Anticipatory Action Roadmap 2026-2030, pushing “Early Warning, Early Action” to turn climate and disaster plans into real investments and community-level implementation. Judiciary Independence: The Colombo High Court Lawyers’ Association urged President Anura Kumara Dissanayake to drop a reported proposal to extend Supreme Court and Court of Appeal judges’ retirement ages, warning it could breach constitutional safeguards and weaken public trust. Elderly Care Crisis: The owner of the illegally operated Maupiya Sewana care home was remanded after a fire killed 12 residents and injured six; investigators say the facility lacked authorization and minimum regulatory standards. Maritime Security: The Navy arrested 44 people in raids targeting illegal fishing, seizing vessels, explosives, and prohibited gear, and handing suspects and items to fisheries and police units for legal action. Digital Economy & Skills: An AI and Data Analytics Summit in Colombo highlighted government-backed efforts to accelerate AI adoption and data-driven governance. Business Finance: Alliance Finance (Sri Lanka-Bangladesh JV) signed agreements with Bangladesh Bank to refinance loans for cottage, micro, small and medium enterprises at 7% interest. Sports & Regional Links: Sri Lanka’s first ODI win over West Indies (41-run margin) and a Sri Lanka-hosted India A tri-series in Dambulla keep regional cricket ties in focus.

Elderly Care Tragedy: Sri Lanka’s Maupiya Sewana Elders Home fire has killed 12 after forensic checks found seven more charred bodies; the manager was arrested and 51 residents were rescued and moved while authorities investigate the cause. Fuel & FX Pressure: The government is weighing options to cut daily diesel use by 500 tonnes, but no specific measure is set; officials link the squeeze to a rising import bill and rupee weakness, with IMF guidance pushing exchange-rate flexibility. PTA “Selective Enforcement” Row: SLPP organiser Namal Rajapaksa’s Namal Rajapaksa alleges uneven use of the Prevention of Terrorism Act after an artist was remanded over alleged LTTE-linked content, while he claims similar political use went unpunished. Forced-Labour Trade Risk: The US has listed Sri Lanka among 60 countries facing proposed forced-labour import tariffs, warning exporters could face another hit to the US market. Child Protection Alarm: In Galle, outrage is growing after reports of an alleged assault on a 16-year-old over unpaid wages, with calls for urgent police and National Child Protection Authority action. Governance & Funds: The “Rebuilding Sri Lanka” fund tied to cyclone recovery is reported to be effectively idle, with questions raised over whether it was properly established and auditable.

Easter Sunday Probe: Sri Lanka’s CID told the Colombo Fort Magistrate’s Court that the 2019 bombings were planned and coordinated under former SIS chief Major General (Retd.) Suresh Salley, prompting a foreign travel ban on ex-president Gotabaya Rajapaksa and two army officers. Detention Conditions: In a separate court move, lawyers said Salley is suffering PTSD and severe depression in custody, with a reported high risk of self-harm, and the court ordered the CID to urgently explain detention conditions. US Forced-Labour Trade Pressure: The US Trade Representative named Sri Lanka among 60 economies found to have failed to effectively enforce bans on forced-labour imports, setting up possible Section 301 tariff action. Fuel Cost Fallout: A new explainer links Sri Lanka’s rising fuel prices to global oil-route disruption, rupee weakness, and limited government subsidy buffers. Parliament Watch: A select committee has begun calling for public proposals to review election laws, including voter registration and presidential/parliamentary election statutes. Sports & Diplomacy: Sri Lanka’s travel ban on an ex-president and the country’s cricket calendar abroad also drew attention as international fixtures and tours continue.

Fuel & Cost of Living: Cabinet spokesman Dr. Nalinda Jayatissa said the fuel price hike was unavoidable to prevent shortages, citing a jump in the fuel import bill from $186m (January) to $521m (May) and noting the Treasury’s Rs. 57bn subsidy cushion while government absorbs part of per-litre losses. Energy Governance: A separate report raises alarm over WhatsApp/SMS electricity-billing messages allegedly sent by the dissolved Ceylon Electricity Board, questioning whether consumers are being scammed and whether billing is now properly handled by Electricity Distribution Lanka (EDL). Power Grid Upgrade: Sri Lanka is set to commission the country’s largest battery energy storage program, with grid-forming systems (40MWh each, up to 10MW discharge) across multiple substation sites to stabilise the grid and support higher renewables. Water & Sanitation Diplomacy: Health and Mass Media Minister Dr. Nalinda Jayatissa met UNICEF and SWA partners to strengthen water and sanitation under Heads of State initiatives. International Trade & Politics: Sri Lanka’s RCEP push gained momentum after Australia and New Zealand signalled support, with Foreign Minister Vijitha Herath saying membership is advancing. Weather Risk: Meteorology warns July-August could be hotter-than-normal with El Niño-linked low rainfall, pressuring water, agriculture, power and public health. Justice & Rights: Gotabaya Rajapaksa was allowed to testify online in the 2011 disappearance case of two rights activists, continuing the long-running legal process.

Executive-Presidency Debate: A fresh political commentary argues Sri Lanka’s repeated election promise to abolish the executive presidency never materialises after power is secured, pointing to partial 19th Amendment reforms that left the system largely intact. Economic Governance & FX: Another analysis says the government is avoiding a “Gotabaya-style” free-fall but drifting into stagnation, while rupee pressure remains a political barometer and fuel pricing continues to shape public anger. IMF & Public Finance: Coverage highlights the IMF’s role in Sri Lanka’s latest funding and the political pushback around loan dependency and reform conditions. Digital Security: Sri Lanka is moving toward a unified national cybersecurity framework to protect SL-UDI and other digital public services from fraud and account takeovers. Environment & Land Use: Government plans to gazette five forests as protected reserves, including steps to manage the Ellanga wewa cascade and reduce human-elephant conflict. Courts & Accountability: Courts are set to decide on further steps in the Kapila Chandrasena death case, while virtual testimony from ex-President Gotabaya Rajapaksa continues in the disappearance matter. Religion & Social Tension: Reports describe Buddhists throwing stones at a church during prayers, renewing concerns about religious hostility and security at worship sites.

Marine Safety & Governance: The Cabinet approved a new National Plan and first phase digital platform to respond to oil and hazardous chemical spills, expanding MEPA’s oil spill response coverage as ship traffic and port activity grow. Economy & Inflation: CBSL Governor Nandalal Weerasinghe warned inflation could edge toward 7% if fuel-driven pressures persist, after a 100 bps rate hike to 8.75% to keep prices from accelerating. IMF & Politics: The IMF completed its Fifth and Sixth Reviews, unlocking a $695m tranche, while critics renewed calls for strict use of borrowed funds for intended purposes. Court & Accountability: Colombo Fort Magistrate ordered summons for two lawyers in the Kapila Chandrasena death case, setting them to appear at the inquest. Defence & Diplomacy: US-gifted TH-57 “Sea Ranger” helicopters arrived for SLAF configuration and training, boosting SAR and disaster response capacity. Public Transport Pressure: Private bus operators plan a key meeting after diesel price rises, seeking relief or fare adjustments. Sports Administration: The Sports Ministry temporarily suspended three national federations’ registrations, moving control to the ministry secretary pending constitutional amendments and elections. Trade & Regional Links: Sri Lanka signalled deeper ties with Bangladesh, while IBCSL will lead a delegation to China-South Asia standards talks to help exporters cut non-tariff barriers. Crackdown: Customs arrested 13 foreign nationals at BIA over a Rs. 28.4m cigarette smuggling attempt.

Supreme Court on Bond Scam: Sri Lanka’s Supreme Court overturned a High Court ruling and cleared the way for prosecution in the 2016 Central Bank bond issuance case, ordering the matter to be expedited. IMF Energy Reform: The IMF confirmed Sri Lanka has met cost-recovery pricing for electricity and fuel, a key step for programme reviews, while CPC said fuel subsidy allocations end by June and prices were raised to manage the gap. Road Safety Crackdown: Police reported a sharp Vesak holiday spike in accidents—19 crashes and 24 deaths over two days—prompting renewed warnings on drunk and reckless driving. Environment & Land: Sri Lanka will gazette five forest reserves in Anuradhapura on June 5, including protection for the Ellanga wewa cascade system, and open elephant corridors to curb human-elephant conflict. Anti-Corruption Move: A businessman filed a bribery complaint alleging over Rs. 3.2 million fraud linked to Sri Lanka Ports Authority officials. Transport Upgrade: The luxury airport bus between Katunayake and Makumbura resumed, with fares set at Rs. 410. Sports Governance Watch: ICC scrutiny of Sri Lanka cricket’s new Transformation Committee continues to be “no news is good news,” with no sanctions yet.

IMF & Reserves Debate: IMF mission chief Evan Papageorgiou defended Sri Lanka’s reserve-building approach via the Central Bank, but economists are again questioning the risks of monetising inflows and calling for a bigger Treasury role. Fuel Prices/Cost of Living: CPC raised retail fuel prices again amid West Asia conflict, with petrol 92 up to Rs. 434 and diesel to Rs. 407, reigniting inflation fears. Judiciary & Governance: A June 1 meeting is set between President Anura Kumara Dissanayake and the Judicial Officers’ Association over a proposal to extend judges’ retirement age, with independence concerns. Constitutional Clash: The proposed “Dharma Court” for monastic discipline has sparked a political firestorm, with the UNP warning it exceeds constitutional authority. Foreign Investment Push: BOI launched a “Ready-to-Invest” platform offering pre-structured projects to speed up approvals and attract global capital. Environment: Five more forests are to be declared reserves, bringing protected forest reserves to 86. Labour Standards: Sri Lanka’s delegation is set to participate in the ILO conference in Geneva, as gig-worker protections and platform-economy rules move toward a new international standard. Road Safety Tragedy: A drunk truck driver allegedly killed six people at a Vesak soup kitchen in Meegoda after crashing into a food queue.

IMF & Economy: The IMF approved Sri Lanka’s combined Fifth and Sixth EFF reviews, unlocking about $695m (around $700m) and keeping the reform push on track, while noting growth has been revised down to 3% for 2026 and stressing the need to finish public financial and electricity reforms. Fuel Policy: In the same reform rhythm, Sri Lanka raised fuel prices by up to 6%—petrol to Rs. 434 and diesel to Rs. 407—as subsidies are phased out, with the President saying fuel subsidies will be ended by September. Infrastructure: President Anura Kumara Dissanayake is set to inaugurate construction of Central Expressway Phase II (Rambukkana–Galagedara), with Cabinet approval for Rs. 112bn+ and domestic financing. Monetary Debate: The Free Lawyers group renewed pressure on the CBSL, alleging large rupee money expansion linked to reserve-building dollar purchases. Health: Five new mammography machines worth Rs. 765m are headed to major hospitals to cut waiting times and improve early breast cancer detection. Diplomacy & Trade: Japan pledged $1.33m for freshwater fishermen in the Eastern Province, while a Sri Lanka–Germany business forum urged faster reforms and policy consistency to unlock investment. Sports & Society: Sri Lanka finished 12th at the Asian U-20 Athletics meet in Hong Kong with eight medals; Vesak coverage also highlighted a return to Dhamma-focused reflection beyond festivities.