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World Bank grants Sri Lanka $1.0bn loan

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Sri Lanka has been granted a billion-dollar loan to boost its agriculture, tourism and energy sectors, the World Bank said on Wednesday, as the country emerges from an unprecedented economic crisis.

Sri Lanka’s economy collapsed in 2022 when it ran out of foreign exchange to finance even the most essential imports such as food, fuel, and medicines.

The loan aims to strengthen local industries and attract private capital for growth, the World Bank said in a statement after its President Ajay Banga met with Sri Lankan President Anura Kumara Dissanayake in Colombo.

“With progress underway to stabilise the economy and restart growth, core elements for job creation are in place,” Banga said in the statement.

The loan will be spread over three years, it added.

The economic crisis led to months of street protests that forced then-president Gotabaya Rajapaksa to step down. His successor, Ranil Wickremesinghe, negotiated a $2.9 billion bailout package from the International Monetary Fund.

The four-year bailout loan from the IMF helped shore up the country’s revenues and cleared the way for the government to reschedule foreign debt after a sovereign default on $46 billion of external borrowings in April 2022.

“Now is the time to accelerate reforms and create the conditions for private enterprise to thrive – particularly in sectors that can create jobs at scale,” Banga said.

The World Bank warned last month that Sri Lanka’s population was living in poverty despite the economy making a “remarkable recovery” from its worst financial crisis.

The South Asian nation’s growth surpassed the Bank’s forecast of 4.4 percent, recording 5.0 percent in 2024 – the first economic expansion since the 2022 crisis.

The IMF warned earlier this month that Sri Lanka’s recovery could be undermined if punishing US tariffs were reinstated.

The United States is Sri Lanka’s largest single market, accounting for almost a quarter of its $12 billion in merchandise exports. The trade balance is heavily in favour of the small South Asian nation.

Washington imposed a 44 percent “reciprocal tariff” on the island nation before putting it on hold for 90 days.

Sri Lanka has not retaliated but has instead appealed for negotiations with Washington.

(AFP)

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03 remanded over shooting of Halloluwa’s vehicle

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The Colombo Magistrate’s Court on May 24 ordered to remand 03 suspects over the shooting of Thusitha Halloluwa’s vehicle.

They have been remanded until May 29.

The remanded suspects include the shooter’s wife, who was arrested at a Maharagama housing complex.

Officers from the Colombo Crime Division (CCD), who are investigating the shooting incident further state that the other 02 arrested are the security guard of the housing complex and a person who was traveling with the shooter.

Investigations have also revealed that the security guard of the apartment complex alerted the shooter about the police arrival during the raid, leading the shooter to flee immediately.

The vehicle of Thusitha Halloluwa – the former DG of Public Relations to former President Ranil Wickremesinghe, was shot in Narahenpita on May 17.

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Basil Rajapaksa absent from court; bail not revoked

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Matara Magistrate Aruna Buddhadasa recently ordered Basil Rajapaksa – founder of the Sri Lanka Podujana Peramuna and former Finance Minister, to appear before the Matara Magistrate’s Court on November 21.

The Magistrate made the order when he took up an existing case regarding a land in the Eliyakanda area of Matara that was purchased using allegedly illegally earned money of Rs.50 million.The FCID had filed this case against Basil Rajapaksa and 04 other defendants in 2017 over the alleged purchase of a 1.5 acre land in Eliyakanda, Matara under the name of his wife’s sister, using Rs.50 million allegedly obtained through illegal means.

The first suspect in this case is Tissa Galappaththi, the second suspect is Muditha Jayakody, the third suspect is former Minister Basil Rajapaksa, and the fourth suspect is Ayomi Galappaththi, the sister of the former Minister’s wife.The first suspect in this case is Tissa Galappaththi, the second is Muditha Jayakody, the third is former Minister Basil Rajapaksa, and the fourth is Ayomi Galappaththi, the sister of Rajapaksa’s wife.

While the first 02 suspects, who are out on bail, appeared in court, Basil Rajapaksa and Ayomi Galappaththi were absent.

Deputy Solicitor General Lakmini Girihagama, representing the Attorney General’s Department, noted that while Basil had been granted court permission to travel abroad until May 23, he failed to appear without a reasonable excuse and requested that his bail be revoked and a warrant issued.

In defense, President’s Counsel Anil Silva stated that his client had booked return flights for May 18 and 19, but US doctors had advised Rajapaksa against flying for 06 months after he had fallen off a chair, sustaining damage to his neck and nerves.

Girihagama questioned the claim, stating that the X Rays only indicated a neck sprain and a minor muscle strain. Noting that the medical reports were dated March 18, 2025, it was also questioned as to why tickets were booked for May 18 and 19 if doctors had actually advised against flying for 06 months. Therefore, Girihagama called for the court to revoke bail.

President’s Counsel Silva strongly defended his client, rejecting accusations of faking illness, affirming the credibility of US medical reports, and assuring the court of his client’s presence at the next hearing, arguing there is no need for a warrant or revoke bail.

After hearing both sides, Magistrate Aruna Buddhadasa decided not to issue a warrant or revoke bail, instructing that the accused be present on the next court date. The case was postponed to November 21.

(Source: Dinamina)

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President Dissanayake pays last respects to cinema legend Malini Fonseka

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President Anura Kumara Dissanayake paid his final respects yesterday (25) evening to the late veteran actress Malini Fonseka, fondly remembered as the “Queen of Sri Lankan Cinema.”

Her remains have been placed at the Tharangani Hall of the National Film Corporation, allowing the public to bid farewell to the beloved screen icon.

Malini Fonseka passed away in the early hours of May 24 at the age of 78 while undergoing treatment at a private hospital in Colombo. 

Her body was initially kept at her Madiwela residence before being moved to the National Film Corporation, where crowds continue to gather in tribute.

Among the dignitaries paying their respects were former Presidents Ranil Wickremesinghe, Mahinda Rajapaksa, Gotabaya Rajapaksa, and Chandrika Kumaratunga.

The final rites of the legendary actress will be held today (26) with full state honors at Independence Square.

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