AGP Executive Report

Fuel & energy pressures: Cabinet Spokesman Dr. Nalinda Jayatissa says Sri Lanka’s fuel price hike is unavoidable to keep supplies uninterrupted, pointing to a jump in the fuel import bill (from $186m in January to $521m in May) and losses absorbed by the Treasury and fuel suppliers, while warning that delaying adjustments could trigger shortages. Accountability in the Easter attacks: Colombo Fort Magistrate Pasan Amarasena has imposed a foreign travel ban on former President Gotabaya Rajapaksa and two military officers in the Easter Sunday investigation. Courts and rights cases: The Court of Appeal issued notice on the AG in Yoshitha Rajapaksa’s money laundering revision application, while medical reports cited depression, anxiety and PTSD for detained Major General Suresh Salley, with the case called again tomorrow. Weather risk: Meteorology warns July-August could be hotter-than-normal with El Niño-linked rainfall shortfalls, raising pressure on water, agriculture, power and public health. Business & investment: Home Lands’ Pentara Residencies piling work is completed, KPMG appointed Sachiru Dayananda as Partner, and Sri Lanka is set to commission a major battery energy storage program to stabilise the grid. International links: India’s INS Airavat docked in Colombo for an operational turnaround, and New Zealand confirmed a blockbuster home summer featuring India and Sri Lanka tours. Culture & sport: Sri Lanka named its Women’s T20 World Cup squad for England, and LPL 2026 draft picks include multiple Pakistan players. Economy & trade: The US proposed fresh forced-labour-related tariffs on 60 economies, a move tied to Section 301 findings.

Sri Lanka Cricket Contracts: SLC has awarded national player contracts to 46 men for 2026-27, including new names like Nuwan Thushara (after withdrawing a legal case), Vijayakanth Viyaskanth, Tharindu Rathnayake, Kamil Mishara and others, with players graded into A1/A2/B1/B2/C1 and Central categories. LPL Draft Shake-up: The Lanka Premier League 2026 draft set the stage for a big season: Avishka Fernando was picked No. 1 by Jaffna Kings, while Kandy Royals signed India all-rounder Vijay Shankar; Colombo also drafted Bangladesh pacer Hasan Mahmud. Transport Relief: Despite higher fuel prices, Sri Lanka will not raise bus fares for now, with the Deputy Minister saying the existing formula only allows changes if fuel moves by more than 4%. Economy Debate: A fresh commentary argues the government is not heading for a Gotabaya-style free-fall, but risks “Yahapalanaya-themed stagnation” without decisive liberalisation and investment. Security Update: Police recovered a locally made Mini Uzi-style firearm from a Colombo cemetery, along with a pistol and ammunition, as investigations continue.

Energy & Infrastructure: The Cabinet has approved Rs. 392.47m for Lanka IOC and Rs. 434.86m for Chevron Lubricants to supply lubricating oil for Sapugaskanda Power Station’s 2026/27 operations, split between Plant A and Plant B. Road Safety: Rs. 1.09bn has been approved to rehabilitate and upgrade Colombo–Katunayake Expressway street lighting after vandalism and copper theft left about 85% of lights non-functional. Marine Protection: A new national plan and digital platform were approved to strengthen Sri Lanka’s response to oil and hazardous chemical spills, with MEPA expanding its oil spill response coverage. Economy Watch: CBSL Governor Nandalal Weerasinghe warned inflation could climb toward 7% if fuel pressures persist, after a policy rate hike to 8.75%. Sports: Sri Lanka Cricket released 2026–27 national player contracts, and the ICC rescheduled the Women’s Champions Trophy 2027 in Sri Lanka to February 14–28. Public Safety: Police say the Meegoda crash is being treated as possible intentional multiple deaths, after a drunk driver failed to stop when ordered.

Vesak in Colombo: Pandals and lanterns lit up the city for Vesak week, with community food sharing also underway across Colombo districts. University Housing: Sri Lanka will roll out 55 new hostel projects for 16,000 students in state universities in three phases, easing accommodation shortages. Economy & Energy: The IMF confirmed Sri Lanka met cost-recovery pricing for both electricity and fuel, a key step for the next programme review; fuel and electricity pricing remains a central reform focus. Cricket Governance: Sri Lanka’s new Transformation Committee is reportedly being watched closely by the ICC, with no sanctions yet after an ICC quarterly meeting in Ahmedabad. Sports & Scheduling: The ICC approved a trial for switching from red to pink balls in Tests if both teams agree, and confirmed Pakistan as host of the 2028 Women’s T20 World Cup. Transport Disruption: A train derailed while entering Chilaw station, restricting operations on the Puttalam line from Colombo Fort to Madampe. Courts: The Supreme Court revived Treasury bond-related prosecution charges against Perpetual Treasuries and others. Crime & Safety: Police said the Meegoda crash is being treated as a possible intentional act after a cab driver allegedly failed to stop, was arrested, and the vehicle had other occupants who fled.

Road Safety Tragedy: A drunk driver rammed a vehicle into a Vesak dansala queue in Meegoda, killing six and injuring seven, with police confirming intoxication and arrest after the crash. Public Health: The Health Ministry launched a nationwide Triple Elimination programme in maternity clinics, expanding routine blood screening to include Hepatitis B alongside HIV and syphilis. Disease Watch: Dengue and chikungunya cases are rising after monsoon rains, with doctors urging early testing and warning against risky fever medicines. Fuel & Cost of Living: Retail fuel prices were increased again, renewing cost-of-living fears as transport and food costs are expected to climb. Economy & Reserves Debate: An IMF mission chief defended the Central Bank-led approach to building foreign reserves, but economists say the model can create excess liquidity and risks. Environment & Preparedness: Five new forests are set to be declared reserves, while the Health Ministry says Sri Lanka is ready to respond to any Ebola threat. Justice & Accountability: The Supreme Court upheld the death sentence of “Wele Suda.” Foreign Investment Push: BOI launched a “Ready-to-Invest” platform to speed up investor access to pre-structured projects. Sports: West Indies named a 15-man ODI squad for the series against Sri Lanka, with Shimron Hetmyer and Alzarri Joseph returning.

IMF-linked fuel hike: Sri Lanka raised petrol to Rs. 434 and diesel to Rs. 407 a litre, up to 6%, days after the IMF released a $695m instalment, as the government moves to recover energy costs and phase out fuel subsidies by September. Economy & FX debate: Free Lawyers alleges CBSL “printed” Rs. 1,653b in 2025 and Rs. 610.7b in early 2026 via dollar purchases to build reserves, linking it to rupee volatility. Health upgrade: Five new mammography machines worth Rs. 765m will be installed at major hospitals (plus two more for Trincomalee and Nuwara Eliya) to cut long waiting lists for breast cancer screening. Infrastructure push: President Anura Kumara Dissanayake is set to inaugurate Central Expressway Phase II (Rambukkana–Galagedara), with Rs. 112b in contracts for an 18.65km stretch. Public safety: Police arrested all suspects in a viral PickMe driver robbery in Welikada after dashcam footage showed attackers taking an ATM card and withdrawing Rs. 38,000. Sports & youth: Sri Lanka finished 12th at the Asian U-20 Athletics meet in Hong Kong with eight medals, including golds in women’s 1,500m and 200m. Cricket spotlight: Vaibhav Sooryavanshi’s IPL 2026 record run earned him major awards, while UAE players headline the LPL Season 6 draft on June 1. Weather alert: Met Department warns of strong winds and rough seas, with showers over parts of the island.

Digital Public Services: Sri Lanka’s Government is rolling out a digital network to modernise public services, with an awareness programme for coordinating officers at the ICT Agency. Port Capacity Push: SLPA says Colombo Port is nearing full capacity as April throughput grows 22%, and it is eyeing up to $2 billion in port and logistics investments, including expansion plans to lift capacity and PPP-led projects. Fuel Prices Revised: Ceypetco increased retail fuel prices from midnight May 30—diesel, petrol grades, and kerosene all up—affecting costs nationwide. Monastic Discipline: Sri Lanka’s Malwathu Chapter suspended senior monk Pallegama Hemarathana over alleged child sexual abuse, appointing an acting overseer pending legal proceedings. National Environmental Week: National Environmental Week runs May 30 to June 5, with programmes on cleanliness, air pollution, biodiversity, water conservation and beach cleanups. Vesak Logistics: Special transport services were deployed for Vesak pilgrims as celebrations continued across the country. Public Safety: Police seized an illegally assembled jeep in Kottawa and arrested a driver over missing licence, insurance and forged documents. Regional Defence Drills: Sri Lanka participated in India-led PRAGATI 2026 in Meghalaya, a counter-terrorism exercise with 13 nations and over 400 personnel.

Vesak Message: President Anura Kumara Dissanayake urged Sri Lankans to live by Buddhism’s values of non-violence, compassion and reconciliation, saying lasting peace starts with inner spiritual calm. Army Leadership: Major General Nilantha Premaratne was appointed the 69th Chief of Staff of the Sri Lanka Army, effective May 29. Energy & Daily Life: The power grid saw temporary disconnections in nearly 100 areas, including parts of Colombo, as rooftop solar output surged; the minister said supply should be restored between 2.00 p.m. and 3.00 p.m. Public Cost of Living: SLPP’s Namal Rajapaksa accused the government of protecting politically connected businesses while ordinary people face higher taxes, fuel and electricity costs, and collapsing livelihoods. Women’s Cricket: Sri Lanka named a 15-member squad for the ICC Women’s T20 World Cup 2026, with Chamari Athapaththu as captain; the team departs June 3. Security & Enforcement: Customs arrested 18 suspects at Bandaranaike Airport over illegal foreign cigarettes worth Rs. 31.38 million. Business & Markets: Dialog Axiata regained the top spot on the Colombo Stock Exchange by market value, overtaking John Keells Holdings. Transport Oversight: Parliament heard that some suspended drivers are still receiving salaries, with officials told to revisit disciplinary procedures. Vesak Safety: Rooftop solar owners were asked to switch off systems until 3:00 p.m. to keep the grid stable during Vesak.

Women’s Cricket: Sri Lanka named a 15-member squad for the ICC Women’s T20 World Cup 2026 in England, with Chamari Athapaththu as captain; the team departs June 3 and opens against hosts England on June 12. Economy & Markets: The CSE ended higher as earnings optimism lifted sentiment, with ASPI up about 112 points to close near 22,311. Health Alert: Education authorities issued guidelines after Enterovirus Meningitis cases were reported in multiple districts, including Matara, Nuwara Eliya, Kandy and Badulla. Environment: Three flamingos died after colliding with overhead power lines in Mannar, while Bundala saw flamingo disappearances linked to wetland salinity changes. Infrastructure: Construction officially begins on the Rambukkana–Galagedara section of the Central Expressway, with the project’s next phase set to run 18.7 km. Diplomacy: Sri Lanka urged the Indian Ocean be kept a zone of peace at a Moscow security forum, stressing freedom of navigation and dialogue. Sports Business/Trade: Volkswagen launched in Sri Lanka with the Taigun and Virtus, starting with a showroom and service facility in Sri Jayewardenepura Kotte.

Fuel & supply outlook: CPC says Sri Lanka has sufficient fuel reserves until September, with an 89,000-tonne WTI crude shipment from the US arriving and another Murban tanker due by May 31; a decision on the next fuel price revision is expected after further discussions. Fuel pricing transparency: CPC also published estimated April 2026 pricing for key refined products, showing under-recovery gaps versus current retail prices. Public emergency extended: An Extraordinary Gazette notification extends Sri Lanka’s public emergency framework from May 28, under the President’s powers, covering public security and essential services. Women’s health costs: Doctors’ Trade Union Alliance warns sanitary product prices have surged due to taxes and economic pressures, pushing rural women and schoolgirls toward “menstrual hygiene insecurity.” Justice cooperation: Parliament’s Justice Committee approved the Sri Lanka–Maldives mutual legal assistance regulation for criminal matters, including terrorism-related offences and proceeds of crime. Labour rights alarm: Amnesty reports Malaiyaha Tamil workers in private tea estates face forced-labour indicators, including intimidation, violence, debt bondage and restricted movement. Climate & wildlife: A parliamentary forum plans a study focused on climate change impacts on elephants and leopards. Weather & roads: Meteorology forecasts showers and strong winds in several areas; police issue a Matara–Hakmana road traffic plan for Vesak procession, plus warnings on flood-prone low-lying areas. Diplomacy: Sri Lanka opened its new High Commission in Wellington to serve over 30,000 Sri Lankans and boost trade, education and tourism.

IMF Support Under Pressure: The IMF says Sri Lanka’s recovery is being hit by the Iran war’s oil-price shock and the fallout from Cyclone Ditwah, even as it approved a US$695m tranche after completing reviews. Essential Services: President Anura Kumara Dissanayake has gazetted a wide set of public services as “essential” to keep normal life running after the cyclone. Elections Row: Opposition MP Dayasiri Jayasekara says the government has “no votes, not funds” and is using election delays to avoid Provincial Council polls. Police Crackdown: Police warn that force may be used against those evading checkpoints; investigations continue after a vehicle was shot at in Minuwangoda. Wanted Suspects Repatriated: Authorities say 89 Red Notice suspects are being brought back, including from the UAE. Court Ruling on Guarantors: Sri Lanka’s Supreme Court allows banks to sue guarantors directly when the guarantee waives the right to sue the main debtor first. Digital Push: 400 “Digital Champions” are set to be recruited for PIC-NET to speed up public-sector digitalisation. Vesak & Community: Vesak lantern sales are busy in Colombo, while Eid al-Adha messages urge peace and compassion. Sports (Sri Lanka in focus): West Indies women name Hayley Matthews as captain; Sri Lanka is listed among their T20 World Cup group opponents.

IMF Boost: The IMF has completed Sri Lanka’s fifth and sixth EFF reviews, unlocking an immediate US$695 million (SDR 508m) disbursement, bringing total support to about US$2.4 billion, with the programme focused on fiscal and debt stability, reserves, governance and protecting vulnerable groups. Buddhist Discipline Push: President Anura Kumara Dissanayake says the government will amend the Buddhist Temporalities Ordinance to set up a Buddhist Council to discipline clergy, warning it will act against moves that “destroy Buddhism” even within the Buddhist clergy. Child Abuse Claims: Sri Lanka’s National Child Protection Authority says nearly 300 monks have been accused of abusing children over the past three years, with charges against close to 30, amid heightened scrutiny after a senior monk’s arrest. Public Safety Scam: Police warn of a fake “GovPay” traffic fine scam spreading via SMS and WhatsApp, urging people not to click links and to follow official procedures. Crime at BIA: Customs arrested 14 Chinese nationals at Bandaranaike International Airport for smuggling 138,200 cigarettes worth Rs. 27.3 million. Vesak in Prisons & Colombo: Prison Vesak programmes are set across island facilities, while Colombo Municipal Council says 464 Vesak Dansals are registered in its area, with health guidelines and inspections in place. Weather: Showers and thundershowers are expected to continue, with fairly heavy rain in parts of the south-west and strong winds at times. Sport (Local Interest): Cricket West Indies confirmed its 2026 home season will include Sri Lanka, New Zealand and Pakistan, with Tests against Sri Lanka starting June 25 at Sir Vivian Richards Stadium.

IMF Funding Decision: Sri Lanka’s IMF Fifth and Sixth EFF reviews are set for an Executive Board decision today, with approval expected to unlock about US$700 million. Monetary & Economy: President Anura Kumara Dissanayake pushed back on claims of economic collapse, pointing to stronger Treasury revenue and reserves. Coal Probe: A Special Presidential Commission investigating coal procurement has received 28 complaints, with statement recording due to start next week; COPE says its report will go to Parliament next month. Buddhist Discipline Reform: The President says key sections of the Vihara Dewalagam Act will be amended to strengthen disciplinary oversight via the Dhamma Tribunal, and Sri Lanka will host a World Buddhist Conference in November. Justice Updates: The Colombo High Court Trial-at-Bar rescheduled the Easter negligence case for June 12; a temple monk was sentenced to 30 years for abusing a 14-year-old; and a warrant was issued for ex-MP Jayantha Samaraweera over alleged misuse of Presidential Secretariat vehicles. Public Safety & Crime: Airport customs arrested two foreigners with Rs. 7.53m worth of cigarettes; and the Railway Station Masters’ Union alleged a safety breach after a train collided with a mini excavator during signal maintenance. Sports (Local): Sri Lanka Cricket’s new coach Gary Kirsten told school coaches to focus on player development, not just winning. International Aid: Japan pledged over US$1.34m for demining in Sri Lanka’s north and east.

Fuel Security: CPC says Sri Lanka has enough fuel stocks to last until November (with shipments due May 28 and May 31) and dismisses social-media panic over imminent price hikes. Monsoon Watch: The southwest monsoon is now fully established, with showery conditions across the south-west and possible thundershowers in several districts, plus warnings about strong winds and lightning. Health Alert: Meningitis is spreading in pockets—about 200 cases reported in multiple districts, with health authorities urging vigilance as the rainy season approaches. Vesak Controls: Meat shops, slaughterhouses, race bookies, casinos and clubs will close during Vesak week, with strict bans on slaughter and meat sales on key days. Crime & Corruption: Customs arrested two Chinese passengers at BIA for smuggling 50,200 cigarettes; meanwhile, a Welikada police OIC was arrested for allegedly withholding Chinese passports and demanding bribes. IMF Timing: The IMF Executive Board will decide today on Sri Lanka’s fifth and sixth reviews, potentially unlocking about $700m.

LPL Power Move: Former India allrounder Vijay Shankar has been signed by Kandy Royals as an “overseas star” for LPL 2026, joining marquee names Moeen Ali and Sri Lanka’s Wanindu Hasaranga and Angelo Mathews ahead of the June 1 player draft. Police & Payments: Police warned traffic officers they could face disciplinary action if they don’t help motorists pay on-the-spot traffic fines via GovPay; only about 12% of eligible fines are currently settled this way. Cyber Crime Crackdown: Foreigners have been arrested for cyber crimes, with a debate growing over whether landlords and apartment owners should be held responsible for tenants’ alleged online activity. Drugs at BIA: A 24-year-old man was arrested at Bandaranaike International Airport with 8.365kg of Kush cannabis worth over Rs. 80 million. Health Milestone: Polonnaruwa China–Sri Lanka Friendship Kidney Hospital completed Sri Lanka’s first pediatric kidney transplant outside a children’s hospital. Sports Culture: Sri Lanka Cricket is under pressure as critics say school cricket has become too parent-driven and too crowded, hurting quality.

Central Bank Shock: Sri Lanka’s Central Bank lifted the Overnight Policy Rate by 100 bps to 8.75%, warning inflation pressures are rising as Middle East turmoil keeps oil prices high and the rupee under strain. Tourism Boost: The government launched free 30-day ETA tourist visas for travellers from 40 countries, including Bahrain, cutting entry fees but still requiring online registration. Cyber Crime Probe: Australian Federal Police are assisting Sri Lanka Police after a $2.5m cyber theft from the Finance Ministry tied to debt servicing. Public Safety & Health: Badulla Teaching Hospital merged its SICU and MICU into one unit due to doctor shortages, while Uva Province reported 80 child abuse cases in five months. Crime Update: Police arrested a woman linked to a Borella double murder and seized 25,000 cigarettes at BIA from three Chinese nationals. Weather Watch: The southwest monsoon is gradually establishing, with heavy rain and strong winds expected in several areas.