AGP Executive Report

Sri Lanka–Pakistan Defence Talks: Pakistan’s Defence Secretary Lt Gen (Retd) Muhammad Ali met Sri Lanka’s Deputy Defence Minister Maj Gen Aruna Jayasekara in Colombo, discussing stronger military-to-military ties, maritime domain awareness and disaster management cooperation. Medical Education Boost: Sri Lanka’s new Sabaragamuwa University Faculty Complex was inaugurated with Rs. 2,876 million from the government plus Saudi Fund for Development support, including US$50m, to expand medical training facilities. Dengue Crackdown: A special dengue eradication programme begins tomorrow across 23 high-risk Western Province zones, with 58,810 cases and 39 deaths reported islandwide so far. Security Update: Police seized two locally-manufactured T-56 rifles in Modara, linked to a drug case. Cricket (Sri Lanka): In the second Test in Antigua, Sri Lanka reached 402-5 on Day 2, with Sonal Dinusha and Kusal Mendis steady at lunch as they look to push beyond 450. Cricket (India–England): Vaibhav Sooryavanshi, 15, made a record-breaking India debut in Manchester, becoming the youngest international debutant across formats, but was stumped for 14. Economy (India): India raised onion procurement for its buffer stock by 13% to Rs 2,125/quintal from July 4 to improve farmer returns. Digital Identity Debate: A report highlights how digital identity wallets raise sovereignty and control questions, including Sri Lanka’s push for digital public infrastructure. Sports (India A vs SL A): Sai Sudharsan’s career-best 168 powered India A to 541/8 and a 175-run lead over Sri Lanka A in Galle.

Second Test Cricket: Lahiru Udara struck a maiden Test century (188) and shared a 215-run stand with Kamindu Mendis (84) as Sri Lanka finished day one on 338/5 against West Indies in Antigua, with the second new ball due to shape the next session. Customs Revenue: Sri Lanka Customs collected Rs. 1,373.7 billion in the first half of 2026, beating its target by Rs. 313 billion, though automobile-sector revenue dipped due to import restrictions. Port City Investment: Port City Colombo secured a US$300 million FDI commitment as Sri Lanka pushes to turn the zone into a regional financial hub. Health & Safety: HelpAge plans 3,000 free cataract surgeries before year-end, while police warned they will take action against pedestrians using headphones/earphones on roads. Governance & Rights: The UN human rights office says Sri Lanka’s draft Anti-Terrorism Bill keeps and expands PTA-style shortcomings, urging major redrafting. Sports/Local Life: A Sri Lanka–Thailand Society Poson event donated pregnancy kits to 30 expectant mothers in Mihintale. Court Update: Former Navy Commander Wasantha Karannagoda was granted bail in the Yoshitha Rajapaksa recruitment corruption case.

Second Test Cricket: Sri Lanka face a must-win second Test vs West Indies after a tough injury-hit build-up; Pathum Nissanka is out for wrist surgery in the UK, Lahiru Kumara and Vishwa Fernando are also unavailable, and seamer Isitha Wijesundara makes his Test debut as Lahiru Udara, Prabath Jayasuriya and Isitha Wijesundara come in. Match Update: Sri Lanka won the toss and batted, with Lahiru Udara striking an unbeaten 60 to guide them to 99-2 at lunch on Day 1. Rail Reconstruction: Reconstruction of the damaged Kandy–Colombo railway line accelerated as two carriage units with construction materials and communications equipment were transported by road from Kandy to Peradeniya, using a heavy-duty locally made truck. Anti-Corruption Court: CIABOC told court that former minister Wijeyadasa Rajapakshe was in Dubai during the alleged bribe transaction period. Police & Rights: The Sri Lanka Spa Association has complained to the IGP and HRCSL, alleging police harassment and retaliatory actions against licensed spa businesses. Digital Governance: GovTech Sri Lanka appointed Shevan Goonetilleke as CEO effective 19 August 2026. Finance Watch: CBSL cancelled Nation Lanka Finance’s licence from July 4 and will wind up the firm, with deposit compensation to insured depositors. Business & Tech: ASUS opened its third exclusive store in Galle, in Galle City Center.

Anti-Corruption: CIABOC has arrested former Navy Commander Admiral of the Fleet Wasantha Karannagoda over allegations tied to the recruitment of Yoshitha Rajapaksa to the Sri Lanka Navy, including claims that recruitment qualifications were altered and public funds used for training in the UK. Investment & Trade: Sri Lanka is still undecided on a proposed US$3.7bn Sinopec investment in a Hambantota oil refinery, with talks stuck on terms and conditions despite the MoU being signed in Jan 2025. Health & Safety: Health data says 70% of accident outpatient cases involve animal bites, while Police warn pedestrians using headphones on roads face future legal action. Public Services Digital Push: Colombo District Divisional Secretariats now accept card payments for services, cutting cash reliance and speeding transactions. Food Policy: Sri Lanka tightened sugar colour-labelling for liquid foods, lowering the red threshold to over 8g per 100ml and updating amber/green ranges. Economy & Markets: World Bank reclassified Sri Lanka as upper-middle income, alongside a US$150m package for reforms; meanwhile bond yields eased as big-ticket buyers stayed active. Tourism & Wellness: Sri Lanka was named the world’s top trending wellness destination for 2026 and also ranked best island destination by Big 7 Travel. Sports: West Indies’ Kemar Roach took his 300th Test wicket as they beat Sri Lanka in Antigua, setting up the next Test.

India–Sri Lanka Tests: Sri Lanka Cricket confirmed India’s two-match Test series in August (Aug 15–27), with the opener at Galle and the second at SSC Colombo, both starting 10am local time, as the WTC race heats up. Energy Transition: Ceylon Chamber of Commerce urged Sri Lanka to set clear technical and safety frameworks to boost investor confidence as solar and battery storage scale up. Renewables & Storage: A 250MW battery storage push is highlighted alongside the wider push for reliable power for digital growth. Economic Census: The non-agricultural Economic Census begins online today, running until July 15, with registration mandatory for firms employing over 50 workers. Market Watch: Sri Lankan shares edged down slightly, with losses outweighing gains in healthcare and communications. Vehicle Imports: Importers urged policy changes to ease financing and import procedures, saying current rules are squeezing buyers. Railway Relief Move: A locomotive will be transported between Kandy and Peradeniya without using tracks due to cyclone damage and ongoing restoration. Sports (A-team): Sri Lanka A set 288/5 on Day 1 of the second unofficial Test vs India A in Galle, led by Sahan Arachchige’s unbeaten 83.

World Bank Income Update: Sri Lanka has regained upper-middle-income status after the economy expanded by 5% in 2025, with growth supported by tourism and financial services, though the country only narrowly crossed the threshold. Energy & Power Reliability: A 250MW solar battery storage system is set to be installed at 19 substations to cut diesel and fuel costs for power generation. Fuel Price Watch: July brings new fuel price changes and revised submissions deadlines, with impacts varying for motorists, businesses and airlines. Electricity Tariff Input: PUCSL has opened public submissions on the pricing and costing of fuel used for electricity generation, due by July 14. Healthcare Cost Pressure: Doctors’ union claims patients are paying up to triple for essential medicines due to shortages, while a public hearing is set to scrutinize fuel costs that could also affect tariffs. Public Safety & Crime: Two suspects were arrested over an assault on a Sri Lanka Air Force officer in Wadduwa. Governance & Integrity: Korea’s anti-corruption model is being showcased as Sri Lanka adapts integrity assessment tools, including risk assessments and whistleblower protections. Anti-Scam Action: CBSL has published a list of 25 institutions linked to prohibited pyramid schemes. Health Alert: A three-day islandwide dengue eradication programme begins today as cases pass 55,000. Disaster Response: Sri Lanka ends the state of emergency imposed after Cyclone Ditwah, citing no extension needed. Sports (Local Interest): New Zealand’s Lincoln University netball team beat Sri Lanka 62-54 in the opening match of a six-game series in Galle.

State of Emergency Lifted: Sri Lanka has ended its nationwide state of emergency eight months after Cyclone Ditwah, with emergency powers terminated after months of security deployment for relief and protection. IMF Reform Push: The IMF says Sri Lanka must keep reform momentum to protect fiscal and external stability, urging “bold reforms” to boost investment, jobs, and long-term growth. Navy Leadership Change: Rear Admiral Damian Fernando was promoted to Vice Admiral and appointed the 27th Navy Commander, with a courtesy call to the Defence Secretary marking the start of his tenure. Foreign Policy Continuity: India’s Foreign Secretary Vikram Misri received a one-year extension to July 14, 2027, ahead of the BRICS summit in New Delhi. Public Safety Warning: The Central Bank warned the public about prohibited pyramid schemes, naming multiple companies and apps flagged under the Banking Act. Transport Disruption: Two Kelani Valley train services were cancelled due to lack of required power equipment, adding to commuter frustration. Aviation Upgrade: Bandaranaike International Airport’s first passenger terminal is set for modernization with about Rs. 15 billion planned over two years. Digital & Business: SLT-Mobitel partnered with Versa to bring next-generation SASE security to Sri Lankan enterprises, and Sri Lanka also launched a program to place rehabilitated drug youth into private-sector jobs.

IMF Reform Watch: The IMF says Sri Lanka’s economy remains vulnerable even as the Middle East shock eases, urging the government to stay on its reform path to protect fiscal and external stability. Dengue Alert: Sri Lanka begins a three-day dengue prevention drive after cases climbed to 55,406, with 32 deaths reported so far this year. Fuel Costs: Domestic aviation turbine fuel prices fall by Rs 5 per litre from July 1 as global oil and jet fuel rates soften. Airport Deal Push: Mattala Rajapaksa International Airport is drawing renewed interest, with 35–40 parties reportedly engaging in preliminary talks for a joint venture. Construction Momentum: Construction activity expands in May, with the PMI–Construction rising to 59.1, though skilled labour shortages and material price pressures persist. Port of Colombo: Colombo records strong throughput—3.7 million TEUs in the first five months of 2026, up 13.5%, led by transshipment growth. Tax and Revenue: Inland Revenue reports Rs. 1,255 billion collected so far in 2026, while VAT/SSCL turnover threshold cuts are delayed. Trade Facilitation: Sri Lanka hits 95.8% implementation of the WTO Trade Facilitation Agreement, ahead of the global average. Customs Crackdown: Four Chinese nationals are arrested at BIA over alleged cigarette smuggling worth about Rs. 10.8 million.

IMF Reform Watch: The IMF says Sri Lanka’s economy is still vulnerable to external shocks even as the Middle East crisis eases, urging the government to stay on track with reforms, rebuild reserves and protect the poorest households, after inflation rose and policy tightening was introduced. Navy Leadership: President Anura Kumara Dissanayake promoted Rear Admiral Damian Fernando to Vice Admiral and appointed him the 27th Navy Commander from July 1. Climate & Environment: Sri Lanka reaffirmed climate commitments, targeting 70% renewable energy by 2030, and amended the National Environmental Act to strengthen protection, including pollution controls and Extended Producer Responsibility. Road Safety Crackdown: Police warned reckless drivers will face criminal prosecution and court action, with licence suspensions for repeat offenders. Tourism & Hospitality: Cinnamon Hotels & Resorts’ Sri Lanka portfolio won multiple Tripadvisor Travelers’ Choice Awards, while Cinnamon DISCOVERY Island Rewards expanded across resorts. Business & Payments: KOKO and Aitken Spence Hotels integrated buy-now-pay-later into official booking, and Sri Lanka launched digital vehicle insurance verification via *1338# to replace physical certificates. Capital Markets: CSE and SEC will hold a free investor forum on 9 July at the CSE trading floor.

Fuel Watch: Sri Lanka cut retail fuel prices again, with CPC lowering Auto Diesel by Rs.25 to Rs.382 and Octane 92 by Rs.20 to Rs.414 from June 30, after international oil prices eased following Middle East ceasefire talks—sparking fresh questions about earlier claims that high-cost term purchases and inventories left little room to reduce prices. Public Finance: Government revenue is projected to fall to 15.8% of GDP in 2026 (from 16.7% in 2025), as one-off tax gains from renewed vehicle imports fade, even as officials say the revenue base is stronger than during the 2022 crisis. Ports & Investment: Sri Lanka is pitching U.S. investment for Colombo Port expansion, including a logistics park and West Container Terminal 2, as Deputy Minister Janitha Kodituwakku seeks American business support. Digital Agriculture: A unified Plantation Sector Decision Support System was handed over as a state-owned digital public asset, consolidating data across key plantation bodies to replace fragmented networks. Finance Sector: EMGA secured a US$15m senior debt facility for Citizens Development Business Finance (CDB) with Swedfund backing, aimed at SME lending and green initiatives. Governance & Courts: BASL will hold public consultation on a proposal to raise judges’ retirement age, while the Colombo High Court ordered the CBSL bond scam trial to be called again on 22 July due to a trial-at-bar bench issue. Health & Weather: Meteorology says no disaster is expected despite enhanced monsoon rains, though several river levels have risen.

UN Rights Watch: The UN Subcommittee on Prevention of Torture says Sri Lanka still faces serious risks of torture and ill-treatment, with prolonged pre-trial detention, overcrowding and weak safeguards—many recommendations from 2019 still not fully implemented. Fuel Costs: Sri Lanka revised fuel prices effective June 30, with petrol 92 down by Rs. 20 to Rs. 414 and auto diesel down by Rs. 25 to Rs. 382; other items unchanged. Dengue Surge: Dengue cases have crossed 53,000 this year, with June alone seeing a sharp jump to 19,318 cases and 31 deaths so far. City Clean-up: Colombo Mayor says vacant lands are turning into illegal dumping sites and waste segregation is a key problem, as multiple agencies coordinate to fix waste disposal disruptions. Poson Health Checks: Public Health Inspectors report 18,129 Dansals organised for Poson and warn of shutdowns for unsafe setups. Cricket (WI vs SL): West Indies crushed Sri Lanka in the 1st Test in Antigua; Kemar Roach joined the 300-wicket club. Sports (Women’s T20): West Indies reached the Women’s T20 World Cup semi-finals despite losing to Ireland, edging Sri Lanka on net run rate.

Poson Full Moon: Sri Lanka marked Poson Poya Day with President Anura Kumara Dissanayake and PM Harini Amarasuriya urging a modern state built on Buddhist ethics, discipline and compassion, as devotees gathered across the island for dansals and temple observances. Poson Security & Transport: Ahead of the National Poson Festival in Anuradhapura, police say 3,500 officers are on duty for safety and traffic control, while the Life Saving service has deployed 500+ lifeguards to key sites; liquor outlets will close nationwide for the full moon day, with Mihintale and parts of Nuwara Eliya and Mahawilachchiya kept closed until July 2. Dengue Watch: Health coverage highlights how dengue can be hard to spot at home early on, urging testing if fever lasts beyond two days and stressing weekly removal of standing water. Cricket (WI vs SL): Kemar Roach took his 300th Test wicket as West Indies crushed Sri Lanka by an innings and 217 runs in the first Test, with Roach finishing 4/51. Colombo Port City: Cey Laya provided a development update on its planned mixed-use project inside Colombo Port City Special Economic Zone, including residences, hotel, offices and a waterfront viewing deck. Tech & Telecom: Dialog Axiata launched Motorola G35 5G and G57 5G in Sri Lanka on its 5G Ultra network. Court Case: A suspect accused of illegally transferring nearly Rs. 190 billion overseas under the guise of imports was arrested by FCID and remanded until July 9.

Handloom Push: Sri Lanka’s Ministry of Industries and the Export Development Board launched an “Art of Weaving” fashion show and a Handloom Weaving Design Handbook to boost the traditional handloom sector and widen local and international markets. Entrepreneur Drive: A programme at the Sri Lanka Foundation Institute briefed District Secretaries and Productivity Development Officers on the National Programme to develop 1,000 young entrepreneurs islandwide. University System Talks: Education Minister and Prime Minister Dr. Harini Amarasuriya will chair a July 2 discussion at the University Grants Commission on issues and future plans for Sri Lanka’s university system. Healthcare Upgrade: South Colombo Teaching Hospital, Kalubowila, is set to open new cardiac care facilities—including a cath lab—for public use on June 30, with more cath labs planned across the government hospital network. Dengue Debate: Health experts rejected claims that Sri Lanka’s dengue surge is due to a new virus strain, saying no lab has identified one and pointing instead to the dominance of dengue serotype 2. Fuel Price Controversy: URF leader Patali Champika Ranawaka challenged fuel pricing, arguing import cost estimates don’t match pump prices and alleging irregular premiums in procurement. Airport Drug Bust: Five Sri Lankan passengers were arrested at BIA over an alleged hashish and kush haul worth about Rs. 72.2 million, concealed in jars and carried in duty-free branded bags.

Sri Lanka–India Cricket: West Indies piled on against Sri Lanka in Antigua, with Amir Jangoo’s 233 and Roston Chase’s 194 powering a record-breaking 401-run sixth-wicket stand as WI declared on 626/9, taking a 318-run first-innings lead. India A vs Sri Lanka A: In Galle, Auqib Nabi’s 4-58 helped India A take control, stretching the overall lead to 170 runs heading into Day 4 after SL A were bowled out for 330. Women’s T20 World Cup: England stayed unbeaten, beating New Zealand by nine wickets as Danni Wyatt-Hodge’s 89* helped knock NZ out of the semi-final race. Dengue Update: Sri Lanka’s dengue situation remains severe, with 51,049 cases reported so far and 31 deaths, as a new circular sets out village-level clean-up and mosquito control. Poson Safety: Over 500 lifeguards have been deployed across more than 50 locations for Poson Poya, with Navy, Army and Police support. Trade & Economy: Sri Lanka’s exports hit their strongest first five months on record, topping $7.39b, with apparel leading and ICT/BPM and logistics services growing. Colombo-France Diplomacy: President Anura Kumara Dissanayake is set to visit France on 16 July to strengthen ties and attract investment. India–Sri Lanka Ferry Boost: Tamil Nadu is moving to monetise the Nagapattinam–Kankesanthurai ferry terminal with tenders for duty-free retail and forex concessions as passenger traffic rises.

Women’s T20 World Cup: Sri Lanka’s semi-final hopes ended after Ireland stunned West Indies, with Orla Prendergast’s 63 powering a six-wicket chase; Sri Lanka finished their best-ever group stage but were knocked out on net run rate. Digital Judiciary: Sri Lanka’s Supreme Court held a fully paperless Attorneys-at-Law oath ceremony, enrolling 735 lawyers through digital signatures with LankaSign support. Road Safety: 35 people remain hospitalised after an SLTB bus crash near Diyatalawa railway crossing; police say brake failure preceded the plunge. Haiti Deployment: Sri Lanka will send 1,132 personnel to Haiti in August, including 900 soldiers and 43 female deminers, as part of gang suppression efforts. Trade & Food Imports: The Trade Ministry moved to speed up imported food clearance after complaints about inspection delays, including inconsistent lab reports. Cricket (Sri Lanka in focus): West Indies edged ahead in the first Test as Amir Jangoo made a maiden century; Sri Lanka also faced a bizarre run-out appeal issue involving John Campbell. Pharma Investment: Zydus and Sunshine announced a $20m pharma manufacturing JV in Horana to cut import dependence.

Women’s Cricket: Chamari Athapaththu’s blistering start powered Sri Lanka to a 3-wicket win over Scotland, keeping semi-final hopes alive in the Women’s T20 World Cup, with the chase sealed in a tense finish. Men’s Cricket (Test): West Indies closed day two on 271/5 in reply to Sri Lanka’s 308, with Amir Jangoo (78) and Roston Chase (42) steering the hosts closer. Health: Sri Lanka’s dengue outbreak has hit epidemic levels, with cases crossing 50,000 as authorities step up hotspot clean-ups and public awareness. Economy & Energy: The ADB approved a $57.4m package for rooftop solar aggregation and virtual net metering to widen access to clean power. Finance Oversight: Parliament’s COPF will question Central Bank officials after President Dissanayake’s claim of nearly US$1bn lost via banking-system fraud. Business & Pharma: Zydus Lifesciences and Sunshine Healthcare will invest over $20m in a pharma plant in Horana to boost local medicine production. Governance: Cabinet approved removing indelible ink marking for elections, with election monitors saying it could save public funds. Security: Public Security Minister said 232 Sri Lankan Interpol Red Notice suspects are hiding abroad, with repatriations underway.