AGP Executive Report

Tragedy in Sri Lanka: A fire at an illegally run home for older people in Anguruwatota killed 12 residents and left eight others hospitalised; 51 were rescued and the director was arrested as investigations continue. IMF Social Safety Net: The IMF says Sri Lanka’s reform programme includes a mandatory floor for social spending and is pushing better targeting through Aswesuma recertification; it also links PAYE to a medium-term revenue plan. World Environment Day: Sri Lanka marked World Environment Day with action-focused messaging on climate change, including plans to declare five forests protected reserves. Sports Spotlight: Sri Lankan javelin star Rumesh Tharanga Pathirage stunned the Rome Diamond League with a meet record 92.62m, a new national benchmark and the world’s best mark this year. Local Labour Unrest: Apparel exporter ELPHIS LANKA locked out over 500 workers after a go-slow protest demanding job security. Regional/Global Watch: US President Trump said a trade deal with India is “soon,” while the US announced new forced-labour-related tariffs affecting Sri Lanka among others.

Elderly Care Tragedy: A fire at the Maupiya Sewana Elders Home in Horana killed at least 12 people, with police arresting the facility manager and ordering him held until June 11; investigators say the home was not authorised and failed regulatory standards, and forensic teams later found additional remains as survivors were moved to a nearby school. Child Nutrition Alarm: Health officials warned that one in five Sri Lankan schoolchildren is affected by malnutrition, citing a “triple burden” of undernutrition, overnutrition and micronutrient deficiencies. Rupee Slides: The rupee weakened further against the US dollar, with the Central Bank reporting the selling rate rising to about Rs. 340. Judicial Independence Pushback: The Colombo High Court Lawyers’ Association urged President Anura Kumara Dissanayake to drop a reported plan to extend judges’ retirement age, warning it could undermine independence and public confidence. Maritime Security: The Sri Lanka Navy arrested 44 people and seized vessels, explosives and illegal fishing gear in raids targeting unlawful fishing across northern and eastern waters. Disaster Preparedness: Sri Lanka launched its National Anticipatory Action Roadmap 2026–2030 to strengthen early warning and climate resilience.

Economy & FX Pressure: SJB MP Harsha de Silva warns Sri Lanka’s dollar demand will rise as vehicle letters of credit hit the market, saying weak market confidence is driving importers to seek dollars early while exporters hold back; he also flags further fuel price hikes if subsidies are cut and warns removing export cess could hurt local producers. Public Finance Accountability: The AG’s Department told Parliament that the “Rebuilding Sri Lanka” fund set up after the Ditawah devastation has not been properly established or utilised, with donations sitting in a Treasury special account—raising audit and governance questions. Health Workforce: Health Ministry issues a gazette call for 3,000 additional student nurses, aiming to reach 13,600 new nurses by 2029. Health Capacity Gap: Apeksha Hospital says Sri Lanka has only four leukemia/BMT specialists for 15,000–18,000 annual cancer cases, urging urgent specialist expansion. Energy Transition: HayWind’s Mannar wind farm hit a milestone as the first 25MW turbines arrived at Trincomalee Port, with transport to Mannar expected over the next three months. Trade & Industry: EDB and NMRA launch a push to lift pharma exports, targeting USD 100m, while a separate report notes textile/garment exports remain a key industrial export driver. Sports (ODI): Sri Lanka took a 1-0 lead over West Indies, winning the first ODI by 41 runs at Sabina Park with Nissanka (79) and Mendis (72) leading 303/7. Regional Security: Sri Lanka confirms three workers were injured in the Kuwait airport attack and are hospitalised.

Education Policy: Sri Lanka’s Examinations Department says NIC numbers are now mandatory for 2026 G.C.E. (O/L) exam applications, with principals told to ensure candidates prepare their NICs before applications open. Public Safety: A fire at an elderly care facility in Horana left 11 people missing and about 50 injured, after a gas cylinder explosion helped spread flames; around 45 residents were evacuated. Weather & Water Security: Meteorology warns El Nino could cut rainfall and trigger drought risk in July and August, with impacts potentially lasting into early 2027. Justice & Security: A Colombo court ordered the CID to urgently respond over detention conditions of former SIS chief Suresh Sallay, after lawyers raised serious mental health and suicide-risk concerns. Economy & Markets: Sri Lankan shares fell for a third straight day, while the rupee weakened further against the US dollar. International Links: Japan and Sri Lanka agreed to expand technical employment pathways for Sri Lankan fisheries graduates and strengthen fisheries modernization. Cricket: West Indies released its 2026 home schedule featuring ODIs, T20Is and Tests vs Sri Lanka, plus a busy stretch against New Zealand and Pakistan.

Climate Watch: Sri Lanka’s Meteorology Department warns July–August could turn hotter-than-normal with El Niño-linked rainfall drops, raising risks for water, farming, power generation and public health. Judiciary Independence: The Bar Association of Sri Lanka urges President Anura Kumara Dissanayake not to raise retirement age for Supreme Court and Court of Appeal judges, warning it could erode public confidence. Economy & Cost of Living: The official poverty line hit Rs. 17,117 per person per month in April 2026, up from Rs. 16,690 in March, as essentials keep getting pricier. Finance & Fraud: CBSL launched the month-long “Be Scam Proof” campaign and warned online financial fraud is damaging household wealth and trust in regulated institutions; SLCERT also reported 360+ online fraud cases in the past month. Trade & Connectivity: Sri Lanka secured Australia and New Zealand support to join RCEP, and says direct flights are expected to start in August. Digital Payments: CBSL will run a digital payment promotion in Trincomalee on June 5–6. Tourism: Sri Lanka logged 145,745 tourist arrivals in May 2026, topping one million visitors so far this year. Sports (Cricket): West Indies captain Shai Hope expects strong top-order batting as the ODI series vs Sri Lanka begins in Jamaica.

Vesak in the UK: Hundreds of Sri Lankans gathered in Croxteth, Liverpool for three days of Vesak celebrations at Sri Sambuddha Viharaya, with prayers, lanterns and a huge Buddha lit using 40,000 bulbs. Lanka Premier League buzz: Sri Lanka Cricket’s 2026-27 season contracts are out (46 players), while the LPL draft sets the stage for Season 6 from July 17 to Aug 8—Avishka Fernando goes No.1 to Jaffna Kings and Vijay Shankar joins Kandy Royals. Cricket contracts: SLC confirmed national player contracts for 2026-27, including seven first-timers like Kamil Mishara and Tharindu Rathnayake. Cybersecurity push: Sri Lanka plans a unified National Cybersecurity Framework to tackle identity fraud as it rolls out SL-UDI and digital public services. Health update: Hepatitis B screening for pregnant mothers has been launched across all maternity clinics to strengthen mother-to-child prevention. Economy & trade: Sri Lanka eyes continued EU GSP+ access, while the IMF warns the country needs deep structural reforms to escape the middle-income trap. Public safety: Police and authorities also flagged fuel-price fallout and ongoing efforts against organized drug networks.

IMF Cash Boost: Sri Lanka’s Fifth and Sixth IMF reviews are completed, unlocking a US$ 695 million tranche and bringing total IMF support since the 2022 debt default to US$ 2.4 billion, though the economy is still “stable, but not out of danger.” Overseas Jobs Scrutiny: A high-profile arrest tied to foreign employment recruitment is being used to spotlight regulatory gaps and calls for stronger SLBFE monitoring and enforcement beyond blaming individuals. Sports Governance Shake-up: The Sports Ministry has temporarily suspended registration of handball, carrom and hockey bodies, placing control under a Competent Authority while reforms and elections are prepared. Puttalam Sky Panic: A rare flying object sparked panic in Puttalam; authorities are yet to explain what it was, with experts suggesting possibilities like a meteorite. Capital Markets & Finance: CSE renews CFA Society Sri Lanka Platinum sponsorship for a 9th straight year, while LOLC Finance reports strong FY26 results and the secondary bond market starts bearish with yields edging higher. Cricket & LPL: LPL draft picks include Mehidy Hasan Miraz and Hasan Mahmud; impact subs and an Under-23 rule are set for the 2026 season. Women’s Leadership: Grace Asirwatham is appointed Chairperson of the National Commission on Women. Cybercrime Warning: A national security failure is flagged as arrests of foreign-linked cybercrime suspects continue, with calls to focus on how networks operate, not just landlords.

IMF Energy Reform Check: The IMF confirmed Sri Lanka has met cost-recovery pricing for both electricity and fuel, clearing a key reform target for its Extended Fund Facility review. Road Safety Shock: During Vesak, Sri Lanka recorded 19 road accidents and 24 deaths over two days, with authorities warning against reckless and drunk driving. Rail Disruption: A train derailed near Chilaw Railway Station, causing delays on the Puttalam line while crews worked to restore service. Environment & Wildlife: Sri Lanka will gazette five forest areas in Anuradhapura as protected reserves on June 5, including steps to open elephant corridors to ease human-elephant conflict. Bond Scam Legal Twist: The Supreme Court set aside a High Court ruling and cleared the way for charges under the Public Property Act in the 2016 Central Bank bond issuance case, ordering the matter to be expedited. Women’s Rights: Retired Ambassador Grace Asirwatham was appointed Chairperson of the National Commission on Women. Transport Upgrade: The luxury bus service between BIA and Makumbura resumed, with a Rs. 410 fare and about 50 minutes travel time. Cricket: ICC confirmed Pakistan as host of the Women’s T20 World Cup 2028, with India’s matches at a neutral venue; in Sri Lanka cricket, Pathum Nissanka skipped LPL 2026 to focus on national duty and injury recovery.

IMF & Trade Access: Sri Lanka is pushing to keep GSP+ access, with the EDB saying the country will apply for the next phase, while the EU urges faster reforms and better use of market benefits as export gains fall short of potential. Fuel & Cost of Living: The Ceylon Chamber backs IMF review approval and reform momentum, as external pressures continue to bite. Health Alert: Doctors warn of rising dengue and chikungunya after monsoon rains, urging people with fever for over two days to seek blood tests and avoid risky early painkillers. Road Safety Tragedy: A drunk driver is set to be produced in court after a Meegoda dansala crash killed six and injured 13; police say the driver fled but was arrested. Healthcare Upgrade: The renovated Institute of Neurology at NHSL opens today after a Rs. 99 million refurbishment to expand neurological care. Diplomacy & Community: FM Vijitha Herath meets Sri Lankans in Melbourne, hearing their concerns and outlining government plans. Sports: Sri Lanka Rugby appoints New Zealand coach Peter Woods for the sevens season and Asian Games build-up; Sri Lanka also wrapped up Asian U-20 Athletics with eight medals.

IMF-linked fuel adjustment: Sri Lanka raised retail fuel prices by up to six percent, with petrol at 434 rupees and diesel at 407, as the government moves to recover energy costs and phase out subsidies after the IMF’s $695m instalment. Health upgrade: Five new mammography machines worth Rs. 765 million are being installed at NHSL, Kandy, Karapitiya, Anuradhapura and Apeksha Hospital to boost early breast cancer detection, with two reconditioned units also sent to Trincomalee and Nuwara Eliya. Neurology services: The renovated Institute of Neurology at NHSL opens June 1 after a Rs. 99 million upgrade. Foreign investment push: The BOI launched “Ready to Invest,” a digital platform listing 30 project-ready opportunities across key sectors for international investors. Maritime operations: Trincomalee Port began simultaneous handling of three vessels, including wind turbine towers, steel rods for re-export, and 55,000 tonnes of coal. Safety and justice: A Sri Lankan Tamil refugee girl, 18, was killed in Chennai after a gang allegedly rammed an SUV into her two-wheeler on the Koyambedu flyover; police arrested six. Sports—local link: Ruturaj Gaikwad replaced injured Riyan Parag in India A’s Sri Lanka tri-series squad starting June 9. Vesak on Blue Moon: Sri Lanka marked Vesak Poya on a rare Blue Moon day with islandwide temple and street celebrations.

Vesak & public life: Colombo and other towns saw Vesak Dansals and Dansal queues draw big crowds, with special transport services and security plans in place for the holiday period. Monastic discipline crackdown: Sri Lanka’s Buddhist hierarchy suspended senior monk Pallegama Hemarathana over alleged child sexual abuse, while the Malwathu Chapter appointed an acting Atamasthanadhipathi pending court action; the government is also moving to amend Sangha disciplinary laws to strengthen accountability across ranks. Justice system strain: The Ministry of Justice says 2,647 judicial vacancies remain unfilled since recruitment was halted in 2018, raising fears of delays and public confidence. Energy push: Six battery energy storage systems arrived at the Port of Colombo as part of a wider plan to add grid-scale storage to support peak demand and solar power. Regional security drill: Sri Lanka took part in India-led PRAGATI 2026 in Meghalaya, a multi-nation exercise focused on counter-terrorism and interoperability. Sports (Sri Lanka-linked): West Indies skipper Shai Hope said the team is giving full effort ahead of the ODI series against Sri Lanka.

Vesak Full Moon Poya: Sri Lanka marked the 2,570th Vesak festival nationwide, with President Anura Kumara Dissanayake urging people to build lasting peace through inner spiritual calm, compassion and non-violence. Vesak Transport: Special rail and bus services were deployed for devotees traveling to Vesak zones, including routes between Colombo Fort and Anuradhapura and islandwide SLTB arrangements. Army Leadership: Major General Nilantha Premaratne was appointed the 69th Chief of Staff of the Sri Lanka Army, effective May 29. Health Hiring: The government said it will recruit 13,600 nurses by 2029, with about half expected to be filled this year, as 515 BSc nursing graduates received appointments. Economy & IMF: The IMF endorsed Sri Lanka’s monetary stance as “broadly appropriate” and approved reviews unlocking nearly $700m, while analysts warn the recovery remains fragile. Public Safety Scam Alert: Police warned the public about fake social media messages offering traffic fine payments. Sports (Women’s T20 WC): Sri Lanka named a 15-member squad for the Women’s T20 World Cup in England, with Chamari Athapaththu as captain. Environment: Flamingo deaths in Mannar linked to power line collisions raised fresh concerns about wildlife safety around infrastructure.

Indian Ocean Security: Sri Lanka urged countries to keep the Indian Ocean a zone of peace and cooperation, calling for freedom of navigation and stronger intelligence sharing at a Moscow security forum. Currency Watch: The rupee slid sharply against the US dollar, with both buying and selling rates rising by more than Rs. 4, while it also weakened versus several major currencies. IMF Reform Push: The Ceylon Chamber of Commerce backed continued engagement with the IMF programme, saying it is key for stability, investor confidence and external resilience after Sri Lanka secured about $695m. Women’s Cricket: Sri Lanka named a 15-member squad for the ICC Women’s T20 World Cup 2026, led by Chamari Athapaththu, with the team opening against England on June 12. Infrastructure: Construction officially begins on the Rambukkana–Galagedara section of the Central Expressway, an 18.7 km stretch under the project’s next phase. Transport Safety: An SLTB bus crash in Monaragala left at least 26 passengers injured. Fuel Pricing Outlook: CPC said no fuel price drops are expected in the upcoming revision, citing higher international rates.

IMF & Sri Lanka’s recovery: The IMF warns growth is losing momentum as the Middle East war, higher oil prices and cyclone disruptions reignite inflation risks, projecting 3% growth for 2026 and stressing the need for unfinished reforms. Rupee clarity: The IMF’s Sri Lanka mission chief says the rupee’s stabilization is due to cautious monetary policy, not “money printing”, and describes the exchange rate as a shock absorber. Vesak logistics: Registration for Vesak dansal ends today; essential services have been extended; and special transport (buses and trains) has started for people travelling home for the festival. Ports & investment: Sri Lanka Ports Authority outlines a US$2bn maritime and logistics investment pipeline to shift from transshipment to full logistics hub. Fuel supply update: CPC says an initial stock of US WTI crude has arrived, easing supply while tariff talks continue. Governance reform: NMSJ backs a bill to revoke seats of MPs who cross over against the mandate, calling for wider application. Security & climate: Court of Appeal issues notices in a disaster preparedness writ petition, while public concern grows over extreme weather impacts. Vesak tech push: Dialog partners as official digital partner for National Vesak Zone 2026, launching an AI Vesak greeting card competition. Sports (Sri Lanka-linked): Vaibhav Sooryavanshi’s 97 off 29 balls in the IPL eliminator grabs headlines, with West Indies and cricket figures praising the teen.

IMF & Economy: The IMF warned Sri Lanka’s recovery is being squeezed by the Iran war’s oil shock and the fallout from Cyclone Ditwah, even as it released a US$695m tranche after completing programme reviews. Central Bank & Finance: Fitch said tighter CBSL rules on vehicle and gold-backed lending should improve finance companies’ risk buffers, while the IMF also backed the central bank’s monetary stance as broadly appropriate for keeping growth near 3%. Public Safety: Police said they are repatriating 89 Red Notice suspects hiding abroad, including arrests and returns from the UAE. Crime & Enforcement: Police opened fire after a vehicle ignored checkpoints in Minuwangoda; two suspects were later arrested and investigations are ongoing. Cyber Alert: SLCERT warned of fake traffic fine scams using SMS/WhatsApp links that mimic police and GovPay to steal card and OTP details. Governance & Services: President Dissanayake declared key services essential under the Essential Public Services Act after cyclone disruption, and the government launched PIC-NET to recruit 400 “Digital Champions” for public-sector digitalisation. Religion & Society: The President said laws will be amended to restore discipline in the Buddhist monastic community ahead of Vesak. Sports: West Indies confirmed a 2026 home season featuring Sri Lanka, New Zealand and Pakistan, with Tests and ODIs across Jamaica, Antigua and Tobago, and elsewhere.

IMF Boost: The IMF Executive Board has completed Sri Lanka’s Fifth and Sixth EFF reviews, unlocking an immediate SDR 508 million (about US$695m) tranche, bringing total disbursements to SDR 1.778 billion (around US$2.4b), with the programme focused on fiscal and debt stability, reserves, governance and protecting vulnerable groups. Monetary Tightening Watch: Sri Lanka’s surprise 100-bp rate hike to 8.75% is raising fears of over-tightening even as policymakers try to protect fragile IMF-backed recovery amid energy and FX pressures. Eid Messages: President Anura Kumara Dissanayake and PM Harini Amarasuriya both used Eid al-Adha to urge unity, peace, brotherhood and compassion. Labour Rights: A new Amnesty report says Malaiyaha Tamil workers in private tea estates face intimidation, violence, debt bondage and restrictions on movement, with the state failing to ensure rights and access to justice. Environment & Heritage: “Aliya Wetunu Wewa” forest is set to be declared a reserve under the Wanaspathi programme, while Colombo’s old trees spark safety and conservation concerns. Local Economy & Tech: ComBank expands digital account opening via enhanced self-onboarding, and JKH reports FY26 EBITDA crossing Rs. 80b with strong growth. Diplomacy & Culture: Sri Lanka’s envoy to the Vatican presents credentials to Pope Leo XIV, and a new book explores Sri Lanka’s foreign policymaking toward China.