<ul><li>Says economic hardship drives students into child labour, particularly in plantations, fishing, and tourism</li></ul>The Ministry of Labour has identified cases where children under the age of 18 are engaging in illegal child labour while wearing school uniforms, allegedly to avoid detection, The Daily Morning learns.Speaking to The Daily Morning, Ministry Secretary S.M. Piyatissa said that economic hardship has forced children from certain families to engage in economic activities. “We have identified instances where children, instead of attending school, engage in various economic activities while wearing school uniforms, giving the impression they are returning from school,” he said.He added there are also instances where students perform as beggars. "We have imposed strict laws regarding this issue and are coordinating with the Women and Child Affairs Ministry to address it," he said.Piyatissa noted the highest incidence of child labour is reported in the plantation sector. "This trend is also seen in the fishing and tourism industries. We do not label a child in a fisherman’s family helping out their parents as child labour. We have criteria. If a child is engaged in such work, it should not take up a considerable portion of the day, and it should not affect their studies or physical and mental health," he added.

Child Labour Concerns: Labour Ministry flags children working in school uniforms

<ul><li>SJB says flaws in tender procedure led to substandard coal imports</li></ul>The main parliamentary opposition SJB stated they are studying what action could be taken against the Government over the alleged importation of substandard coal for electricity generation.Speaking to The Daily Morning, SJB National Organiser Tissa Attanayake said&nbsp; the opposition is holding discussions on possible action against the Government. He said that despite the Government maintaining there were no errors in the tender process, the opposition has identified three major shortcomings. “First, the tender was not called during the usual period that had been followed for years. Second, the eligibility conditions for companies to qualify were relaxed by the current administration, allowing inexperienced firms to submit bids. Third, several Indian companies that were new to the sector and lacked experience were allowed to participate in the tender process.” "The Government continues to deny any failure from their end and places responsibility entirely on the supplier. But that is not what they should do. They should also accept their own role in the matter. Even though the Ministry states that they would impose a fine on the supplier, can they reverse damage caused to engines and machinery? The supplier will pay a fine and escape. But the people will have to pay higher electricity tariffs for years." he added.&nbsp; Sri Lanka’s energy sector has come under strain in recent weeks following claims that low-quality coal imported for power generation has reduced national electricity output.&nbsp;

Coal Imports: Opposition mulls action against Government 

<ul><li>Awaits Finance Ministry guidance&nbsp;</li></ul> The Ministry of Foreign Affairs stated that it has not yet taken any steps regarding a proposed international donor conference, as it is awaiting official guidance from the Ministry of Finance.Speaking to The Daily Morning, a Ministry official said that the Ministry has not been formally informed of any such initiative so far. “If a donor conference is to be launched, the Foreign Ministry will have to coordinate with multiple stakeholders, both locally and internationally. No such initiatives have been taken as we have not received official information on this. Once guidance is provided, we are ready to support the process." The clarification follows an announcement by Foreign Affairs Minister Vijitha Herath, who said the Government was planning to hold an international donor conference in the aftermath of Cyclone Ditwah. Earlier, Deputy Finance Minister Dr. Anil Jayantha Fernando had also spoken to the media about the proposed conference.&nbsp;Attempts to contact the Finance Ministry proved futile.&nbsp;

Cyclone Ditwah: Foreign Ministry yet to act on Donor Conference

<ul><li>Doctors to withdraw cover-up services at several units&nbsp;</li></ul>The Government Medical Officers’ Association (GMOA) has warned that it would intensify its ongoing trade union action from today (02) by withdrawing from providing cover-up services in several hospital units across the country.&nbsp;Speaking to The Daily Morning, GMOA Assistant Secretary Dr. Hansamal Weerasuriya said yesterday (01) that although doctors are expected to receive a stipulated percentage as payment for cover-up services, those providing such services have not been paid at all. “Despite this, doctors have continued to carry out cover-up duties across several units, even as consultant shortages persist islandwide,” he said.He added that specialist doctors would henceforth provide specialist services only at the hospitals to which they are officially attached and would withdraw from covering duties at hospitals where no specialist doctors are assigned.Dr. Weerasuriya also said the union has already stopped issuing prescriptions for patients to obtain pharmaceuticals and laboratory tests that are unavailable at hospitals. "In addition, doctors have withdrawn from voluntarily participating in health camps and clinics organised by political groups, halted the attachment of doctors to newly opened hospital wards and units that do not have the approved number of staff, and ceased examining patients in settings where adequate facilities and a chaperone are not available."The GMOA’s demands include initiating the process to establish a special service category titled the Sri Lanka Medical Service, encompassing doctors of all categories; revising the Disturbance, Availability and Transport (DAT) allowance; incorporating doctors and specialists under Circular 22/99; converting the additional duty allowance into a fixed allowance; and resolving issues related to the research allowance.Attempts by The Daily Morning to contact the Deputy Minister of Health Dr. Hansaka Wijemuni and the Secretary to the Ministry Dr. Anil Jasinghe proved futile.

Health Sector: GMOA to intensify TU action from today

<ul><li>Ministry says no issues reported from education zones</li></ul> The rollout of education reforms for Grade One has so far proceeded smoothly, with no issues reported from education zones across the country, stated the Education Ministry.Speaking to The Daily Morning, Education Ministry Secretary Nalaka Kaluwewa said that it was only a few days since the new reforms were implemented and the Ministry was not informed of any problematic situations. “Education zones have not reported any concerns related to the process. A few typing errors were identified in some materials at the initial stage, but these have since been corrected,” he said. The admission of schoolchildren to Grade One for the 2026 academic year took place on 29 January, alongside the implementation of the revised Grade One curriculum under the Government’s education reform programme.The broader education reform process has faced criticism in recent months following issues related to the Grade Six modules, allegations that teachers and principals were not adequately consulted, and concerns over decision-making. The situation escalated after an inappropriate web link was found in the Grade Six English module, prompting the Government to suspend the Grade Six reforms until next year.

Education Reforms: Grade One education reforms roll out smoothly

<ul><li>Essential services re-declared</li></ul>The State of Public Emergency in Sri Lanka has been extended with effect from 28 January 2026, and related emergency and essential services regulations have also been updated through extraordinary gazette notifications issued under the authority of President Anura Kumara Dissanayake.&nbsp;The gazette, signed by Secretary to the President Dr. Nandika Sanath Kumanayake, stated that the proclamation was made under Section 2 of the Public Security Ordinance (Chapter 40), as amended by Act No. 8 of 1959, Law No. 6 of 1978, and Act No. 28 of 1988, bringing the provisions of Part II of the Ordinance into operation across the country to ensure public safety, maintain the normal functioning of the state, and secure the continuity of essential supplies and services.&nbsp;The emergency was first declared on 29 November, 2025, following the devastation caused by Cyclone Ditwah. In addition, amendments have been introduced under Section 5 of the Public Security Ordinance, with the revised regulations cited as the Emergency (Miscellaneous Provisions and Powers) Regulations, No. 1 of 2026.&nbsp; Separately, under Section 2 of the Essential Public Services Act, No. 61 of 1979, the President has extended the declaration of several services as essential to prevent disruptions arising from the post-disaster situation, including all services connected to the supply of electricity; the supply and distribution of fuel, petroleum products and gas; all hospital and healthcare-related services, including the care and treatment of patients; public transport services for passengers and goods; the facilitation and maintenance of transport and tourism services by road, rail and air, including highways, bridges, culverts, airports, ports and railways; services related to water supply and drainage; services connected to the supply, protection and distribution of food and essential commodities; all services and work carried out by District and Divisional Secretariats, Grama Niladharis, Samurdhi Development Officers, Agricultural Research Assistants, Community Empowerment Officers, officers of the Clean Sri Lanka Centralized Team and other field-level officials; ambulance services; all state banking and insurance services, including the Central Bank of Sri Lanka; services provided by local authorities related to water, electricity, drainage, sewerage, fire-fighting, ambulance services, garbage removal and disposal; services connected to irrigation; services related to telephone, telecommunication and media; services connected to the reclamation and development of low-lying lands; and all services linked to agriculture and agricultural insurance.

Emergency Regulations: State of public emergency extended

<ul><li>Sri Lanka allocation rises by one-third&nbsp;</li><li>New Delhi reshapes overseas aid priorities, cuts funding for Iran port project</li></ul>The Government of India has proposed a total of 4 billion Indian Rupees in grants and loans to Sri Lanka through the 2026/27 Budget. India’s annual budget made a fresh bet on the country’s manufacturing sector as Finance Minister Nirmala Sitharaman laid out priorities for Asia’s third-biggest economy and pledged to accelerate growth amid a volatile global environment.The budget for the next fiscal year will focus on structural reforms particularly in the manufacturing sector, building a robust financial sector and stepping up investments in cutting-edge technologies, including artificial intelligence, she said yesterday (1).The Government led by Prime Minister Narendra Modi has been struggling to raise manufacturing from the current level of under 20 per cent of gross domestic product (GDP) to 25 per cent to generate jobs for the millions entering the nation’s workforce each year. The Indian economy is seen growing at 7.4 per cent in the current financial year, with inflation expected at near 2 per cent. The Government’s fiscal deficit for the year is expected at 4.4 per cent of GDP.Meanwhile, India sharply reworked its overseas development assistance in the Union Budget 2026–27, cutting aid to Bangladesh by half and making no allocation for the Chabahar port project in Iran, even as overall assistance routed through the Ministry of External Affairs (MEA) sees a marginal increase.The allocation under ‘Aid to Countries’ has been raised to INR 56.8 billion, about 4% higher than last year’s Budget Estimates of INR 54.8 billion. However, the outlay is around INR 1 billion lower than the INR 57.8 billion provided in the Revised Estimates for 2025–26, signalling tighter fiscal prioritisation.The most significant shift is the complete absence of funding for the Chabahar port project. India had spent INR 4 billion on the project in 2024–25 and initially allocated INR 1 billion in the 2025–26 Budget Estimates, later raising it to INR 4 billion in the Revised Estimates. The allocation for 2026–27 now stands at zero.The decision comes despite India signing a 10-year agreement in 2024 to operate the Shahid Beheshti terminal at Chabahar, a project seen as vital for India’s access to Afghanistan and Central Asia while bypassing Pakistan.The pause also coincides with increased external pressure on India’s engagement with Iran after United States President Donald Trump announced a 25% tariff on countries trading with Tehran, effectively weakening earlier sanctions waivers. This has added uncertainty to India’s role in the project and its broader regional connectivity plans.Among neighbouring countries, Bangladesh sees one of the sharpest reductions, with its allocation cut from INR 1.2 billion to INR 600 million. The reduction comes amid strained bilateral relations, even as aid to most other neighbours is maintained or increased.Bhutan remains the largest recipient of Indian aid, with its allocation rising by about 6% to INR 22.8 billion, reflecting continued support for hydropower and infrastructure projects. Nepal’s allocation increases by around 14% to INR 8 million, while Sri Lanka’s aid rises by about one-third to INR 4 billion, highlighting India’s role in Sri Lanka’s post-crisis recovery.In the Indian Ocean region, aid to the Maldives is reduced by about 8% to INR 5.5 billion, while Mauritius receives a 10% increase to the same amount.Aid to Afghanistan remains unchanged at INR 1.5 billion, mainly for humanitarian assistance. Myanmar’s allocation is cut by about 14% to INR 3 billion amid political instability and implementation challenges. Assistance to African countries is held steady at INR 2.25 billion, Latin America’s allocation doubles to INR 1.2 billion from a low base, and funding for Eurasian countries dips slightly to INR 38 million.Overall, the new allocations broadly follow India’s neighbourhood-first approach, with selective changes reflecting evolving geopolitical sensitivities. The MEA’s total expenditure for 2026–27 is estimated at INR 221 billion.Meanwhile, the Indian Government will bring down its debt-to-GDP ratio to 55.6 per cent from 56.1 per cent in the current year. Starting this year, the government has adopted debt-to-GDP as the target for fiscal policy.To meet this debt target, the fiscal deficit is seen at 4.3 per cent in the new financial year, at par with the current year.The Government will borrow a gross amount of INR 17.2 trillion rupees (US$187.6 billion) from the bond markets in the new year.

India Budget 2026-27: India proposes INR 4 billion in grants and loans to SL

<ul><li>Traffic congestion and rising operational costs cited</li></ul>Despite the recent reduction in fuel prices, the Lanka Private Bus Owners' Association (LPBOA) stated that bus fares would need to be increased in the coming months.Addressing a media briefing yesterday (1), LPBOA President, Gemunu Wijeratne said a fare revision would be unavoidable before July, 2026 due to worsening operational conditions, particularly in Colombo and its suburbs.He explained that under the national fare policy, buses previously travelled between 2.5 and 3 kilometres per litre of diesel in urban areas. However, he claimed that figure has now dropped to below 2 km/l due to severe traffic congestion.As a result, he said the minimum fare for short-distance services would need to be increased by approximately Rs. 5–6.Wijeratne noted that short-distance services form the backbone of public transport, with around 13,000 to 14,000 private buses operating across the country. He said that operating buses in Colombo and surrounding areas has become increasingly unviable.He also criticised the Government’s handling of the transport sector, charging that little progress has been made since the current administration assumed office. “It has been one and a half years since the Government was formed. What has been done to develop public transport?"Minister of Transport and Highways Bimal Rathnayake was not available for comment.&nbsp;

Public Transport: Bus fares likely to increase before July: LPBOA

<ul><li>Police cite excessive speed as preliminary cause</li><li>Bus narrowly avoids plunging into precipice in Walapane</li></ul>At least five persons were injured in a road accident reported at the Galkulama police road barrier in Anuradhapura yesterday morning (1), police stated. The Thirappane Police stated the accident occurred around 5 a.m. yesterday, following a head-on collision between two vehicles. One vehicle was carrying four individuals returning home after attending a musical concert in Anuradhapura, while the other belonged to a family travelling from Kelaniya to Anuradhapura on an excursion. According to preliminary investigations, the accident occurred at a bend in the road, where the vehicle travelling from Anuradhapura lost control due to excessive speed while on the right side of the road. The injured include the four passengers and the driver of the vehicle from Anuradhapura, as well as one person from the other vehicle. All injured persons had been admitted to hospital. The Thirappane Police are conducting further investigations. Meanwhile, a Sri Lanka Transport Board (SLTB) bus narrowly avoided plunging into a 50-foot precipice after the driver managed to stop it in time, following a mechanical failure, in the Rasingolla area of Walapane yesterday. The bus, attached to the Walapane depot, was operating from Nildandahinne to Theripaha when it met with the accident at the first bend in the Rasingolla area, a section of road affected by landslides. Driver Saman Thilakasiri said that a loud noise was heard as the bus approached the bend, after which he immediately applied the brakes and brought the vehicle to a halt. “There were about 40 passengers on board at the time. When I got down, I saw the joint of the bus was split in two." Passengers were safely evacuated, and the Walapane depot later replaced the damaged joint and removed the bus. Traffic along the road was temporarily disrupted until the bus was cleared.

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