As the curtains draw on another year and the nation gears to welcome another undoubtedly challenging year, President Anura Kumara Dissanayake (AKD) and his Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) Government will have to brace for a new year with amplified challenges due to the need for balancing post-Ditwah rebuilding efforts and the ongoing economic recovery path.
Balancing these two challenging issues would be a challenge for any government in power and will therefore be a litmus test for AKD and his Government on their political acumen and drive as well as governance. For President AKD, it would also mean having to move out from the tight political grasp of his party that holds him back and decides most of his actions.
President AKD, who is the brand that holds both the JVP and NPP, is also Sri Lanka’s brand before the international community. Therefore, as the Head of State, he will have to take the lead in reaching out for international support and assistance without solely banking on the Foreign Ministry to deliver.
Whenever Sri Lanka has been faced with difficulties and needed international support, it has been the executive president who has taken the lead and the rest of the senior Government members have followed that lead. With Sri Lanka planning an international donor conference early next year, it would be good for President AKD to steer the programme for a positive outcome.
The World Bank Group Global Rapid Post-Disaster Damage Estimation (GRADE) report released recently has stated that Cyclone Ditwah, which struck Sri Lanka in late November, has caused an estimated $ 4.1 billion in direct physical damage to buildings and contents, agriculture, and critical infrastructure, and that this damage is equivalent to about 4% of Sri Lanka’s Gross Domestic Product (GDP).
However, it is believed that the final cost of the damage assessment, once completed, would be higher than the amount stated in the GRADE report.
Meanwhile, a group of 120 leading global economists, including Nobel laureate Joseph Stiglitz, inequality expert Thomas Piketty, and development scholar Jayati Ghosh, have called for the immediate suspension of Sri Lanka’s external debt payments.
They have stressed that the country, already burdened by repayments amounting to 25% of Government revenue, cannot sustain its obligations while confronting the devastation of the cyclone, which killed more than 600 people and destroyed hundreds of thousands of homes.
“Sri Lanka is now confronting a severe economic shock triggered by the recent cyclone, extensive flooding, and landslides, which have inflicted extensive damage to infrastructure, livelihoods, and key sectors of the economy,” they have noted, calling for the “immediate suspension of Sri Lanka’s external sovereign debt payments”.
Given all these factors, the year ahead will definitely be one that will keep President AKD and his Government on their feet.
Indian package
It is in such a backdrop that neighbouring India yet again came forward as the first foreign country to pledge financial support for Sri Lanka’s post-Ditwah rebuilding efforts. To extend this support, Indian External Affairs Minister Dr. S. Jaishankar made a brief visit to Sri Lanka from Monday (22) to Tuesday (23) following India’s swift and extensive humanitarian response to Cyclone Ditwah.
During the visit, Jaishankar, who met with President AKD and other senior Government officials as well as Opposition leaders, announced that India would provide $ 450 million to help rebuild areas damaged by Cyclone Ditwah in Sri Lanka. He said that this would include $ 350 million in concessional lines of credit and $ 100 million in grants.
Dr. Jaishankar’s announcement was welcomed by the Sri Lankan Government.
The Indian Minister met with political leaders and Members of Parliament (MPs) representing the Malaiyaha community, Sri Lanka’s Indian-origin plantation population, at India House last Tuesday (23).
Tamil Progressive Alliance (TPA) Leader Mano Ganesan said following the meeting that the MPs had discussed with Dr. Jaishankar the severe impact of the Ditwah disaster on plantation communities, particularly the loss of housing and land insecurity faced by residents in affected areas, with emphasis being placed on the urgent need for “safe land” to relocate vulnerable families living in high-risk zones.
According to Ganesan, the delegation had requested India to extend its ongoing housing assistance programme to support the construction of homes on land provided by the Sri Lankan Government.
Modi’s letter
Meanwhile, Indian Prime Minister Narendra Modi had also sent a letter to President AKD via Dr. Jaishankar, who had handed it to the President.
In the letter, Modi had reaffirmed India’s commitment to support Sri Lanka’s relief, recovery, and rehabilitation efforts following Cyclone Ditwah. The letter had also stated that Dr. Jaishankar had been sent as Special Envoy to discuss continued cooperation and a comprehensive assistance package. “At a time when your nation is recovering from the damage caused by Cyclone Ditwah, I am sending External Affairs Minister Dr. S. Jaishankar as my Special Envoy to discuss how India can cooperate with Sri Lanka in relief and rehabilitation.”
The Indian Prime Minister has noted: “As Sri Lanka now shifts its attention to the next phase, I would like to assure you that India will extend all possible support as a trusted partner and a reliable friend. As in the past, we will stand shoulder to shoulder with you in rebuilding lives and ensuring resilience in Sri Lanka. In this context, I am pleased to inform you that India will provide a comprehensive assistance package. I have asked Minister Jaishankar to discuss with your Government how best this package can be implemented.”
“Please accept, Excellency, the assurances of my highest consideration,” Modi has added.
Chinese delegation
While India’s Jaishankar touched down in Sri Lanka on Monday (22) evening and commenced his visit on Tuesday (23), a delegation from the Communist Party of China (CPC), led by 20th Central Committee of the CPC member and Xizang Autonomous Region CPC Committee Secretary Wang Junzheng, also arrived in Sri Lanka during the same time. The delegation arrived in the country on Tuesday (23) and stayed till Thursday (25).
The Chinese stated that the visit was aimed at promoting China-Sri Lanka friendship, deepening mutual understanding, and enhancing practical cooperation. The delegation’s engagements focused on strengthening bilateral ties and exploring avenues for closer collaboration between the two countries.
Wang and his delegation also met with President AKD and senior Government members including the hierarchy of the JVP at the Party Headquarters in Pelawatte.
However, unlike the high-profile Indian visit and the announcement of the aid package, the Chinese visit was aimed more at interacting with the Sri Lankan Government and expressing continued support.
China’s ‘sudu saataka’
Meanwhile, the CPC delegation and the Chinese Embassy in Sri Lanka held an event at the Shangri-La hotel in Colombo on Tuesday (23) evening. Sri Lankan politicians representing many political parties including former President Maithripala Sirisena had attended the event.
When welcoming guests to the event, the Chinese had adorned the guests with a white shawl (‘sudu saataka’). While wearing the white shawl, several local politicians were seen to be sharing what seemed like private jokes. Upon inquiring what the joke was about, it is learnt that several Opposition politicians had commented about the white shawl, saying that it was good that it was white and not a ‘kurahan saatakaya’ (shawl in a shade closer to maroon). “If it was a kurahan saatakaya, that would be the end of us all,” one Opposition politician had said, making the other politicians laugh.
The ‘kurahan saatakaya’ is part of the traditional attire worn by the Rajapaksa family.
Diplomatic faux pas?
However, there was much attention being given to the visit of the Indian and Chinese delegations to Sri Lanka, especially due to geopolitical reasons. Many wondered how the Sri Lankan Government would manage the two visits at the same time.
It is now evident that the JVP/NPP Government is unable to handle diplomatic protocol. The reason for this is the decision to send a Deputy Minister to welcome the Indian External Affairs Minister to the country and a Cabinet Minister to welcome the member of the 20th Central Committee of the CPC and Secretary of the CPC Committee. While Deputy Minister of Tourism Ruwan Ranasinghe welcomed Minister Jaishankar, the Chinese delegation was received by Ports and Civil Aviation Minister Anura Karunathilake.
Meeting district secretaries
Meanwhile, President AKD is putting all his effort behind rebuilding the country and held a special discussion recently at the Presidential Secretariat with district secretaries to review district-level plans aimed at restoring the lives of citizens under the Rebuilding Sri Lanka programme and to examine challenges that have emerged during implementation.
The meeting had also included secretaries of ministries responsible for defence, agriculture, irrigation, water supply, fisheries, transport, housing, and construction, the heads of the relevant line institutions, and all district secretaries.
President AKD had issued instructions to ensure that the Rs. 25,000 Government grant for house cleaning and the Rs. 50,000 allowance for purchasing household equipment were provided to beneficiaries before 31 December.
AKD’s auditor general dilemma
Amidst the ongoing efforts at rebuilding Sri Lanka, President AKD is facing difficulties in appointing a permanent auditor general, which is a key appointment in ensuring good governance practices and accountability that were promised by AKD and the JVP/NPP in the run-up to the elections.
The President has proposed three names to the post and all three have been rejected by the Constitutional Council (CC).
The President had first proposed the name of a Director of the Ceylon Petroleum Corporation (CPC), H.T.P. Chandana, for the post of auditor general. The Opposition opposed this nomination claiming that the individual was a close associate of the President, who was one of his batchmates at the Kelaniya University.
Opposition parties further objected saying that there were suitable officials in the Auditor General’s Department and that there was no need to nominate an external individual. Trade unions affiliated to the Auditor General’s Department had also objected to the President’s nominee to head the department.
The CC finally objected to the President’s nomination to the post of auditor general, resulting in AKD having to appoint an Acting Auditor General instead.
Afterwards, the President had proposed Senior Deputy Auditor General L.S.I. Jayarathna’s name to head the Auditor General’s Department. This was the second name proposed by the President and the CC objected to this name as well.
President AKD had then proposed another name for the post of auditor general for the third time. This time, the name proposed was Sri Lanka Army Internal Audit Director O.R. Rajasinghe. The CC rejected the President’s third nomination as well.
This continuing tug-of-war between the President and the Constitutional Council had resulted in the post of auditor general being vacant for months.
Harsha writes to AKD
Meanwhile, Committee on Public Finance (COPF) Chairman Harsha de Silva has sent a six-point letter to President AKD, appealing to him to resolve the serious matter of Sri Lanka operating without the constitutionally mandated head of the National Audit Office.
De Silva has stated that an auditor general must be appointed urgently in the backdrop of the current disaster situation in Sri Lanka.
“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet to be legally established Rebuilding Sri Lanka Fund, an auditor general must be appointed urgently,” he had noted in a post on X.
Ending CC term
It is in such a backdrop that there is talk in political circles that the Government is marking time till next year to get its candidate appointed to the post of auditor general once the Constitutional Council is reconstituted early next year after the existing council’s term ends next month (January).
The end of the term of the incumbent CC and the reconstitution of the new one was highlighted by the Bar Association of Sri Lanka (BASL) last week through a letter to President AKD, Prime Minister Harini Amarasuriya, Speaker of Parliament Jagath Wickramaratne, and Opposition Leader Sajith Premadasa.
The letter had highlighted that the terms of the current civil society members – Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere, and Prof. Dinesha Samararatne – would expire in January 2026 and that new appointees should be individuals of “exemplary integrity,” with broad societal acceptance and the capacity to make meaningful contributions to the council’s work.
The letter had further noted that the Constitutional Council, re-established under the 21st Amendment to the Constitution, played a key role in approving appointments to high offices and ensuring the independence of key commissions.
Losing Colombo
Meanwhile, the ruling JVP/NPP recorded a significant loss in Colombo by losing the budget vote at the Colombo Municipal Council (CMC) on Monday (22) after a joint Opposition bloc voted against the proposed financial estimates. The budget was defeated after the joint Opposition voted against it, with 60 councillors voting against and 57 supporting it.
The ruling party’s defeat in the CMC caught many by surprise, but given that the combined Opposition holds a majority in the council, the defeat of motions presented by the ruling JVP/NPP in the council is no surprise.
The Opposition’s operation to defeat the ruling party’s budget in the CMC was launched by Opposition MP Mujibur Rahman on 15 December.
The CMC’s budget for 2026 is to be taken up for a second vote on Wednesday (31).
Vraîe responds
Colombo Mayor Vraîe Cally Balthazaar meanwhile has noted in a statement issued following the vote that the proposed budget was a strong, people-focused financial plan aimed at meeting the key needs of Colombo’s residents and that said the budget process would now move to a second reading, during which amendments could still be proposed if necessary.
She has further emphasised that her mandate as Mayor remains unchanged and that the budget is expected to come into effect within two weeks, allowing planned development and service initiatives to move forward as scheduled.
According to reports, the existing law permits a mayor to continue in office for up to two years even if a council budget is defeated.
Fate of CMC
Following the defeat of the CMC budget, there was much talk in political circles about the next steps in the council and whether the JVP/NPP would lose its grip on the council.
However, several election monitors noted that the defeat of the CMC budget would not change the status quo in the council and that the budget could be presented a second time as well. Also, if the budget is defeated a second time, the council could still continue.
Electoral reform analyst Manjula Gajanayake has noted that the defeat of the CMC’s budget does not threaten the survival of the ruling administration for at least two years under Sri Lanka’s Local Government law.
Gajanayake has noted that elected heads of local authorities are legally protected from removal for a minimum of two years, regardless of budget defeats.
“Even repeated budget defeats do not remove the administration during this two-year window,” he has said, adding: “The law was specifically amended to prevent councils from being toppled through short-term political bargaining.”
Therefore, Balthazaar’s position as CMC Mayor will remain intact despite the defeat of the 2026 budget.
Accused of altering time
The ruling party meanwhile has been accused of irregular conduct in the passage of the 2026 budgets in the Negombo Municipal Council and the Horana Urban Council.
Samagi Jana Balawegaya (SJB) MP Kavinda Jayawardana claims that the SJB councillors in the Negombo Municipal Council had raised concerns about both the conduct of the council and shortcomings in the budget proposal. However, the Negombo Mayor had announced that the budget had been passed and left the council chambers without conducting a formal vote.
“We had prior information that certain JVP/NPP members and other Opposition members were ready to vote against the budget proposal. The Mayor acted arbitrarily knowing that there would be votes against it,” Jayawardana alleged.
Opposition councillors in the Negombo Municipal Council have alleged that the Mayor had deliberately denied members of Opposition parties, including the SJB, Sri Lanka Freedom Party (SLFP), and Sri Lanka Podujana Peramuna (SLPP), the opportunity to vote on the proposed budget.
Meanwhile, the SJB’s Ajith P. Perera alleged that the council clock had been deliberately adjusted to rush through the vote, claiming that the budget of the Horana Urban Council was passed in a “fraudulent and disgraceful manner” on Tuesday (23), despite the ruling party lacking a majority.
Perera has alleged that the clock inside the council chamber had been advanced by five minutes, allowing the budget to be declared unanimously approved at 9.55 a.m., even though the council meeting was officially scheduled to begin at 10 a.m.
According to Perera, Opposition councillors had arrived at the chamber at the stipulated time of 10 a.m., only to find that the budget had already been approved solely with votes of JVP/NPP councillors and that members of the ruling group had left the chamber.
According to the approved agenda, the meeting was required to begin with religious observances, a remembrance of deceased councillors, and the confirmation of minutes from the previous special council meeting before proceeding to the second reading of the budget.
However, Perera has alleged that the budget was passed within approximately three minutes, without observing even the customary religious observances.
Chaos in Galle
Chaos was also reported last Wednesday (24) during the second vote taken on the 2026 budget presented by the ruling JVP/NPP at the Galle Municipal Council.
The 2026 budget was passed the second time around with 21 votes for and 15 against.
However, the council witnessed much tension when Opposition councillors had objected, alleging that there was an error in the vote-counting process, claiming that votes cast against the budget had been counted as those cast in favour of it.
When tensions started to rise, the Mayor had announced that sessions were being adjourned and left the chamber. However, Opposition councillors had prevented the Galle Municipal Council Secretary from leaving the chamber by blocking the exits.
The first vote on the 2026 budget presented by the ruling JVP/NPP was held on 15 December and the budget was defeated by two votes.
Petition against Secretary
Councillors of the combined Opposition in the Galle Municipal Council meanwhile handed over a petition against the Secretary of the council to the Assistant Commissioner for Local Government bodies in the Southern Province on Friday (26).
The Opposition councillors have alleged that four votes cast against the ruling party’s 2026 budget presented to the council for a second vote by Opposition councillors had been written down as votes cast in favour of the budget by the Secretary during the vote.
The council’s 19 Opposition councillors have also handed in 19 signed affidavits to the Assistant Commissioner stating that they had voted against the budget.
Opposition Councillor Susantha Karunaratne has lodged a complaint with the Galle Police seeking an inquiry into his vote cast against the budget being recorded as a vote cast in favour of the budget in the council.
Weligama PS postponement
Meanwhile, the appointment of a new chairperson to the Weligama Pradeshiya Sabha (PS) has been postponed indefinitely by the Local Government Commissioner of the Southern Province.
Following the assassination of Weligama Pradeshiya Sabha Chairman Lasantha Wickramasekara, the chair of the Local Government body fell vacant and the election for the new chairperson to the council was scheduled for Friday (26).
However, when council sessions had commenced at the scheduled time of 10 a.m., only 15 out of the 45 councillors of the Pradeshiya Sabha had been present. The Commissioner had noted that the council did not have the quorum of 23 councillors to commence proceedings and had temporarily adjourned the council for 30 minutes.
When the council had reconvened at 10.30 a.m., the Commissioner had announced that council sessions were being postponed indefinitely due to the lack of a quorum to proceed.
It is learnt that while the members of the ruling JVP/NPP were present for council sessions, councillors of the combined Opposition led by the SJB did not attend the sessions.
Abolishing executive presidency
Given the current developments on the political stage, the Government has once again spoken about drafting a new constitution, with Prime Minister Harini Amarasuriya informing Parliament recently that steps are being taken to abolish the executive presidency, with the Government intending to draft a new constitution.
Amarasuriya has noted that measures are underway to establish a parliamentary system of government, including the appointment of a president without Executive powers. She has further stated that steps are currently underway to hold the Provincial Council Elections, which have been stalled due to provisions in the Provincial Councils Elections (Amendment) Act No.17 of 2017.
“As stated on page 194 of the policy statement, ‘A Thriving Nation – A Beautiful Life,’ the Government intends to draft a new constitution. This draft will be presented to the public, followed by dialogue and discussion, after which necessary amendments will be made. The constitution is then expected to be approved through a referendum. At present, reports of committees previously appointed to draft a new constitution, along with other constitutional reform proposals, are being considered. Thereafter, a basic concept paper will be submitted to the Cabinet of Ministers,” the Prime Minister has told Parliament.
Amarasuriya has further noted that necessary steps to abolish the executive presidency, establish a parliamentary system of government, and appoint a president without Executive powers will be undertaken in the process of drafting the new constitution.
“It is not possible to abolish the executive presidential system without introducing a new constitution. A study is currently underway on the abolition of the executive presidency and the possible methods of the process. While giving due attention to resolving the country’s pressing issues, focus has also been placed on abolishing the executive presidency. Relevant timelines will be announced in due course,” she has added.
Pushing federalism
While the Government has spoken of drafting a new constitution, a group of Tamil politicians has reiterated the need for a federal solution to address the national issue.
A delegation of the Tamil National People’s Front (TNPF) had recently met Tamil Nadu Chief Minister M.K. Stalin in Chennai and handed over a letter urging India to press Sri Lanka to move away from its unitary state structure and adopt a federal system.
TNPF Leader and Jaffna District MP Gajendrakumar Ponnambalam had noted that the delegation had requested the Tamil Nadu Chief Minister to persuade India’s Central Government to exert pressure on Colombo, arguing that only a federal system would allow Tamils to fully enjoy the powers envisaged under the Indo-Lanka Accord.
“Only through a federal arrangement can the Tamil people exercise the powers that were expected through the Indo-Lanka Accord,” Ponnambalam has told journalists after the meeting.
UNP seeks General Elections
Meanwhile, United National Party (UNP) Chairman Wajira Abeywardena has called on the Government to hold a Parliamentary Election soon to understand the public sentiment.
Referring to the Prime Minister’s recent statement that the Government was prepared to hold Provincial Council Elections as soon as possible, Abeywardena noted that the Government would not be able to win any election.
He further noted that the Government should look at holding a Parliamentary Election soon and that it would then be able to witness real public sentiment.
Dayasiri writes to the bank
Meanwhile, Opposition MP Dayasiri Jayasekara, who is engaged in litigation over the post of general secretary of the SLFP and challenging the current party leadership, has written to the People’s Bank Suduwella Branch about the official account of the SLFP in the bank.
Jayasekara has requested the bank to temporarily freeze the SLFP’s account with the bank since the Election Commission is not officially recognising the party due to the ongoing legal cases challenging its officebearers.
He had pointed out to the party that the litigation processes had resulted in it being unable to contest at several elections and that a continuation of the court cases would result in the party becoming more distant from the people.
According to Jayasekara, a group of individuals are arbitrarily holding power within the party, which is being challenged before court, and the party’s funds are being allegedly misused by these individuals. He had noted that this was an injustice to the party membership.
Jayasekara has also called on party members to be mindful of these facts.
Story behind the appointments
However, the appointments made to several key positions in the SLFP resulted in many questions being posed even among party members, while Jayasekara issued a letter to party members under a party letterhead claiming that the new appointments were against the SLFP Constitution and were therefore illegal.
Newly appointed Senior Vice President of the SLFP Wijeyadasa Rajapakshe had filed six cases against the party, and following the new appointment, he had agreed to withdraw the cases. It is learnt that a group of SLFP seniors including Party Leader Nimal Siripala de Silva, Lasantha Alagiyawanna, and Duminda Dissanayake had engaged in several rounds of discussion with Rajapakshe to reach a consensus on the legal battle launched by the latter against the SLFP.
Rajapakshe’s appointment as the SLFP Colombo District Leader resulted in the replacement of MP Faiszer Musthapha, PC, who earlier held the post. While it is learnt that Musthapha was not too pleased about being replaced, it is also learnt that he had informed party members who had inquired about the new appointment that he had no objections to it. Musthapha had stated that he had proposed that Rajapakshe be appointed as the Colombo District Leader of the SLFP.
Meanwhile, it is also learnt that Jayasekara had initially agreed to accept the post of SLFP national organiser and had even consulted with his lawyer about the matter. Jayasekara had informed Party Leader de Silva that his lawyer had asked for a document to be signed by both parties to finalise the agreement between him (Jayasekara) and the SLFP.
When the document on the final agreement between the two parties had been sent to Jayasekara to peruse with his lawyer, he had stated that his lawyer had proposed the inclusion of a clause to the document outlining that he (Jayasekara) would initiate legal action if the agreement reached was violated by de Silva and Co.
De Silva, it is learnt, had agreed to include the proposed clause in the document and had asked Jayasekara to come to the SLFP Headquarters to sign the agreement and accept the new appointment as the national organiser.
However, Jayasekara had telephoned de Silva at the last minute and informed him that he would not be signing the document since there were still some concerns.
It was then that the SLFP seniors had decided to appoint Chamara Sampath Dasanayake as the party’s new National Organiser.
Mano’s birthday
Meanwhile, TPA Leader Mano Ganesan had celebrated his birthday recently. The celebrations had been attended by many Opposition politicians.
However, it is interesting to note that former President Ranil Wickremesinghe had played the role of Chief Guest at the event. Wickremesinghe’s prominence at the event had been discussed by many given that Ganesan represents the SJB-led alliance in Parliament.
One of the key topics discussed at the event was the need for the SJB and UNP to form an alliance since it would present a strong platform for many Opposition parties and politicians to join.
Arresting Douglas
Meanwhile, former Minister Douglas Devananda was arrested by the Criminal Investigation Department (CID) on Friday (26) in connection with an ongoing investigation into the alleged transfer of a firearm to an organised criminal.
The Police has stated that the arrest is in relation to allegations that a pistol issued to Devananda had later been found in the possession of underworld figure Makandure Madush, who was killed in a Police shootout in Colombo in 2020 after being extradited to Sri Lanka from Dubai.
Legal action has been initiated based on the findings of the ongoing investigation.