President Anura Kumara Dissanayake (AKD) and the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) administration continue to navigate the complexities of governance, political messaging, and public expectations. Recent developments have highlighted both the Government’s achievements and the challenges that accompany its transition from opposition politics to State power.

On the positive side, a recent Verité Research study found that the AKD administration has outperformed the reform-era Government of former President Maithripala Sirisena in the number of laws enacted during its first 18 months in office. The finding provides the Government with evidence that it is delivering on its legislative agenda and pursuing the reforms promised during the election campaign.

Yet, policy achievements can quickly be overshadowed by decisions that directly affect the public. The surprise fuel price increase announced during the Vesak holidays illustrated this reality. Thousands of people who had taken to the streets to enjoy Vesak celebrations, admire lantern displays, and visit dansal were caught off guard when they stopped at filling stations on their way home to discover higher fuel prices at the pump. 

While the adjustment may have been economically justified, its timing generated criticism and served as a reminder that public perception often matters as much as policy substance.

At the same time, the Government’s highly visible participation in Vesak celebrations reflected a broader political calculation. The JVP/NPP has faced persistent criticism from opponents who claim the administration is detached from the country’s Buddhist traditions. By actively organising and engaging in week-long Vesak events, the Government appeared intent on countering that narrative and reassuring the Buddhist majority that its commitment to governance reforms does not come at the expense of cultural and religious values.

However, while the administration manages domestic political challenges, a more significant issue may be emerging on the international front.

Sri Lanka has found itself among 60 economies targeted by the Office of the United States Trade Representative (USTR), which has proposed an additional 12.5% tariff on exports from countries deemed to have failed to impose and effectively enforce prohibitions on imports produced with forced labour.

The proposal is more than a routine trade measure. It reflects a growing global trend in which access to key markets is increasingly linked to labour standards, governance practices, and supply chain accountability. For Sri Lanka, which has long promoted its apparel industry as an ethical sourcing destination, the USTR’s assessment raises uncomfortable questions about whether domestic trade and labour regulations are keeping pace with evolving international expectations.

The potential consequences are significant. At a time when Sri Lanka is still seeking to strengthen economic recovery and expand exports, additional tariffs could erode competitiveness in one of its most important markets. More importantly, the development highlights a long-standing policy weakness – the tendency to respond to changing global standards only after they become immediate threats.

As major economies increasingly use trade policy to enforce labour, environmental, and governance benchmarks, Sri Lanka can no longer afford to view such issues as secondary concerns. The cost of falling behind is no longer limited to reputational damage. It now carries direct economic consequences in the form of reduced market access, diminished competitiveness, and lost opportunities for growth.

The coming months will therefore provide a crucial test for the AKD administration. Sustaining public goodwill at home while adapting to rapidly changing international expectations overseas may prove just as important as the legislative successes that have so far defined its first phase in office.

Fuel losses

However, the pricing breakdown of fuel released recently by the Ceylon Petroleum Corporation (CPC) revealed just how politically explosive the country’s fuel problem has become.

According to the CPC’s own formula, octane 92 petrol should now cost Rs. 432.59 per litre. Instead, it is being sold at Rs. 398. Octane 95 petrol, calculated at Rs. 477.46, is currently sold at Rs. 455.

Lanka auto diesel is estimated to cost Rs. 749.70 per litre, yet consumers pay Rs. 382. Super diesel is calculated at Rs. 840.07 but sold at Rs. 443. Kerosene, with an estimated cost of Rs. 580.53, remains at just Rs. 255 per litre.

Meanwhile, following the increase of fuel prices on 30 May, CPC Chairman D.J.A.S. De S. Rajakaruna has stated that the corporation is currently incurring a loss of Rs. 129 on every litre of auto diesel and Rs. 60 on every litre of octane 92 petrol sold. According to Rajakaruna, the actual cost of supplying a litre of auto diesel is around Rs. 536, while it is sold at Rs. 407, resulting in a loss of Rs. 129 per litre. He said a litre of octane 92 petrol cost approximately Rs. 494 to supply but was sold at Rs. 434, resulting in a loss of Rs. 60 per litre.

These are not small pricing gaps. They are massive State absorptions aimed at preventing another public backlash over living costs and transport fares.

Rajakaruna has further noted that the Government had allocated Rs. 57 billion to support fuel pricing, but the funds set aside for this purpose are expected to be exhausted by the end of June.

The Government now faces an uncomfortable contradiction with promises to the International Monetary Fund (IMF) that Sri Lanka will maintain cost-reflective fuel pricing and phase out temporary relief measures by this September, while the CPC’s own data shows the State is still carrying enormous under-recoveries, especially on diesel and kerosene.

While this scenario may be economically unsustainable, the alternative could be even riskier for the Government, politically.

A major diesel price increase would ripple through the entire economy with adverse impact on public transport, food transport, agriculture, fisheries, logistics, and even electricity generation, given that every additional rupee at the fuel pump would eventually hit market prices and household expenses.

Subsidies and reality

Meanwhile, Sri Lanka’s latest Letter of Intent to the IMF has also become a politically explosive promise where it has been stated that temporary fuel and electricity relief measures will be phased out by September.

While some have described it as fiscal discipline, some economists have called it necessary policy consistency. However, for the masses still recovering from the 2022 economic crisis, it means only one thing – that the cost-of-living pressure is not ending anytime soon.

President AKD and his Government now face the same dilemma that defeated previous administrations: how to maintain IMF credibility while keeping public frustration under control.

The irony is difficult to ignore because a Government elected partly on promises of fairness and social protection is now defending cost-reflective pricing, subsidy removals, and tight fiscal management. These were policies that were once fiercely criticised by many within the current ruling party.

Sri Lanka’s 2022 collapse was built on years of artificial pricing, debt-fuelled subsidies, and political refusal to confront economic reality, and the IMF programme was designed precisely to dismantle that system.

The macroeconomic indicators may be improving, but the political mood outside official reports remains fragile because recovery statistics do not automatically translate into household relief.

Come September, it could become the first major political stress test for President AKD and his JVP/NPP Government that is trying to prove that reform and public trust can coexist.

Inflation returns

Meanwhile, the country’s inflation rate has climbed to a 27-month high at 5.5%.

For months, the Government has relied on a single narrative that the crisis is stabilising, growth is returning, and recovery is underway. Rising inflation threatens to complicate that message because ordinary voters experience the economy not through Gross Domestic Product (GDP) figures or reserve accumulation, but through fuel prices, transport fares, electricity bills, and the cost of vegetables at the market.

The latest price increases expose a deeper vulnerability in the country’s recovery story – how dependent the country still remains on global shocks it cannot control. A Middle East crisis pushes up oil prices, fuel costs rise locally, transport becomes expensive, and inflation spreads across the economy within weeks.

That chain reaction undoubtedly carries political consequences.

AKD’s proposals

Meanwhile, the Government’s latest crackdown on foreign money transfer operators is about far more than regulatory compliance. It represents a clear signal that the Government intends to tighten control over a segment of the financial system that has long operated beyond effective oversight.

For decades, informal remittance networks such as hawala and undiyal have functioned alongside the formal banking sector, providing alternative channels for transferring funds while allowing substantial volumes of foreign exchange to bypass official systems. Although successive administrations acknowledged the risks posed by these networks, meaningful enforcement remained limited, often constrained by institutional weaknesses and a lack of political urgency.

The new regulatory framework, introduced under the expanded authority of the Central Bank of Sri Lanka (CBSL), seeks to alter that landscape. By requiring foreign Money or Value Transfer Services (MVTS) providers to register and comply with formal regulatory standards, authorities are attempting to increase transparency in a sector that has been vulnerable to money laundering, illicit financial flows, and other forms of abuse.

The timing is significant. As the country continues its economic recovery and works to rebuild confidence among international lenders, investors, and financial institutions, stronger anti-money laundering and counter-terrorist financing safeguards are no longer merely desirable, they are essential. Compliance with global financial standards has become a critical component of restoring credibility and maintaining access to international financial markets.

The move also carries an important economic dimension. By targeting informal remittance channels, the Government hopes to direct a greater share of foreign currency inflows through official banking systems, strengthening reserves and improving the country’s foreign exchange position at a time when every dollar remains valuable.

A constitutional question

Meanwhile, President AKD and the Government are entangled in a growing debate with the Judiciary and the overall legal fraternity over a controversial move being pushed to increase retirement ages of judges of higher courts.

The Bar Association of Sri Lanka’s (BASL) warning against a reported move to extend the retirement age of Supreme Court and Court of Appeal justices has brought an important constitutional issue into the political spotlight.

In a strongly worded letter to President AKD, the BASL has expressed what it described as “grave concern” over the reported proposal, warning that such a move could undermine public confidence in the Judiciary and raise questions about the Government’s commitment to preserving the separation of powers.

At the centre of the controversy is a long-standing constitutional framework that has remained unchanged since the adoption of the 1978 Constitution. Under the current provisions, justices of the Court of Appeal retire at the age of 63, while Supreme Court justices retire at 65.

The BASL argues that altering these limits without a compelling institutional justification would be viewed as an arbitrary intervention in the judicial system.

At first glance, changing retirement ages may appear to be an administrative matter. In reality, it goes to the heart of judicial independence. Any government seeking to alter the tenure of judges invites questions about motive, timing, and possible consequences for the composition of the higher Judiciary.

The concern is not necessarily about extending the retirement age itself. Many countries have different retirement ages for judges. The issue is whether such changes are being pursued as part of a carefully considered reform agenda or as an ad hoc constitutional amendment with immediate political implications.

President AKD came to office promising stronger institutions, accountability, and a break from the constitutional manipulation associated with previous administrations. It is therefore unsurprising that the legal community is reacting cautiously to reports of a proposal that could be perceived as affecting the independence of the courts.

The Government may have valid reasons for considering such a change. However, unless those reasons are clearly articulated and supported by broad consultation, the political cost could outweigh any administrative benefit.

The BASL’s concerns were further echoed by several other associations as well as the main Opposition Samagi Jana Balawegaya (SJB) and several other Opposition politicians.

Focus on PC Polls

Meanwhile, the long-delayed Provincial Council (PC) Election issue appears to be steadily returning to the centre of the country’s political discussion. Recent political developments suggest that the Ilankai Tamil Arasu Katchi (ITAK) is preparing to make the holding of the long-delayed PC Elections a major political campaign, particularly in the Northern and Eastern Provinces.

Sources noted that the party had intensified consultations with both domestic and international stakeholders, while also seeking clarity on the Government’s position through discussions with senior JVP/NPP members as well as with the President. The issue has gained added significance following remarks made by JVP General Secretary Tilvin Silva regarding the further delay in holding PC Elections.

It is also interesting to note that the ITAK’s efforts are no longer confined to the north and east, with the party reportedly beginning to engage Opposition parties in the south, with senior figures holding a series of discussions aimed at building broader political support for the restoration of Provincial Councils that have remained defunct for several years.

The emerging consensus among Opposition groups appears to be that PC Elections could become a rallying point for challenging the Government’s commitment to devolution and democratic governance.

Mano’s call for probe

The controversy surrounding funds allocated for Provincial Council Elections, meanwhile, has opened a new front in the ongoing political debate over accountability and public finance as well. Opposition Member of Parliament (MP) Mano Ganesan has called on the parliamentary Committee on Public Finance (COPF) to investigate reports that money earmarked for long-delayed PC Elections was instead utilised for disaster-rebuilding efforts.

The issue is not whether disaster relief deserves funding, but whether public funds allocated for a specific purpose can be redirected without parliamentary approval. 

The allegation stems from remarks reportedly made by JVP General Secretary Silva, whose comments have now triggered calls for greater transparency. For the JVP/NPP that came to power promising good governance, accountability, and a break from past practices, the controversy presents an opportunity to demonstrate its commitment to those principles.

Minister’s assurance

Meanwhile, Minister Chandana Abayarathna has noted that PC Elections will not be delayed amidst concerns raised by Opposition political parties that the Government is trying to further push back the already delayed polls.

The Minister has stated that the recommendations of the Parliamentary Select Committee appointed to examine and make recommendations on the electoral system to be used for PC Elections are expected to be received soon. He has further said that plans will be made to conduct the elections after studying those recommendations.

The committee, chaired by Minister Vijitha Herath, has held extensive discussions on the electoral system with senior officials from the Election Commission and the Attorney General’s Department. During the discussions, officials of the Election Commission had stated that if the necessary legal framework was provided, they were prepared to hold the election at any time.

Provincial Council Elections have not been held for over 11 years. As a result, all PCs are currently under the administration of the Governors.

Rebuilding Sri Lanka Fund issues

Meanwhile, one of the key funds launched by the Government – Rebuilding Sri Lanka Fund – continues to be scrutinised. Following recent revelations that details of the monies received by the fund were yet to be publicised with no audit being conducted, it is now learnt that millions of rupees donated under the widely publicised Rebuilding Sri Lanka initiative have remained entirely unused and continue to be held in a separate Treasury account.

These details were revealed by officials from the Auditor General’s Department to the COPF, raising fresh questions about the initiative’s legal status and management.

The issue had surfaced during a recent COPF meeting, where legislators had sought clarification on the handling of donations collected following the launch of the Government-backed rebuilding effort.

Committee Chairman Harsha de Silva had challenged officials over the existence of what has commonly been referred to as the Rebuilding Sri Lanka Fund, arguing that there appeared to be no legally established fund despite public references to one. 

“We have seen reports on the Rebuilding Sri Lanka Fund, but to my knowledge, no such fund exists. Where have the donors’ funds been deposited, and how are they being audited?” de Silva had asked during the proceedings.

Responding to the concerns, an official from the Auditor General’s Department had explained that although the Cabinet had approved the initiative in 2025, the proposed fund had never formally been established through the legal mechanisms required to create a statutory fund. Instead, all donations received under the initiative had been deposited into a dedicated account maintained by the General Treasury.

“All the money that came in is currently held in a special Treasury account. Not a single cent has been used,” the official had told the committee.

The Auditor General’s Department had further confirmed that audit examinations had been carried out and that the balance in the account matched official records. According to the department, the funds remained untouched as of the most recent audit review.

The disclosure has prompted renewed concerns among COPF members about transparency, accountability, and the purpose of maintaining idle donor contributions that were intended to support national recovery efforts.

De Silva had further stressed that describing the initiative as a “fund” could be misleading until the necessary legal framework was established.

Sugath’s hidden message?

Meanwhile, reports of increasing displeasure among members of the Government over the manner in which the administration is conducting its work was given further fuel by a recent Facebook post by Deputy Minister of Sports and one of Sri Lanka’s greatest national athletics champions, Sugath Thilakaratne. The post has sparked widespread discussion. In the post, which he had shared on 30 May through his official Facebook account, he had written: “Some positions are given only to make you lose even what you already had.”

The brief statement has fuelled speculation within both political and sporting circles about whether he is preparing to resign from his position as Deputy Minister. Thilakaratne, who brought distinction and recognition to Sri Lanka at both the national and international levels as an athlete, attracted significant public attention when he entered politics.

However, no official statement has yet been made regarding the meaning of his post or any intention to resign from his ministerial position.

Workshop for MPs

Meanwhile, several key debates and programmes are scheduled during the upcoming sittings of Parliament.

Among the highlights is an awareness programme for MPs on current monetary policy and related issues, which will be held at the Parliamentary Complex on Wednesday (10). The programme will be conducted under the leadership of the Governor of the CBSL and senior CBSL officials at the request of Deputy Minister of Finance and Planning Anil Jayantha Fernando. The Committee on Parliamentary Business has granted approval for the event.

Meanwhile, Parliament will hold an adjournment debate on the country’s current situation on Thursday (11). The motion, to be moved by the Opposition, is scheduled to take place from 1.30 p.m. to 5.30 p.m.

The debate was requested by Chief Opposition Whip Gayantha Karunatilleka during a previous parliamentary sitting. Responding at the time, Leader of the House, Minister Bimal Rathnayake had said that since Parliament had already discussed the country’s situation on earlier occasions, time could be allocated in June for a dedicated debate on the matter.

Meeting the IMF

Meanwhile, senior members of the Joint Opposition group convened by former Minister G.L. Peiris, which is now being called the Janathavadi Ekabaddha Vipakshaya (Populist Joint Opposition), met recently as part of the weekly meetings held by the group.

The meeting was attended by Nimal Siripala de Silva, Lasantha Alagiyawanna, Duminda Dissanayake, Nimal Lanza, Prasanna Ranatunga, Channa Jayasumana, Sugeeshwara Bandara, Ajith Mannapperuma, Premnath Dolawatte, Senal Welgama, and several others.

During the latest meeting, the discussion had focused more on the country’s economic situation. Peiris had proposed that the Joint Opposition group should seek a meeting with the IMF representative in Sri Lanka to discuss the latest developments in the fund’s programme with Sri Lanka and the path ahead, especially once the programme comes to an end next year.

Other senior members of the group had agreed, saying that it was important to know the real situation with the IMF programme since the Government did not reveal the real situation to the people. It was then decided that an appointment with the IMF official would be sought this coming week to discuss Sri Lanka’s economy and the IMF programme.

Continuing campaign

The Joint Opposition group had also discussed the scheduled programmes by the group that include a meeting with professionals and intellectuals on Monday (8) evening at the Amari hotel in Colombo.

The event on Monday is being organised as a seminar on the economic crisis faced by the country and whether the Government can face multiple crises.

The next event is the fourth in the series of anti-Government islandwide seminars that is scheduled to be held in Kandy next Sunday (14).

The senior members of the Joint Opposition group have discussed travel arrangements for the Kandy event and had decided that a team would travel to Kandy next Saturday (13) to prepare for the event.

From Don Juan to ally

Meanwhile, former President Ranil Wickremesinghe continues to engage in ‘behind-the-scenes’ political moves by once again demonstrating that there are no permanent enemies, only changing political equations. 

Few politicians have attacked former President Wickremesinghe as relentlessly as former Minister Wimal Weerawansa did over the years. From accusing him of selling national assets to comparing him to historical traitors, Weerawansa’s criticism of Wickremesinghe was once a staple of national political rhetoric.

However, political necessity often succeeds where ideology fails. Reports of a recent meeting between the two at Wickremesinghe’s Colombo residence have inevitably raised eyebrows across the political spectrum. More interesting than the meeting itself is the reported substance of the discussion, which allegedly focused on strengthening a broader Opposition front and exploring ways of challenging the Government’s growing political dominance.

Whether the meeting marks the beginning of a new political alignment remains to be seen. However, it is increasingly evident that Opposition forces are searching for common ground, even among personalities who once occupied opposing ends of the political battlefield.

If the current political climate continues to evolve in this direction, the sight of Wickremesinghe and Weerawansa sharing the same political platform may no longer seem as improbable as it once did.

More trouble for Basil

Meanwhile, court has ordered to immediately arrest former Minister of Economic Development Basil Rajapaksa, who is also the theoretician of the Sri Lanka Podujana Peramuna (SLPP), and other former tourism officials over the alleged misuse of Rs. 7.8 million. The case revives a deeper question about how often State machinery has been converted into an election machine.

According to investigators, funds allocated for tourism promotion were allegedly used to print 12,000 T-shirts carrying the image of former President Mahinda Rajapaksa (MR) and party symbols during the 2014 Uva Provincial Council Election campaign. If proven true, the case is not merely about financial misconduct; it is about the political culture that blurred the line between government and party for years.

The Matara Magistrate also issued a warrant to arrest Basil recently after he had failed to appear in court consecutively.

Namal’s defence

SLPP National Organiser Namal Rajapaksa’s defence of his uncle Basil, meanwhile, has raised a familiar question on whether justice can be seen to be done when key political figures remain beyond the country’s borders.

While Namal insists that Basil is not evading the law and continues to be represented through his lawyers, critics argue that legal representation is not the same as personal accountability. The optics of a former Finance Minister residing comfortably in the US while facing scrutiny at home inevitably fuel public scepticism.

At the same time, Namal’s accusation that the Government is disproportionately focused on the Rajapaksas also reflects a broader political battle over priorities. Governments often face criticism for pursuing high-profile investigations while struggling to address pressing economic and social concerns.

Namal thanks Sunil

Meanwhile, an interesting political incident took place recently when Namal had expressed gratitude to a senior Minister of the Government. It is none other than Minister Sunil Handunnetti.

Addressing a leadership workshop organised by the SLPP for a group of youth members from all parts of the country, Namal had spoken of his experience in delivering his first public speech on a political platform. Namal had recounted that at the time he had been asked to make a speech on a political platform, baggy jeans had been in fashion and that he had been wearing one at the meeting. He had further noted that the baggy jeans had prevented the people at the meeting from seeing his legs that were shivering due to nervousness.

The youth at the event had laughed along with Namal when he was recounting the experience. However, the participants were not prepared to hear who he thanked for supporting him when he had to make his first public speech. Namal had said that it was Handunnetti who had helped him with the speech and advised him on how to address the gathering, noting that he (Namal) was always grateful to Handunnetti for his support that day. 

GR to testify online

Meanwhile, the long-running case concerning the disappearance of Lalith Weeraraj and Kugan Muruganandan has once again entered the political spotlight, with former President Gotabaya Rajapaksa (GR) receiving permission from the Jaffna Magistrate’s Court to provide evidence online.

The case dates to December 2011, when the two activists had disappeared in Jaffna amid growing concerns over enforced disappearances in the post-war north. At the time, as Secretary of Defence, GR was summoned in 2019 to testify in connection with a habeas corpus petition filed by the victims’ relatives.

While the court’s latest decision relates only to the mode of testimony, the development has revived public attention on one of the country’s unresolved disappearance cases. More than a decade after the incident, the search for answers continues, underscoring the enduring political and human rights questions surrounding accountability, justice, and reconciliation in post-war Sri Lanka.

The proceedings are likely to be closely watched by both victims’ families and rights advocates, who view the case as a test of the State’s commitment to addressing long-standing allegations of disappearances.

Travel ban on GR

Meanwhile, the Colombo Fort Magistrate’s Court imposed overseas travel bans on former President GR and two former Military Intelligence officers, marking a significant development in the long-running quest for accountability over the Easter Sunday attacks probe.

Officers of the Criminal Investigation Department (CID) had filed a motion before the court seeking travel restrictions on the individuals concerned. Upon considering the motion, the Magistrate had imposed travel bans on former President GR, former Army Colonel Mohamed Ansar, and former Intelligence officer Premananda Udalagama.

However, the inclusion of a former Head of State in the travel restriction order underscores the expanding scope of the investigation and shows a willingness by authorities to examine events beyond the immediate perpetrators of the attacks.

Bond scam case back in play

Meanwhile, the Supreme Court’s decision to revive Public Property Act charges in the controversial CBSL bond scam case is being viewed as being more than a legal ruling, and instead as a significant political moment.

For years, the bond scam has remained a symbol of the public’s frustration with elite impunity and the slow pace of accountability in high-profile corruption cases. The 2021 Trial-at-Bar ruling, which effectively blocked key charges against the accused, had raised questions about whether one of the country’s biggest financial scandals would ever be fully tested in court.

By overturning that decision, the Supreme Court has reopened a path that many believed was closing. Its determination that companies can be prosecuted under the Public Property Act reflects an understanding that modern financial misconduct often operates through corporate structures rather than individuals acting alone.

It should also be noted that the ruling does not determine guilt or innocence. What it does is ensure that the allegations will receive a full hearing.

The political significance is clear: a case that has shaped public perceptions of governance and accountability for nearly a decade is once again moving to the centre of the national conversation.

CBSL under RW

However, the latest development in the CBSL bond scam and the spotlight turning back on former Minister Ravi Karunanayake had resulted in several Opposition politicians recently speaking about the bond scam case.

A senior Opposition politician who was also part of this conversation had noted that he was still baffled over Karunanayake’s implication in the bond scam when neither the CBSL nor the State banks had been under him (Karunanayake) during the period of the bond scam although he had held the Finance portfolio.

Hearing these words, another Opposition politician in the gathering had noted that the fact that Karunanayake did not have the CBSL and State banks under his purview during the Yahapalana Government when he held the Finance portfolio had slipped his mind.

It was then that they had started to speak of the fact that the CBSL was under then Prime Minister Wickremesinghe and the State banks were under the purview of then Minister Kabir Hashim during the period the bond scam had taken place.

VVIP guests at Ravi’s

Meanwhile, Karunanayake is said to have played host to two high-profile visitors at his residence on Rajamalwatta Road in Kotte. The guests were former Presidents MR and GR.

According to political sources, the two former leaders had held an extended discussion with Karunanayake during the visit and later joined him for dinner before departing.