The International Monetary Fund (IMF) today approved an immediate disbursement of USD 408 million for Sri Lanka, which is recovering from decades old ethnic conflict that ended in May last year.

The third tranche of the disbursement to the island nation by IMF takes the total amount under the arrangement to Sri Lanka to SDR 689.0 million (about USD 1,019.4 million). Full Story


Sri Lanka has a complex tax structure which is discouraging savings and the government is expecting a comprehensive tax reform plan in August, deputy finance minister Sarath Amunugama said.

An interim report from a presidential tax commission has recommended a simplified tax structure which is more equitable and is being planned for the medium term, Amunugama said. Taxes on cars and some imports have already been cut on interim recommendations, he said. Full Story


Sri Lankan Buddhist monks have made a peace pilgrimage to the nation’s war-scarred North. The monks took their message of love to the mainly Hindu northern Tamil region to celebrate ‘Poson Day’, which marks the coming of Buddhism to Sri Lanka with Arahant Mahinda in the 3rd century BC.

Hundreds of Buddhist monks met with government soldiers, who are mostly Buddhists, and with resettled Tamils, who are mostly Hindus and Christians. Full Story


Sri Lanka has retained much of its heavy defence budget this year more than a year after ending the country’s civil war, the government said Tuesday.

Deputy finance minister Sarath Amunugama said in his budget speech to Parliament that the defence spending for 2010 has been estimated to be $1.64 billion, down only slightly from the previous year’s $1.65 billion. A budget for year 2010 was not presented when it was due in November last year because of approaching presidential and parliamentary elections. Full Story


Sri Lanka Cricket on Sunday barred its players from participating in overseas domestic leagues until the World Cup next year.

The ban comes as national selectors try to work out a winning combination for the showpiece tournament to be played in the sub-continent in February-April 2011. Full Story


An International Buddhist University will be established in Sanchi, India in the near future in accordance with a request made by Sri Lanka, Madhya Pradesh Chief Minister Shivraj Singh Chouhan told reporters in Colombo yesterday.

Chouhan who met President Mahinda Rajapaksa, Prime Minister D.M.Jayaratne and several other senior Government officials during his visit said during deliberations more important decisions too were taken which he described as ones which would further strengthen existing economic, cultural and religious ties between India and Sri Lanka. Full Story


CPM leader Sitaram Yechury has said Sri Lankan Tamils should have an autonomous state in a united Sri Lanka.

“Within united Sri lanka, Tamils should have a separate state… like the federal set up in India. Tamils should be given autonomy within the framework of united Sri lanka and not on the basis of a unitary nation,” he said. Full Story


The Central Government of India must  prevail upon the Sri Lankan government with regard to the resettlement process in the country, says M. Karunanidhi, Chief Minister of Tamil Nadu.

Reuters news agency quoted the Tamil Nadu chief minister saying this at the conclusion of the five-day World Tamil Classical Conference in Coimbatore. Full Story


Julia Gillard will have an opportunity to toughen her government’s line on boatpeople within days when the UN issues new guidelines. It is understood the new guidelines will remove the present recommendation that any Tamil from Sri Lanka’s war-torn north should automatically be considered a refugee.

In recent months there has been a diminishing flow of Sri Lankan and Afghan asylum-seekers thanks, some in the government say, to its freeze on processing their requests. Full Story


India has emerged as Sri Lanka’s biggest helper by committing assistance worth a staggering US$1,250 million, or Rs 127.8 billion, to rebuild the country’s civil war-ravaged Northern and Eastern Provinces since the so-called Eelam War IV ended 13 months ago.

Much of the assistance and the projects on which it is to be spent were finalized during President Mahinda Rajapaksa’s talks with Prime Minister Dr Manmohan Singh and other senior Indian leaders during his landmark official visit here on June 9. It comprises project grants and soft loan packages. Full Story


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