Rupee Soars as Monsoon Arrives; US-Iran Deal Nears Amidst Strikes; Vesak Festival Begins

US President Donald Trump has advised negotiators not to rush into an agreement with Iran, stating a deal is "largely negotiated" and extending the ceasefire by 60 days, while discussions continue in Qatar regarding Iran's uranium stock

. Despite this, US forces launched airstrikes on southern Iran, targeting missile launch sites and naval yards, citing self-defense amidst the existing ceasefire

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Opposition Leader Sajith Premadasa urged the government to immediately secure a fresh IMF agreement, highlighting that Bangladesh is also seeking a more realistic IMF arrangement to ease the burden on its citizens

. The Cabinet has approved the 'Surakimu Lanka' national mission to bolster energy security, addressing dependence on fossil fuels, geopolitical instability, and volatile international prices through an integrated program

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India donated 134 single cab vehicles, valued at approximately Rs. 300 million, to the Sri Lanka Police, which were officially received by President Anura Kumara Dissanayake and are slated for distribution to police stations in the Northern Province

. The Colombo Chief Magistrate temporarily lifted the foreign travel ban on MP Chamara Sampath Dissanayake, allowing him to travel to China from May 23rd to June 06th in connection with a corruption case

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President Anura Kumara Dissanayake officially opened the State Vesak Festival in the Matara District at the Midellawala Viharaya in Thihagoda, with celebrations continuing until June 2nd under the theme "Abhiththarētha Kalyāṇē"

. The Attorney General has informed the Supreme Court of his intention to file indictments against former Inspector General of Police Deshabandu Tennakoon within a month, related to the 2022 attack on protesters at Galle Face

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The Colombo High Court postponed the delivery of verdicts in four corruption cases against former Deputy Minister Sarana Gunawardena to June 9, as the judgment was not ready

. The Election Commission has declared its readiness to conduct Provincial Council elections at any time, pending parliamentary approval of the necessary legal framework

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Compensation payments for 5000 Matara farmers affected by the Nilwala salinity barrier, which has caused annual crop damage since its construction in 2019, will commence on May 27, with President Dissanayake inaugurating the first phase

. The Free Lawyers' Organization has warned authorities about a shipment of coal for the Norochcholai power plant, describing its quality as "completely rejectable" with an ash content of 16.8%, and urging a thorough investigation before unloading

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The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has mandated that all public officials submit their asset and liability declarations for 2026 digitally by June 30, with manual submissions no longer accepted and a surcharge for late filings

. Foreign Minister Vijitha Herath has begun an official tour of New Zealand and Australia from May 26 to June 3, which includes the official opening of Sri Lanka’s new High Commission in Wellington

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Sri Lanka Police have unveiled a special island-wide security and traffic management plan for the Hajj festival on May 28, deploying officers around mosques and implementing special traffic measures

. Hill Country Hindu priests met with Presidential Secretary Dr. Nandika Sanath Kumaranayake to address decades-old issues, with assurances of government intervention and regular follow-up discussions

. The Cabinet of Ministers has approved the sale of approximately 115,000 metric tons of paddy held by the Paddy Marketing Board to free up storage space and financial resources for the upcoming Yala cultivation season

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The Sri Lankan Rupee continues its sharp appreciation against the US Dollar, becoming Asia's best performer, with the selling price dropping to Rs 328.69 on May 26th. This trend is attributed to expected inflows from the IMF and ADB, reversing earlier predictions of depreciation

. The Sri Lanka Central Bank has raised its one-day policy interest rate by 1% to 8.75%, a decision made by the Monetary Policy Board due to ongoing Middle East conflict and global economic uncertainties

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The Central Bank has tightened vehicle loan limits, capping facilities for vehicles used over a year post-registration at 60%, and maintaining a 40% LTV for private vehicles, which is expected to impact sales and imports

. Central Bank Governor Dr. Nandalal Weerasinghe stated that recent rupee fluctuations were driven by market speculation and panic, not fundamental economic shifts, and that targeted interventions led to rapid stabilization. He also noted expected growth and that policy interest rate hikes aim to curb excessive borrowing

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The Inland Revenue Department has filed a lawsuit against the Colombo Municipal Council (CMC) at the Colombo Magistrate's Court to recover Rs. 1034 million in Value Added Tax (VAT) that the CMC allegedly failed to pay

. The Sri Lanka Vehicle Importers Association (SLVIA) has called for a government investigation into potential irregularities surrounding the opening of Letters of Credit (LCs) for vehicle imports just before a 50% surcharge was implemented, and opposes the Central Bank's new credit caps

. The CPC Managing Director denied fuel price hike rumors, attributing station queues to false propaganda and confirming sufficient fuel stocks, with two crude oil shipments from the US and UAE expected soon

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Adverse weather has affected 22,236 individuals from 5,803 families across eight districts between May 22-25, with 1,507 individuals housed in 21 temporary safety shelters. One death was reported in Gampaha and one injury in Colombo, with 860 houses partially damaged

. The Southwest Monsoon has established across Sri Lanka, with forecasts indicating heavy rain exceeding 75mm in Western, Sabaragamuwa, and North-Western provinces, as well as in Galle, Matara, Kandy, and Nuwara Eliya districts

. The National Water Supply and Drainage Board (NWSDB) announced a 12-hour water cut for Mahara and Gampaha Pradeshiya Sabha areas, starting May 27th at 7:00 PM, to facilitate pipeline relocation for the Central Expressway construction

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The Colombo Crime Division informed the Fort Magistrate that the CID, via Interpol, has requested data from the mobile phone of the late former SriLankan Airlines CEO, Kapila Chandrasena, from Apple, as missing CCTV footage hinders the investigation into his death

. Alleged major Sri Lankan drug traffickers Shiran Basik and 'Alto Dharmé' have reportedly been arrested in Dubai, with Basik linked to an Iranian drug network and wanted by the United States, though Sri Lankan authorities have not yet received official confirmation

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A team of specialist doctors, led by Chief Epidemiologist Dr. Palitha Karunapema, has issued special guidelines to control and prevent the spread of Meningitis, following reports of over 100 suspected cases in Sri Lanka, including children

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A 56-year-old male teacher from Badalkumbura died after being swept away by a strong sea current at Kirinda Beach while swimming with a group of students. Police lifeguards rescued several individuals, but the teacher was pronounced dead at Kirinda Hospital, and a schoolgirl remains in critical condition

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