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Pulse of Sri Lanka: Political Probes Intensify, Rupee Dips, and Global Peace Deal Signed
Thursday, June 18, 2026 · 32 stories · Updated 2h ago

Pulse of Sri Lanka: Political Probes Intensify, Rupee Dips, and Global Peace Deal Signed

The Pulse
In 30 Seconds
  • Suresh Salley's health critical amid strip search claims.

  • Yoshitha and Basil Rajapaksa face arrests in corruption probes.

  • US-Iran war-ending deal signed; Trump warns of bombing.

  • Sri Lankan Rupee depreciates to Rs. 339.90 against USD.

  • Vehicle prices surge due to new taxes and valuation changes.

The Bigger Picture

Political scrutiny is intensifying in Sri Lanka, with high-profile figures like Suresh Salley facing critical health issues amidst detention and allegations of mistreatment , while members of the Rajapaksa family, including Yoshitha and Basil , face arrests and petitions to prevent detention in ongoing probes. This domestic political turbulence coincides with renewed economic pressures, as the Sri Lankan Rupee depreciates further and vehicle prices surge due to new taxes , even as global crude oil prices decline following a significant US-Iran peace deal .

Politics16 stories

The health of former State Intelligence Director Suresh Salley has critically deteriorated, with his wife claiming the CID admitted to a strip search and Salley refusing food and water on a hunger strike

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. His wife has appealed to President Dissanayake and the Catholic Bishops' Conference for justice, alleging severe health deterioration due to the hunger strike while held under a detention order related to the Easter Sunday attack investigations

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. Cabinet Spokesperson Nalinda Jayatissa, however, stated that Sallay has not been mistreated and urged him to cooperate with the Easter Attack probe

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In other high-profile cases, Yoshitha Rajapaksa was arrested by the Bribery Commission over alleged alterations to his naval recruitment qualifications in 2006 and the use of state funds for UK training

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, subsequently being produced before the Colombo Chief Magistrate's Court

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. Separately, the Colombo Fort Magistrate ordered the arrest of former Economic Development Minister Basil Rajapaksa for alleged misappropriation of Rs. 7.8 million from the Sri Lanka Tourism Promotion Bureau

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Former President Gotabaya Rajapaksa has filed a petition to prevent his arrest in the Easter Attacks probe, with the Court of Appeal hearing the case for fact verification

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. Senior DIG Waruna Jayasundara's writ petition seeking protection from arrest in the same investigation was concluded after the Attorney General stated no decision had been made to arrest him

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Opposition Leader Sajith Premadasa criticized the government for economic mismanagement, PTA misuse, and geopolitical risks, urging a reduction in fuel prices due to declining global crude oil rates

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. The Presidential Commission inspected the Norochcholai Lakvijaya Power Plant as part of a probe into alleged coal import irregularities from 2009

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. The trial against former Energy Minister Kumar Jayakody on corruption charges, related to a 2016 contract, has commenced in Colombo High Court, with Jayakody pleading not guilty

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Internationally, the US and Iran have reached a war-ending deal, with the memorandum of understanding digitally signed by US Vice President J.D. Vance and Iran's chief negotiator, and later by Presidents Trump and Pezeshkian, including an immediate halt to hostilities and reopening of the Strait of Hormuz

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. However, President Trump warned that the accord is not final and the US is prepared to resume bombing Iran if Tehran 'doesn't behave,' confirming no immediate sanctions relief

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India donated over USD 5 million in defence and medical aid, including military stores and a trauma care system, to the Sri Lanka Army

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. The government is modernizing state land leasing for cultivation, with an 11-member committee appointed to revise circulars

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. The LankaKonect app was launched to address grievances of overseas Sri Lankan workers, developed by the Ministry of Foreign Affairs, SLBFE, and ILO

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Economy8 stories

The Sri Lankan Rupee has depreciated again against the US dollar, with the selling rate reaching Rs. 339.90 on June 17th, reversing a brief recovery

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. This continues a fluctuating trend, with the selling price rising from LKR 338.22 on June 16th to LKR 339.90 on June 17th

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. Global crude oil prices, however, continued their decline, with Brent crude falling to $78.72 per barrel and WTI crude to $75.00 per barrel

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Vehicle prices in Sri Lanka have surged significantly due to the new Social Security Contribution Levy (SSCL) of 2.5%, a 50% surcharge on customs duties, and the removal of a 15% valuation reduction for used vehicles, potentially increasing popular models by millions of rupees

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. The Committee on Public Finance (COPF) has raised concerns that the CBSL's mandate for exporters to convert residual proceeds by the 10th of the following month could undermine market confidence and cause foreign exchange volatility

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Up-country train services from Nanu Oya to Badulla are scheduled to resume this Saturday, July 20, after disruptions caused by Cyclone Ditwah, with full restoration of the line expected by September

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. Sri Lanka officially launched its National Export Development Plan (NEDP) 2026-2030 on June 17th, targeting $36 billion by 2030

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. The Cabinet has approved a study committee to explore the operational integration of the Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF) under a unified governance framework

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Environment2 stories

Sri Lanka is experiencing dynamic weather, with showers expected in Western, Sabaragamuwa, and North-western provinces, as well as Galle, Matara, Kandy, and Nuwara Eliya districts on June 16th and 17th. Fairly strong winds of 30-40 kmph are anticipated, and the public is advised to take precautions against temporary localized strong winds and lightning

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. The Meteorology Department forecasts continued intermittent rain or thundershowers for June 18th in Western, Sabaragamuwa, and North-Western provinces, and several districts, with rain expected in Uva, Mullaitivu, Ampara, and Batticaloa after 2:00 PM

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Health2 stories

Officials have identified Aedes aegypti as the principal mosquito vector for dengue transmission in Sri Lanka, noting that increases in its population consistently precede major outbreaks due to its unique feeding behavior

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. Prime Minister Harini Amarasuriya has urged for a long-term program and collective action to combat the escalating dengue epidemic, highlighting the increasing risk across the country, particularly in Colombo District, and identifying public and institutional spaces as high-risk breeding grounds

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General2 stories

The mandatory seat belt regulation will be strictly enforced on expressways from June 20, requiring all occupants, including rear seat passengers, to wear seat belts, following the conclusion of a grace period

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. The Sri Lanka Police have launched a new QR code-based digital system, the “Sri Lanka Police Community Feedback Portal,” allowing the public to submit feedback, complaints, and suggestions for all police stations island-wide. A new mobile application for iOS and Android is also under development to enhance public access to police services

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Sports1 story

Sri Lankan javelin star Rumesh Tharanga has climbed to World No. 2 with 1,333 ranking points after his victory at the Rome Diamond League Athletics Championships. At Rome, Tharanga achieved a record-breaking 92.62m throw, the longest in the world this year, a new Sri Lankan national record, and the eighth-best in javelin history

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Crime1 story

Sri Lanka Police have launched an investigation after a woman's body was discovered inside a car near the Teldeniya Hospital, with a magisterial inquiry scheduled and preliminary investigations underway to identify a suspect in what is being treated as a potential murder

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