Sri Lanka's trade deficit continued to widen in the first nine months of the year, despite an increase in exports, the Sunday Times' economic column noted.

Last year the trade deficit over the first nine months was US$ 6.1 billion, rising to US$ 6.8 billion this year. 

The deficit was expected to fall this year as export figures increased by 8.2 percent. However, despite this increase imports increased further by 9.7% percent. 

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Former LTTE cadres have only received a "tiny fraction of money" pledged by the government last year in the form of self-employment loans, Ceylon Today reported. 

According to the paper, 7858 of the 12,185 cadres who underwent the government's 'rehabilitation' programme applied for the loan, however only 1799 were deemed eligble. 

Banks cited the frequent re-arrest of former cadres by the Terrorism of Investigation Division as adding to their concern about lending. 

"Some of them are in prisons, and we don't know how to recover the loans," a bank official told the paper. 

Sri Lanka’s prime minister Ranil Wickrememsinghe defended the China’s and India’s stake in the Hambantota Port Project and the running of Mattala airport during a public speech on Friday.

Opening a new bus stand and economic centre in Ampara, Mr Wickremesinghe said,

Twenty fishermen from Tamil Nadu, India were arrested by the Sri Lankan navy on Friday for allegedly crossing into the island's waters. 

The men were detained along with two fishing boats and fishing equipment. They are to be produced at court in Point Pedro. 

The arrest is the latest in the ongoing issue of Tamil Nadu fishermen being arrested by Sri Lankan navy personnel. 

In October the chief minister of Tamil Nadu wrote to the Indian premier, Narendra Modi, urging him to intervene and secure the release of dozens of fishermen currently detained in Sri Lanka.

The body of a Tamil man reported missing over a month ago was found in a forest in Mannar.

Anthonipillai Saint Nicholas who ran a barbershop in Aandankulam did not return home after work on October 25, according to the police report filed by his wife.

On Friday, Madu locals reported to police the discovery of a decomposing body in forested land around the Poomalanthan village. The body was identified as Mr Saint Nicholas by relatives this morning.

The Northern Provincial Council's education minister, K Sarveswaran defended his refusal to hoist the Sri Lankan flag stating it was not acceptable to all communities. 

Asked by The Hindu about his refusal to hoist the flag last month whilst at a public event in Vavuniya, Mr Sarveswaran was quoted by the paper as saying, "the national flag was not accepted across sections of people and the issue of designing a national flag acceptable to all 'also forms part of any debate to resolve the ethnic conflict'."

He did not "disrespect" the flag he added. 

The European Union and Sri Lanka held the fourth dialogue on strengthening investment and trade. 

The EU's delegation, led by Ambassador of the European Union to Sri Lanka Tung-Lai Margue, included representatives from the UK, Germany, France and the Netherlands. 

Ambassador Margue said the EU was studying Sri Lanka's latest budget, adding that some of the World Bank and International Monetary Fund objectives had been included. 

Residents in Othiyamalai, Mullaitivu came together on Saturday to remember the massacre of 32 Tamils by the Sri Lankan military in 1984. 

Lamps were lit and flowers were laid in remembrance of those who were killed. 

A Sri Lankan soldier has been arrested for indecent exposure and sexual harassment after flashing his genitals to a Tamil woman on a bus.

Following the incident on packed private bus in Kilinochchi, the soldier alighted and entered the Gajaba regiment camp in Mulankavil.

The woman affected alerted other passengers and reported the harassment to Mulankavil police, who arrested the soldier at the camp.

The soldier will be presented to the Kilinochchi magistrates court on Saturday.

Chunnakam police assaulted Tamil youths on Maaveerar Naal and harassed locals coming to their defence, according to a complaint filed at the Sri Lankan Human Rights Commission.

A local trader from Punnalaikattuvan, in Valikamam South, said he was verbally abused, assualted and had false drug charges laid on him by police when he attempted to intervene while the police were beating Tamil youths outside shops in the area.

The trader, who had gone to the scene on his motorcycle, fled on foot upon being attacked and returned later to recover his motorcycle. However police said that 200 grams of cannabis had been found in his vehicle.