Sri Lanka is reluctant to sign the CEPA (Comprehensive Economic Partnership Agreement) with India, with many officials expressing a fear that CEPA would give India too much say in Sri Lanka's markets, work force and political affairs.  

According to Business Standard, officials from Sri Lanka's Minister of Commerce, described a "fear psychosis" over dependence on the Indian market, giving indirect leverage on political matters by Sri Lanka, as well as concerns that Indian access to Sri Lankan markets would destroy Sri Lanka's 'domestic industry'.

The Foreign and Commonwealth Office has ignored protests by the Sri Lankan government about its recent updates to travel advice over security on the island and has added further warnings.

After the recent convictions of French tourists over pictures that were taken with statues of Buddha, the foreign office advice now warns against posing in front of statues.

Addressing the occupying military in Vanni, secretary of defence Gotabhaya Rajapksa, noted that their foremost responsibility was to “ensure that all measures are adopted to win hearts and minds of the Northern civilians and prevent the recurrence of terrorism".

After opening with this noble statement, the defence secretary went on to describe a series of welfare projects that have been launched for the sake of the military service personnel and “war hero families”.

The land laws are to be amended to exclude the past 30 years, citing the armed conflict.

Justifying the move, Justice Minister Rauff Hakeem said,

"The Norochcholai coal power plant is not as bad as one makes it look. It is just overused, tired and needs a break to rest like any other equipment does."

"The plant was forced to work beyond its required limits and keep supplying electricity to the whole country.”

"Questioning the quality of the equipment used in the project and pointing fingers at China Machinery Engineering Corporation is without basis.”

"According to normal practice in China, a thermal plant should undergo a one month maintenance period annually… Only then can the unit be more reliable and efficient and expected to perform well."

The Sri Lankan cabinet has approved proposals by the government to obtain loans from China totalling over $1 billion.

Minister of Finance and Planning Mahinda Rajapakse, who is also President, Minister of Defence, Minister of Ports and Aviation, and Minister of Highways and Road Development, forwarded the proposals to the cabinet.

Delivering the keynote address at a university symposium, Defence Secretary Gotabaya Rajapaksa claimed that Sri Lanka was experiencing a “national revival that will restore it to its rightful place on the world stage” and that the government’s challenge was to “facilitate this resurgence”.

“There remain significant unmet humanitarian needs among communities in the north.

These range from basic assistance such as clean water, shelter and food security in resettled areas to more sophisticated issues such as sustainable assistance to obtain livelihoods, rights and return to more normal life as part of durable solutions on par with international standards”.

The Sri Lankan government has shut down most universities on the island, after an ongoing row over government interference saw widespread strikes by teachers.

The Minister for Higher Education S.B. Dissanayake announced the decision after consultation with university officials not involved in the trade union action and accused the FUTA (Federation of University Teachers Association) of trying to provoke a political crisis in order to get regime change.

He said the government had already met five of FUTA’s six demands, but their spokesman denied this.