The International Monetary Fund downgraded Sri Lanka's growth to 6.7 percent on Wednesday from the 6.8 expected by Sri Lanka's Central Bank, as inflation is expected to hit double figures at 10.1 percent by the end of this year.

The relatively conservative over-estimate by the Central Bank, came after it was forced to downgrade the initial 8 percent predicted forecast.

In 2010 and 2011, Sri Lanka had a growth of 8 percent and 8.3 percent respectively.

The Supreme Court in Delhi has dismissed a Public Interest Litigation, calling on the Indian government to ban the training of Sri Lankan defence officials.

"It is a matter of foreign policy. We won't interfere with the policy matters," said judges at the court.

Sri Lanka lifted its travel advisory against travel to Tamil Nadu on Tuesday.

The ban was instigated citing attacks against Sri Lankan pilgrims in Tamil Nadu.

In a statement, the Ministry of External Affairs said:

“Following a series of unfortunate incidents faced by Sri Lankans visiting Tamil Nadu, in particular a group of Sri Lankan pilgrims visiting the Poornimatha Church in Thanjavur in early September 2012, the Government of Sri Lanka was compelled to issue a travel advisory for Sri Lankan nationals visiting the state of Tamil Nadu.

Judges in Sri Lanka protested on Monday, after a High Court judge was beaten with pistols and stabbed. In a statement, judicial association would not work for one day in protest at the attack.

A 38-year-old mother of five was sexually assaulted and killed in Batticaloa on Monday, repored TamilNet on Monday.

Ms A Sinnapillai was gagged and dragged out of her home by two Sinhalese workers and allegedly raped and murdered in a nearby jungle. Her body was found dumped upside down in a pit.

Malaysia is planning to sign a memorandum of understanding with Sri Lanka regarding the oil and gas sector, reported the Daily News.

Malaysia’s High Commissioner to Sri Lanka Azmi Zainuddin said the MoU could help the Sri Lankan Petroleum Resources Development Secretariat to formalise business and investment opportunities with Malaysian firms.

“We recognise the potential that Malaysian oil and gas companies could offer Sri Lankan companies in this sector.