Internal Developments:

Rajapaksa Rejects Ranil’s Claims

1. While rejecting allegations that his government had misappropriated some Rs. 28bn at the Highway ministry, former President Mahinda Rajapaksa has charged that the current government was engaged in a smear campaign against him in an attempt to belittle the solid achievements of his government in the field of infrastructure development.

No Burning Problem in SLFP- Chandrika

2. Former President Chandrika Bandaranaike Kumaratunga said that there was no ‘big problem’ in the SLFP, as some had purported, that could split the party. She added that that the UNP was trying to ‘grab power’ at the next general election by dividing the SLFP vote. Political analysts claim that the SLFP share in the legislature will decline if the Rajapaksa factor comes into play at the next general election. That is why, Kumaratunge believes, that the UNP wants to promote the Rajapaksa factor and create a division in the SLFP.

Sri Lankan Tamils Mark sixth Anniversary of End of War:

3. For the first time in the last six years, Sri Lankan Tamils openly marked anniversary of war’s end in Mullivaikkal village. This came in the wake of new government’s decision to lift the ban on commemorating ‘Tamil victims’. For the past five years,end of the war used to celebrated as ‘Victory Day’ by the Rajapaksa government. Instead, this year President Sirisena’s administration observed it as ‘Remembrance Day’ to mark the sacrifices made by all, irrespective of their ethnicity. While commemorating the event, President Sirisena said, ‘We were not able to win hearts and minds of people’ after the war. True reconciliation could only be achieved by winning hearts and minds, he added. Street procession and protests to commemorate the dead, it may be recalled, are banned by court order.

Maj.Gen.Dias to be new Army Chief; HRW Express Concern:

4. International NGO, Human Rights Watch (HRW) has expressed concern over the promotion of Maj.Gen.Jagath Dias and his appointment as the Chief of Staff of the Sri Lanka Army, since his Division was implicated in serious human rights abuses. HRW casts doubt on government pledges to credibly investigate alleged war crimes. Maj. Gen. Jagath Dias, had led the Army’s 57th Division during the last two years of the operations against the Liberation Tigers of Tamil Eelam (LTTE). Although effective May 7, 2015, the appointment was only made public on May 15, 2015.

Rajapaksa Fears LTTE Revival:

5. Former Sri Lankan president Mahinda Rajapaksa, who is mounting a political comeback campaign, has expressed fears that the separatist Tamil Tigers could regroup and revive terrorism in the country.

External Developments:

Defence Minister Holds Talks with UK, India on Defence Ties:

6. Sri Lankan Defence Minister Ruwan Wijewardene, who was in Singapore to participate in the 14th Asia Security Summit - the IISS Shangri-La Dialogue, held series of discussions on defence cooperation with several countries including United Kingdom and India.

Pakistan Army Chief to Visit Sri Lanka:

7. Chief of the Army Staff (COAS) of the Pakistan Army General Raheel Sharif is to visit Sri Lanka from 5 June, 2015, at the invitation of his Sri Lanka's counterpart. Gen Sharif, during his stay in Sri Lanka, is expected to gift a few horses to the Sri Lanka Military Academy for training purposes as a gesture of goodwill and cooperation. He will also join a wreath-laying ceremony at the War Heroes' monument in Diyatalawa. General Sharif was scheduled to visit the island nation last month but cancelled his trip following the terrorist attack on a bus in Karachi.

Sri Lanka Seeks German Assistance for Peace and Prosperity:

8. Sri Lanka's Minister of Foreign Affairs Mangala Samaraweera, during his recent visit to Germany, while addressing the German Council on Foreign Relations (DGAP) on May, 23 said although Sri Lanka has shown remarkable development in recent years, the new government was not without challenges in the task of building durable peace and prosperity for the people of Sri Lanka.

9. Highlighting the fact that Sri Lanka has long been a paradise for German tourists, the Minister said that the government was now making it a paradise for German investors. He pointed out that over 100,000 German tourists visited Sri Lanka last year and expressed the hope that the number would rise. He noted that the German model of social market economy is something Sri Lanka could learn from and the space and opportunities for the two countries to work together and cooperate have now expanded.

Sri Lankan Documentary Wins Award at Cannes:

10. Sri Lankan government hailed the awarding of Cannes' top prize to a film highlighting the plight of the Tamil minority during the island's civil war, adding that the authorities were working to redress past injustices. "Dheepan", a French movie about a former Sri Lankan soldier's struggle in a French ghetto after fleeing the separatist war, captured the Cannes Film Festival's Palme d'Or prize. Film's lead actor, Antonythasan Jesuthasan, is himself a former Tamil Tiger child soldier who escaped the fighting and secured asylum in France over two decades ago. Government spokesperson said that because of this movie, Tigers' use of child soldiers has come to light and expressed the hope that the publicity from this movie, would generate further interest in “our reconciliation efforts."

Economic Developments

Sri Lanka, ADB Sign USD 107 million Loan Agreement:

11. Sri Lanka signed a loan agreement with the Asian Development Bank (ADB) for US$ 107 million as assistance package to rehabilitate and improve the island's road network. This loan is the second tranche of a USD 800 million multi-tranche financing facility to upgrade roads. According to the ADB, all-weather rural access roads will result in significant social benefits and poverty reduction, such as increased agriculture productivity since farmers will be able to get goods to market faster, better access to health services and education, and easier access to jobs.