Sri Lanka is preparing to accept further Chinese loans later this year, which may push Colombo further into debt reports the Economic Times.

The ET reports that the Central Bank of Sri Lanka is currently working with the People's Bank of China, to issue the equivalent of $250 million worth of yuan-denominated Panda bonds by the final quarter of 2018. The fresh loan will add to the recently secured a $1 billion syndicated loan from China Development Bank.

An elderly Tamil man has been arrested in Kilinochchi after he staged a protest against corruption in the Sri Lankan police force.

A Tamil mother and child from Batticaloa have been reported missing.

Jothimalar Tharshan and her 4-year-old son Nixon Tharshan of Punnacholai, Batticaloa have been missing since Friday, according to a complaint filed with Batticaloa police by relatives.

Jothimalar’s partner is currently working abroad in the Middle-East, relatives said.

The Sri Lankan army’s continued occupation of divisional council-owned properties in Valikamam North is preventing resettlement and rehabilitation of the division, a council-member said.

The chair of Vali North divisional council (prathesa sabai) said that among several state properties and schools, seven council-owned properties were still being held by the army.

These were identified as the divisional council headquarters, the Kankesanthurai library, a children’s park, a rest house and three sports grounds in Kurumbusitty, Vasavilan and Kankesanthurai.

The cost of bread rose this week due to government taxes on palm oil which is used in baking. 

A 450g loaf of bread will now cost Rs 5 more, the president of the All Ceylon Bakers Association, N K Jayawardene was quoted by Ceylon Today as saying. 

The Consumer Affairs Authority rejected media reports that the cost of flour was also due to rise. 

A Tamil worker was killed in a landmine explosion during de-mining work in Mankulam on Monday.

Sri Lanka's Special Task Force (STF) yesterday arrested a Tamil youth in Jaffna for allegedly possessing heroin. 

The man is believed to be from Mallakam, Uduvil.

The STF officers have handed over the suspect to Chunnakam police. 

Sri Lanka's Terrorism Investigation Division (TID) sought permission from Jaffna magistrate court to interview the editors of three Jaffna based newspapers, the Uthayan, Valumpuri and Thinakkural. 

Justice Kanagaratnam Kesavan however today refused the application on the grounds it was only written in Sinhala. 

Ordering the TID to produce an application written in the language of the Jaffna court, the judge adjourned the hearing until November 16. 

Last month the TID summoned five Tamils along with a journalist, Uthayarasa Shalin to their Colombo office for an inquiry. 

A Mullaitivu court today remanded 12 Tamils, arrested over their alleged involvement in the finding of an LTTE flag and ammunition in Oddusudan in June, until September 17. 

Nine Tamils were initially arrested in relation to the incident. Last week a former LTTE cadre and father of three, from Santhapuram, and another Tamil man from Mallavi were arrested. One man who was wanted by the TID reportedly surrendered on August 29. 

Sri Lanka's Terrorism Investigation Division (TID), who has been conducting the inquiry in July sought information regarding babies born in May at Kilinochchi hospital, claiming that it would help with the inquiry. 

The bodies of at least 12 children have been excavated from the mass grave in Mannar, as the number of bodies found in total continued to rise this week.

Judicial Medical Officer (JMO) Saminda Rajapaksha confirmed with JDS that the remains of 12 children had been discovered, with excavations continuing. The Daily Mirror reports that 114 skeletons had been discovered to date.

"Some of the bodies are incomplete," Rajapaksha told JDS. "Parts of a hand or a leg could be missing at present. It doesn't mean that they are not human skeletons. Further excavations might reveal the missing parts."