The Sri Lankan government announced it intends to request assistance from the World Bank, the IMF and the Reserve Bank of India to trace billions of dollars, which have been allegedly taken abroad by people close to former president Mahinda Rajapaksa.

Cabinet spokesperson and minister for health Rajith Senaratne told media his government was aware that people who held high positions had hidden "billions of dollars" in foreign accounts.

"We will go after the foreign assets of Sri Lankans. Billions of dollars have been stolen and taken out of the country. We are taking steps to bring them back," Mr Senaratne told reporters.

Tamils protest outside the army camp in Aanaikkoddai (Photo: Tamil Guardian)

Tamil land owners protested outside a Sri Lankan army camp in Jaffna, demanding that the land on which the camp was built be returned to them immediately.

Residents said the army camp, situated in Aanaikkoddai within the Jaffna peninsula, was built on land seized by the military.

Earlier this month, the government issued a gazette notification, declaring that the camp of the army regiment’s 11th Battalion will be made permanent on this day, denying the Tamil families any possibility of return to the land and houses they own.

Due to objections by the land owners the government had temporarily halted the permanent transfer of the land to the military, however refused to return it to its rightful owners, said protest organisers, the Tamil National People’s Front (TNPF).

Buddhist monks from Sri Lanka’s Bodu Bala Sena (BBS) announced they will launch a party to “protect Buddhist culture” as there was a “threat” from minorities in the country.

Speaking to The Indian Express, Chief Executive Dilantha Withanage said his organisation’s activities in Sri Lanka are “inspired by what the RSS and BJP do in India” and that the BBS would launch “a party modelled on these Indian ventures to protect Buddhist culture in Sri Lanka”.

The monk warned that minorities were reproducing at a much higher rate than Sinhalese families and that this was supported by money from abroad.

The Sri Lankan government is intending to start discussions with the International Monetary Fund, seeking its assistance in reducing the debt burden it has amassed under former president Mahinda Rajapaksa.

Finance Minister Ravi Karunayake. who met with IMF officials earlier today, told Bloomberg before the meeting, the new president, Maithripala Sirisena, wanted to reduce the amount spent on interest on Sri Lanka’s $55bn (Rs7.2tn) debt.

“We are initiating discussions on a new program,” Mr Karunanayake, said yesterday, but declined to give further details, only adding that “we will not be dictated to by any of these multilateral agencies.”

Mr Karunayake said the new president sought to increase taxes on the “super-rich” to benefit poorer citizens, adding he would maintain fiscal discipline and eliminate corruption.

"China and Sri Lanka are friendly neighbors. Our relationship has withstood the test of time, and is founded on a solid footing. Cooperation between China and Sri Lanka in various fields serves the aspirations and interests of the two peoples."