Sri Lanka is raising taxes on food and telecommunication services, and will remove VAT exemptions on several goods, the 2014 budget revealed.

Taxes have been raised on wheat flour, cheese, curd, margarine, sauces, sausages, sweets, chocolates, cereals, pasta, nuts and fruits.

"At the Commonwealth Heads of Government Meeting in Sri Lanka at the weekend, Prime Minister Tony Abbott said that while his government ''deplores the use of torture, we accept that sometimes, in difficult circumstances, difficult things happen''.

Sri Lankan president Mahinda Rajapaksa has announced in his 2014 budget speech that free-hold sales of land to foreign nationals will be stopped, and any leases will be taxed 15%.

"From this year foreigners can have access to state and private land only through long term lease arrangements," President Rajapaksa said to parliament.

President Mahinda Rajapaksa has announced in his budget speech to parliament that state-owned airlines SriLankan and Mihin Lanka will receive a $200mn bailout.

SriLankan will receive $150mn and Mihin Lanka $50mn from the state, according to LBO, which described both companies as making “record losses”.

The Sri Lankan government has accused British Prime Minister David Cameron of failing to follow protocol during his visit to Sri Lanka last week.

A government source told the BBC that Cameron had “breached protocol several times”.

The source claimed the prime minister had “brushed aside” the main local Tamil official, who was supposed to escort him around a refugee camp.

Reflecting on the British Premier's historic visit to Jaffna, the DMK president Karunanidhi of Tamil Nadu, India, said that David Cameron had "secured a permanent place in the hearts of Tamils in Sri Lanka, Tamils living in other countries, and Tamils in Tamil Nadu".

Commenting on the Indian Prime Minister's decision not to go, Karunanidhi said that if the decision had been taken in view of the sentiments of Tamils, then that should have been outlined in a letter to the Sri Lankan President.

The controversy surrounding Sri Lanka and allegations of war crimes risks overshadowing the Commonwealth Games due to be held in Scotland next July, reported the Herald Scotland.

With Sri Lanka taking over the Chair of the Commonwealth, President Mahinda Rajapaksa will be sharing the limelight with the Queen at the Games.