Indonesian authorities are holding in custody 50 asylum seekers from the island of Sri Lanka for the past two days, just after they survived the sinking of their vessel en route to Australia, and over 24 hours in the water. Over one hundred others perished.

An event, part of a cultural exchange programme of Kalai Kaviri College in Trichy, has been cancelled after protestors demanded that the Sri Lankan participants be sent back.

54 students and 10 teachers from Sri Lanka came to participate in a programme on Thursday, but were told by college administrators to return to Sri Lanka as the programme had been cancelled.

The annual animal sacrifice for the feast of Sri Bhadra Kali Amman in Munneswaram has been cancelled on the request of President Mahinda Rajapakse.

The ritual which involves the sacrifice of hundreds of goats and fowl has sparked rows between the areas Hindu Tamils and Buddhists.

The Chinese minister of National Defence, General Liang Guanglie met President Rajapakse in Colombo on Wednesday.

The president thanked China for standing by Sri Lanka during difficult times and for “cultural cooperation” and “forthcoming economic assistance”.

Reports suggest that China is planning to pledge US$ 100 million to fund Sri Lankan Army projects in the northeast of the island.

“Since the establishment of bilateral diplomatic relations, China-Sri Lanka friendship has withstood the test of international vicissitude and we have always maintained good cooperation,” the General said, speaking at during an event at the defence college in Colombo.

“We all know that since the beginning of its reform and opening-up, China's overall national strength and international influence have grown remarkably."

"Some people in the international community suspect that China would take the road of expansion with force, and have been actively spreading the ‘China Threat Theory’.”

The Tamil detainee, Sundaram Satheeskumar, who was attacked in Galle prison last week, was transferred to Colombo National Hospital for medical treatment, reports Uthayan. 

Former chairman of Sri Lanka’s tourism, Nalaka Godahewa has been announced by the government as the new market regulator for the country - the chairman of the Securities and Exchange Commission (SEC).

His predecessor, Tilak Karunaratne, resigned in early August citing widespread market malpractice and impunity. Many investors have claimed that stock exchange is over regulated and Godahewa’s “market friendly” charisma has hopes to succeed. 

But some have noted that regulations will be difficult to enforce even under the new chief as investors are powerful enough to fend off any probes.

After three years of rehabilitation and reconciliation through the state discliplined media and having the military on your doorstep, Sri Lanka recently took to doing a spot-check, looking for the tell-tale signs of those who just refuse to learn the 'truth'.

Tamil Nadu Chief Minister J. Jayalalitha and other party leaders have slammed Union Minister of State for Defence M M Pallam Raju, for saying that India would continue to provide training to Sri Lanka since it was a friendly nation.

Having been baffled, incredulous and frustrated by the UK FCO's travel advisory warning, the Sri Lankan government now fears that other countries could follow suit with "copycat" advisory warnings.

The Sri Lankan Economic Development Ministry has announced it is to receive a grant worth €60 million for its District Development Programme.