The Tamil National Alliance (TNA) MP, Mavai Senathirajah called for the new Sri Lankan constitution to push a federal solution to the ethnic conflict, stating that the country would be more united under such a system.

"Under the present unitary resolution, we cannot find an answer to our issues," Mr Senathirajah explained in an interview with Sunday Leader.

"We need to bring all communities under one country, but these bankrupt politicians say if a federal solution is sought, it will divide the country. I think the country will be more united under a federal system."

Sri Lanka's finance minister declared his government is expecting a bailout package from the International Monetary Fund to come into place next week, as Sri Lanka faces a worsening economic crisis.

"The good news is that it could be forthcoming next week," said Ravi Karunanayake after meeting with IMF representatives on Saturday.

Sri Lanka is reportedly hoping to receive a $1.5–2 billion bailout package, as it struggles to cope with a budget deficit, dwindling foreign reserves and a currency crisis. State Minister of Finance Lakshman Yapa Abeywardena said at least $1 billion would be granted.

Mr Karunanayake though remained upbeat, telling reporters, "it is better to have the IMF endorsement than to be without it".

Sri Lankan Prime Minister Ranil Wickremesinghe defended the Chinese Port City project currently in Colombo, claiming that it “presents an opportunity for everyone to make money”.

The $1.4 billion project is the single largest foreign investment on the island, and was until recently put on hold by the Sri Lankan government, with Mr Wickremesinghe stating the project had to be reviewed last year.

However, the prime minister came out in defence of the construction and sought to alleviate fears that the Chinee will be looking to place military instalments on the island.

"The Port City is not a threat to anyone, it's an opportunity for everyone to make money," he told reporters. "The Chinese have not asked for any military base in Sri Lanka."

A new committee has been appointed for the Forum for Searching, Handed, Kidnapped and Forcibly Disappeared Relatives in the Vavuniya District this week.

The organisation, which has branches in all the districts across the North-East, has been active in staging demonstrations and writing petitions to help locate the tens of thousands of disappeared.

Sri Lankan President Maithripala Sirisena has restored military security for his predecessor Mahinda Rajapaksa just days after stepping down his protection.

Mr Sirisena announced that a contingent of 103 Sri Lankan soldiers will remain with the former president for his personal security, reversing an earlier Ministry of Defence decision.