Standard & Poor's ratings agency has lowered the outlook on Sri Lanka’s 'B+' long-term sovereign credit rating to negative from stable, citing rising fiscal and external imbalances, Economy Next reported.

The downgrade comes a week after Fitch also took the step to downgrade outlook to B+.

Standard & Poor's confirmed the 'B+/B' ratings and the 'B' short-term credit rating and left its transfer and convertibility risk assessment on Sri Lanka unchanged at 'B+'.

“Sri Lanka's external and fiscal performances have underperformed our expectations,” a statement by the firm said. “A high government debt and interest burden, and gaps in institutional capacity constrain its policy options and responsiveness.

Malaysian activist Lena Hendry was acquitted of censorship charges in relation to a screening of the No Fire Zone documentary which she organised.

Magistrate Mohd Rehab Mohd Aris said that the prosecution failed to establish a “prima facie” case against Ms Hendry and thus she need not enter her defence, the Malay Mail reported.

The activist could have been jailed for up to three years on charges under Section 6(1)(b) of the Malaysian  Film Censorship Act 2002 for screening the No Fire Zone documentary without the approval from the Censorship Board.

Her lawyer New Sin Yew was grateful that the court agreed with their arguments against what he described as a “frivolous” charge.

Tamil protestors gathered outside the Northern Province Chief Minister's office on Wednesday, demanding officials take action against violence against children.

Sri Lanka's Foreign Minister Mangala Samaraweera said to parliament on Tuesday that the government was working on repealing the Prevention of Terrorism Act.

Mr. Samaraweera said the Law Commission of Sri Lanka, was entrusted with the task of formulating an alternative draft law in keeping with international practices, and had just submitted a draft.

TNA leader, and leader of the opposition R Sampanthan on Tuesday slammed the government for its continuing failure to release Tamil political detainees and urged Prime Minister Ranil Wickremesinghe and President Maithripala Sirisena to release them immediately.

Rehabilitation and Resettlement Minister D.M. Swaminathan said on Tuesday that out of 218 Tamil political detainees, 39 persons were, in November last year, released on bail. 19 of those were recommended for rehabilitation before their eventual release, however only three had accepted the controversial programme.

The Sri Lankan navy arrested two men in Jaffna for attempting to smuggle gold to India this week.

The men were attempting to smuggle almost 7kg of gold, worth an estimated 34.5 million Sri Lankan rupees, in the Madagal area according to reports.

The smuggling of gold is thought to be closely linked to the drug trade in the Tamil North-East, which has been plagued by drug addiction since the end of the armed conflict almost 7 years ago.