The Sri Lankan government has decided to resume all road development projects with China, according to a government official.

Highways, Higher Education and Investment Promotion Ministry Secretary Udaya Ranjith Seneviratne told Xinhua that the ministry had already made payments to the relevant Chinese contractors for the projects.

Some of the Chinese companies involved in the projects had earlier decided to suspend some of the work due to non-payment.

Tamil activists who take part in protests highlight the disappearances of those who surrendered to the army, are under surveillance by the Terrorism Investigation Department and complain of harassment by the security forces.

S Yogeswari (name changed), whose husband was in the political wing of the LTTE and disappeared after surrendered to the army on May 18, 2009, told the New Indian Express that she lives in fear due to close surveillance.

She has been taking part in the recent demonstrations highlighting the disappearance of LTTE members who had surrendered to the army.

“Because I participate in these demonstrations, teams of investigators, including those from the Terrorist Investigation Department (TID), frequently visit me. When they come in the evenings, my kids and I get frightened,” the 45-year-old mother of three said.

The Northern Provincial Council's Chief Minister CV Wigneswaran boycotted a meeting with Sri Lanka's Prime Minister Ranil Wickremesinghe, who is currently visiting Jaffna, Ceylon Today reported.

The chief minister snubbed the meeting due to comments made recently by the prime minister, who had described the NPC resolution on genocide as "racist", defended the military's presence in the North-East and accused Mr Wigneswaran of being uncooperative with Colombo in a recent TV interview in India, the paper reported sources close to the chief minister as saying.

Sri Lanka's new government has named new directors to six private banks in which the government has a stake, prompting concern in the banking sector, reports the SundayTimes.lk.

The six commercial banks consist Hatton National Bank (HNB), Commercial Bank, National Development Bank (NDB), Sampath Bank, DFCC and Seylan Bank.

According to the paper, Sampath Bank, and the Commercial Bank are likely to resist the government's measures.

Police in Colombo have arrested 8 people for producing a documentary 'defamatory' of the army, the Daily Mirror reported.

The individuals, five of whom hail from Jaffna in the Tamil North-East, were taken into custody at a house in Narahenpita, a suburb of the Sri Lankan capital.

Sri Lanka's finance minister, Ravi Karunanayake said Sri Lanka intends to revise investment rules to attract foreign direct investment (FDI) by easing barriers of entry, Lanka Business Online said.

Delivering the keynote address at the 18th Asian Investment Conference organised by Credit Suisse, the minister said the external account is a problem and as almost half a percent of the country’s public borrowing is denominated in foreign currencies, he said he favours a stronger rupee to reduce debt servicing costs.

“Little Sri Lanka needs help to meet its people’s expectations and become the pearl of the Indian Ocean,” Mr Karunanayake said.

Ships from the first training squadron of the Indian navy arrived at the Trincomalee port on Friday, where they were welcomed by Sri Lankan navy officers and officials from the High Commission of India.