A global watchdog has warned that there are deficiencies in the Sri Lankan government’s efforts to stem money laundering, including in the implementation of sanctions on North Korea and Iran.

The announcement by the Financial Action Task Force (FATF) comes just weeks after the European Union placed Sri Lanka to its blacklist of countries at risk of money laundering.

The FATF said that whilst steps had been taken by Sri Lanka since November 2017, deficiencies remain. In particular it highlighted the implementation of UN Security Council resolutions on Iran and North Korea.

The United States navy is set to return to Sri Lanka in the coming months, as part of this year's Pacific Partnership exercise.

US troops will conduct civic-action projects, community health exchanges, medical symposiums and disaster-response training. The announcement is the latest project to be held between the two militaries, which have seen increasing closer relations.

Throughout 2017, several military co-operative exercises were held, including anti-terrorism training for Sri Lankan troops.

A Pillaiyar temple in Chemmani, Jaffna was vandalised this week, with the statue of the deity smashed. 

The attack, by unknown persons, occurred on Thursday evening. 

The police are reportedly investigating the incident, which is the latest in a series of incidents of vandalism targeting Hindu and Christian places of worship across the North-East. 

The Sri Lankan brigadier and defence attache to the UK, Priyanka Fernando, who was seen making death threats to Tamil protesters in London, received a hero welcome on board the Sri Lankan airlines flight he took back to Colombo this week. 

Brigadier Fernando was recalled back to Sri Lanka amid widespread calls, including from cross-party UK parliamentarians for his expulsion and for him to be investigated by the police. 

In a photograph tweeted today, he is seen taking a selfie with the staff of the state carrier, Sri Lankan airlines as he flew home. 

The International Monetary Fund (IMF) said this week it would continue to work with the Sri Lankan government on economic reforms, as outlined in the Extended Fund Facility programme. 

.“With regard to the current Extended Fund Facility programme with Sri Lanka more specifically, I would like to stress that the Fund remains fully engaged with the authorities as they continue to implement the IMF-supported economic reform programme to make growth more sustainable and inclusive,” IMF spokesperson Raphael Anspach was quoted by the Daily Mirror as saying. 

Sri Lanka continued to rank poorly in the 2017 Corruption Perception Index (CPI), performing even worse than it did under former Sri Lankan president Mahinda Rajapaksa.

According to the 2017 index compiled by Transparency International, Sri Lanka ranks 91^st with a score of 38.

The score is an improvement of just 2 points from last year, matching the same score as 2016. However it continues to lag behind the 2012 score of 40, when Mahinda Rajapaksa was in power.

^{All photographs and graphics courtesy of Sri Lanka Campaign}

The Sri Lankan campaign released a report this week, highlighting the Sri Lankan government’s ongoing surveillance, harassment and intimidation of Tamils in the North – from human rights activists to ordinary citizens engaged in dissent.

In his report published ahead of the 37th session of the UN Human Rights Council, the High Commissioner for Human Rights, Zeid Ra'ad Al Hussein said the "authorities have not yet demonstrated the capacity or willingness to address impunity for gross violations and abuses of international human rights law and serious violations of international humanitarian law", arguing the failure to show major progress in emblematic cases strengthens the argument for "the establishment of a specialized court to deal with the most serious crimes committed by State actors in the context of conflict...

Mullaitivu residents whose lands have been earmarked for landgrab by the Sri Lankan Navy protested on Thursday, blocking access to state land surveyors who had to turn back from the area.

Sri Lanka this week increased tax concessions to state officials on importation of vehicles. 

The news was announced in a circular released today by the Ministry of Public Administration and Management, the Daily Mirror reports. 

Sri Lanka's unity government was plunged into crisis this month after both coalition partners suffered losses at the local polls on February 12. 

Read more here.