Today’s News Digest: Your go-to summary of the key events and headlines that shaped the day. From major developments to breaking news, we bring you everything that happened today, all in one quick and easy read.
IMF official stresses responsible AI adoption to safeguard public trust in central banks
International Monetary Fund (IMF) Chief Information Officer Shirin Hamid has emphasised the importance of adopting artificial intelligence (AI) responsibly in central banking, warning that its growing use must be supported by strong governance, security and human oversight to maintain public trust. Delivering the Central Bank of Sri Lanka’s (CBSL) 76th Anniversary Oration recently (23), Hamid highlighted the opportunities and risks associated with integrating AI into central bank operations and decision-making. According to the CBSL, Hamid, who also serves as Director of the IMF’s Information Technology Department, delivered the oration under the theme “The Intelligent Central Bank: Building Trust in the Age of AI.” She noted that AI has the potential to improve the effectiveness of central banks in fulfilling their mandates, while stressing that emerging risks must be carefully managed. Hamid emphasised that AI systems used by central banks must be explainable, secure and ethical, with robust governance frameworks to ensure accountability.
Cabinet approves Rs. 5 million each for prison officers killed in Negombo clashes
The Cabinet of Ministers has approved special compensation payments of up to Rs. 5 million for prison officers who were killed or injured during the clashes at Negombo Prison on July 5 and 6, 2026. According to the Cabinet decision, Rs. 5 million will be paid for each officer who lost their life, while officers who sustained permanent disabilities will also receive Rs. 5 million each. Officers who suffered partial disabilities resulting in a 100% loss of earning capacity will receive Rs. 4 million, while those who sustained temporary partial disabilities will be entitled to Rs. 3 million. These payments will be made in addition to the compensation provided under Public Administration Circular No. 22/93. The decision follows recommendations submitted by a committee appointed at the Cabinet meeting held on August 3, 2026, under the chairmanship of the Secretary to the Ministry of Justice and National Integration.The committee was tasked with recommending compensation and relief measures for prison officers affected by the clashes while performing their duties.
Sri Lanka to introduce new laws to protect children from social media exploitation
The Ministry of Women and Child Affairs is taking steps to introduce new laws and regulations to prevent parents and adults from exploiting children for social media popularity and financial gain. Minister of Women and Child Affairs Saroja Savithri Paulraj said the move comes amid growing concerns over children being exposed to dangerous activities and inappropriate content by adults seeking online fame and income. According to the Ministry, reported incidents include taking children to dangerous locations, encouraging them to use obscene language, involving them in adult-oriented content and exposing them to sexually explicit material. The Minister warned that parents who deliberately place their children at risk for financial gain or popularity raise serious concerns about their ability to fulfil parental responsibilities.
Open warrant issued for Basil Rajapaksa in Brown’s Hill land case
The Matara Magistrate’s Court has issued an open warrant for the arrest of former Minister Basil Rajapaksa in connection with an ongoing investigation into the purchase of a property at Brown’s Hill in Matara. The order was issued following a report submitted to the court by the Financial Crimes Investigation Division (FCID) regarding the case. The investigation concerns the acquisition of an approximately one-and-a-half-acre property located along Eliyakanda Road in Brown’s Hill, Matara, which is allegedly linked to the former Minister. The property, reportedly a coconut cultivation land, had previously belonged to German national Herbert Keller and was allegedly purchased by Rajapaksa for Rs. 60 million.
Maximum 2 overseas franchise leagues a year: SLC tightens rules
Sri Lanka Cricket (SLC) is set to introduce stricter regulations limiting national players to a maximum of three franchise cricket leagues per year, including the Lanka Premier League (LPL). Speaking at a press conference in Colombo, Sri Lanka Cricket Transformation Committee member Sidath Wettimuny said the new regulations would be strictly enforced to ensure players prioritise their national commitments. SLC had previously introduced similar restrictions on franchise league participation. However, the regulations were not consistently enforced, with several players participating in more tournaments than permitted. Under the proposed measures, players will also be required to return to Sri Lanka at least 10 days before an international commitment, allowing sufficient time for preparation. Wettimuny acknowledged that there had been instances where Sri Lankan players returned late from overseas franchise tournaments before joining the national team.