Skip to content 
Search

Latest Stories

Sri Lanka says 'no' to Japan rail project signed by the previous government

SRI LANKA on Thursday(24) scrapped a Japanese-funded light rail project in the capital signed by the previous government.

President Gotabaya Rajapaksa has ordered the termination of the $1.5-billion project, saying it is not a "cost-effective solution" for the congested capital Colombo.


The project was the largest single foreign-funded infrastructure project in Sri Lanka, and was seen as a sign of the island nation reducing its dependence on China.

Gotabaya Rajapaksa, elected last year, told the transport ministry to "terminate this project and close the project office with immediate effect", top aide P B Jayasundara said in a letter to the ministry.

There was no immediate comment from the Japan International Cooperation Agency (JICA), which in March last year loaned 30 billion yen ($285 million) to finance the first phase of the Light Rail Transit (LRT).

Japanese technology including rolling stock was to be used on the rail system, which included 16 stations over 15.7 kilometres (9.8 miles).

Detailed planning and land acquisition for the project in Colombo, which has some of the worst traffic congestion in South Asia, had already been completed and initial construction was under way.

The Japanese loan carries an interest rate of 0.1 percent and is repayable over 40 years with a 12-year grace period. Japan has already funded sections of new expressways and a key bridge to reduce traffic congestion in and out of the capital.

Under former president Mahinda Rajapaksa -- the incumbent's brother -- Sri Lanka borrowed billions of dollars from China for projects including ports, highways and railways.

But several ended up as white elephants and left the country facing a mountain of debt -- mainly to China -- stoking fears about Beijing's "Belt and Road" masterplan for overseas infrastructure.

Unable to service its loans, the then government of prime minister Ranil Wickremesinghe leased a Chinese-built port at Hambantota in the island's south to a Beijing company for $1.12 billion in 2017.

India is also concerned about the increased Chinese influence in the island nation.

More For You

Rajnath Singh

The council that approved the initiation of procurement for arms and equipment is headed by Defence Minister Rajnath Singh. (Photo: Reuters)

Reuters

India starts process to procure arms worth $12.31 billion

INDIA’s Defence Acquisition Council (DAC) has approved the initiation of procurement for arms and equipment worth $12.31 billion (£9.05 billion), the defence ministry said on Thursday.

The council is headed by India's Defence Minister Rajnath Singh.

Keep ReadingShow less
uk weather

Forecasts indicate that the weekend will be unsettled

Getty Images

Cooler conditions bring relief as UK heatwave ends

Key points

  • UK's second heatwave of 2025 ends with cooler temperatures setting in.
  • Tuesday recorded the year’s highest temperature at 34.7°C in London.
  • No return to heatwave conditions forecast for early July.
  • Showers expected in parts of Scotland and Northern Ireland, with drier weather ahead.

UK heatwave fades as cooler weather returns

Following a stretch of record-breaking heat, the UK has now entered a cooler phase, with no heatwave conditions forecast for the first half of July. This change comes after Tuesday became the hottest day of the year so far, with 34.7°C recorded in London’s St James’s Park.

However, the high temperatures that marked the start of July have now given way to more comfortable conditions. In many parts of the country, temperatures have dropped by more than 10°C, bringing relief from the extreme heat.

Keep ReadingShow less
Families slam Hancock's 'insulting' care home defence at Covid inquiry

Matt Hancock arrives ahead of his latest appearance before the Covid-19 Inquiry on July 02, 2025 in London, England.(Photo by Leon Neal/Getty Images)

Families slam Hancock's 'insulting' care home defence at Covid inquiry

BEREAVED families have condemned former health secretary Matt Hancock as "insulting" and "full of excuses" after he defended the controversial policy of moving untested hospital patients into care homes during the early days of the Covid pandemic.

Speaking at the Covid-19 inquiry on Wednesday (2), Hancock described the decision to discharge patients into care homes as "the least-worst decision" available at the time, despite the devastating death toll that followed.

Keep ReadingShow less
Starmer-Getty

Starmer has said the NHS must 'reform or die' and promised changes that would control the rising costs of caring for an ageing population without increasing taxes. (Photo: Getty Images)

Getty Images

Starmer outlines 10-year NHS reform strategy

PRIME MINISTER Keir Starmer will on Thursday launch a 10-year strategy aimed at fixing the National Health Service (NHS), which he said was in crisis. The plan seeks to ease the pressure on overstretched hospitals and shift care closer to people’s homes.

The NHS, which is publicly funded and state-run, has faced difficulties recovering from the Covid-19 pandemic. It continues to experience annual winter pressures, repeated waves of industrial action, and a long backlog for elective treatments.

Keep ReadingShow less
Starmer-Reeves-Getty

Starmer and Reeves during a visit to Horiba Mira in Nuneaton, to mark the launch of the Government's Industrial Strategy on June 23, 2025 in Nuneaton. (Photo: Getty Images)

Getty Images

Reeves ‘going nowhere’, says Starmer after tears in parliament

PRIME MINISTER Keir Starmer on Wednesday said that Chancellor Rachel Reeves would remain in her role for “a very long time to come”, after she appeared visibly upset in parliament as questions were raised about her future.

Reeves was seen with tears rolling down her face during Prime Minister’s Questions, after Starmer did not confirm whether she would remain chancellor until the next general election, expected in 2029.

Keep ReadingShow less