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Rupee will reverse gains and plummet 20%, Fitch says
Sri Lanka’s rupee, which became the world’s best performing currency this year amid hopes of an International Monetary Fund bailout, may resume declines and lose a fifth of its value against the dollar by end-2023, according to Fitch Solutions.
“We are optimistic that Sri Lanka will be able to secure an IMF board approval by early 2Q 2023,” said Seah Wang Ting, country risk analyst at Fitch Solutions told Bloomberg. Nevertheless, there’s potential for disruptions after the initial board approval as authorities may find it challenging to stay on track with the IMF programme amid a weakening economy and a local election likely on the horizon, he said.
Fitch maintained its forecast for the rupee to weaken to a record low of 390 per dollar by year-end. The rupee advanced 3% to 317.7 per dollar on Wednesday, taking its annual gains to over 15%. That’s after the IMF said it plans to decide on a $2.9 billion bailout for Sri Lanka following China’s assurance that it would support the nation’s debt restructuring.
Sri Lanka has increased taxes, cut energy subsidies and loosened its grip on the currency to secure the IMF loan. The central bank recently lifted borrowing costs further to ensure that inflation which has slowed from nearly 70% doesn’t flare up.
“Sri Lanka still has significant external debt repayment needs and will need to build up its foreign reserve buffer over the coming months, which would put downside pressure on the exchange rate,” Fitch said in a report Wednesday.
Sri Lankan President Ranil Wickremesinghe said on Tuesday the country needs to repay about $6 billion-$7 billion foreign loans on average each year until 2029.
The Sri Lankan rupee may also be pressured by tightening global monetary conditions, according to Fitch. Federal Reserve Chair Jerome Powell told the Senate Banking Committee on Tuesday that the ultimate level of interest rates is likely to be higher than previously anticipated.
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Death toll 635 as at 06:00 AM today [09]
The Situation Report issued by the Disaster Management Center at 06:00 AM today [09th December] confirms that 635 persons have died due to floods and landslides that took place in the country within the past two weeks. The number of persons that are missing is 192.

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Cyclone Ditwah leaves Sri Lanka’s biodiversity in ruins: Top scientist warns of unseen ecological disaster
Sri Lanka is facing an environmental catastrophe of unprecedented scale in the wake of Cyclone Ditwah, with leading experts warning that the real extent of the ecological destruction remains dangerously under-assessed.
Research Professor Siril Wijesundara of the National Institute of Fundamental Studies (NIFS) issued a stark warning that Sri Lanka may be confronting one of the worst biodiversity losses in its recent history, yet the country still lacks a coordinated, scientific assessment of the damage.
“What we see in photographs and early reports is only a fraction of the devastation. We are dealing with a major ecological crisis, and unless a systematic, science-driven assessment begins immediately, we risk losing far more than we can ever restore,” Prof. Wijesundara told The Island.
Preliminary reports emerging from the field point to extensive destruction across multiple biodiversity-rich regions, including some of the nation’s most iconic and economically valuable landscapes. Massive trees have been uprooted, forest structures shattered, habitats altered beyond recognition, and countless species—many endemic—left at risk.
Among the hardest-hit areas are the Royal Botanical Gardens, Peradeniya, Seethawaka Botanical Garden, Gampaha Botanical Garden, and several national parks and forest reserves under the Department of Wildlife Conservation and the Forest Department. Officials describe scenes of collapsed canopies, destroyed research plots, and landscapes that may take decades to recover.
Prof. Wijesundara said the scale of destruction demands that Sri Lanka immediately mobilise international technical and financial support, noting that several global conservation bodies specialise in post-disaster ecological recovery.
“If we are serious about restoring these landscapes, we must work with international partners who can bring in advanced scientific tools, funding, and global best practices. This is not a situation a single nation can handle alone,” he stressed.
However, he issued a pointed warning about governance during the recovery phase.
“Post-disaster operations are vulnerable to misuse and misallocation of resources. The only safeguard is to ensure that all actions are handled strictly through recognised state institutions with legal mandates. Anything else will compromise transparency, accountability, and public trust,” Prof. Wijesundara cautioned.
He insisted that institutions such as the Department of Wildlife Conservation, the Forest Department, and the Botanical Gardens Department must take the lead—supported by credible international partners.
Environmental analysts say the coming months will be decisive. Without immediate, science-backed intervention, the ecological wounds inflicted by Cyclone Ditwah could deepen into long-term national losses—impacting everything, from tourism and heritage landscapes to species survival and climate resilience.
As Sri Lanka confronts the aftermath, the country now faces a critical test: whether it can respond with urgency, integrity, and scientific discipline to protect the natural systems that define its identity and underpin its future.
By Ifham Nizam
News
Disaster: 635 bodies found so far, 192 listed as missing
The Disaster Management Centre (DMC) has categorised 192 persons as missing as search operations were scaled down in flood-affected areas.
The death toll has been placed at 635, while the highest number of deaths was reported from the Kandy District. Kandy recorded 234 deaths.
According to the latest data, a total of 1,776,103 individuals from 512,123 families, in 25 districts, have been affected by the impact of Cyclone Ditwah.
The DMC has said that 69,861 individuals from 22,218 families are currently accommodated in 690 shelters established across the country.
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