News
IMF not paying sufficient attention to corruption: GL
By Shamindra Ferdinando
SLPP MP Prof. G. L. Peiris has found fault with the International Monetary Fund (IMF) for not paying sufficient attention to waste, corruption and economic mismanagement under the Rajapaksa-Wickremesinghe administration.
The former External Affairs Minister emphasised the responsibility on the part of the lending agency to address these issues, particularly against the backdrop of its latest agreement with the government of Sri Lanka worth USD 2.9 bn.
The SLPP National List MP said so yesterday (24) at his weekly media briefing at the Nawala Office of the Nidahasa Jathika Sabawa.
Prof. Peiris said that the Opposition would take up these issues with the IMF delegation, scheduled to be here in June this year. Sri Lanka has secured IMF assistance on 16 previous occasions.
The ex-Minister drew attention of the IMF as well as other stakeholders involved in the debt-restructuring process and the recent disclosure made by Justice Minister Dr. Wijeyadasa Rajapakse, PC, regarding a bribe amounting to USD 250 mn received by a person to derail Sri Lanka’s efforts to secure compensation for the X-Press Pearl ship disaster in May/June 2021.
Pointing out that an expert committee appointed by the MEPA (Marine Environment Protection Authority) had estimated the damages caused by the marine disaster at USD 6.4 bn, Prof. Peiris said that a wider investigation was required to identify and punish those who had conspired to sabotage Sri Lanka’s bid.
Prof. Peiris compared the USD 2.9 bn loan made available by the IMF over a period of four years with the compensation which could be obtained from the X-Press Pearl owners-X-Press Feeders /insurers.
Environmentalist Dr. Ajantha Perera recently declared that Sri Lanka could obtain as much as USD 50 bn from X-Press Pearl owners/insurers.
Prof. Peiris also questioned the government’s decision to move Singaporean court against X-Press Feeders, a Singaporean-based privately held group.
The law academic stressed that the case should have been filed here as the incident took place in Sri Lankan territorial waters.
When The Island raised this issue with the Justice Minister recently, it was informed that the Cabinet of Ministers had approved Attorney General Sanjay Rajaratnam’s proposal to file a case in Singapore.
Commenting on the recent disappearance of a cash bundle worth Rs 5 million (Rs 5000 denomination) from a vault of the Central Bank, Prof. Peiris said a high-level probe had to be conducted into the incident.
The shortage was revealed during the currency operations on 11.04.2023. Declaring that the government, particularly the Finance Ministry, owed an explanation on how cash could be removed from a high security vault, Prof. Peiris said that the public tends to lose confidence in public finance.
The MP stressed the responsibility of the Central Bank to thoroughly inquire into the issue at hand and take appropriate measures to identify those responsible for what he called an inside job.
At the onset of the briefing, Prof. Peiris reiterated their strong opposition to the restructuring of domestic debt in line with the agreement with the IMF. That would have catastrophic impact on the ordinary people as well as the banking sector, Prof. Peiris said, while questioning the decision to privatize state enterprises.
Responding to media queries on his removal from the post of Chairman of the ruling SLPP, Prof. Peiris said that the decision would be challenged in court. The former minister challenged the legality of a meeting chaired by SLPP leader Mahinda Rajapaksa at their Nelum Mawatha Office last Saturday (22) where the party appointed a new Chairperson.
Prof. Peiris refused to be drawn in on former Premier Mahinda Rajapaksa’s criticism of him.
News
US-assisted ‘Ice’ detection: NPC to examine IGP’s move to transfer drug-busting team
Senior DIG among those slated for transfer
By Shamindra Ferdinando
The National Police Commission (NPC) is expected to take up Police Headquarters recommendation to transfer a group of police officers responsible for a major ‘Ice’ bust at the Colombo port recently.
NPC sources told The Island that recommendation in respect of transfers was received last week. Sources said that though the NPC was scheduled to meet today (01), whether IGP Priyantha Weerasooriya’s recommendation would be discussed and decided today was not known.
Members of the NPC are retired High Court Judge Lalith Ekanayake (Chairman), K. Karunaharan, Dilshan Kapila Jayasuriya, A.A.M. Illiyas and Jayantha Jayasinghe
The IGP directed the Special Investigation Unit (SIU) to probe those who carried out the 31 August, 2026 raid that resulted in the detection of 463 kgs of ‘Ice’ concealed in a container that arrived from Pakistan.
The US Embassy declined to comment on the probe though it declared that the largest ever narcotics detection was made on intelligence made available by the US Drug Enforcement Administration (DEA).
The officers investigated for what an authoritative Headquarters source called shortcomings and lapses on the part of the raiding party, belonged to the Central Crime Investigation Bureau (CCIB). Senior DIG Ranmal Kodituwakku who, on behalf of the CCIB, received information directly from the DEA, is among those Police Headquarters wanted to transfer.
CCIB carried out the raid after having obtained a search order from the Aluthgama Magistrate court. Among the suspects taken in this connection are three Pakistani nationals.
News
2027 Budget to be held from 12 Nov. to 14 Dec.
* First Reading of the Budget on 7 October
The Committee on Parliamentary Business has decided that the Second Reading of the Appropriation Bill for the year 2027 (Budget Speech/presentation of Budget proposals) will take place on 12 November, followed by the Second Reading debate from 13 November to 14 December.
Secretary General of Parliament Kushani Rohanadeera said this had been decided at a meeting of the Committee on Parliamentary Business held recently under the chairmanship of Speaker Dr. Jagath Wickramaratne.
Accordingly, the Appropriation Bill was scheduled to be presented to Parliament for its First Reading on 7 October, the Secretary General said.
It was also decided that the Second Reading of the Appropriation Bill (Budget Speech) would be delivered by President Anura Kumara Dissanayake, in his capacity as the Minister in charge of Finance, on Thursday, 12 November, 2026.
Thereafter, the Second Reading debate will be held for seven days, from 13 November to 20 November. Accordingly, the vote on the Second Reading will be held at 6.00 pm on 20 November.
Thereafter, the Committee Stage debate will be held for 19 days, from 21 November to 14 December , with the vote on the Third Reading of the Budget scheduled for 6.00 pm on 14 December.
During this period, the Budget debate will be held every day, including Saturdays, except on public holidays and Sundays. Parliament is scheduled to meet at 9.30 am on each of these days.
From 9.30 am to 10.00 am each day, time will be allocated for the Parliamentary business specified under Standing Order 22(1) to (6). Thereafter, five Questions for Oral Answers will be taken up from 10.00 am to 10.30 am, followed by one question under Standing Order 27(2) from 10.30 am to 11.00 am.
Accordingly, the debate is scheduled to be held from 11.00 am to 6.00 pm on all days, except the two days on which votes are scheduled to be taken, Motions at the Adjournment Time will be taken up for debate from 6.00 pm to 6.30 pm, based on a 50:50 time allocation between the Government and the Opposition, the Secretary General stated.
It was also approved that during the Second Reading debate, 60% of the debate time will be allocated to the Government and 40% to the Opposition, while during the Committee Stage debate, 40% will be allocated to the Government and 60% to the Opposition.
Furthermore, if a division is called for on an Expenditure Head, relating to a Ministry, the relevant vote will be held at 6.00 pm at the conclusion of the proceedings on the respective day.
News
CB Governor confident over timely disbursement of next IMF tranche; hands post-2027 programme decisions to govt.
By Sanath Nanayakkare
Central Bank Governor Dr. Nandalal Weerasinghe addressed queries on the nation’s IMF bailout programme yesterday and indicated that Sri Lanka expects to reach a Staff-Level Agreement with the Fund shortly, clearing the path for the next tranche of funding under the $3 billion EFF arrangement before the end of the year.
Answering questions on Sri Lanka’s economic path, after the current programme expires in March 2027, Dr. Weerasinghe clarified that seeking a follow-up IMF arrangement was entirely a policy decision for the government rather than the Central Bank, maintaining the institutional boundary between Central Bank operations and political decision-making.
The Governor remained firm in his projection that the national economy would expand by around 4 percent throughout 2026, demonstrating economic resilience, even amid external volatilities, such as high oil prices.
Dr. Weerasinghe expressed confidence in the domestic economy’s underlying momentum. While international financial institutions and multilateral agencies had pegged Sri Lanka’s growth prospects at more conservative levels, typically around 3.0 to 3.5 percent, he emphasised that CBSL’s projections are grounded in continuous analysis of real-time indicators.
“When you compare with several other agencies, their growth projections hover around 3 to 3.5 percent. However, the economy is already growing at around 4 percent. In our projections, the economy will maintain this growth rate of around 4 percent throughout the year,” Governor Weerasinghe said.
He noted that despite mid-year quarter adjustments due to volatile oil prices, real economic indicators, including steady credit expansion across the commercial banking sector and sustained industrial and service activity, indicate that the growth trajectory remains firmly on track above the 4 percent benchmark.
Reiterating the Central Bank’s primary mandate, Dr. Weerasinghe noted that monetary policy actions remained focused on anchoring inflation and curtailing excess demand to prevent runaway price spikes.
On inflation targeting, the Governor mentioned that CBSL had submitted a technical recommendation to the Ministry of Finance to maintain an inflation target of 5 percent (+ or – 2 percent band) over the next three-year horizon.
Responding to inquiries on differing target forecasts announced by external agencies such as the IMF, Dr. Weerasinghe underscored that the Central Bank’s recommendations stem strictly from domestic technical and empirical evaluations.
“Our recommendation is based on pure technical and empirical analysis considering the country’s specific situation. We have recommended maintaining a 5 percent target for the next three years, and the government has accepted this recommendation,” he added.
Regarding foreign exchange management, the Governor noted that the Central Bank continues its active market intervention strategy aimed at smoothing out undue exchange rate volatility rather than resisting natural market trends.
Dr. Weerasinghe concluded that while the short-to-medium-term outlook remained assured, the combination of a steady 4 percent growth target and proactive fiscal measures would firmly anchor macroeconomic stability through 2026 and beyond.
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