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Resolution on IMF deal passed with 120 votes

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The Resolution for the implementation of the arrangement under the Extended Fund Facility (EFF) of the IMF for Sri Lanka was passed in Parliament by a majority of 95 votes with 120 voting in favour and 25 voting against it.

The Parliamentary debate on the agreement reached with the IMF started after President Ranil Wickremesinghe made a special statement in Parliament on Wednesday. The debate was held for three days.The SJB abstained since the second half of the final day debate objecting to it stating that government failed to table the IMF/EFF agreement in the House.

After leaving the Chamber, the SJB issued the following release under the signature of Chief Opposition Whip and Kandy District MP Lakshman Kiriella: “The Government is seeking Parliamentary approval, post facto, for the agreement it has entered into with IMF based on Cabinet approval. This is not the first time Sri Lanka is obtaining bailout packages from IMF. Even the last such programme (16th bailout package) was abruptly ended by the present government when it came in to office in 2019.

The IMF staff level agreement on an Extended Fund Facility (EFF) with Sri Lanka is aimed at restoring macroeconomic stability and debt sustainability while safeguarding financial sector stability, protecting the vulnerability and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.

It is incumbent upon the current government to walk the talk on these promises. However, given its previous actions it is doubtful whether going forward, the government will fulfil its promises to the IMF.The SIB has grave reservations in supporting Parliament approval for this agreement for the following reasons:

Lack of transparency

It took the government 200 days to table the arrangement with the IMF in Parliament after reaching an understanding with IMF officials. During this period, the government did not engage Parliament or the Public Finance Committee to discuss the agreement.

Fiscal consolidation

The focus of fiscal consolidation is increasing revenue, while there is no reference to cutting expenditure, which is equally important.

Inequitable Tax burdens on the working classes

In order to raise revenue, the government has agreed with the IMF to take the easy way out by increasing taxes on the working classes, most of whom are already in the tax net. Tax slabs have been narrowed and rates increased sharply. These segments of the population are already weighed down by the burden of high inflation, escalation in energy costs, etc. There is no commitment to widen the tax net and ensure enforced collection on the higher income groups which have for years evaded taxes. Taxation of the rich via wealth and inheritance taxes are to be introduced only in 2025.

Social Security Nets

The poor and vulnerable require continued support through financial transfers. The government proposes to continue use of the current politicised process to target relief payments instead of developing a scientific and foolproof system that ensures leakages are minimised and the deserving beneficiaries are identified.

Financial Services Sector Stability

The absence of safeguards to ensure the stability of the financial services sector through the Sovereign Debt Restructuring process. A Domestic Debt Restructuring (DDR) will have disastrous consequences for the domestic banking sector by destabilizing it both from a liquidity and capital adequacy perspective. A DDR will also seriously erode the value of employee superannuation funds (EPF / ETF). We are opposed to actions that will weaken the banking and financial services sector as a whole, already burdened by high nonperforming loans due to four years of challenges due to the Constitutional Coup, Easter Attacks, the pandemic and disruptions caused in 2022.

Inadequate assurances and Anti-corruption measures

There have been no assurances provided by the President nor members of the Cabinet that the stubborn problems related to corruption vulnerabilities will be addressed and prioritised. In view of the shortcomings in the agreement mentioned above, SJB considers it a futile effort to support this government on this agreement which is already in operation and binding on the government of Sri Lanka. The sole responsibility for meeting the commitments under the agreement with the IMF lies with the government, whether the Parliament approves it or not. Therefore we, the SJB are refraining from voting in favour of this agreement as in our view it has not been well negotiated to safeguard the people of the nation at large and in particular vulnerable communities.”



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War-linked power crunch pushes Lanka to four-day week

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(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.

Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.

“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.

Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.

Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.

Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.

About half of Sri Lanka’s electricity is generated by coal and diesel.

The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.

Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.

“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”

Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.

“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.

The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if

“business continuity can be effectively maintained”.

And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.

“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.

Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.

Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.

President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.

He asked motorists instead to plug in during the day, when excess solar power is available.

Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.

The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.

Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.

“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”

By Amal JAYASINGHE

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Lanka to swelter through April and May, Met Dept warns

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Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

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Pathfinder Foundation launches Proposal for a National Security Strategy for Sri Lanka

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The Pathfinder Foundation launched a proposal for a National Security Strategy for Sri Lanka—2026, emphasising the urgent need for a comprehensive and state-led national security framework.

The proposed strategy contends that an effective National Security Strategy (NSS) must be based on a robust National Security Policy, which provides the long-term framework for protecting the country’s sovereignty, stability, and development in an increasingly uncertain global environment. The Pathfinder Foundation’s initiative, developed through consultations with academics, retired military officers, legal experts, and policy specialists, seeks to stimulate national discussion and support the formulation of an official state policy. The launch event was attended by those involved in preparing this proposal, heads of local think tanks, and media representatives.

Chairman of the Pathfinder Foundation, Amb. (Retd.) Bernard Goonetilleke, in his presentation of the report, emphasised that many major and middle powers, including the United States, China, the Russian Federation, the United Kingdom, Germany, Sweden, and Japan, have developed formal national security strategies. He pointed out that several South Asian and Southeast Asian countries, including India, Pakistan, Bangladesh, Nepal, Malaysia, Thailand, and Singapore, also rely on NSS, whereas Sri Lanka still lacks a single, officially adopted National Security Policy (NSP) or a National Security Strategy to guide long-term strategic planning.

The report highlights key strategic priorities across several sectors, including good governance, internal security, cybersecurity, energy and food security, health security, human capital development, and environmental protection. It also employs the internationally recognised DIME framework (Diplomacy, Information, Military, and Economy) to guide the coordinated use of national power in advancing Sri Lanka’s interests. Among its main institutional recommendations are establishing a fully legislated National Security Council, creating a National Security Secretariat, and officially appointing a National Security Advisor to coordinate policy and implementation across the government.

 The full text of the report is available https://pathfinderfoundation.org/publications, and your comments a/ welcome via pm@pathfinderfoundation.org

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