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IMF sees “tentative signs of improvement” of Lankan economy
The Lankan economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions, says Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF) issuing a statement at the conclusion of his visit to Sri Lanka.
However, the economic recovery remains challenging and it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people, he said.
Given below is his statement in full:
“I wish to thank President and Minister of Finance Wickremesinghe, Governor Weerasinghe, Speaker Abeywardena, Foreign Minister Sabry, Justice Minister Rajapakshe, State Minister of Finance Semasinghe, State Minister of Investment Promotion Amunugama, Secretary to the Treasury Siriwardana, and senior government officials for their hospitality, and parliamentarians and representatives of the private sector for their engagement.
“I very much appreciated the constructive discussions I had during my visit, which allowed me to deepen my understanding of the challenges Sri Lanka is facing and to reiterate the IMF’s commitment to support Sri Lanka’s efforts to surmount these challenges.
“I welcomed the authorities’ strong commitment to implement their ambitious economic program which is supported by the IMF. The economic reform program aims to achieve macroeconomic stabilization, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable.
“Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.
“The current economic crisis has its genesis in policy missteps aggravated by external shocks. We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability. I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner.
“Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets. Undoubtedly, safeguarding the stability of the financial sector is of utmost importance in this process.
“I had the privilege to visit the Parliament building, an architectural marvel, designed by Sri Lanka’s very own renowned architect. While meeting with the parliamentarians, we discussed the importance of strengthening governance, which is a central pillar of the program. The hard-won gains of Sri Lankan people who have relentlessly supported the reform effort can only be safeguarded by good governance.
“During my visit to the dockyard, port terminal, and the port city, I was impressed to see continued economic activity which is a testament to the resiliency of the Sri Lankan economy. I underscored the importance of decisive implementation of structural reforms which can attract investment and boost growth.
“As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis. I was heartened to see that the authorities’ have stepped up efforts to increase public spending on social safety nets while improving targeting and coverage for those who need it.
“Lastly, I very much appreciate the excellent, long-standing relations between Sri Lanka and the IMF, and look forward to our continued partnership through the EFF-supported economic program. I will leave Colombo with fond memories of the country and its welcoming people.”
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The aim of the Government is to ensure a safe life for every citizen -President
President Anura Kumara Dissanayake stressed that the aim of the Government is to ensure a safe life for every citizen and that it is everyone’s responsibility to act with proper supervision during the resettlement of the people.
The President instructed the relevant sectors to complete all necessary repairs before 31 December by utilising the allocations given by the Government for infrastructure development for this year and not to return any part of those allocations under any circumstances.
The President said that there is no shortage of funds required for relief to the people and for restoring normal life and that what is necessary in this emergency situation is for all institutions to fulfil their responsibilities through proper coordination without limitations.
President Anura Kumara Dissanayake made these remarks while participating on Monday (08) afternoon at the District Coordinating Committee meeting held at the Uva Province Library Auditoriam to review the programme being carried out to restore normalcy in the lives of the affected people in the Badulla District and to develop essential infrastructure. Due to the disaster situation, 64,140 individuals belonging to 19,133 families in the Badulla District have been affected. A total of 418 houses have been completely damaged and 7,703 houses have been partially damaged.
The President inquired separately into the programmes being carried out to restore essential infrastructure such as repairing damaged roads, electricity, water supply, communication, irrigation, restarting agriculture, the livestock sector, inland fisheries and restoring the health and education sectors, among others.
The President pointed out the need to carry out all road repairs simultaneously without dividing them as roads under the Road Development Authority, provincial roads, or local authority roads. He informed officials that if the funds allocated for this purpose are insufficient, they should request the required additional allocations.
The President also instructed that an estimate be prepared and submitted for all roads in the district requiring permanent repairs and noted that funds can be provided to commence this work by January.
Officials stated that, 90% of the district’s damaged electricity supply due to the disaster situation has already been restored and the remaining supply is also being restored swiftly. They further pointed out that steps have been taken to ensure the district’s water supply is provided as required.
The reopening of schools was also discussed and the President instructed that the Government’s allowance of Rs. 15,000 granted to affected schoolchildren be paid promptly through the intervention of Divisional Secretaries.
Due to the disaster situation, 6,711 acres of agricultural land in the Badulla District have been damaged. The President instructed that the relevant farmers and the extent of damaged land be identified, compensation be provided swiftly and they be directed back into cultivation.
He further instructed officials of the Irrigation Department to provide water to agricultural lands at least temporarily, so that the farmers will be able to harvest the Maha season. The President stated that the allowance of Rs. 25,000 provided for the cleansing and restoration of damaged temples and religious sites will be granted through the Department of Cultural Affairs and that a Cabinet decision regarding this matter is expected this week.
Lengthy discussions were held on providing compensation to destroyed and damaged houses and on the resettlement of the affected people. The President also highlighted the need to implement programmes aimed at improving the mental health of people living in camps.
President Dissanayake expressed his gratitude to the Tri-forces, Government officials and the public who are working with immense dedication in all these activities.
Participating in this occasion were the Chairman of the Badulla District Coordinating Committee and Minister of Agriculture and Rural Infrastructure, Samantha Vidyaratne; Chairman of the Badulla District Coordinating Committee and Governor of Uva Province, Attorney-at-Law Kapila Jayasekara; Deputy Minister of Trade, Commerce and Food Security, R. M. Jayawardena; Deputy Minister of Power and Energy, Arkam Iliyas; Deputy Minister of Youth Affairs, H. M. Dinindu Sampath Hennayake; Deputy Minister of Tourism, Professor Ruwan Ranasinghe; Members of Parliament Sarath Kumara, Ravindra Bandara, Sudath Balagalla, Kittnan Selvaraj, Ambika Samuel, Ajantha Gammaddege and Chamara Sampath Dasanayake, along with other ruling and opposition MPs; Chief Secretary of Uva Province, Ms. Anusha Gokula and representatives of Provincial Councils; Secretary to the Ministry of Finance, Dr. Harshana Suriyapperuma, together with senior officials of the Ministry of Finance; Badulla District Secretary Panduka Sri Prabath Abeywardena and other Government officials of the district, as well as representatives of the security services
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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
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