News
CP Leader warns of danger of being at mercy of the dollar with it likely to lose its world reserve currency status
Suggests looking at India and China as alternative options
By Rathindra Kuruwita
The United States has printed trillions of dollars in the past year and Sri Lanka will be at the mercy of its volatility unless it looks at ways to reduce its dependence on the dollar, General Secretary of the Communist Party of Sri Lanka (CPSL) Dr. G. Weerasinghe told The Island on Wednesday.
The CPSL recently released a policy manifesto, Idirimagin Idiriyata, at the party’s 80th anniversary and proposed an alternative development mechanism.
After several centuries, the centre of world economy has shifted to Asia, and it has opened up new developmental avenues for Sri Lanka, General Secretary of the Communist Party said. Speaking about the Idirimagin Idiriyata policy manifesto the CPSL launched on 03 July, he said that most Sri Lankan economists are western oriented and ignore new world trends.
“In the last 20-30 years, many Asian economies took off, but we couldn’t get on the bus. This is because our entire economy is oriented to the West. We don’t even think what the Chinese, Indian, Korean or Japanese market wants. Clearly they don’t need our tea or garments. We have to figure out what these new markets want,” he said. Dr. Weerasinghe added that China is the main business partner with 140 countries in the world. China and India do a lot of business together, despite the frequent clamouring by Indian media, he said. “China is the biggest market in the world. China has a 500 million strong middle class. We have to also seriously think of India, which is the most populous country in the world. What about ASEAN? CPSL calls for a reorientation of Sri Lanka’s trade policy,” he said.
The CPSL General Secretary said that de-dollarization and the availability of new payment platforms are also developments that Sri Lanka should look at. In recent years, it has become evident that the United States and a few of its allies are manipulating international institutions that were meant to be apolitical, he said.
“They are also using sanctions to punish countries that do not bow down to the West. They are misusing the fact that the U.S. Dollar is the reserve currency of the world. They have also used payment platforms like SWIFT which was said to be beyond politics. A lot of countries have seen what happened to Iran and Russia and are worried that the same fate would befall them. Most major powers in the world are thinking about using alternative currencies to do business between each other. They have also looked at payment gateways like Mir,” he said.
Dr. Weerasinghe said that the US and EU imposed sanctions on about 6000 products on Russia following the Ukrainian war. Without being daunted, it rearranged its economy towards Asia and have managed to escape economic collapse. This made many major powers realize that the US and EU can only influence them, if U.S. dollars are used for trade.
“De-dollarization has gained momentum ever since. Russia, Iran and a few other countries have been kicked out of SWIFT,” he said.
Dr. Weerasinghe said that Sri Lanka has now decided that the Chinese Yuan and the Indian rupee can be used for trade. Some elements are insisting that this would be bad for the country without giving a rational explanation, he said.
The CP General Secretary mentioned that there are a few new development banks in the world, i.e. the BRICS bank and the AAIB. Sri Lanka only depends on the World Bank, IMF, etc., and these establishments have been tools of the West to impose its hegemony on the rest of the world, he said.
Dr. Weerasinghe added that until 1978, Sri Lanka took a number of progressive steps to defeat colonialism, and to industrialize. It attempted to formulate its own drug policy with Dr. Senaka Bibile, which is now widely respected around the world.
However, everything changed after 1977 and the problems created from the shift in the economic policy culminated with the current economic crisis, he said.
“Almost all governments, since 1977, have followed policies that were inimical to the agriculture and manufacturing sectors. We moved to low paying and low-productivity service jobs. It is a well-known fact that all nations that joined the developed nations club in the last 60 years focused on labour intensive manufacturing and boosting agricultural productivity. This is the history of development, but we have decided to ignore, it since 1977,” he said, adding that the institutions set up to ensure adherence to the Washington Consensus, i.e. World Bank and the IMF dictates, had encouraged deindustrialization in Sri Lanka.
“In fact, a 2003 agreement we signed with the IMF says that the Sri Lankan government will not take steps to develop industrialization,” he said.
The CPSL General Secretary said that as the state had lost both tax and non-tax revenue, it was compelled to borrow, especially from the International Sovereign Bond (ISB) markets.
“We started borrowing from these markets in 2007. Up until 2015, we borrowed about 30 percent of our total debt from ISBs. Between 2015 and 2019, we borrowed over 13 billion US dollars from these markets. These bonds are held by companies based in the US and the EU. They are literally poli mudalalis (loan sharks). Borrowing from these markets has ruined us. However, there is a big campaign by the West and its local allies to place the blame on China,” he said.
Prime Minister Dr. Harini Amarasuriya stated that the Government stands ready to support the University of Peradeniya in rebuilding stronger, safer, and more resilient than before. She made these remarks while visiting the University of Peradeniya on Sunday (07), where she met with student representatives and Heads of Departments affected by the sudden floods that swept through the campus on 27 November.
The visit aimed to personally inspect the damage, which caused extensive harm to academic buildings, student facilities, and key infrastructure. University officials briefed the Prime Minister on the severity of the impact, highlighting significant losses to the Faculties of Management, Agriculture, and Veterinary Medicine, as well as the IT Centre, CDCE, gymnasium, swimming pool, and playgrounds.
The Prime Minister was also briefed on how the disaster disrupted both academic activities and the wellbeing of students and staff, including the loss of more than 110 computers, vital laboratory equipment, examination documents, and four central IT servers, with preliminary damage estimates exceeding Rs. 6 billion. She commended the swift evacuation of nearly 750 students from hostels located along the Mahaweli River and acknowledged the resilience shown by nearly 11,000 students who remained on campus during the crisis.
She expressed her appreciation to the Sri Lanka Army, the Disaster Management Centre, and local donors for providing food, water, and essential supplies at a time when access and communication were severely disrupted.
A joint engineering team has confirmed that university buildings remain structurally stable, although several require urgent repairs. With academic activities suspended until 15 December.
The Prime Minister discussed with the Vice Chancellor and emergency response teams the immediate steps required to restore normalcy and provide necessary support to students whose studies and daily routines have been significantly affected.
During these discussions, the Prime Minister issued a series of directives focusing on both immediate relief and long-term safety. These include restoring essential services such as water, electricity, and safe access pathways for students; accelerating the rehabilitation of heavily damaged faculties and laboratories; strengthening early warning systems for flood-prone areas; and implementing long-term mitigation measures such as riverbank protection, improved drainage, and the relocation of vulnerable facilities. She also directed the relevant agencies to fast-track government assistance, assuring the university community that the Government stands ready to help Peradeniya rebuild stronger, safer, and more resilient than before.
The meeting was attended by Nalaka Kaluwewa, Secretary to the Ministry of Education, Higher Education and Vocational Education; Kandy District Parliamentarian Thanura Dissanayake, Professor Terrence Madhujith, Vice Chancellor of the University of Peradeniya; and Professor R. W. Pallegama, Deputy Vice Chancellor of the University of Peradeniya, along with Heads of Departments, officials, and student representatives of the University of Peradeniya.
[Prime minister’s media division]
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Level III landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended till 1600 hrs on Tuesday [09]
The Level III RED landslide warnings issued to the districts of Kandy, Kegalle, Kurunegala and Matale by the landslide early warning center of the National Building Research Organisation [NBRO] have been extended till 1600 hrs on 09th December 2025.
Accordingly,
The LEVEL III RED warnings issued to the Divisional Secretaries Divisions and surrounding areas of Hatharaliyadda, Yatinuwara, Ududumbara, Pathahewaheta, Medadumbara, Pasbage Korale, Deltota, Poojapitiya, Ganga Ihala Korale, Panvila, Gangawata Korale, Udapalatha, Harispattuwa, Kundasale, Minipe, Doluwa, Thumpane, Akurana, Udunuwara and Pathadumbara in the Kandy district, Kegalle, Galigamuwa, Mawanella, Bulathkohupitiya, Aranayaka, Yatiyanthota, Rambukkana and Warakapola in the Kegalle district, Mawathagama, Mallawapitiya and Rideegama in the Kurunegala district, and Naula, Wilgamuwa, Pallepola, Ambanganga Korale, Laggala Pallegama, Ukuwela, Rattota, Matale and Yatawatta in the Matale district have been extended.
In the meantime,
LEVEL II AMBER warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Uva Paranagama, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Hali_Ela, Ella, Lunugala, Welimada, Haputhale, Passara and Haldummulla in the Badulla district, Dehiowita, Ruwanwella and Deraniyagala in the Kegalle district, Alawwa and Polgahawela in the Kurunegala district, Ambagamuwa Korale, Hanguranketha, Mathurata, Norwood, Kothmale West, Nuwara Eliya, Thalawakele, Nildandahinna, Walapane and Kothmale East in the Nuwara Eliya district, and Kahawatta, Godakawela and Kolonne in the Ratnapura district.
LEVEL I YELLOW warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Yakkalamulla and Elpitiya in the Galle district, Attanagalla, Mirigama and Divulapitiya in the Gampaha district, Narammala in the Kurunegala district, and Eheliyagoda, Opanayake, Kalawana, Imbulpe, Kaltota, Kiriella, Kuruwita, Nivithigala, Ayagama, Pelmadulla, Balangoda, Elapatha and Ratnapura in the Ratnapura district
A special District Coordinating Committee meeting, convened to review the damage caused to the agricultural sector in the Nuwara Eliya District due to Cyclone Ditwah and to discuss the urgent measures required, was held this morning (08) at the Nuwara Eliya District Secretariat. The meeting was chaired by President Anura Kumara Dissanayake, with the participation of the relevant responsible officials.
Due to adverse weather conditions, 1,421 hectares of vegetable cultivation in the Nuwara Eliya District has been damaged. President Anura Kumara Dissanayake instructed the relevant officials to take the necessary measures to provide compensation to farmers without delay.
Officials stated that although there has been crop damage, the reduction in the vegetable harvest in the Nuwara Eliya District would be around 25%. They added that Nuwara Eliya district would be able to meet the daily demand, but a decrease in the daily demand has been observed.
Officials further pointed out to the President that the reason for this decline is the spread of false information claiming a vegetable shortage in the Nuwara Eliya District and that prices have excessively increased.
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