News
Budget lacks creative solutions and exacerbates existing crisis – Dr. Godahewa
Budget 2024 is like a fairy tale rather than a pragmatic solution to pressing economic issues, SLPP MP Dr. Nalaka Godahewa has said.
Taking part in the current budget debate, former State Minister said: “Two paramount challenges loom large—the persistent economic contraction and the escalating national debt. A practical budget should provide answers to these challenges, addressing how the government plans to revitalize the economy and escape the debt trap. Unfortunately, the 2024 Budget falls short, lacking creative solutions and potentially exacerbating existing conditions.
The government, once again, presents optimistic revenue targets, reminiscent of the previous year. A notable income shortfall in 2023 raises concerns about the feasibility of the projected 45% increase in revenue for 2024, especially given the ongoing economic contraction. The Budget seems to harbor unrealistic expectations, and if history is any guide, the actual revenue may fall short, as evidenced by the 17% income deficit in 2023.
The Budget’s approach to expenditure compounds the issue. Despite potential revenue shortfalls, government expenditure for 2024 is estimated at 6978 billion rupees, reflecting a substantial 34% increase from the latest estimates of 2023. To meet revenue targets, the government resorts to tax hikes, exemplified by the recent VAT increase from 15% to 18%, affecting essential goods like fuel, electricity, and telephone charges.
This tax-heavy approach, a commonly accepted economic principle, can discourage entrepreneurs, decrease investments, and lead to tax evasion. Such consequences contribute to the 17% income deficit in 2023 and may persist in the coming year, rendering the 45% revenue increase target for 2024 unrealistic.
The Budget gap, arising when government revenue falls short of expenditure, is projected to be Rs 2851 billion in 2024. Bridging this gap through further borrowings or printing money is not a sustainable solution, particularly if the borrowed funds are directed toward consumption rather than income-generating development activities.
The breakdown of government expenditure for 2024 reveals a disproportionate focus on recurrent expenditure (Rs 5345 billion) compared to capital expenditure (Rs 1209 billion). This reflects an 11% increase in recurrent expenditure and a 1% decrease in capital expenditure for 2024. Despite promises to prioritize education and human capital development, the budgeted expenditure on education remains stagnant, and expenditure on women and social empowerment is halved.
The looming tax interest of Rs 2,634 billion, almost half of total recurring expenses, underscores the severity of the situation. Excessive borrowings have led the country into this crisis, and the trend continues, with the 2024 Budget proposing to borrow nearly Rs 3 trillion, exacerbating the existing debt burden.
The President’s grand ideas, articulated in the three main pillars of economic recovery—export-oriented competitive economy, environmentally friendly green and blue economy, and a digital economy—have not seen substantial progress after a year. The lack of consistency, evident in the shift towards a gig economy in the latest Budget, is a persistent issue.
Public trust in the government’s economic management and budgetary proposals has eroded. Citizens’ immediate concerns revolve around basic needs, rising utility bills, and the disparity between lofty economic goals and daily struggles. The prevailing crisis demands a unified and committed leadership capable of delivering tangible results.
The lack of coordination between ministries further compounds the challenges. Conflicting government actions, such as advocating for investment while raising production costs, or acknowledging the importance of the small and medium sector while undermining local producers through imports, highlight the need for cohesive decision-making.
To navigate the crisis successfully, the country requires a clear agenda, a consensus-driven roadmap led by competent leaders for effective implementation. Setting clear priorities with measurable targets in crucial areas like tax collection, tourism, export development, renewable energy, and foreign direct investment is imperative.
The proposed Budget for 2024, if implemented, not only fails to address critical issues but may exacerbate economic challenges. The country urgently needs a comprehensive economic development plan with clear goals, timelines, and accountability measures. The government must redirect its focus toward reactivating the economy, strengthening the export sector, fostering tourism, supporting small and medium businesses, attracting new investments, and addressing the root causes of the economic downturn.
In conclusion, at this darkest hour, a collective and committed leadership is essential to guide the nation out of the crisis. The time for experiments and ad hoc solutions has passed. It’s time for an integrated economic development plan to rebuild the country.”
News
Current El Niño Status in Sri Lanka
At present, El Niño conditions have developed and are classified as being at a weak level. Forecasts indicate a 63% probability of a very strong El Niño event developing during the period from November 2026 to January 2027. According to the National Oceanic and Atmospheric Administration (NOAA), there is approximately a one-third probability that El Niño will remain below a very strong intensity.
Typical Climatic Conditions Associated with El Niño
Based on analyses of past El Niño events that occurred between 1950 and 2025:
• Rainfall during July and August may be below normal, particularly in the dry zone areas.
• From October onward, rainfall is generally expected to be above normal.
• If a positive Indian Ocean Dipole (IOD) develops, enhanced rainfall conditions may continue until December.
Sectors Requiring Attention
• Appropriate measures should be taken for water resource management during July and August.
• Increased rainfall expected from October onward may lead to floods and landslides, requiring preparedness and close monitoring. The forecasts are important for sectors such as, Agriculture /Water management /Livestock /Health /Energy /Other climate-sensitive sectors
• Attention should be paid to official information issued by the Department of Meteorology.
Actions by the Department of Meteorology
The Department of Meteorology continuously monitors the evolving situation and issues:
• Weekly and monthly seasonal forecasts and Monthly analyses of rainfall data to monitor meteorological drought conditions.
As weather conditions are influenced not only by El Niño but also by other climatic factors, updated forecasts and advisories are regularly shared with relevant stakeholder organizations (Irrigation/ Water Management Committee /Department of Agriculture/National Building Research Institute/Disaster Management Centre (DMC)/Ministry of Health /Sri Lanka Land Development Corporation…etc). The Department also provides technical support to the committee established through a Cabinet decision to address climate-related impacts. The Department’s monthly rainfall outlook for July to September 2026 is attached
Monthly Rainfall Forecasts for July, August and September 2026
Month Rainfall forecast
July 2026

During July 2026, there is a higher probability of having near normal rainfall across most parts of the Western and Southern Provinces. The remainder of the country is expected to experience below normal rainfall.
August 2026

There is a higher probability of having below normal rainfall across most parts of the country during month of August 2026.
September 2026

There is a possibility of above-normal rainfall across most parts of the Western and Southern Provinces, while near-normal rainfall is expected in the Sabaragamuwa Province. Below-normal rainfall is likely in the remaining areas during September 2026.
Note: These long-range forecasts may change due to strong day-to-day atmospheric variability associated with the movement of weather systems such as atmospheric disturbances, low-pressure areas, and depressions, as well as intra-seasonal oscillations such as the Madden–Julian Oscillation (MJO). Therefore, in addition to the weekly and monthly forecasts, it is important to pay attention to the Department’s official announcements, weather advisories and warnings, as well as the daily weather forecasts issued by the Department of Meteorology.
News
Govt. move to extend retirement ages of top judges: Opp. complains to UN
Former External Affairs Minister Prof. G. L. Peiris yesterday (15) briefed the UN Resident Coordinator in Colombo, Marc-André Franche, on President Anura Kumara Dissanayake’s move to extend the retirement ages of the superior court judges and the delay in filling the vacancies in the Supreme Court and the Court of Appeal.
Prof. Peiris, the convenor of the People’s Joint Opposition, led the delegation that included UNP General Secretary and former Minister Thalatha Atukorale, former UPFA National List parliamentarian Suren Raghavan and ex- SLPP MP Premnath C. Dolawatta.
Having met the top official here, Prof. Peiris briefed the media on their decision to bring the developing situation to the notice of the UN.
Referring to the opposition of the legal fraternity to the NPP government’s plan, Prof. Peiris emphasised that the civil society, too, had opposed the politically motivated initiative.
Prof. Peiris said that instead of addressing the burning issues affecting the public, the government was creating new problems.
News
Dengue surge pushes hospitals to the brink as cases near 70,000
A week-long crackdown to begin in 11 districts
Hospitals are coming under mounting pressure as the country’s dengue epidemic gathers pace, with nearly 70,000 infections and 48 deaths reported so far this year, prompting health authorities to launch an intensive week-long mosquito control campaign in 11 districts.
The National Dengue Control Unit (NDCU) said 69,951 dengue cases had been reported by July 13, with 14,572 new infections recorded during the first 13 days of July alone. June saw the highest monthly caseload of the year, underlining the rapid spread of the mosquito-borne disease during the southwest monsoon.
Acting Director of the NDCU, Dr. Kapila Kannangara, warned that the hospital system was facing severe congestion due to the unprecedented influx of dengue patients.
“We are seeing an alarming increase in admissions. Hospitals are under tremendous pressure, and public cooperation is essential to bring the outbreak under control,” he said, announcing that a special one-week dengue control programme would be implemented across 11 high-risk districts.
Health authorities have identified 175 Medical Officer of Health (MOH) divisions as high-risk dengue zones. Public Health Inspectors will conduct inspections, eliminate mosquito breeding sites and initiate legal action against those maintaining mosquito-infested premises.
The Western Province continues to account for the largest share of infections, with Gampaha and Colombo among the worst-affected districts. Several hospitals are already operating beyond capacity as the number of admissions continues to climb.
Health officials attributed the surge to intermittent rains, poor waste disposal, stagnant water collections and inadequate community participation in vector control programmes.
The Ministry of Health has appealed to local authorities, schools, workplaces, religious institutions and households to inspect their premises regularly, clear blocked drains and roof gutters, cover water storage containers and remove discarded tyres, cans, bottles and other containers capable of collecting rainwater.
Medical experts urged the public not to ignore symptoms such as persistent fever, severe headache, pain behind the eyes, vomiting, abdominal pain and bleeding manifestations, stressing that early medical treatment is critical in preventing severe dengue and deaths.
Officials emphasised that eliminating mosquito breeding sites remains the single most effective way of controlling dengue, warning that unless communities actively participate, the outbreak could worsen during the ongoing rainy season.
With daily case numbers continuing to rise and hospitals struggling to cope, health authorities said the coming weeks would be crucial in determining whether the country can curb one of its worst dengue outbreaks in recent years.
By Ifham Nizam
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