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SL economy on right track: Ex-CBSL Chief

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Dr. Coomaraswamy

‘Politicians and public must behave better’

by Rathindra Kuruwita 

Sri Lanka has done extremely well on the economic front during the last 18 months, says former Governor of the Central Bank of Sri Lanka (CBSL) Dr. Indrajit Coomaraswamy.

Dr. Coomaraswamy revealed his assessment of the country’s economic recovery process while addressing a Centre of Poverty Analysis (CEPA) symposium recently held under the theme, ‘Retrospect and Prospects on Poverty Alleviation in an Era of Economic Crisis’ in Colombo.

In terms of macroeconomic indicators, Sri Lanka had salvaged the economy from a GDP growth of minus 10 percent the previous year to a slight economic growth in the third quarter of 2023, he said.

“The CBSL strongly believes that there will be a positive growth in the fourth quarter of 2023. But don’t forget that the economy shrank by 10 percent last year. So, it will take us about three years to reach where we were in 2021,” he said.

The inflation rate, which was 70 percent in September 2022, had come down to 1.5 percent, Coomaraswamy said, paying a glowing tribute to the incumbent CBSL Governor Dr. Nandalal Weerasinghe.

“Present Central Bank Governor Dr. Nandalal Weerasinghe was a Deputy Governor when I headed the CBSL. I relied heavily on his Central Banking skills. He is an extremely knowledgeable Central Banker. He will do what is necessary. He did the right thing. He hit the inflation very hard upfront. He has brought inflation down to 1.5 percent. Nobody expected this level of stabilisation when it came to inflation. Even the IMF didn’t,” Dr. Coomaraswamy said.

Coomaraswamy, however, warned Sri Lanka that a lot more has to be done.

“Sri Lanka usually starts IMF programmes well. We take the medicine, and we stabilise the economy up to a point. By the time we have a decent foundation, an election approaches and the discipline goes.”

Coomaraswamy, however, insisted that he was not calling for the postponement of elections.

“I am not saying that. No way will I advocate for a breach of the Constitution. All I am saying is that we need to behave better. Our politicians need to behave better. We, as a people, need to behave better,” he said.



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Govt. extends ban on LTTE

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The NPP government has issued a new extraordinary gazette renewing and extending Sri Lanka’s long-standing ban on the LTTE and several Tamil diaspora organisations and individuals, continuing to designate them as “terrorists”.

The gazette, published recently, replaces a previous gazette issued in May 2025 and reaffirmed the proscription of a wide range of Tamil political and advocacy bodies operating around the world, alongside dozens of named individuals. The government alleged both the organisations and individuals listed are involved in “terrorism-related activities”.

The organisations blacklisted by the Sri Lankan government include:

• Liberation Tigers of Tamil Eelam (LTTE)

• Tamil Rehabilitation Organisation (TRO)

• Tamil Coordinating Committee (TCC)

• World Tamil Movement (WTM)

• Transnational Government of Tamil Eelam (TGTE)

• World Tamil Relief Fund (WTRF)

• National Council of Canadian Tamils (NCCT)

• Tamil Youth Organisation (TYO)

While the majority of the designations mirror those contained in the May 2025 gazette, the latest document updates identification details and addresses for a number of individuals and introduces at least one additional organisation to the list. All entries have been reissued under new reference numbers for 2026, though the underlying allegations and framing remain unchanged.

Successive governemnts have maintained a sweeping proscription regime against Tamil diaspora groups and individuals. A ban can make it a criminal offence for Sri Lankan citizens to maintain contact with these organisations or their members, severely restricting political engagement and stifling links between the diaspora and the Tamil homeland.

The original mass listings were introduced in 2014 under the administration of Mahinda Rajapaksa. Despite repeated outcry, subsequent governments have continued to uphold and renew the proscription regime, even after the Rajapaksas were voted out of power.

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Police obtain court order banning Wimal’s protest

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National Freedom Front (NFF) leader Wimal Weerawansa addresses a gathering outside the Education Ministry on Monday before launching a protest demanding the immediate resignation of Prime Minister Dr. Harini Amarasuriya as Education Minister over the inclusion of a link to an adult content website in the Grade 06 English module. (Pic by Thushara Atapattu)

Police yesterday (12) obtained an injunction order from the Kaduwela Magistrate’s court against the protest launched by National Freedom Front (NFF) leader and former Minister Wimal Weerawansa opposite the Education Ministry, Isurupaya, at Battaramulla.

Police informed Weerawansa of the court order. In line with the court order, the police informed Weerawansa that the road near the Ministry should not be obstructed and that no sound amplification equipment be used while the GCE Advanced Level (A/L) examination is in progress. The examination, put off due to Cyclone Ditwah, recommenced yesterday.

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Chinese Foreign Minister Wang Yi expresses optimism that Sri Lanka is on the right path to progres

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FM Herath with his Chinese counterpart Wang Yi

Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath held productive discussions with his Chinese counterpart Wang Yi today (12/01), during the latter’s brief visit to Sri Lanka.

The meeting aimed at further strengthening bilateral engagement and advancing the Strategic Cooperative Partnership between the two countries. Both Ministers reaffirmed the longstanding friendship and time-tested cooperation between Sri Lanka and China rooted in centuries of exchanges and consolidated since the establishment of diplomatic relations seven decades ago. The discussion also focused on enhancing partnership in the areas of trade, investment, development cooperation and tourism.

Minister Herath extended deep appreciation to the Government and the people of China for the steadfast support extended to Sri Lanka following cyclone Ditwah and requested further support for the second phase of resettlement, relocation and rebuilding, particularly for the restoration of affected infrastructure including identified roads, railways and bridges that are vital to connectivity, economic recovery and daily lives of people. Minister Wang assured China’s fullest support for this initiative and expressed confidence that Sri Lanka will continue its rapid recovery under the leadership of President Anura Kumara Disanayaka. He also welcomed the people-centric policies of the Government and expressed optimism that Sri Lanka is on the right path toward fulfilling aspirations of its people.

Minister Herath expressed appreciation for China’s constructive role in international fora and reiterated Sri Lanka’s firm commitment to the One China Policy and China’s sovereignty and territorial integrity.

Both Ministers also recalled the successful high level exchanges in the recent past, including visits of the President and the Prime Minister of Sri Lanka to China in 2025.

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