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Third IMF tranche by June provided debt restructuring is concluded

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Sri Lanka anticipates the third tranche of the International Monetary Fund (IMF) extended fund facility by June, according to State Minister of Finance Shehan Semasinghe. However, the country must first obtain consensus from the country’s creditors on restructuring its debt.

“We anticipate the third tranche by June. That’s the standard procedure. After a review, there’s staff level agreement between IMF officials and government officials. Following that, a date is decided for the IMF to present that agreement. It is after this that we get the third installment of 337 million dollars.

“But there’s one task we have to complete before that. That is to get the consensus for restructuring debt from our creditors. We have obtained the preliminary consent of all bilateral creditors,” said Semasinghe.

An IMF official said in Washington on Friday April 05 that there are strong expectations of agreements being reached with commercial creditors.

“[T]here is a strong expectation that agreements with commercial creditors consistent with program parameters will be reached by completion of the second review,” she told reporters in Washington.

Domestic debt restructuring is largely completed, she said.

Domestic state enterprise debt re-structuring is expected to completed soon, Deputy Central Bank Governor Yvette Fernando told a business forum earlier this week.

Sri Lanka is in talks with both International Sovereign Bond Holders and other creditors like China Development Bank to conclude a deal. Finalized bilateral restructuring agreements and a deal with private creditors are required to complete the second review of the IMF program.Sri Lanka is hoping to conclude the review by June-July before elections are held, President Ranil Wickremesighe has said. (Economy Next)



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No change in death toll, stands at 639 as at 0600AM today [11th]

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The Situation Report issued by the Disaster Management Center at 0600 AM today [11th December 2025] confirms that there has been no addition to the death toll in the past 24 hours and remains at 639. The number of missing persons has reduced by ten [10] and stands at 193.

There is a slight reduction in the  number of persons who are at safety centers and, stands at 85,351  down from 86,040 yesterday.  Five safety centers have also closed down in the past 24 hours and  873 safety centers are still being maintained.

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Regulatory rollback tailored for “politically backed megaprojects”— Environmentalists

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Investigations have revealed that the government’s controversial easing of environmental regulations appears closely aligned with the interests of a small but powerful coalition of politically connected investors, environmentalists have alleged.

The move weakens key Environmental Impact Assessment (EIA) requirements and accelerates approvals for high-risk projects, has triggered a storm of criticism from environmental scientists, civil society groups and even sections within the administration, they have claimed.

Environmental Scientist Hemantha Withanage, Executive Director of the Centre for Environmental Justice, told The Island that the policy reversal “bears the fingerprints of elite political financiers who view Sri Lanka’s natural assets as commodities to be carved up for profit.”

“This is not accidental. This is deliberate restructuring to favour a specific group of power brokers,” he told The Island. “The list of beneficiaries is clear: large-scale mineral extraction interests, luxury hotel developers targeting protected coastlines, politically backed hydropower operators, industrial agriculture companies seeking forest land, and quarry operators with direct political patronage.”

Information gathered through government insiders points to four clusters of projects that stand to gain substantially:

Several politically shielded operators have been lobbying for years to weaken environmental checks on silica sand mining, gem pit expansions, dolomite extraction and rock quarrying in the central and northwestern regions.

High-end tourism ventures — especially in coastal and wetland buffer zones — have repeatedly clashed with community opposition and EIA conditions. The rollback clears obstacles previously raised by environmental officers.

At least half a dozen mini-hydro proposals in protected catchments have stalled due to community objections and ecological concerns. The new rules are expected to greenlight them.

Plantation and agribusiness companies with political links are seeking access to forest-adjacent lands, especially in the North Central and Uva Provinces.

“These sectors have been pushing aggressively for deregulation,” a senior Ministry source confirmed. “Now they’ve got exactly what they wanted.”

Internal rifts within the Environment Ministry are widening. Several senior officers told The Island they were instructed not to “delay or complicate” approvals for projects endorsed by select political figures.

A senior officer, requesting anonymity, said:

“This is not policymaking — it’s political engineering. Officers who raise scientific concerns are sidelined.”

Another added:”There are files we cannot even question. The directive is clear: expedite.”

Opposition parliamentarians are preparing to demand a special parliamentary probe into what they call “environmental state capture” — the takeover of regulatory functions by those with political and financial leverage.

“This is governance for the few, not the many,” an Opposition MP told The Island. “The rollback benefits the government’s inner circle and their funders. The public gets the consequences: floods, landslides, water scarcity.”

Withanage issued a stark warning:

“When rivers dry up, when villages are buried in landslides, when wetlands vanish, these will not be natural disasters. These will be political crimes — caused by decisions made today under pressure from financiers.”

He said CEJ was already preparing legal and public campaigns to challenge the changes.

“We will expose the networks behind these decisions. We will not allow Sri Lanka’s environment to be traded for political loyalty.”

Civil society organisations, environmental lawyers and grassroots communities are mobilising for a nationwide protest and legal response. Several cases are expected to be filed in the coming weeks.

“This is only the beginning,” Withanage said firmly. “The fight to protect Sri Lanka’s environment is now a fight against political capture itself.”

By Ifham Nizam

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UK pledges £1 mn in aid for Ditwah victims

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Acting UK High Commissioner Theresa O’Mahony inspecting a school damaged by floods, during a visit to the Sri Lanka Red Cross operations in Gampaha.

The UK has pledged £1 million (around $1.3 million) in aid to support victims of Cyclone Ditwah, following Acting High Commissioner Theresa O’Mahony’s visit to Sri Lanka Red Cross operations in Gampaha.

“This funding will help deliver emergency supplies and life-saving assistance to those who need it most,” the British High Commission said. The aid will be distributed through humanitarian partners.

During her visit, O’Mahony toured the Red Cross warehouse where UK relief supplies are being prepared, met volunteers coordinating relief efforts, and visited flood-affected areas to speak with families impacted by the cyclone.

“Our support is about helping people get back on their feet—safely and with dignity,” she said, adding that the UK stands “shoulder to shoulder with the people of Sri Lanka” and will continue collaborating with the government, the Red Cross, the UN, and local partners in recovery efforts.

She was accompanied by John Entwhistle, IFRC Head of South Asia, and Mahesh Gunasekara, Secretary General of the Sri Lanka Red Cross.

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