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CB Governor urges the public to grasp macro matters that shape the economy

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Dr. Nandalal Weerasinghe

By Sanath Nanayakkare

It is important that the general public acquires an understanding on the independent monetary policy of the Central Bank and the fiscal policy of the Government which have achieved economic stability at present, and how the current semblance of stability should be maintained going forward in order to sustain sustainability, Central Bank Governor Dr. Nandalal Weerasinghe said addressing the press at the Central bank.

Referring to Financial Statements and Operations of the Central Bank in 2023 and 2024 he said,” The main message we wish to convey to the general public of the country is that economic stability is now well encapsulated into the macroeconomic picture as a result of the policies that have been implemented by the Government and the Central Bank of Sri Lanka over the past few years. So, what we ought to tell the masses is; it is important to maintain this semblance of stability in the medium to long term for the economy to function well by taking it in the same direction. Such firmness in policy action in the future will further help to contain inflation, make the financial system more robust, increase people’s incomes and reduce poverty.”

“The second most important point is how the Central Bank will be fulfilling its duties in conducting the monetary policy towards transformational growth in line with the macroeconomic targets. There is correlation between fiscal policy and the monetary policy, and therefore, fiscal policy tends to have an impact on monetary policy. Sometimes I see that various incorrect opinions are expressed in parliament and at societal level about these two policies which reflect a gap in understanding the two elements. No other institution but the Central Bank is accountable for conducting the monetary policy of the country which includes interest rates, exchange rate, foreign currency reserves and financial sector stability.”

“The fiscal policy actually comes under the purview of the Executive, the Cabinet, the Parliament, Ministries, Departments etc. The Central Bank has to regulate the financial sector in addition to making monetary policy. The government and the Central Bank are two different institutions. The Central Bank is not literally a government institution but it is a State institution carved out with independent responsibilities, and therefore, is accountable to the parliament. That is why we have captured the details of both policies in our latest economic review report and presented it to the government and the people.”

“Our duty is to control the inflation appropriately and properly manage the banking and non-banking institutions ensuring financial stability. Sometimes it is said that the Central Bank is incurring losses and attempts are made to reflect it as an unsuccessful institution. The Central Bank wasn’t founded in the first place with the objective of making profits. When the Central Bank is conducting its monetary policy it could make a profit or incur a loss. But what actually matters is whether its monetary policy was favorable to the country or not. So, any attempt at measuring the success of the Central Bank on its profit-loss figures is misleading and incorrect. In many years the Central bank has made profits while in some years, it has incurred losses.

“In 2022, the loss of Rs. 374 billion was mainly because of steep depletion of our reserves and our short-term swaps and also huge increase in our loan stock in rupee terms with the phenomenal depreciation of the rupee to the dollar from Rs. 202 to Rs. 370.”

“In 2023, the Central Bank made a loss of about Rs. 700 billion due to domestic debt optimization amounting to Rs. 2.5 trillion. So, I urge the people to be more aware of why the Central Bank makes such losses while it is carrying out its core functions. The public also needs to understand the government’s fiscal policy, the relation between the government and the Central Bank and the responsibilities between the two entities,” the Governor said.

He urged the public to grasp the macro matters in their true essence and understand the need to stay the current course to sustain the sustainability for their lives to be less burdensome in the future.



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Sri Lanka eyes India grid link as ADB pushes Pan-Asia energy integration

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Priyantha Wijayatunga speaks at the Samarkand Energy Forum of the ADB.

Sri Lanka’s long-discussed electricity grid connection with India is gaining renewed momentum, as the Asian Development Bank (ADB) intensifies efforts to promote cross-border energy integration across the region.

At the ADB Annual Meetings in Samarkand, Senior Director for Energy, Priyantha Wijayatunga, identified the proposed India–Sri Lanka grid interconnection as the most promising avenue to strengthen the island’s power sector. The concept dates back to the 1970s, when Sri Lanka, following the completion of the Mahaweli Development Project, even explored the possibility of exporting electricity. However, rapid economic growth and rising domestic demand shifted the country toward energy imports.

Today, with energy security and cost pressures mounting, the idea has regained urgency. “The time is right,” Wijayatunga said, stressing that political will and financing will be decisive. While undersea transmission cables make the link technically viable, costs remain a major challenge. The ADB, he confirmed, stands ready to support Sri Lanka as a development partner in advancing the project.

Sri Lanka’s prospects are closely tied to a broader regional vision being advanced by the ADB through its Pan-Asia Power Grid Initiative (PAGI). The initiative aims to transform how energy is produced, shared, and consumed across Asia and the Pacific by promoting cross-border electricity trade and grid connectivity.

PAGI is designed not merely as a collection of projects, but as a systems-level integration platform that connects national grids into subregional and eventually continent-wide networks. Its core objectives include bridging energy gaps, enhancing energy security, integrating large-scale renewable energy, and strengthening resilience across interconnected systems.

A key pillar of PAGI is leveraging the region’s resource complementarity. Countries in South Asia, for instance, possess uneven but highly complementary energy resources—hydropower in Nepal and Bhutan, and solar and wind potential in India. By linking grids, countries like Sri Lanka could tap into these diverse energy sources, reducing dependence on costly fossil fuel imports while improving reliability.

ADB estimates suggest that deeper regional power trade in South Asia could yield substantial economic benefits, including lower system costs and more efficient energy distribution. The initiative also envisions mobilizing up to $50 billion in investments by 2035, expanding transmission infrastructure, and improving electricity access for millions.

For Sri Lanka, integration into such a regional grid could be transformative. A connection with India would allow the country to import affordable electricity during shortages, stabilize supply, and support its transition toward cleaner energy. It could also open the door to future participation in a wider South Asian power market.

With feasibility studies and policy discussions already underway, and with ADB backing firmly in place, Sri Lanka’s long-envisioned grid connection with India now appears more achievable than ever.

As the Samarkand meetings underscore the urgency of regional cooperation in an increasingly uncertain energy landscape, Sri Lanka stands at the threshold of a new chapter—one where energy security is strengthened not in isolation, but through connection.

by Sanath Nanayakkare in Samarkand, Uzbekistan

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Oceans in crisis: Sri Lanka hosts ‘Sharks International 2026’ amid stark warnings

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Sri Lanka this week finds itself at the centre of a deepening global ocean crisis, as leading scientists, policymakers and conservationists gather in Colombo for Sharks International 2026—a high-profile summit unfolding against mounting evidence that the world is rapidly losing control of its marine ecosystems.

The conference, now underway at the Bandaranaike Memorial International Conference Hall, marks the first time the prestigious forum has been hosted in Sri Lanka. But beneath the diplomatic language and scientific exchanges lies a far more urgent reality: the collapse of shark and ray populations is no longer a distant environmental concern—it is an unfolding economic and food security emergency.

More than 100 million sharks and rays are being wiped out globally each year, largely due to overfishing and illegal, unreported and unregulated (IUU) fishing. In Sri Lanka, the situation is particularly acute. Of the 105 species recorded in local waters, nearly 70 are now threatened with extinction, a statistic that scientists warn should set off alarm bells far beyond conservation circles.

Deputy Minister of Environment Anton Jayakody did not mince words when addressing the gathering, framing the issue not just as an ecological tragedy but as a looming economic shock.

“This is not just about saving species. It is about protecting the foundation of our fisheries, our food systems, and the livelihoods of thousands of Sri Lankans. If shark and ray populations collapse, the consequences will ripple through the entire marine economy,” he said.

Sharks and rays sit at the top of the ocean food chain. Their disappearance disrupts the delicate balance of marine ecosystems, triggering cascading effects that can decimate commercially valuable fish stocks. For a country like Sri Lanka—where coastal communities depend heavily on fisheries—this is not an abstract threat but a direct challenge to economic stability.

Yet despite years of warnings, critics argue that global action has been dangerously slow, fragmented, and often undermined by competing commercial interests.

By Ifham Nizam

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SriLankan Airlines leads with two category wins in South Asia at PAX Awards

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SriLankan Airlines led with two wins in the Airline Award category for South Asia, securing both Best Overall Passenger Experience and Most Improved Airline at the PAX International Readership Awards 2026 held recently in Hamburg, Germany. The awards celebrate the industry’s best and brightest, with winners determined by votes from PAX’s global readership.

The Best Overall Passenger Experience – South Asia award recognises an airline that delivers an exceptional onboard experience to passengers across multiple service areas, including meal service, inflight entertainment and seating. At SriLankan Airlines, this entails meticulous planning at every stage of the passenger journey, supported by collaboration among multiple teams and continuous monitoring and refinement.

Maria Sathasivam, Manager Product Development of SriLankan Airlines, commented on the achievement, stating, “we are incredibly honoured to receive yet another independent endorsement of the service we deliver. Every interaction matters to us, and we are committed to consistently meeting and exceeding passenger expectations, and it is truly rewarding to see these efforts recognised.”

SriLankan Airlines continues to enhance the end-to-end travel experience, from booking through to arrival. Ongoing digital upgrades, including improvements to the airline’s website and app, are designed to deliver a more intuitive and seamless customer experience, supported by AI-driven features and expanded ancillary offerings. At its hub, the Bandaranaike International Airport in Colombo, the airline has also expanded self-check-in and bag drop facilities for added convenience.

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