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Experts call for ‘well-coordinated’ reforms package, ETB dominates discussion

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Pathfinder organised discussion underway. A section of the participants

The Pathfinder Foundation (PF) organised ‘Dialogue with Diplomats’ – the fourth discussion in the ongoing series dealt with the controversial Economic Transformation Bill (ETB).According to a statement issued by PF, the issue at hand has been one of the central themes, with consensus among the panellists regarding the need to pursue a well-coordinated reforms package regardless of the government in power. Amidst strong Opposition campaign against the ETB, so far 17 petitions have been filed in Supreme Court against the bill.

The discussion has focused on policy challenges faced by a new government.

The panel included Emeritus Prof. Premachandra Athukorala, Professor of Economics, Arndt-Corden Department of Economics, Australian National University, Canberra, Dr. R. H. S. Samarathunga, Senior Economic Advisor to the President, Prof. Sirimal Abeyratne, Emeritus Professor of Economics, University of Colombo, Prof. Gamini Samaranayaka, former Chairman of UGC and Ambassador to the Philippines.

Presidential election is expected to be held in Sept/Oct this year.

The event held in Colombo, brought together a distinguished audience featuring heads of diplomatic missions and senior diplomats based in Colombo, representatives of leading think tanks, academics and subject experts. A panel of esteemed experts provided valuable insights that fostered a meaningful discussion and understanding of the subject.

The dialogue explored the multifaceted policy challenges a new Sri Lank government must address. Key discussion topics included the long-term structural issues and short-term policy missteps that led to the current economic crisis growth-enhancing reform programme needed for economic recovery and to elevate the country into a sustainable growth trajectory.

The discussion also emphasized the need to establish an investment-friendly environment through sound policies and regulations and develop an export-oriented economy. They noted that this remains a significant challenge for any new administration.

The engagement and expertise of the panellists, coupled with the audience’s active participation, made the event a notable success. The dialogue underscored the importance of informed policy-making and collaborative efforts in addressing the economic challenges facing Sri Lanka.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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