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Govt. steps up economic reforms and support for paddy farmers: Presidential advisor

Published

1 year ago

2024/11/9

The government was taking steps to stabilise the economy and ensure fair conditions for paddy farmers, Senior Advisor to the President on Economic Affairs and Finance, Prof. Anil Jayantha Fernando, told The Island on Wednesday (06).

Addressing the challenges faced by the agricultural sector, Fernando noted that Sri Lanka’s rice market was dominated by a few major players. “The government has to make temporary interventions until the conditions for a competitive market are established,” Fernando said, adding, “We are already planning to purchase substantial amounts of paddy from farmers, in the next harvest season, to support them and prevent market manipulation.”

Prof. Fernando pointed out that the government has extended a fertiliser subsidy to paddy farmers, with the expectation that yields will improve in the coming seasons. He questioned the logic of leaving market conditions unchecked when a few large buyers acquire significant stocks, controlling prices at the expense of farmers. “Can we do nothing by saying this is how the invisible hand of the market operates?” he asked, stressing the need for government intervention to ensure farmers can at least recover production costs.

Addressing broader economic policies, Fernando asserted that the National People’s Power (NPP) government is steering the economy in the right direction, although he cautioned that visible results may take time. “When we took over, we recognised the economic challenges left by the previous administration. We identified key priority areas, though they may not always align with the public or media’s immediate concerns,” he said, adding that the focus remains on strengthening productive sectors and restoring price stability in the long run.

One significant challenge, according to Fernando, is rebuilding trust with both local and international investors. “We’ve made progress, but winning confidence back takes time,” he explained. Additionally, Fernando highlighted the lack of coordination among state agencies, which has hampered development efforts. In response, the government has appointed Dr. Hans Wijayasuriya, CEO of Axiata’s Telecommunications Business, as Chief Advisor to the President on Digital Economy. Wijayasuriya is tasked with creating common databases and a centralised platform to streamline efforts across sectors.

Regarding the country’s limited land resources, Fernando emphasised the need for scientific land management and criticised the stagnation in agricultural productivity over the past 40 years. National physical plans need to be updated, he argued, to ensure sustainable land use.

In response to allegations of money printing, Fernando clarified that the government is not engaged in this practice. He explained that what some media outlets refer to as “money printing” is actually a system through which the Central Bank temporarily provides funds to banks, which are returned within a day or a week. This mechanism is aimed at gradually lowering interest rates in the money market to stimulate the economy, he said. “This is not the same as the Central Bank buying Treasury bills and lending to the government. That practice has been completely halted.”

Explaining the rationale behind this approach, Fernando outlined how daily liquidity management supports the banking sector. “If the Central Bank doesn’t do this, the banking system might collapse,” he warned, noting that liquidity imbalances among banks require a regulatory solution to prevent systemic risk.

Fernando also addressed recent criticisms from opposition figures regarding fuel prices. He explained that Sri Lanka’s debt restructuring agreement with the International Monetary Fund (IMF) mandates an increase in government revenue to 15% of GDP by 2025. “Fuel taxes are essential for meeting this revenue target,” he said, adding, “If we can demonstrate to the IMF that we are on the right track, we may consider tax reductions in the future.”

In summary, Fernando outlined the government’s multi-pronged approach to stabilise the economy, support paddy farmers, and maintain fiscal discipline. However, he cautioned that the public might need to wait for significant improvements, as the NPP government’s policies are designed for long-term recovery rather than immediate relief. (RK)

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Landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara Eliya

Published

10 hours ago

2026/01/8

Priyan

The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale and Nuwara Eliya for the next 24 hours commencing at 1200hrs today [08]

Accordingly
LEVEL II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Ududumbara in the Kandy District, Wilgamuwa in the Matale District, and Nildandahinna and Walapane in the Nuwara Eliya District.

LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Meegahakiwula, Welimada, Kandaketiya, Lunugala, Badulla, Passara, Uva Paranagama and Hali_Ela in the Badulla District, Ambanganga Korale in the Matale District, and Mathurata and Hanguranketha in the Nuwara Eliya District.

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Warning for deep depression over South-east Bay of Bengal Sea area

Published

15 hours ago

2026/01/8

Priyan

Deep depression Track. [Source: RSMC]

Warning for deep depression over South-east Bay of Bengal Sea area.
Issued by the Natural Hazards Early Warning Centre, Department of Meteorology at 10.30 a.m. on 08 January 2026 for the period until 10.30 a.m. 09 January 2026

The depression in the Bay of Bengal to the southeast of Sri Lanka has intensified into a deep depression and is centered near latitude 5.4°N and longitude 85.3°E, about 420 km southeast of Pottuvil at 05.30 a.m. today (08th). The above system is currently (10:00 a.m.) located about 300 km southeast of Pottuvil.

It is very likely to move west-northwestwards across the southwest Bay of Bengal and cross the Sri Lanka coast between Hambantota and Kalmunai between 5.30 p.m. to 11.30 p.m. on Friday [9th January 2026].

Hence, showery, and windy condition over the island, particularly in the Northern, NorthCentral, Eastern, Uva and Central provinces is expected to enhance from today (08th).

For the Land area:

DAMAGE EXPECTED:
• Damage to huts, temporary shelters and light structures
• Destroy the roof tops/ sheets etc.
• Damage to power and communication lines.
• Breaking of tree branches and uprooting of large avenue trees.
• Damage to paddy crops, banana, papaya trees and orchards.
• Damage to harbor yachts
• Flash flood
• Sea water inundation in low lying areas in the near coast.

Action suggested for the Land area:
• Coastal hutment dwellers are advised to move to safer places. Other people in the affected areas to remain indoors.
• People living in hilly areas (particularly landslide prone areas) and low lying areas in river basins are requested to be vigilant.
• Drivers and people using roads in the hilly areas are requested to be vigilant.
• Beware of fallen trees and power lines.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• General public is requested to be vigilant regarding impending extreme weather situation.
• For emergency assistance contact the local disaster management authorities.
• Requested to be attentive about future advisories issued by the Department of Meteorology in this regard.

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Showers above 100 mm are likely at some places in the Eastern and Uva provinces and showers about 50-75 mm in other areas

Published

21 hours ago

2026/01/8

Priyan

WEATHER FORECAST FOR 08 JANUARY 2026
Issued at 05.30 a.m. on 08 January 2026 by the Department of Meteorology

The depression over the Bay of Bengal, located to the southeast of Sri Lanka, was centered near latitude 5.3°N and longitude 86.0°E, about 490 km southeast of Pottuvil, at 11:30 p.m. yesterday (07). It is expected to move west-northwestwards and towards the eastern coast of the island during next 24 hours. This system is likely to intensify further into a deep depression during the next 12 hours.

Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in the Northern, North-central, Eastern, Uva, Central and Southern provinces. Showers or thundershowers may occur at several places elsewhere in the Island after 1.00 p.m. Heavy showers above 100 mm are likely at some places in the Eastern and Uva provinces. Fairly Heavy showers about (50 – 75) mm are likely at some places in the other areas of the island.

Strong winds about (50-60) kmph can be expected at times over the Eastern slopes of the central hills, the Northern, North-central, North-western and Eastern provinces and in Hambantota, Gampaha, Colombo and Monaragala districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.