News
Prez’s hint at being ready for second term causes turmoil in Opp. – Minister
..admits no option but to increase fuel prices
By Shamindra Ferdinando
Welcoming President Gotabaya Rajapaksa’s recent declaration that he would seek a second term, SLPP Gampaha District leader and tourism minister Prasanna Ranatunga yesterday (22) said that the announcement caused turmoil in the Opposition.
The announcement made by the President at a recent meeting with proprietors of the privately owned media and heads of both state and private media delivered a heavy blow to Opposition plans, Minister Ranatunga said, adding that those opposed to the government were in disarray.
The minister said this while addressing members of the Minuwangoda Pradeshiya Sabha at Udugampola.
Referring to the rejection of a No-Confidence Motion (NCM) moved by the Samagi Jana Balavegaya (SJB) against Energy Minister Udaya Gammanpila by a staggering 2/3 majority, Minister Ranatunga emphasised that there hadn’t been a split in the ruling SLPP though there were differences of opinion among constituent parties of its coalition.
The SLPP backed Gotabaya Rajapaksa at the 2019 presidential election though he was not a member of the party. President Gotabaya Rajapaksa hasn’t taken the SLPP membership yet.
The SLPP parliamentary grouping including its General Secretary Sagara Kariyawasam, who demanded Minister Gammanpila’s resignation over fuel price hike voted against the NCM.
Minister Ranatunga said that the outcome of the NCM proved the stability and strength of the government. The NCM received 61 votes in favour of it and 152 against. The Speaker and 11 others didn’t vote at the first NCM faced by the incumbent government.
Pointing out that in the wake of its big defeat, the Opposition had begun to give feeble excuses, Minister Ranatunga said that the government could comfortably defeat any Opposition move. The SLPP Gampaha District strongman said that the Opposition strategy was meant to cause a division within the government parliamentary group. However, the bid to exploit the situation boomeranged on the Opposition, the former SLFPer said.
Lawmaker Ranatunga said that they should understand that the government had no option but to increase fuel prices though it would have been much better if price increase could have been avoided. The minister alleged that a section of the civil society grouping was backing the Opposition campaign against the government. The ongoing relentless wave of protests and strikes was part of their strategy, he alleged, vowing to defeat all Opposition challenges.
Minister Ranatunga assured that new Finance Minister Basil Rajapaksa would take necessary measures to rebuild the national economy that had been battered by the raging Covid-19 epidemic. Those trade unions affiliated to various Opposition political parties were hell-bent on undermining government efforts to overcome challenges posed by the epidemic. The Minister said that restoration of the tourism industry before the end of this year would be a major part in their overall strategy to bring the situation under control.
News
Sri Lanka, India caught in US-Iran ship crisis
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.
News
Namal further remanded
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.
News
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
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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