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Harsha urges dialogue between govt. and opposition on grave foreign exchange crisis
“Better understand problem….we’re all in this together”
Opposition SJB MP, Dr. Harsha de Silva, last week urged President Gotabaya Rajapaksa to initiate a dialogue with the opposition to find a way out of the country’s precarious foreign exchange crisis “to better understand the problem as we’re all in this together.”
Quoting several recent news reports and accusing the Central Bank Governor Ajith Nivard Cabraal of making “factually incorrect statements,” the respected economist MP said: “……. I urge President Gotabaya Rajapaksa to initiate a dialogue with us, the Opposition, to better understand the problem and find solutions together, as we are all in this together.”
He prefaced his request for a dialogue with the following remarks:
“The Governor of the Central Bank reiterates his factually incorrect statements to a certain newspaper today that there is no dollar shortage in the country. However, many other newspapers report otherwise. In fact, one of the leading newspapers states that we are in need of $20mn to clear 2,000 containers stuck at the port, while another claims that we are not able to import medicine as there is a shortage of dollars.
“Meanwhile, another prominent newspaper states that the Central Bank is preparing to sell more of our gold reserves, as we do not have sufficient financial resources to keep the country functioning. Who is the Central Bank Governor trying to fool? We are at the brink of an economic collapse with insufficient dollars to import essential commodities such as medicine, milk powder, fuel, food etc
“According to the Central Bank data, at the end of November 2021, we had a mere $1.5 bn of reserves left. Thereafter, at the end of December 2021, the Central Bank claimed that they possessed $3 bn of reserves after manipulating the data with a currency swap from China for an amount of $1.5 bn.
“However, at the end of January 2022, we possessed only $2.3 bn even with the currency swap with China, thus ending up with only $700 mn of usable reserves. Therefore, we are in a precarious situation as the Central Bank needs to settle a debt payment of $70 mn today (Feb. 9) and another Sri Lanka Development Bond payment on February 17 for $160 mn.
“These two payments themselves come to a total of $230 mn, thus depleting our reserves even further. Neither the Government nor the Central Bank has a plan to try and get us back on track and bring in dollars to not only pay off our debts but also money to pay for our essentials.
“Thus, I urge President Gotabaya Rajapaksa to initiate a dialogue with us, the Opposition, to better understand the problem and find solutions together, as we are all in this together.”
Latest News
No change in death toll, stands at 639 as at 0600AM today [11th]
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
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
News
UK pledges £1 mn in aid for Ditwah victims
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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