News
Gammanpila favours deal with IMF, says most ministers like minded
BY SHIHAR ANEEZ
ECONOMYNEXT – Sri Lanka should enter an deal with the International Monetary Fund, Petroleum Minister Udaya Gammanpila said as forex shortages delayed oil imports and power cuts were imposed as fuel supplies were disrupted.
“I have expressed my view that we should go to the IMF. Now most of the the cabinet ministers are for an IMF deal,” Minister Gammanpila told reporters on Friday. “The final decision has to be made by the Finance Ministry and the Central Bank.”
The CPC has been unable to buy dollars amid forex shortages triggered by liquidity injections made to enforce a 6.5 percent policy rate. Some of the liquidity injections are made to offset central bank dollar sales to the CPC itself.
An IMF program would force a rate hike and a float, which will end the money printing, allowing imports to match inflows.
Meanwhile ships were sometimes stuck at an offshore unloading point off the capital Colombo as banks and the utility scrambled for foreign exchange.
“A ship from Petro China has to keep waiting in sea for 11 days because we did not have dollars,” Gammanpila said. “We had to keep two ships like that.”
Two ships with petrol and diesel are expected to arrive Saturday.
“The Central Bank, People’s Bank, and Bank of Ceylon are trying their best to find us dollars,” Gammanpila explained. “The central bank has agreed to give us 60 million US dollars to clear two shipments coming tomorrow (Saturday). These dollars are now being collected and I hope it could be done by today. (Friday).”
The CPC had also got a 500 million US dollar credit line from India, which would be active from April. Earlier last week India sent a 40,000 litre shipment of oil ahead of the official launch of the credit line.
News
22A: SC urged to suspend hearing, appoint full bench
Attorney-at-Law Sugandhika Fernando, on behalf of the Vinivida Foundation, petitioned the Supreme Court yesterday (02), seeking a full bench, excluding Chief Justice Preethi Padman Surasena, to hear the petitions challenging the 22nd Amendment Bill. She also requested that the hearing be suspended immediately until the matter was fully heard and determined.
Among the respondents are Chief Justice Surasena, the first respondent, and Attorney General Parinda Ranasinghe. Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli and Priyantha Fernando have also been named as respondents.
The petitioner has sought to have quashed the decision of the first respondent to appoint a five-member bench, which she alleged was made in violation of the norms of public law. She also sought a bench comprising all Supreme Court judges, excluding those cited as respondents, to hear the special determination applications on the 22nd Amendment.
The petitioner further contended that Chief Justice Surasena, who is due to retire on December 1, 2026, would be the main beneficiary of the 22nd Amendment.
The hearing of the petitions continued for a second day yesterday (02) before a five-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli, Arjuna Obeyesekere, Sampath Abeykoon and Gihan Kulatunga.
The hearing, which commenced on Tuesday morning, continued for nearly 12 hours, until 10:30 p.m.
Solicitor General Viraj Dayaratne, appearing for the Attorney General, submitted yesterday that the Government had presented the 22nd Amendment Bill to the Constitution and the Judicature (Amendment) Bill with the objective of expanding and streamlining the country’s judicial system.
After the Solicitor General’s submissions concluded, counsel representing the petitioners requested an opportunity to respond to the Solicitor General and the intervening petitioners. However, the Chief Justice declined to allow the petitioners’ counsel to make further oral submissions, concluded the determination hearing and directed them to file written submissions instead.
News
Govt. seeks NATO assistance
Sri Lanka has formally requested assistance from the North Atlantic Treaty Organisation (NATO).
According to a press release issued by the Defence Ministry, Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha has discussed defence cooperation with NATO, with discussions focusing on military modernisation, advanced technology, cyber capabilities and disaster response.
This was during talks between AVM Thuyakontha and NATO Military Committee Chairman Admiral Giuseppe Cavo Dragone on the sidelines of the Chiefs of Defence Conference in Victoria, Canada.
During the meeting, Secretary Thuyacontha outlined Sri Lanka’s defence requirements and areas of interest, including the modernisation of military hardware, acquisition of advanced technologies, and strengthening cyber capabilities and surveillance platforms, the Ministry of Defence said in a statement.
The two sides also discussed opportunities for greater technical cooperation, including the exchange of military personnel, expanded education and training programmes, and increased sharing of expertise and information.
Humanitarian Assistance and Disaster Relief (HADR) was also identified as an area for potential cooperation. The discussions included the exchange of expertise and the effective use of unmanned aerial vehicles (UAVs) in disaster response and related operations.
Defence Secretary Thuyacontha invited NATO to further strengthen its engagement with Sri Lanka, emphasising sustained dialogue, information sharing and practical cooperation in areas of mutual interest.
News
Recent ‘Ice’ detection at the Colombo Port made on US intelligence – Embassy
The US Embassy in Colombo yesterday (02) said the recent detection of 463 kg of Crystal Methamphetamine at the Colombo Port had been made possible by intelligence provided by the US. It noted that the detected narcotics were to be moved to international markets, via Colombo.
The text of the US Embassy statement: “The U.S. Drug Enforcement Administration’s (DEA) New Delhi Country Office and Sri Lanka’s Police Narcotics Bureau (PNB) conducted a successful joint operation disrupting a Pakistan-based narcotrafficking network attempting to smuggle crystal methamphetamine through Sri Lanka to international markets.
Acting on intelligence developed by DEA’s Foreign Counterparts Unit Pakistan Anti-Narcotics Force Special Investigations Cell between August 14–29 on suspicious maritime containers moving from Pakistan to Colombo, PNB seized approximately 463 kg of crystal methamphetamine—valued at $21 million—concealed in bath towels, and arrested several suspects, including Pakistani nationals. This operation underscores the strength of the U.S.-Sri Lanka partnership in dismantling transnational criminal organizations that fund terrorism and threaten communities in both our countries.
This cooperation builds on longstanding training and technical assistance provided through the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) to the Sri Lanka Police and Customs. The United States remains committed to working with Sri Lanka and regional partners to aggressively pursue transnational criminal organizations, deny them the revenue from illicit drug trafficking, and protect our citizens from the dangers of narcotrafficking.”
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