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Lanka on verge of becoming failed state, say bishops

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Prelates call for unity among politicians as the country faces its worst economic crisis since independence

(UCAN) Catholic bishops have called for unity among politicians to save Sri Lanka from becoming a failed state.

Bishop Winston S. Fernando, president of the Bishops’ Conference of Sri Lanka, said successive governments were responsible to varying degrees for the present state of affairs.

“The country is fast approaching the precipice of a failed state that will in its wake inflict irreversible injuries on the people,” the prelate said in a statement on behalf of bishops.

The South Asian nation of 22 million people is facing its worst economic crisis since independence from Britain in 1948 after its foreign reserves hit a record low.

The dollar shortage has caused power shortages affecting all sectors while skyrocketing prices of essential goods have disrupted life across the country.

Bishops have urged all Catholic institutions, parishes and private institutions as well as men and women of goodwill to organize assistance to help those severely affected by the economic crisis.

“The rulers are under obligation to serve all the citizens by putting the country first and not act out of political expediency but principle,” said Bishop Fernando.

“What the country needs is an immediate solution to remedy the critical situation and to work on short-term and long-term solutions to put the country on a solid foundation of sustainable development.”

Sri Lanka needs nearly US$7 billion to service its external debt this year.

Thousands of people gathered near the private residence of President Gotabaya Rajapaksa on March 31 to protest against rising prices and demand his resignation. The police fired tear gas and imposed a curfew for a few hours. Nearly 50 people were injured.

There were strict roadblocks and the police and army were deployed to prevent protesters entering the president’s house.

The crisis has caused massive public anger, with people unable to find gas for cooking, medicines, fuel and basic items of food such as milk powder because the country has run out of foreign currency to pay for imported goods.

Hundreds of people chanted for Rajapaksa and the entire cabinet to resign over the crisis. Videos circulating on social media showed protesters shouting “Lunatic go home”.

With no air conditioners or fans, people are sweltering during the 10-12 hour power cuts. The government does not have the money to pay for the fuel needed by power plants.

People with serious medical conditions are struggling to find medicines and hospitals have cancelled operations as they have no diesel to operate generators during blackouts.

The government has switched off street lighting to save electricity. Mobile phones have been affected because the standby generators used at the phone base stations have run out of diesel.

The government’s decision to adopt organic farming last year turned out to be disastrous. The ban on all chemical fertilizers led to a surge in prices and food shortages. Although the policy was partially reversed later, the damage had been done

Activist Nuwani De Silva said people have to queue from morning until evening to buy essential items.

“How do we manage our daily work with a 12-hour power cut? People are in an aggressive mood everywhere in the country,” she said. “Wherever government ministers are seen on streets, the public protest against them.”

Cardinal Malcolm Ranjith of Colombo recently called for a national transformation to tackle the crisis.

“The country today is in a hopeless situation and it is the result of a series of wrong choices made not only by politicians but also by citizens who have allowed themselves to be exploited by the political and cultural forces that handed down our destiny,” Cardinal Ranjith said at Colombo’s Anglican Cathedral on March 27.



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The government is implementing a comprehensive programme to restore the livelihoods of fishermen and businesses affected by Cyclone Ditwah – PM

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Prime Minister Dr. Harini Amarasuriya stated that the Government has implemented a comprehensive programme to assist the fishing community and micro, small, medium, and large-scale entrepreneurs affected by Cyclone Ditwah in rebuilding their livelihoods.

The Prime Minister made these remarks while responding to questions in Parliament on Tuesday (09) regarding the relief measures introduced for those affected by the disaster.

Prime Minister Dr. Harini Amarasuriya stated:

“The Ministry of Fisheries, Aquatic and Ocean Resources has initiated a special assistance programme for both marine and inland fishermen affected by Cyclone Ditwah. Under this programme, new fishing vessels will be provided to replace those that were completely destroyed, while partially damaged vessels will be repaired. The distribution of fishing nets to eligible fishermen has also commenced.

To support the recovery of businesses damaged by the cyclone, the Government has introduced a concessional loan scheme carrying an annual interest rate of 3 per cent. The programme, with a total allocation of Rs. 10,000 million, is being implemented through 15 banks. As at 28 April 2026, loans amounting to Rs. 3,812 million had been disbursed to 2,800 entrepreneurs. The scheme offers a repayment period of up to three years, including a six-month grace period, with the objective of enabling businesses to resume operations without delay. Applicants are required to obtain recommendations from the Grama Niladhari and the Divisional Secretary certifying that the business was operational before the cyclone and that it was affected by the disaster.

The Prime Minister further stated that, on the instructions of the Central Bank of Sri Lanka, licensed banks have granted a moratorium on loan repayments and waived penalty interest until 31 January 2026. The Prime Minister also emphasized that compensation payments to affected entrepreneurs are continuing in accordance with the relevant ministerial circulars and disaster relief guidelines.

[Prime Minister’s Media Division]

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Formulation of a Draft Economic Development Bill to expedite the process of Digital Transformation and Digital Economic Development

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It is essential to establish an institutional framework with legal powers to ensure the effective implementation of national digital policy and guidelines.

Quality human capital should be attracted to this institutional framework for the compilation of policies, implementation of policies, regulation, and empowerment of operations. The continuous participation of the private sector should also be considered in establishing a strong institutional framework.

It has been further identified that attention should also be
drawn to new fields of digital innovation, including support for artificial intelligence and related activities.

Taking into consideration the aforementioned matters, a concept paper has been formulated to prepare a Draft Economic Development Bill for the establishment of a new institutional framework.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the  President in his capacity as the Minister of Digital Economy to instruct legal draftsman to formulate a Draft Economic Development Bill based on the aforementioned concept paper.

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Cabinet approval for Sri Lanka Community and Health Survey – 2026/2027

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The Sri Lanka Community and Health Survey is the main data source for obtaining necessary information for reviewing progress toward achieving the national health development goals, as well as the expected sustainable development goals by 2030.

The last survey was conducted in the year 2016, and the Sri Lanka Community and Health Survey should be conducted to obtain updated data to enable the collection of related data and indicators concerning the health and well-being targets of the Global Sustainable Development Objectives.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning, and Economic Development to take necessary steps to conduct the aforementioned survey.

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