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Sabry names culprits, asks for system overhaul

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Economic crisis: ‘Money printing cannot be stopped completely’

By Shamindra Ferdinando

Finance Minister Ali Sabry, PC, has said that the Secretary to the Treasury, Governor of the Central Bank, and senior economic advisors to the President, misled the Cabinet as regards the economic situation.

They repeatedly assured that the situation was well under control, despite difficulties, lawmaker Sabry has said. That team expressed confidence that issues could be successfully dealt with, lawmaker Sabry said.

Sabry said so in a live interview on Swarnavahini Monday (02) night, the first since his return from Washington, where he led the government delegation at talks with the International Monetary Fund (IMF) and the World Bank.

Sabry said that the Cabinet-of-Ministers had realised the gravity of the situation in August 2021.

However, he was not asked about his predecessor Basil Rajapaksa who was blamed for aggravating the economic crisis.

By the time the Central Bank floated the rupee in March this year even without bothering to inform the Cabinet-of-Ministers of its decision, irreparable damage had already been caused, Minister Sabry said.

He said those who managed the national economy had prevented the country seeking IMF’s intervention well over a year back. Had President Gotabaya Rajapaksa and the Cabinet-of-Ministers received proper advice, Sri Lanka would not have been in the current predicament, Minister Sabry said.

Prof. W. A. Lakshman (Dec 2019-Sept 2021) and Ajith Nivard Cabraal (Sept 2021-March 2022) served as Governors of CBSL, S.R. Attygalle was as Secretary, Ministry of Finance (Nov 2019-April 2022) whereas Dr. P. B. Jayasundera functioned as Secretary to the President (Nov 2019-Dec 2021).

Minister Sabry said that depending on how the government and the Opposition as well as other interested parties responded to the current crisis, Sri Lanka could overcome the daunting challenges the way India, Thailand and South Korea had done or end up like Lebanon or Venezuela.

During the interview conducted by a panel led by Saddha Mangala Sooriyabandara, MP Sabry said most MPs representing both the government and the Opposition seemed unaware of the ground situation.

Responding to a question on the availability of funding to meet the basic requirements, Minister Sabry said that foreign reserves were zero. Having mentioned specific loans that had to be honoured during the April-July period, Minister Sabry said, adding that Sri Lanka had resorted to the only tangible action plan available under the present circumstances.

According to Minister Sabry Sri Lanka was left with no alternative but to restrcuture debt as underscored by the IMF. He said the government would a team of experts to represent Sri Lanka at debt restructuring talks with the relevant parties. The President’s Counsel expressed confidence that the selection process could be finalised by the time the Cabinet-of-Ministers meets again next week.

Declaring that the debt restructuring process was complicated the task, Minister Sabry said that the issues included loans obtained from the IMF, WB and other similar institutions, bilateral loans obtained from Japan, China and India et al), and funds raised from international money markets at up to 7% interest.

He found fault with successive finance ministers for simply repeating what the Treasury and the CBSL provided.

Emphasising the accountability on the part of successive governments, particularly those who had served as finance ministers for the crisis that had engulfed the country, Minister Sabry called for a system overhaul. He questioned the utilisation of funds over the past several decades as financial accountability and transparency deteriorated to such an extent the fate of Sri Lanka depended on external factors.

Minister Sabry said that the economy had suffered a severe setback due to unasked tax reduction that deprived the government over Rs. 500 bn annually. The minister said that the tax cut announced soon after the 2019 presidential election had weakened the fiscal status, and therefore it could not be accepted as a prudent decision. Referring to R. Paskaralingam role during Ranasinghe Premadasa’s tenure as the President, Minister Sabry said that ‘yes men’ had caused irreparable damage. In the absence of proper parliamentary supervision and decision-making process based on data, successive governments had been proceeding on wrong paths, Minister Sabry said, adding that the pandemic and the war in Ukraine this year had made matters worse for Sri Lanka.

Minister Sabry quoted the IMF delegation during talks with his team in Washington as having said that a combination of debt inheritance, bad policies and bad luck had resulted in the current crisis.

Referring to a hastily arranged meeting he had with Chinese Ambassador in Colombo Qi Zhenhong in the wake of the Chinese envoy expressing concern over Sri Lanka’s dialogue with the IMF, Minister Sabry said that an assurance had been received as regards Beijing’s continued support. Minister Sabry said that Sri Lanka needed the support of India, China and Japan.

The IMF loan facility could be finalised in about 6-8 months, the Finance Minister said adding that Sri Lanka expected USD 3-4 bn from the IMF over a three-year period.

Pointing out that international crude oil prices had recorded a staggering 138% increase due to the Russian invasion of Ukraine, Ministry Sabry said that the biggest issue the country faced was the supply of petroleum products. He revealed that out of the USD 500 mn Indian credit line for petroleum products, already USD 400 mn had been utilised and of the USD I bn loan facility, USD 200 mn had been sought for the import of petroleum products. Minister Sabry further said that the government had asked India to enhance USD 500 mn credit line for the import of petroleum products to USD 1 bn.

Sabry dismissed concerns over IMF conditions and explained how IMF conditions would help the country achieve financial stability.

He stressed need for gradual and an all-round revenue increase as part of the overall measures to stabilise the national economy. Sri Lanka was now paying the price for the failure of successive governments to streamline tax collection, he added. The state revenue had been 24 percent of the GDP in 82/83 but by 2020/2021 it had dropped to 8.6%, Minister Sabry said, pointing out the state revenue was not even sufficient to pay public sector salaries, pensions, Samurdhi and the maintenance of armed forces.

The Minister said that though money printing caused inflation it could not be totally stopped.



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Prime Minister Dr Harini Amarasuriya meets Foreign Secretary of the United Kingdom

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Prime Minister Dr Harini Amarasuriya currently undertaking an official visit to London, United Kingdom, to participate in the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026  held a bilateral meeting with the Yvette Cooper MP, Foreign Secretary of the United Kingdom ON Wednesday [20]. The Prime Minister was accompanied by Sri Lanka’s High Commissioner to the United Kingdom, Nimal Senadheera, along with officials from the Sri Lankan High Commission.

During the meeting, the Prime Minister conveyed Sri Lanka’s appreciation to the United Kingdom for the support extended in the aftermath of Cyclone Ditwa, including ongoing rebuilding and recovery assistance. The Prime Minister also commended the United Kingdom’s support in facilitating increased bilateral trade and exports for Sri Lanka.

The Prime Minister briefed the UK delegation on Sri Lanka’s recent economic developments and policy priorities, the Government’s commitment to advancing human rights and reconciliation, as well as Sri Lanka’s positive growth trajectory.

The two sides also exchanged views on current global geopolitical developments, challenges in the energy sector, and the importance of enhancing regional connectivity and long-term energy security.

Both sides also emphasised the importance of strengthening structured academic mobility frameworks while ensuring fairness, clarity, and integrity within migration systems.

They also reaffirmed their commitment to further strengthening bilateral cooperation between the two countries in areas of mutual interest.

[Prime Minister’s Media Division]

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Suspects involved in sureties controversy granted bail

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Kapila Chandrasena

Airbus bribe case:

Colombo Additional Magistrate Lahiru Silva yesterday (20) granted bail to Mohamed Riswan and Mohamed Irshan, who allegedly received money to stand as sureties for the late former SriLankan Airlines CEO, Kapila Chandrasena. They were identified as residents of Sanchi Arachchi Watta, situated next to the Hulftsdorp court complex.

Chandrasena was found dead at his brother-in-law, Aravinda De Silva’s residence, at No. 38, Pedris Road, Kollupitiya, on 8 May.

The Magistrate also granted bail to B. A. Tissa and Perumal Ganesh, who arranged for Riswan and Irshan to stand as sureties for Chandrasena, who is under investigation for allegedly receiving a USD 2 million bribe through his wife to facilitate an Airbus deal. They, too, residents of Sanchi Arachchi Watta, were granted bail on two personal bail of Rs. 500,000 each.

Airbus had to pay USD 4 billion in penalties after admitting it had paid huge bribes to secure contracts in 20 countries. Sri Lanka is among them.

The Magistrate directed that the Grama Niladhari should certify their residence and the relevant certificates submitted to court and to establish the financial status of those who stood as sureties for the four persons.

The court was told that Mohamed Riswan and Mohamed Irshan obtained 17 Grama Niladhari certificates from January till May 2026. On the basis of a statement recorded from Keselwatta Grama Niladhari S. Nilantha Silva police informed court that the first suspect had obtained 10 certificates and the second person seven.

Fourth suspect Ganesh had first met those who stood as sureties, on 05 May, in the court premises and struck the deal. Crime OIC of Keselwatta Police, Sub Inspector K.W.D. Anuruddha, told court that Mohamed Riswan, Mohamed Irshan and B. A. Tissa hadn’t even known who Chandrasena was and were not related to him in anyway, according to investigations. Police requested that the four persons be further remanded.

The Magistrate granted them bail and set the next hearing for 25 June.

Legal sources said that such illegal practices were rampant, and in this particular case the Court Registrar should have been able to see that the sureties were very much unlikely to be relatives of Chandrasena.

By Shamindra Ferdinando

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Steps underway to safeguard Sri Lanka’s maritime heritage

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The government has initiated a major conservation drive to protect its fragile northern marine ecosystems, with top government officials pledging stronger action against environmental degradation, destructive fishing practices, and Illegal, Unreported and Unregulated (IUU) fishing in the country’s northern seas and adjacent islands.

A high-level discussion chaired jointly by Deputy Minister of Environment Anton Jayakody and Deputy Minister of Defence Aruna Jayasekara was held on Tuesday (19) at the Ministry of Environment to formulate an integrated strategy aimed at safeguarding Sri Lanka’s maritime heritage and accelerating marine conservation initiatives.

Senior naval officers, top environment officials, conservation experts, and representatives from several state agencies attended the meeting, which focused heavily on the declaration of new Marine Protected Areas (MPAs) in the Northern Province.

Among those present were Secretary to the Ministry of Environment K.R. Uduwawala, Chairman of the Marine Environment Protection Authority Samantha Gunasekara, Director General of the Coast Conservation and Coastal Resource Management Department Prof. Turny Pradeep Kumara, Conservator General of Forests Palamakumbura, officials of the Department of Wildlife Conservation, and senior ecologists from International Union for Conservation of Nature.

Officials stressed that the protection of Sri Lanka’s northern marine zone was essential not only for biodiversity conservation but also for sustaining the livelihoods of fishing communities and strengthening the country’s maritime standing internationally.

A major concern raised during the meeting was the increasing ecological destruction caused by IUU fishing activities. Ministers warned that such unlawful practices posed a severe threat to marine biodiversity and the economic stability of local fishermen.

The discussion also focused on intensifying surveillance operations and strengthening law enforcement mechanisms to combat destructive fishing methods, including dynamite fishing, unauthorized spearfishing, and the use of banned fishing gear that continue to devastate coral reef ecosystems and endangered marine species.

Attention was also drawn to governance and infrastructure shortcomings within fishing harbours, with officials identifying the lack of proper management systems and formal regulatory mechanisms as major vulnerabilities contributing to environmental degradation.

As part of the proposed conservation strategy, several islands and surrounding marine zones in the Northern Province have now been identified for official declaration as Marine Protected Areas.

Authorities clarified that the establishment of MPAs would not undermine the livelihoods of local communities but instead promote sustainable fishing practices while opening new opportunities for eco-tourism development.

Officials said these protected marine zones could eventually be developed into internationally recognised eco-tourism destinations, generating fresh economic opportunities for the Northern Province while enhancing Sri Lanka’s environmental credentials globally.

The meeting further highlighted that the declaration of new MPAs would reinforce Sri Lanka’s commitment to international biodiversity conservation obligations and demonstrate the country’s role as a responsible custodian of the Indian Ocean’s marine resources.

A proposal was also made to establish a multi-sectoral working group comprising representatives from the Ministries of Tourism, Fisheries, Defence, Environment, and Justice to implement a coordinated mechanism for the protection of coastal and marine resources under the leadership of the Ministry of Environment.

Officials described the initiative as another significant milestone in Sri Lanka’s broader journey towards building a sustainable biosphere and ensuring long-term environmental security for future generations.

By Ifham Nizam

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