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CBSL Governor calls for political stability to rescue economy

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… warns he will have to resign if chaos continues

Extended power cuts possible if political instabilty persists

Curtailment of expenditure on imports necessary for economic recovery

Sri Lankan economy would collapse if political stability was not restored soon, the Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe, said yesterday.

Dr. Weerasinghe warned that he would be left with no alternative but to resign within two weeks if political instability continued. He warned that the prevailing political instability, acts of violence and the failure on the part of the State to maintain law and order had made it harder for Sri Lanka to overcome the current economic crisis.

Political stability was essential for economic recovery, said the CBSL chief, adding that when he assumed duties as the Governor, it was thought that the economy could be stabilised soon, but the unfolding events would put paid to efforts that the Central Bank and the Finance Ministry were making to straighten up the economy.

Dr. Weerasinghe said that when he assumed duties one month back, he expected political stability to be restored within two weeks, and they would be able to implement their economic programme.

If all political parties did not come together, no one would be able to rescue the c economy, whoever held the post of the Central Bank Governor, Dr. Weerasinghe said.

“As the Central Bank, we have to state that if such a stable condition cannot be achieved within a very short period of time, the existing situation would worsen further,” he said.

He also said that there was so much that the Central Bank could do and that a solution to the crisis could be achieved by only policy makers.

“There is a serious shortage of foreign exchange in the country and already there is a scarcity of some essential items. Although fuel and gas stocks are available to some extent and power cuts are limited to around three hours, things can change for the worse soon,” he warned.

“If this situation continues even for another two or three days, there will be 10-12-hour power cuts again. We will see a severer shortage of fuel. We will see longer queues for cooking gas. This will lead to more protests and social unrest. We at the Central Bank hope there will be political stability soon so that we will be able to implement our policies and find some foreign exchange to address these current shortages of essentials.”

Dr. Weerasinghe said that Sri Lanka needed a stable government, a Cabinet, a functioning parliament, a prime minister and a finance minister to reach an agreement with the IMF.

“Without a stable administration that is respected by the people, it is very difficult for us to make any progress. This is why I have been repeating the urgent need for a stable administration and law and order in the country so that everyone can engage in their normal day-to-day activity,” he said.

The President and all the Members of Parliament have to come together and find a workable solution soon without placing the country at a bigger risk, he said. “Otherwise, there will be no progress and everyone will have to undergo more suffering.”

Dr. Weerasinghe also urged people to reduce the consumption of imports. If someone needs to buy a mobile phone, a TV or a refrigerator, he or she should wait a month or two, he said. “There are many items in showrooms despite import restrictions. They are also trying to make undue profits. I think people should cut down on these purchases. If we don’t spend money on these, we will have more money for essentials. Also, vendors will have to reduce prices. Remember what happened to cement; traders stocked up and jacked up prices, but because people didn’t buy, cement prices plummeted.”



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FSP warns of possible coal shortage

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“No shipment for 10 days; seas off western coast will become rough by April end”

Education Secretary of the Frontline Socialist Party (FSP) Pubudu Jayagoda says the Indian company which secured a tender to supply coal for electricity generation this year has delivered only 13 of the 25 shipments required and no vessel has arrived in Sri Lanka for the last 10 days or so.

Jayagoda said so while addressing the media during a protest held in Colombo yesterday.

Jayagoda said the Indian company Trident Chemphar, which secured the tender to supply 25 coal shipments for 2026, had placed the country’s coal stocks at risk.

Although all 25 coal shipments are required to be unloaded before the end of April, only 13 vessels have arrived in Sri Lanka so far, according to Jayagoda. He also claimed that no shipment had arrived during the first week of March, adding that coal vessels had not arrived for about 10 days.

Jayagoda warned that the situation could endanger the country’s energy supply as the seas off the western coast usually turn rough by the end of April, disrupting unloading operations.

According to Jayagoda, a report submitted by the Public Utilities Commission of Sri Lanka to the Parliamentary Oversight Committee on infrastructure and strategic development, power cuts may become necessary from August even if the country falls short of five shipments unless electricity is generated using costly diesel-powered thermal plants.

Jayagoda also alleged irregularities in the tender process, claiming that the government had changed tender specifications and delayed the tender process by about four months, possibly to allow the Indian company time to register and secure performance guarantees.

He further alleged that the coal supplied by the Indian company was substandard.

Jayagoda questioned why the tender had not been cancelled despite several shipments allegedly failing to meet quality standards and why no investigation had been launched.He asked why legal action had not been taken against the company despite supply disruptions.

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Repatriation of Iranian naval personnel Sri Lanka’s call: Washington

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The US Department of State has said that Washington respects Sri Lanka’s sovereignty in handling matters relating to the Iranian warship IRIS Bushehr and its crew, according to agency reports, quoting a State Department Spokesperson. He has said the final decision regarding the vessel, its crew and the rescued Iranian sailors rests with Sri Lanka in accordance with its domestic laws and international legal obligations.

The statement follows comments by Foreign Minister Vijitha Herath that Sri Lanka was looking after 32 sailors rescued from the Iranian frigate IRIS Dena under Colombo’s international treaty obligations.

The frigate was sunk by a US submarine off Sri Lanka’s southern coast on Wednesday during escalating hostilities involving the United States and Iran.

Sri Lanka’s Navy conducted rescue operations, following the incident, recovering 84 bodies.

Asked whether Colombo was under US pressure not to repatriate the Iranian sailors, Herath said Sri Lanka had taken all actions in accordance with international law.

Sri Lanka also provided safe harbour to the second Iranian warship, IRIS Bushehr, and evacuated its 219 crew members a day after the Dena was torpedoed. The vessel was taken to the port of Trincomalee after reporting engine problems.

Citing an internal cable, Reuters reported that Washington had urged Sri Lanka not to repatriate the Iranian sailors. However, the State Department spokesperson reiterated that the disposition of the crew and survivors was a matter for Sri Lanka to decide, adding that the United States respects Sri Lanka’s sovereignty in managing the situation.

Meanwhile, India allowed a third Iranian warship, IRIS Lavan, to dock in a port on humanitarian grounds after it reported operational difficulties.

The ship docked at the port of Kochi, where many of the crew, including young cadets, were disembarked and transferred to a nearby facility.

President Anura Kumara Dissanayake said Colombo would follow the provisions of the Hague Convention, which requires neutral states to detain combatants of warring parties until the end of hostilities.

A senior administration official said Sri Lanka was in discussions with the International Committee of the Red Cross regarding the treatment of survivors from the torpedoed vessel. International humanitarian law would apply to the wounded, who could be repatriated if they requested it, the official added.

Iranian diplomats in Colombo have requested the return of the remains of sailors killed in the attack to Iran.

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Indian Ocean must remain peace zone: Sajith

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Opposition and SJB leader Sajith Premadasa, emphasised the critical need for the Indian Ocean region to remain peaceful and not become part of any conflict, said a news report published by NDTV yesterday.

It said: As the Iran-Israel war enters its second week, the theatre of the war has expanded dramatically, reaching the waters of Sri Lanka. With the sinking of Iranian warship IRIS Dena in international waters off Lanka’s coast and the docking of a second Iranian vessel, IRIS Busheher, Colombo has become embroiled in a conflict where it seeks to remain only a neutral bystander.

Speaking with NDTV, Sajith Premadasa, Leader of the Opposition in Sri Lanka emphasised the critical need for the Indian Ocean region to remain peaceful and not become part of any conflict.

“The Indian Ocean has on successive occasions been declared a peaceful area and should remain so,” said Premadasa.

The Sri Lankan government has said that it will attend to all survivors of the ill-fated IRIS Dena and IRIS Busheher as per international protocols and norms. Sri Lankan President Anura Kumara Dissanayake said his country had a “humanitarian responsibility” to take in the crew of the vessel, which was allowed to dock at Trincomalee in Northern Sri Lanka.

Premadasa, who is the leader of the opposition party SJB, called on all parties to cease the ‘asymmetric warfare’. He cautioned that the widening conflict would have devastating consequences for smaller countries like Sri Lanka, which is still reeling from its worst economic crisis in 2022.

“The Middle East conflict is already spreading to other countries, and this is having an impact on Sri Lanka and Sri Lankan people,” Mr Premadasa told NDTV.

A third Iranian vessel that was in the Indian Ocean, IRIS Lavan, has docked at Kochi in India. India has said it was a “humanitarian call” after the vessel sent out a distress call.

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