News
Only traitors won’t accept urgent economic reform agenda acceptable to IMF
Public Administration Secretary:
By Shamindra Ferdinando
New Public Administration Ministry Secretary Priyantha Mayadunne has warned political parties represented in Parliament, state and private sector trade unions and the civil society that they will soon be categorised as traitors unless they agreed to a far reaching economic reforms agenda.
Attorney-at-Law Mayadunne issued the warning over the last weekend at a meeting of public administration officers held at the Postal Auditorium, near Lotus Tower.
One-time Justice Ministry Secretary Mayadunne replaced J. J. Ratnasiri as Secretary to the Ministry of Public Administration, following the appointment of the new Cabinet.
The normally soft-spoken Mayadunne declared that the country was in such a precarious situation, especially in the absence of a tangible recovery plan yet. Therefore, the government and other stakeholders didn’t need IMF’s intervention to undertake a wide ranging reform agenda on their own without delay.
The declaration was made close on the heels of the revelation at the recent sittings of parliamentary watchdog committee how the then Presidential Secretary Dr. P.B.J. Jayasundera rejected IMF’s intervention in March-April 2020.
During the COPE
(The Committee on Public Enterprises) proceedings on May 25, Governor of the Central Bank Dr. Nandalal Weerasinghe revealed how the then government callously dismissed IMF recommendations for immediate debt restructuring programme and advice not to implement large scale tax cuts.
Asked whether he had earned the wrath of the political authority for being critical of successive governments and the current dispensation for Sri Lanka’s predicament, Mayadunne said that he solidly stood by what he said at the forum. “There is absolutely no point
in suppressing the truth or making foolish efforts to deceive the masses. The public must be taken into confidence and told how to face the growing crisis. But, the crisis cannot be addressed unless the political parties, both in and outside Parliament, trade unions and civil society groups recognize and accept their responsibilities,” Mayadunne said.
Acknowledging his own shortcomings, Mayadunne told a public servants’ meet over the last weekend, those who served the public service for 30 years were responsible for varying degrees.
Mayadunne asserted that successive governments bear the responsibility for creating an oversized public service that was a very heavy burden on the taxpayer. Pointing out that the public service comprised staggering 1.5 mn members, Mayadunne declared that the country could have afforded 500,000. Sri Lanka could have managed 500,000 to 800,000 but today there were nearly double the amount of public servants the country could afford, Mayadunne said.
Mayadunne recalled how he requested the then Secretary to the President in 2004 not to expand the public service by accommodating a large group of graduates as it could cause a catastrophe one day. As a result of following dangerous politically motivated policies, those now retiring from the public service faced the risk of not being able to receive a monthly pension. The situation was so bad the retirees couldn’t expect to receive gratuity, Mayadunne said, warning that all would have to forgo perks and privileges for a period of ten years.
The top official urged trade union leadership regardless of the sectors they represented not to make utterly irresponsible demands under any circumstances. The government lacked the wherewithal to meet basic requirements, such as salaries let alone addressing other demands.
Acknowledging the extreme difficulties experienced by a large section of public servants, Mayadunne strongly advised against a salary increase as it could create an extremely volatile situation. Mayadunne warned that salary increases to public servants at a time others didn’t have relief at all could result in violence being directed at the decision makers. Perhaps an appropriate transport allowance could be considered due to high cost of public and private transport.
Mayadunne said that the country was on the verge of a famine. Whatever various people said that the Yala season couldn’t meet the country’s requirement, he said, adding that crisis-hit countries in the region weren’t in a position to meet the shortfall. June would be far worse than May and the country couldn’t anticipate foreign food assistance either, Mayadunne said.
Recalling the hardships experienced by the people of the North during the conflict, Mayadunne warned that the way the financial crisis developed and the overall situation deteriorated, credit cards issued here would soon be useless.
The Ministry Secretary warned that the Western Province where about 90 percent of its paddy requirement had to be brought from outside would be the worst affected region.
Declaring that the vast majority of people found it extremely difficult to make ends meet, Mayadunne said that even having a glass of milk was a luxury.
The top Public Administration official said that there was nothing that the population here could do now to rectify waste, corruption, irregularities and mismanagement, if the country ended up in an unprecedented crisis.
Revealing that public servants were owed a staggering Rs 17 bn in gratuity payments, Mayadunne said the duty free car permit issued to them couldn’t be utilized now for obvious reasons.
Underscoring the responsibility on the part of the executive, the legislature and the judiciary to address the issues at hand, Mayadunne said that regardless of public standing all should be subjected to a common agenda. Water, electricity and other essential services shouldn’t be provided free of charge as the country struggled to cope up with extremely daunting challenges.
Mayadunne said that trade unions would have to align with the overall national plan meant to save and revive the economy.
Alleging that national policies developed at taxpayers’ expenses ended up in the dustbin, Mayadunne explained how irresponsible governance over a period of time ruined the country. He slammed successive governments over public sector recruitment, extravagant state-projects, and perks and privileges granted to lawmakers.
Mayadunne said that the establishment of Commissions wouldn’t change the public service overnight. As long as the politicians exercised power over officials, the current situation would continue, Mayadunne declared, insisting that key appointments should be handled by the Constitutional Council. Comparing a Secretary to a Ministry with a peon, Mayadunne said that since 2015, he had held 17 appointments and by the time he retired he would get an opportunity to serve in three other places.
News
PM lays foundation stone for seven-storey Sadaham Mandiraya
The foundation stone laying ceremony for the proposed seven-storey Sadaham Mandiraya at the historic Sri Jayewardenepura Kotte Rajamaha Viharaya was held on 03rd of January with the participation of Prime Minister Dr. Harini Amarasuriya.
The religious programme, organised to coincide with the Duruthu Full Moon Poya Day, commenced with the chanting of Seth Pirith by the Maha Sangha.
Subsequently, the Prime Minister participated in laying of the foundation stone, formally marking the commencement of construction of the seven-storey Sadaham Mandiraya.
The Sadaham Mandiraya will be constructed as a centre dedicated to the preservation of Buddhist heritage while providing Dhamma education and spiritual guidance for future generations.
The event was graced by the presence of Chief Incumbent of the Kotte Rajamaha Viharaya, Venerable Aluth Nuwara Anuruddha Thero, together with members of the Maha Sangha; and attended by the Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, local political representatives, state officials, and a large gathering of devotees.

(Prime Minister’s Media Division)
News
PUCSL and Treasury under IMF spotlight as CEB seeks 11.5% power tariff hike
The Public Utilities Commission of Sri Lanka (PUCSL) and the Treasury are facing heightened scrutiny as the Ceylon Electricity Board (CEB) presses for an 11.5 percent electricity tariff increase, a move closely tied to IMF-driven state-owned enterprise (SOE) reforms aimed at curbing losses and easing fiscal pressure on the State.
The proposed hike comes as the Treasury intensifies efforts to reduce the budgetary burden of loss-making SOEs under Sri Lanka’s IMF programme, which places strong emphasis on cost-reflective pricing, improved governance and the elimination of quasi-fiscal deficits.
Power sector sources said the PUCSL has completed its technical evaluation of the CEB proposal and is expected to announce its determination shortly.
The decision is being closely watched not only as a test of regulatory independence, but also as an indicator of how Treasury-backed fiscal discipline is being enforced through independent regulators.Under the IMF agreement, Sri Lanka has committed to restructuring key SOEs, such as, the CEB to prevent recurring losses from spilling over into public finances.
Treasury officials have repeatedly warned that continued operational losses at the utility could ultimately require state intervention, undermining fiscal consolidation targets agreed with the IMF.
The CEB has justified the proposed 11.5 percent hike by citing high generation costs, foreign currency loan repayments and accumulated legacy losses, arguing that further tariff adjustments are necessary to stabilise finances and avoid a return to Treasury support.
However, critics argue that IMF-aligned reforms should not translate into routine tariff hikes without meaningful improvements in efficiency, cost controls and governance within the utility.
Trade unions and consumer groups have urged the PUCSL to resist pressure from both the CEB and fiscal authorities to simply pass costs on to consumers.
They also note that improved hydropower availability should reduce dependence on expensive thermal generation, easing cost pressures and giving the regulator room to moderate any tariff increase.
Energy analysts say the PUCSL’s ruling will reflect how effectively the Treasury’s fiscal objectives are being balanced against the regulator’s statutory duty to protect consumers, warning that over-reliance on tariff increases could erode public support for IMF-backed reforms.
Business chambers have cautioned that another electricity price hike could weaken industrial competitiveness and slow economic recovery, particularly in export-oriented and energy-intensive sectors already grappling with elevated costs.
Electricity tariffs remain one of the most politically sensitive aspects of IMF-linked restructuring, with previous hikes triggering widespread public discontent and raising concerns over social impact.
The PUCSL is expected to outline the basis of its decision, including whether the proposed 11.5 percent increase will be approved in full, scaled down, or restructured through slab-based mechanisms to cushion low-income households.
An energy expert stressed that Sri Lanka navigates IMF-mandated fiscal and SOE reforms, the forthcoming ruling is widely seen as a defining moment—testing not only the independence of the regulator, but also the Treasury’s ability to pursue reform without deepening the burden on consumers.
By Ifham Nizam ✍️
News
Bellana says Rs 900 mn fraud at NHSL cannot be suppressed by moving CID against him
Massive waste, corruption, irregularities and mismanagement at laboratories of the country’s premier hospital, revealed by the National Audit Office (NAO), couldn’t be suppressed by sacking or accusing him of issuing death threats to Health Secretary Dr. Anil Jasinghe, recently sacked Director of the National Hospital of Sri Lanka (NHSL) Dr. Rukshan Bellana told The Island.
Dr. Bellana said so responding to Dr. Jasinghe’s request for police protection claiming that he (Bellana) was directly responsible for threatening him.
The NPP government owed an explanation without further delay as the queries raised by NAO pertained to Rs 900 mn fraud/loss caused as a result of procurement of chemical reagents for the 2022 to 2024 period remained unanswered, Dr. Bellana said, pointing out that NAO raised the issue in June last year.
Having accused all other political parties of corruption at all levels, the NPP couldn’t under any circumstances remain mum on NAO’s audit query, DR. Bellana said, claiming that he heard of attempts by certain interested parties to settle the matter outside legal procedures.
The former GMOA official said that the NPP’s reputation was at stake. Perhaps President Anura Kumara Dissanayake should look into this matter and ensure proper investigation. Dr. Bellana alleged that those who had been implicated in the NAO inquiry were making an attempt to depict procurement of shelf time expired chemical reagents as a minor matter.
By Shamindra Ferdinando ✍️
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