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Lanka needs to do more on debt restructuring before a bailout package is finalised, says IMF

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The International Monetary Fund (IMF) on June 30 said it has concluded “constructive and productive” discussions with Sri Lankan authorities, but warned that the crisis-ridden island nation needs to do more on debt restructuring and step up structural reforms to address corruption vulnerabilities before a bailout package is finalised.

Sri Lanka is going through the worst economic crisis since its independence from Britain in 1948 and needs to obtain at least $4 billion to tide over the acute shortage in foreign exchange reserves.

“The IMF team had constructive and productive discussions with the authorities on economic policies and reforms to be supported by an Extended Fund Facility arrangement,” the IMF said in a statement.

“The discussions will continue virtually with a view to reaching a staff-level agreement on the Extended Fund Facility arrangement in the near term,” it added.

However, due to the unsustainability of public debt, there is the requirement for “adequate financing assurances from Sri Lanka’s creditors that debt sustainability will be restored,” it warned.

The IMF team visited Colombo on June 20 to continue discussions on an economic programme that could be supported by an IMF lending arrangement, building on the progress made during the May 9-24 virtual mission.

The objectives of the new IMF-supported programme would be to restore macroeconomic stability and debt sustainability, while protecting the poor and vulnerable, safeguarding financial stability, and stepping up structural reforms to address corruption vulnerabilities and unlocking Sri Lanka’s growth potential, it said. The IMF also warned that high fiscal deficit had to be reduced, as well as taming rising inflation.

Since revenue was weak, far-reaching tax reforms were urgently needed to achieve these objectives, it added. On Monday, the Sri Lankan government announced that only essential services will operate from midnight till July 10 and all other operations will be temporarily suspended as the island nation of 22 million faces an acute fuel shortage.

The nearly-bankrupt country, with an acute foreign currency crisis that resulted in foreign debt default, had announced in April that it is suspending nearly $7 billion foreign debt repayment due for this year out of about $25 billion due through 2026. Sri Lanka’s total foreign debt stands at $51 billion.

Since June 24, no fuel tankers with supplies have arrived in the island nation while the state-run fuel retailer Ceylon Petroleum Corporation says no new orders have been placed.

Meanwhile, the government’s statistics office said on Tuesday that the economic growth in the first quarter of this year is projected to see a minus 1.6% growth due to the economic crisis. A release said that fuel shortages had impacted all sectors with reduced production contributing to the negative growth.

The Sri Lankan economy has virtually come to a grinding halt after it has run out of foreign exchange reserves to import fuel. Sri Lankans continue to languish in long fuel and cooking gas queues as the government is unable to find dollars to fund imports.

So far, there have been an estimated thirteen deaths in fuel queues due to exhaustion, physical ailments or accidents. Irate citizens want President Gotabaya Rajapaksa and his government to resign immediately for their inability to tackle the fuel shortages.



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Addressing the drug issue in the country must be treated as a national priority – PM

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Prime Minister Dr. Harini Amarasuriya emphasized that addressing the drug issue in the country must be treated as a national priority, highlighting that it must deliver results at the ground level.

A meeting to brief the Prime Minister on the National Strategic Plan for the Management, Treatment and Rehabilitation of Persons with Substance Use Disorders (SUD) 2026–2030 was held with the participation of officials from the Ministry of Health and Mass Media and other key stakeholders on 13th of March at the Temple Trees.

The discussion focused on the proposed national strategy developed to address the growing health, social and economic challenges associated with substance use disorders in Sri Lanka. The strategic plan aims to strengthen prevention, treatment, rehabilitation and reintegration services through a coordinated and evidence-based national approach.

During the meeting, attention was drawn to existing gaps in early identification of substance use disorders, continuity of care, community-based follow-up and reintegration of recovering individuals into society. The plan proposes several key interventions, including strengthening screening and symptomatic treatment at primary healthcare and outpatient levels, improving hospital-based treatment and follow-up services, expanding residential rehabilitation facilities, and enhancing community-based rehabilitation and relapse prevention programmes.

Special emphasis has also been placed on providing targeted support for vulnerable groups, including children and adolescents, pregnant women, mothers with children and prison inmates.

Speaking on the importance of strengthening the national response to drug issues, the Prime Minister Dr. Harini Amarasuriya noted that the drug menace has evolved into a serious social crisis that threatens social stability and security of families and the nation as a whole highlighting that law enforcement and rehabilitation in this regard must be given equal priority.

The Prime Minister further underscored the importance of including public awareness initiatives and responsible media reporting as key components of the national strategy.

The meeting was attended by the Secretary to the Prime Minister Pradeep Saputhanthri, Secretary to the Ministry of Health Dr. Anil Jasinghe, officials from the Department of Prisons, Bureau of Rehabilitation, Sri Lanka Police Ministry of health, Ministry of Public Security and Parliamentary Affairs, Ministry of Justice and National Integration ,Ministry of Defense, Ministry of Education, Ministry of Women and Child Affairs and other relevant department and ministries.

[Prime minister’s Media Division]

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QR code system will be implemented for fuel with effect from 06.00 a.m. today (15th)

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In light of the prevailing geopolitical developments in Middle East, the petroleum product supply chain has been adversely affected. At the same time, the demand for fuel has increased abnormally, resulting in a depletion of the country’s existing fuel stock. Therefore, it has become necessary to carefully manage the available fuel reserves in order to sustain the nation’s economic activities.

Furthermore, it has recently been observed that certain groups have been illegally purchasing fuel in excessive quantities. The Government of Sri Lanka intends to prevent such improper consumption and ensure an uninterrupted fuel supply for the day-to-day needs and economic activities of the general public.

Accordingly, a QR code system will be implemented with effect from 06.00 a.m. on 15.03.2026.

Fuel will not be issued by any operating filling station in the country without a valid QR code from                      06.00 a.m. on 15.03.2026.

Steps to Obtain the QR Code

  1. Users who have already registered for the QR Code
  2. Users whose vehicle ownership and registered mobile number remain unchanged since their initial registration may download their QR Code from the     website https://fuelpass.gov.lk/ starting from midnight on 14.03.2026, using the ‘Vehicle Login’     button.
  3. Users whose vehicle ownership or registered mobile number has changed since their last registration are required to re-register their details through the website https://fuelpass.gov.lk/  starting from 6.00 a.m. on 15.03.2026, using the ‘Vehicle Registration’ button.
  4. Users who have not previously registered for the QR Code and users with newly registered vehicles at
    the RMV
  5. Registration can be completed starting from 06.00 a.m. on 15.03.2026 through the
    website https://fuelpass.gov.lk/, using the ‘Vehicle Registration’ button.

The number of litres allocated for each category of vehicle is stated below.

A special fuel issuance system will be implemented for vehicles required to support national production and essential services.

 

Vehicle Class Capacity control volume for fuel pass

(L)

Buses 60
Motor cycle 5
Van 40
Motor car 15
Motor Lorry 200
Land Vehicles 25
Three Wheeler 15
Special Purpose Vehicle 40
Quadricycle 5

 

[Sri Lanka Transport Board will issue fuel to the private buses].

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Lanka discovers largest groundwater source

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The National Water Supply and Drainage Board (NWSDB) on Friday said the largest groundwater source discovered in Sri Lanka so far had been identified during tube-well drilling near the Pitabeddara Police Station.

Indrajith Gamage, geologist in charge of the Southern Province, said the source recorded a continuous flow of about 10,000 litres (10 cubic metres) per minute, marking the first instance in the country where a groundwater source of that magnitude had been found.

He noted that the previous largest groundwater source was discovered in the Madhu area, which recorded a flow of about 7,000 litres per minute.

According to the NWSDB, the tube well was drilled following geological studies of rock layers and the identification of underground water through fractures in rock strata using specialised technical instruments.

The Board said steps would be taken to distribute water from the newly discovered source to residents facing shortages in Pitabeddara, Morawaka and surrounding areas.

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