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I can turn around Sri Lanka’s economy, PM tells Al Jazeera

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Prime Minister Ranil Wickremesinghe has told Al Jazeera that he is confident of turning around the economy – but cautioned it will be 18 months before stability returns.

“The year 2023 is going to be difficult, but by 2024 things should pick up,” Wickremesinghe told Al Jazeera recently in a wide-ranging interview at his official residence in the capital, Colombo.

The 73-year-old leader, who in May became prime minister for the sixth time, said that he took up the job under extraordinary circumstances.

“We had nearly two days without a government; things were getting out of hand,” he said, recalling the mass protests over shortages of fuel and electricity that forced Mahinda Rajapaksa, his predecessor and the brother of President Gotabaya Rajapaksa, to resign.

“I thought ‘the situation is bad, it’s your country, so you can’t be wondering whether you are going to succeed or not. You take it over and work to succeed,’” said Wickremesinghe, who met the president at the request of some MPs from the ruling Sri Lanka Podujana Peramuna party.

“I have confidence I can turn the economy around,” he said.

The island nation of 22 million has been brought to a virtual standstill due to acute shortages of fuel and essential items such as food and medicines, as the government ran out of foreign reserves to import commodities earlier this year.

Sri Lanka defaulted on its external debt in April and the usable foreign reserves are so low that it has struggled to cover its needs from the international market.

Wickremesinghe, who has been tasked with lifting the country out of its worst crisis since independence in 1948, said there will be petrol shortages until at least July 22, when the next shipment is expected.

“We are buying fuel either using Indian credit lines or the foreign exchanges that we get from remittances. It’s [remittances] a small amount, but nevertheless, sometimes we get a billion dollar[s] or a billion and a half. The rest of the reserves from what we got from the creditors have already been busted,” he said.

“It’s a big setback to the economy and caused lot of hardship to the people … We have been taking steps … especially to get gas, which will be available in the next few days,” he told Al Jazeera, adding supplies of diesel and furnace oil have also been made.

“The issue has been petrol … and that will take a bit of time.”

Furthermore, the prime minister added that a gas deal has been secured, with most of the funding coming from the World Bank, which will ensure supplies for the next four months.

“We seem to have come to an agreement with IMF at the staff level. And this is needed to stablise the economy,” Wickremesinghe said, adding he would reveal further details in parliament this week.

The prime minister also said his government was planning to bring in an interim budget, most probably in August.

Meanwhile, protesters have been camping at the Galle Face in Colombo since April and demanding the removal of President Gotabaya Rajapaksa, blaming him and his elder brother, Mahinda Rajapaksa, for bringing the economy to the ground.

They also call for the removal of the executive presidency as part of the push for political reforms.

Wickremesinghe said that he backed the protesters’ demand for a change in the political system.

“I do not think protesters have very many demands; they just want a change,” he said. “It’s not just about abolishing the executive presidency. How do you make the parliament strong?”

“Young people … feel that they have been left out by the present system and that’s a valid point that they have made and parties have to open up,” Wickremesinghe added. He said that young people need to be given a platform to get into politics so that they will be able to shape the future of the country.

“I have made some proposals regarding the change in parliamentary structure, and referred it to the former Speaker Karu Jayasuriya; his report is available, both will be tabled in parliament, most probably on Wednesday,” Wickremesinghe said.

The veteran leader, who is seen as having good ties with the West, said he had been trying to get the support of a diverse group of countries, including India, China, Japan, the United States and the United Kingdom, as well as from European Union member states.

“The main players are Japan, India and China. Japan has expressed interest in having Tokyo as a meeting place for a donor conference,” the prime minister said.

“This will be a unique conference,” he said on the participation of two members of the QUAD – India and Japan – and China, which runs the global infrastructure project the Belt and Road Initiative.

“So it will be a geopolitical conference of interest,” he said, adding that he has been talking to both India and China – regional rivals who have jostled to get a foothold in Sri Lanka.

“India has always been a major player. They can’t have instability at their doorstep. Instability in Sri Lanka is not in India’s interest,” Wickremesinghe said.

Some foreign policy analysts, however, have pointed out that China, Sri Lanka’s third-biggest lender, has been slow to respond to the crisis in the island nation. They say Beijing is upset because the Rajapaksa government cancelled infrastructure projects last year by Chinese companies.

But Wickremesinghe denied any tension in the ties with China.

“I have been talking to China ever since I took over. Contracts with Chinese companies were cancelled, but the previous government cancelled contracts with Japanese companies, MCC [Millennium Challenge Corporation] and contracts with India. So in a way, the former government has been even-handed,” he said, with a wry smile. MCC is a programme run by the US government through which it grants funds to countries for infrastructure projects.

The prime minister also commented on the recent controversy over the awarding of a wind energy project to the Indian conglomerate Adani Group.

“Adani has been here for a while. They actually came here first on this East Terminal issue where Japan and India got together, and Indians nominated Adani. But the then-government cancelled it. Unlike the Japanese who went home, Adani stayed. He [Adani] got hold of John Keells and got the West Terminal. So, he knows how to invest in Sri Lanka.

“He [Adani] doesn’t need to ask [Indian] Prime Minister [Narendra] Modi,” he said over allegations that Modi pressured Gotabaya Rajapaksa to award the wind energy project in favour of Adani, who is seen as close to the Indian prime minister.

“I have seen the proposal [by Adani] and it is a good proposal, I must say. They will invest $500m. It will be a part of exporting energy to India. That’s good because we have so much power,” Wickremesinghe said.

United Nations agencies, including the World Food Programme, say 5.7 million Sri Lankans need humanitarian assistance, with 4.9 million facing food insecurity.

Wickremesinghe admitted there has been a drop in nutrition standards and said his government has set up a food security programme.

“We plan to allocate about rupees 200 billion [$560m] from the interim budget for welfare. We have already set aside money. I hope that will be enough with the food programme we are planning.

“I don’t want anyone to starve. People have already started some community kitchens in Colombo city, and this can spread. But we are taking steps so that no one goes hungry.”

Wickremesinghe said he planned to make Sri Lanka self-sufficient in terms of food from 2023 onward, amid fears of a global food crisis next year as the war in Ukraine grinds on.

He said the cultivation seasons from November [2021] to January-February 2022 were a failure because Sri Lanka had no fertiliser – a shortage that also marred the June-to-September season.

“We are going all out to get sufficient funds so we can start the next season that starts from October-November to about January-February 2023. We need about $500-600m. Once we get the fertiliser, seeds and other chemicals, and if there is no drought, then we will be self-sufficient in food from 2023,” he said.



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SJB: China, India taking advantage of Lanka’s unregulated oil market

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Ananda Palitha

… questions why the price of a by-product like kerosene was jacked up

China Petrochemical Corporation (Sinopec Group) and Indian Oil Corporation Lanka (IOC PLC) have increased the prices of certain products significantly more than the Ceylon Petroleum Corporation (CPC). However, the fourth player in the market R.M. Parks, a US company in collaboration with Shell that launched operations here in late February last year, has increased its prices in line with Ceypetco.

Convener of the Samagi Joint Trade Union Alliance, Ananda Palitha, yesterday (23) told The Island that foreign players had immensely benefited from the latest price revision at the expense of Sri Lankan consumers.

Alleging that Sinopec and Lanka IOC PLC had become a law unto themselves, Palitha pointed out that the failure on the part of successive governments to establish an Independent Commission and Regulatory Authority for the petroleum sector had allowed Ceypetco and all foreign players to do as they please. Palitha said that in the absence of proper regulatory mechanism, CPC/Energy Ministry should ensure genuine competitiveness in the market.

Palitha said that the NPP government had exploited the ongoing Middle East war to earn unconscionable profits at a time the economy was reeling under the impact of the Hormuz Strait blockade. According to him, all four players increased Auto Diesel by Rs. 79 to Rs. 382 per litre, and Octane 92 Petrol by Rs. 81 to Rs. 398 per litre, while Sinopec and Lanka IOC PLC price list differed in respect of other products. At most filling stations Octane 92 was not available and only higher priced Octane 95 petrol was available.

Pointing out that since the eruption of the Middle East conflict, on 28 February, the NPP had twice increased fuel prices on 09 and 22 March, Palitha said that the government could have cushioned the impact by lowering taxes imposed on crude oil and refined petroleum products. Instead, the latest price revisions resulted in further increase of customs duties, VAT and Port and Airport Development Levy. Additional duties often apply, such as a surcharge tax, on diesel and petrol.

Since the entry of Lanka IOC into the market in 2003, Sinopec in 2023 and R.M. Parks in 2025 eroded the CPC share and, at the moment, it was down to about 57%, and the private players accounted for the rest. Palitha placed the number of filling stations players authorised to operate at Ceypetco (836), Lanka IOC (274) and Sinopec and R.M. Parks 150 each.

Palitha said Lanka IOC has increased Petrol Octane 95 to Rs. 487 a litre whereas the CPC priced the same at Rs. 455) a litre. Lanka IOC and Ceypetco have priced a litre of Super diesel at Rs. 572 and Rs. 443, respectively.

LIOC has also revised its premium fuel categories, with Xtra Premium Petrol priced at Rs. 465, Xtra Mile at Rs. 551, and Xtra Green Diesel at Rs. 588.

Claiming that the government had twice increased the prices of old petroleum stocks, procured at a maximum USD 70 a barrel, weeks, if not months, before the new war, Palitha found fault with the Opposition for not launching a sustained campaign against the exploitation of the public. Palitha said that the increase of a litre of kerosene by Rs. 13 on 09 March and Rs. 60 on 22 March was unjustifiable. “The people do not know that kerosene is a by-product in the process of refining crude oil. Sapugaskanda produces LPG, naphtha, petrol, diesel, kerosene and furnace oil.”

The price of a litre of kerosene to had been increased to Rs 255, Palitha said, adding that it could have been provided to the needy at a much lower rate. If those who represent Parliament bothered to study the issues at hand, they would be able to challenge the government on this disgraceful manipulation of the entire country, he said.

Palitha said that the Parliament owed an explanation as to why the Commission to regulate the oil trade hadn’t been appointed and whether some interested parties financially benefited at the expense of the country.

Palitha said that the introduction of the QR code to control fuel sales and the increase of the fuel quota last Sunday night had been used to deceive the public when those in power and their friends in the industry made money at the expense of the public.

By Shamindra Ferdinando

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SL to redevelop Trinco tank farm expeditiously

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Vijitha Herath

Sri Lanka is planning to fast-track the redevelopment of the Trincomalee oil tank farm as a long-term solution to its ongoing energy crisis, with backing from India and the United Arab Emirates, The Hindu has reported.

Foreign Minister Vijitha Herath said the project, which involves restoring World War II-era oil storage facilities in the eastern district, is seen as a “permanent solution” to managing fuel supply challenges.

“Temporary solutions are not sustainable. We need a long-term strategy to deal with oil storage and distribution, given the global energy situation,” he told The Hindu.

The initiative follows a Memorandum of Understanding signed in April 2025 between Sri Lanka, India, and the UAE to develop Trincomalee as a regional energy hub.

Despite previous delays spanning decades, the project has gained renewed urgency amid the current global energy crisis, which has disrupted supply chains and driven up fuel costs.

Sri Lanka has already submitted a concept proposal to its partners, while technical aspects are being reviewed by the Energy Ministry before moving to the tender stage, according to the report.

The renewed push also marks a notable policy shift, as the ruling administration, led by the National People’s Power, had previously opposed Indian involvement in the project.

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Heat Index at Caution Level in the Western, Sabaragamuwa, Southern and North-western, North-central provinces and in Mannar and Vavuniya districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
 at 3.30 p.m. on 23 March 2026, valid for 24 March 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western, North-central
provinces and in Mannar and Vavuniya districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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