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IMF says talks with Lanka ‘interrupted’ by unrest
Washington, JUL 15 2022 AFP: The IMF hopes unrest in Sri Lanka will be resolved soon so that aid talks that were interrupted can resume, a fund spokesman said Thursday. Formal discussions on a new loan program for the cash-strapped nation began last month but were thrown off course by the political upheaval that led to the resignation of the country’s president.
“We are, of course, deeply concerned about the ongoing crisis of impact on the Sri Lankan people and particularly the poor and the vulnerable groups,” IMF spokesman Gerry Rice told reporters.
Following constructive early talks, “clearly the political and the social emergency situation… has interrupted those discussions,” he said. The international crisis lender is “closely monitoring” developments there, and “we hope for a resolution of the current situation that would allow for our resumption of a dialogue on an IMF-supported program,” Rice said.
The upheaval forced now ex-president Gotabaya Rajapaksa to flee the country, amid dramatic scenes of protesters occupying the presidential palace.Rajapaksa is accused of mismanaging the island nation’s economy to a point where it has run out of foreign exchange to finance even the most essential imports, leading to severe hardships for its 22 million people, with four out of five Sri Lankans skipping meals.
Sri Lanka defaulted on its $51-billion foreign debt in April and has nearly exhausted its already scarce supplies of petrol, with the government ordering the closure of non-essential offices and schools to reduce commuting and save fuel.Rice said the IMF remains in contact with technical officials in Colombo, at the finance ministry and central bank, but as with any aid deal, a loan program for Sri Lanka “would require adequate assurances on debt sustainability.”
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PM Harini leads panel to protect public services
The newly appointed Cabinet Committee tasked with ensuring the uninterrupted functioning of Sri Lanka’s public service held its inaugural meeting on Thursday (19) at the Presidential Secretariat under the patronage of Prime Minister Dr Harini Amarasuriya.
The Committee convened to discuss strategies to maintain seamless government operations in the face of potential disruptions caused by the ongoing conflict situation in the Middle East, with particular focus on energy resource management.
According to officials, the discussions emphasised sustaining essential government services, ensuring continued service delivery to the public, and addressing the operational challenges faced by public sector employees during the current circumstances. The Committee also examined measures to mitigate any disruptions that could affect day-to-day administrative and service functions across ministries and departments.
Key attendees at the meeting included the Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abayaratne; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the
Prime Minister Pradeep Saputhanthri; Chief of Staff to the President Prabath Chandrakeerthi; and senior secretaries from key ministries including Health and Mass Media, Transport, Highways and Urban Development, Energy, and Digital Economy.
Representatives from state institutions such as the Ceylon Petroleum Corporation were also present, highlighting the government’s focus on energy security as a central priority. The Committee’s deliberations underscored a coordinated approach to balancing uninterrupted public service delivery with effective management of limited energy resources amid the ongoing geopolitical uncertainties.
Observers note that the formation of this Cabinet Committee reflects the government’s proactive stance in safeguarding national administrative functions and ensuring that critical public services remain resilient during times of external pressures.The Committee is expected to meet regularly to monitor developments, evaluate emerging risks, and implement practical measures to maintain operational continuity across the public sector.
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Sajith slams President over war conduct and economic missteps
Opposition Leader Sajith Premadasa on Friday lashed out at President Anura Kumara Dissanayake in Parliament, accusing him of failing to uphold international law during wartime.
Premadasa said the President’s claim of neutrality ignored breaches of the UN Charter—including Articles 2.4 and 2.7—and other global conventions. “A neutral stance requires openly acknowledging violations,” he argued, criticizing the absence of ethical mechanisms to safeguard international law.
He also questioned the President’s handling of maritime issues, particularly whether Sri Lanka had been informed of the alleged attack on the Iranian vessel IRIS Dena, stressing that the Exclusive Economic Zone (EEZ) permits only peaceful activity.
On the economic front, Premadasa condemned the government for missing a chance to buy Russian oil during a 30-day U.S. sanctions suspension.
He said attempts to advise the Foreign Ministry, including a meeting with the Russian Ambassador, yielded no progress.
Premadasa further ridiculed the government’s earlier dismissal of the QR code fuel system, noting that officials are now adapting to it.
Turning to broader economic concerns, he called for immediate negotiations with the IMF to secure a new agreement, warning that the current primary balance of 2.3 is unsustainable. He stressed the urgent need for a poverty-reduction program, highlighting that one-third of Sri Lankans live in poverty.
He also demanded that surplus Treasury funds be used to support relief packages, arguing billions in reserves could aid households struggling with income shortfalls.Concluding his address, Premadasa criticized the government for failing to prepare for foreseeable crises, leaving the country vulnerable.
News
Johnston Fernando, sons held in Lanka Sathosa lorry misuse case
Former Minister Johnston Fernando, his two sons, and three others were remanded by the Wattala Magistrate’s Court yesterday (20) until April 2, the court confirmed.
The suspects, including Fernando’s elder son Johan, younger son Jerome, and a former transport manager of Lanka Sathosa, are under investigation by the Police Financial Crimes Investigation Division (FCID).
Authorities allege the Lanka Sathosa lorry was misused for operations linked to an ethanol company reportedly owned by Fernando, causing an estimated Rs. 2.5 million loss to the state.
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