News
After Lanka and Pakistan, now Bangladesh lines up before IMF for bailout

After the collapse of the Sri Lankan economy, attention has turned to the state of affairs in other South Asian countries such as Pakistan, Bhutan and Bangladesh. All three countries have either curtailed imports or are planning to do so, to salvage their fast-depleting foreign exchange reserves and avoid a Lanka-like forex crisis.
While the presence of Pakistan, which is deeply indebted to China like Lanka, and tourism-dependent Bhutan has taken a massive blow from the pandemic-induced travel restrictions on the list of troubled economies is not surprising, that of Bangladesh is. Just last year, the tiny nation was celebrated for beating India in per capita income.And the UN decided to graduate it from the least-developing country category to the developing country grouping by 2026.
Bangladesh seems to have lost that momentum as Dhaka is now beseeching the IMF for a $4.5 billion bailout package to tide over its deepening economic crisis.It has also knocked the doors of the World Bank and Asian Development Bank seeking immediate relief of $1 billion from each.So, what went wrong? Bangladesh’s $ 416 billion economy is heavily dependent on its garment industry which survives on exports mostly to Europe, the US and Latin American countries.
It has been supporting the country’s growth for years but things changed dramatically following the Ukraine war pushing the prices of everything up. In response to the soaring energy prices, the Sheikh Hasina-led government was forced to introduce scheduled outages that directly impacted the textiles industry which relies on an uninterrupted power supply. On the other hand, demand also dwindled as retailers in the US and European markets — the biggest customers of Bangladesh’s garment products — started holding or cancelling orders due to disruptions and uncertainties in their own economies due to the war in Ukraine.
According to the latest available data, Bangladesh’s foreign exchange reserves stand at $39.67 billion as of July 20, which is sufficient for just four months’ worth of imports — slightly higher than the IMF’s recommended three-month cover.Just for comparison, the forex reserves were $ 45.5 billion in the year-ago period.
The country is reeling under inflation, too. In June, price rise hit a nine-month high of 7.56%, taking the average inflation for 2021-22 to 6.15%, overshooting the revised annual target of 5.9%.Bangladesh’s imports stood at $81.5 billion between July 2021 and May 2022, up 40% from a year earlier, according to Bangladesh Bank data.As a result, the current account deficit — the shortfall between exports and imports — widened over six times to $17.2 billion in the first 11 months of fiscal 2021-22.
While the Bangladesh finance minister A H M Mustafa Kamal is confident that the IMF aid will help the country tide avoid a crisis, such bailouts always come with strings attached. The Washington-based multilateral lender is known to put stringent conditions for its loans.
According to a report in The Daily Start newspaper, the conditions could include withdrawal of energy subsidies, implementing a fuel pricing mechanism, removing interest rate caps on lending and borrowing, resetting the mechanism to calculate foreign currency reserves, taking steps to increase revenue base, and strengthening corporate governance in the banking sector.
Of these, removing energy subsidies for consumers will be a major challenge for the government as it could trigger public anger. Negations on this clause is likely to drag the process.Obtaining IMF loans is a long process. An IMF delegation is expected to visit Dhaka in September to discuss the terms and conditions.By December, the deal is expected to be locked in for placing at the IMF’s board meeting in January. The question is, will Dhaka be able to manage things till then. (NIE)
News
Japan-funded anti-corruption project launched again

‘NPP taking credit for what was started during previous govt.’
The National Anti-Corruption Action Plan (NACAP) 2025-2029, ceremonially launched by President Anura Kumara Dissanayake on 09 April, 2025, had actually got underway during former President Ranil Wickremesinghe’s tenure, sources said.
According to a joint media release issued by the interested parties, following the launch, also attended by Chief Justice Murdu Fernando, PC, the Commission to Investigate Allegations of Bribery and Corruption (CIABOC)-led project received the financial backing of Japan and the technical expertise of the UNDP.
In response to The Island query regarding the recipients of the funding, exact amounts provided to them and the duration of the project, sources said that the 18-month-long project, implemented by the UNDP, had been launched in March 2024. According to sources, the project was launched with Yen 137 mn made available through the Japanese Supplementary Budget (approximately 931,000 USD) six months before the last presidential election.
New Japanese Ambassador in Colombo Akio Isomata, and UNDP Resident Representative Ms. Azusa Kubota, were among those present at the 09 April launch.
Isomata’s predecessor Mizukoshi Hideaki finalised the agreement with Ms Kubota on 12 February, 2024, to pave the way for the new project, titled ‘The Project for Promoting Economic Governance through Anti-corruption Policy Support.’
Assistance from Japan and UNDP was in line with their efforts to enable Sri Lanka struggling to resolve the economic crisis.
The Japanese Embassy said on 12 February, 2024, that the project sought to (1) strengthen legal and policy frameworks; (2) improve coordination among key institutions combating financial and tax crimes; and (3) enhance strategic institutional and individual skills and capacities around combating anti-corruption through strategic action.
By Shamindra Ferdinando
News
Ranil makes statement to CIABOC

Former President Ranil Wickremesinghe leaving the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday after making a statement related to ongoing investigation into former State Minister Chamara Sampath Dassanayake. Dassanayake is in remand custody pending investigations into an alleged misappropriation of funds during his tenure as the Uva Province Chief Minister.
(Pic by Nishan S. Priyantha)
News
Nearly 500 kilos of heroin destroyed under court supervision

The police and court officials yesterday (28) supervised the destruction of nearly 500 kilos of heroin at the INSEE Cement Plant located in Puttalam.
The following is the text of statement issued by the INSEE Ecocycle Lanka (Private) Limited in this regard: ” Building on a consistent track record of supporting national anti-narcotics initiatives and eradicating a national menace, INSEE Ecocycle Lanka (Private) Limited, the leading professional waste management solutions provider, collaborated once more with the Sri Lanka Police Narcotics Bureau (PNB) and the National Dangerous Drugs Control Board (NDDCB) to responsibly dispose of 494.048 kgs of confiscated heroin via co-processing technology.
This marks the fourth collaboration between INSEE Ecocycle and law enforcement authorities for the destruction of such substances, following successful disposals carried out in 2018, 2019, and 2023 totalling approximately 1804 kgs of dangerous drugs.
The disposal, which ensured environmentally safe and secure destruction of the narcotics, was conducted on 28 April at the INSEE Cement Plant located in Puttalam, under the strict supervision of PNB officials and court-appointed representatives.
Prior to disposal, the confiscated heroin, seized during national anti-narcotics operations, was rigorously verified by the Government Analyst Department (GAD), NDDCB, and judicial authorities to ensure compliance with legal and safety protocols.
INSEE Cement Sri Lanka Chairman/CEO Nandana Ekanayake explained: “INSEE Cement is the only fully integrated cement manufacturing facility in the country with the required capability to provide this solution. We proudly support the national cause and contribute to building a drug-free nation. Sri Lanka’s only operational Cement Kiln Co-processing facility is in our Puttalam Cement Plant. INSEE Cement has always focused on the Health and Safety of all our stakeholders. As a responsible corporate citizen, we are proud and honoured to extend our support and ensure the safe disposal of harmful substances with utmost care and professionalism.”
Emphasizing the significance of the initiative, Sujith Gunawardena, Director, INSEE Ecocycle, said, “As Sri Lanka’s sole provider of co-processing technology, we are proud to collaborate with the authorities and support this critical effort. We successfully disposed of the confiscated narcotics in an environmentally friendly and sustainable manner, complying with all the regulations. Co-processing offers a complete destruction solution for hazardous waste at extremely high temperatures, eliminating it without harmful emissions or residual byproducts. It is a cleaner and more sustainable solution than traditional incineration. It is globally accepted as the superior waste management method, significantly reducing greenhouse gas emissions and aligning with global best practices for sustainable waste management.”
INSEE Ecocycle played a critical role in the technical evaluation of the feeding mechanism and pre-processing activities, collaborating closely with PNB and NDDCB to guarantee the safe disposal of the hazardous substance. The comprehensive technical evaluation comprised thorough risk assessments and mitigation action plans, addressing environmental, social, health, and safety concerns for the entire pre-processing and co-processing value chain.
Throughout the confiscated heroin disposal process, experts from PNB and NDDCB provided guidance on critical components, including laboratory analyses and procedural adherence, culminating in the secure and transparent destruction of the narcotic substance. The disposal took place using cement kiln co-processing technology, also known as thermal destruction, at temperatures of 1800- 2000 °C with a 4-6 sec residence time and under fully controlled process parameters.
INSEE’s co-processing facility satisfies all regulatory requirements and technical standards and is globally adopted for waste management. The facility offers a complete solution with zero harmful emissions to the environment. It has also obtained all required licenses, such as the Environmental Protection License and Scheduled Waste Management License from the Central Environmental Authority and the Provincial Environmental Authority, and certifications including ISO 9001, ISO 14001, ISO 17025, ISO 39001, and ISO 45001.
With a proud legacy of over two decades, INSEE Ecocycle has managed more than 1.3 million metric tons of industrial waste in collaboration with over 1,000 customers, including multinationals, local conglomerates, corporations, government authorities at central and regional levels, and recycling partners. The partnership demonstrates the company’s commitment to advancing Sri Lanka’s circular economy and environmental stewardship.”
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