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UNP advisor Ashu predicts drop in cost of living by next March

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By Rathindra Kuruwita

Sri Lankans will experience a significant drop in cost of living by March 2023, advisor to the UNP Ashu Marasinghe, said on Monday in Colombo.

Marasinghe said that the current situation in the country was grave. “The situation today is bad. There is no way we can hide this fact. However, there are signs that things are improving. President Ranil Wickremesinghe has said that we need to swallow bitter medicine in order to get out of this mess. It was the disastrous policies taken by the previous government that led to this,” he said.

Marasinghe added that President Wickremesinghe was leading the economic recovery and that the government had a plan to overcome the current crisis.

“There are some people who say we are blindly following IMF policies. This is not true. The VAT was at 15 percent before President Gotabaya Rajapaksa reduced it. We lost hundreds of billions in revenue because of this and it was the beginning of the economic crisis. Although he reduced VAT, the prices of goods didn’t come down. Production didn’t increase,” he said.

In 2017, Sri Lanka experienced a surplus in the primary balance, Marasinghe said. The country was on a relatively good economic health, in November 2019. However by 2022 the situation had deteriorated to such an extent that even those who hate the IMF were compelled to consider it, he said.

“We have to rise from this crisis, and we need to manage the economy. State revenue must go up and we need to change the tax regime. President Gotabaya changed the tax regime to benefit big businesses. I am sure they became richer, but the country became poorer. The direct and indirect tax ratio now is about 30-70 percent. We need to at least increase revenue from direct taxes to 40 percent”.

Currently, there are signs of recovery in the country. The prices of goods and services have decreased slightly, he mentioned.

“The inflation has dropped. Food inflation too is dropping. We have a number of initiatives to boost agricultural production. We are getting fertiliser that the farmers need. Food production will increase and by March 2023, Sri Lankans will experience significant price drops,” he predicted.



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Govt. extends ban on LTTE

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The NPP government has issued a new extraordinary gazette renewing and extending Sri Lanka’s long-standing ban on the LTTE and several Tamil diaspora organisations and individuals, continuing to designate them as “terrorists”.

The gazette, published recently, replaces a previous gazette issued in May 2025 and reaffirmed the proscription of a wide range of Tamil political and advocacy bodies operating around the world, alongside dozens of named individuals. The government alleged both the organisations and individuals listed are involved in “terrorism-related activities”.

The organisations blacklisted by the Sri Lankan government include:

• Liberation Tigers of Tamil Eelam (LTTE)

• Tamil Rehabilitation Organisation (TRO)

• Tamil Coordinating Committee (TCC)

• World Tamil Movement (WTM)

• Transnational Government of Tamil Eelam (TGTE)

• World Tamil Relief Fund (WTRF)

• National Council of Canadian Tamils (NCCT)

• Tamil Youth Organisation (TYO)

While the majority of the designations mirror those contained in the May 2025 gazette, the latest document updates identification details and addresses for a number of individuals and introduces at least one additional organisation to the list. All entries have been reissued under new reference numbers for 2026, though the underlying allegations and framing remain unchanged.

Successive governemnts have maintained a sweeping proscription regime against Tamil diaspora groups and individuals. A ban can make it a criminal offence for Sri Lankan citizens to maintain contact with these organisations or their members, severely restricting political engagement and stifling links between the diaspora and the Tamil homeland.

The original mass listings were introduced in 2014 under the administration of Mahinda Rajapaksa. Despite repeated outcry, subsequent governments have continued to uphold and renew the proscription regime, even after the Rajapaksas were voted out of power.

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Police obtain court order banning Wimal’s protest

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National Freedom Front (NFF) leader Wimal Weerawansa addresses a gathering outside the Education Ministry on Monday before launching a protest demanding the immediate resignation of Prime Minister Dr. Harini Amarasuriya as Education Minister over the inclusion of a link to an adult content website in the Grade 06 English module. (Pic by Thushara Atapattu)

Police yesterday (12) obtained an injunction order from the Kaduwela Magistrate’s court against the protest launched by National Freedom Front (NFF) leader and former Minister Wimal Weerawansa opposite the Education Ministry, Isurupaya, at Battaramulla.

Police informed Weerawansa of the court order. In line with the court order, the police informed Weerawansa that the road near the Ministry should not be obstructed and that no sound amplification equipment be used while the GCE Advanced Level (A/L) examination is in progress. The examination, put off due to Cyclone Ditwah, recommenced yesterday.

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Chinese Foreign Minister Wang Yi expresses optimism that Sri Lanka is on the right path to progres

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FM Herath with his Chinese counterpart Wang Yi

Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath held productive discussions with his Chinese counterpart Wang Yi today (12/01), during the latter’s brief visit to Sri Lanka.

The meeting aimed at further strengthening bilateral engagement and advancing the Strategic Cooperative Partnership between the two countries. Both Ministers reaffirmed the longstanding friendship and time-tested cooperation between Sri Lanka and China rooted in centuries of exchanges and consolidated since the establishment of diplomatic relations seven decades ago. The discussion also focused on enhancing partnership in the areas of trade, investment, development cooperation and tourism.

Minister Herath extended deep appreciation to the Government and the people of China for the steadfast support extended to Sri Lanka following cyclone Ditwah and requested further support for the second phase of resettlement, relocation and rebuilding, particularly for the restoration of affected infrastructure including identified roads, railways and bridges that are vital to connectivity, economic recovery and daily lives of people. Minister Wang assured China’s fullest support for this initiative and expressed confidence that Sri Lanka will continue its rapid recovery under the leadership of President Anura Kumara Disanayaka. He also welcomed the people-centric policies of the Government and expressed optimism that Sri Lanka is on the right path toward fulfilling aspirations of its people.

Minister Herath expressed appreciation for China’s constructive role in international fora and reiterated Sri Lanka’s firm commitment to the One China Policy and China’s sovereignty and territorial integrity.

Both Ministers also recalled the successful high level exchanges in the recent past, including visits of the President and the Prime Minister of Sri Lanka to China in 2025.

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