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Ranil likely to go for presidential poll first – sources

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ECONOMYNEXT – Sri Lanka leader Ranil Wickremesinghe is likely to hold presidential election before any other polls after November 16 2023, three sources close to him said, as he seeks a $2.9 billion IMF loan to consolidate the economy which is on a slow recovery path from a crisis.

Wickremesinghe was elected as the president in the 225-member parliament on July 19, days after former president Gotabaya Rajapaksa fled the country fearing for his life following tens of thousands of protesters stormed into the presidential palace, demanding his resignation after his failed economic policies. He quit after reaching Singapore.

Sri Lanka’s opposition parties and many protestors who led the ousting of Rajapaksa are now demanding both local government and parliamentary polls citing that the current government has no mandate to be in power as its failed economic policies have forced the people to oust them.Presidency of Wickremesinghe, a six-time prime minister, has been criticized by the opposition and protestors as he was not elected by the public.

Wickremesinghe became the president when he entered the parliament through a national list after his center-right United National Party (UNP) failed to win a single parliament seat in the 2020 parliamentary polls.

“The president is considering the presidential poll first and it will give him a legitimate mandate to push for reforms that are now formulated,” a source close to Wickremesinghe told EconomyNext.

“He can be the president for two more years. But the reforms need more time to see the country economically recovered and is on a strong foot.”

Another source close to Wickremesinghe said there could be division among the current parliament composition if he goes for any other elections other than presidential.

“We see a slight recovery though the worst is yet to come after the implementation of tax policies and IMF reforms. Doing party politics in the next one year will reverse all the reforms,” the second source said.

Focus is on crisis

The President’s office did not comment on a possible presidential poll before both local government and parliamentary elections. However, an official at the president’s office said Wickremesinghe has not been focusing on “any election” now.

“Election is not his priority right now. He has never said anything in any election so far. He is busy with the economic policies to get the country out of the current mess,” the source, a senior official at the presidential secretariat told EconomyNext.

“He has categorically told internal officials that the country’s private sector, civil society organizations, all political parties, and the people should get together to face the current crisis and if we don’t unite, there won’t be a country to do politics after one year.”

The island nation’s political parties are now gearing up for an election. The former ruling center-left nationalist Sri Lanka Podujana Peramuna (SLPP), main opposition Samagi Jana Balawegaya (SJB), and Marxist opposition Janatha Vimukthi Peremuna have already started campaigns at village level.The parliament election should be held after August 5, 2025, five years after it was held. But President Wickremesinghe can dissolve the parliament and call for an early election after February 2023,

The tenure of the current presidency ends in November 2024. However, the incumbent president can call for an early election if the leader wants. This means Wickremesinghe can call for early election after November 16, 2023.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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