News
Debt restructuring: opposition MP warns of “China go home” protests
ECONOMYNEXT —TNA Batticaloa District MP Shanakiyan Rasamanickam, who has been on the warpath with Beijing over an apparent lethargy in helping the crisis-hit Sri Lanka to restructure its debt, has warned of a “China, go home” protest campaign similar to the “Gota, go home” protests that unseated the country’s powerful former president in July.
The TNA MP told parliament on Friday that Sri Lanka owes 7.4 billion dollars to China, a nearly 20-trillion dollar economy, and if the latter was a true friend, it would agree to either write off this debt or at least help restructure it.
“If China, who has nearly 20,000 billion dollars, is truly Sri Lanka’s friend… offering nine million litres of diesel or half a million kilos of rice isn’t real help,” said Rasamanickam, speaking in Sinhala.
“I say to China and the Chinese embassy that, as 22 million Sri Lankans irrespective of ethnic or religious differences got together to say ‘Go home, Gota’, don’t push us to a place where we will be saying ‘China, go home’,” he said.
The Batticaloa district lawmaker has been raising his voice in parliament and elsewhere in recent days over what he claims is a hesitance on the part of China to assist in Sri Lanka’s debt restructuring efforts. The 2.9 billion dollar extended fund facility (EFF) that the International Monetary Fund (IMF) has offered the island is contingent upon the successful restructure of this outstanding debt as well as stringent reforms.
Colombo has been vague at best on the status of ongoing restructure talks with Sri Lanka’s creditors, and opposition lawmakers and others have expressed concern over what seems to be a worrying delay. Rasamanickam and others have claimed that China, Sri Lanka’s largest bilateral creditor, is the reason for the apparent standstill.
Addressing parliament on Wednesday, the TNA MP said China was not Sri Lanka’s friend but rather a friend of former President Mahinda Rajapaksa’s. He pointed to the Colombo Lotus Tower and the largely unused convention centre in the southern Rajapaksa stronghold of Hambantota as examples.
“What have the Chinese done in this country? If you look at the [Chinese built] Hambantota Port, China has taken it over. Tell me a single investment that the Chinese have made in this country where Sri Lankan people have been given employment [besides labour]. There’s not a single industry,” he said.
“They have forced investments down this country thanks to the Rajapaksa family. Investments that are useless,” he added.If China was a true friend, the MP reiterated, it would help the IMF programme.
“There is no democracy in China, no human rights, Uyghur Muslims are being detained and ‘rehabilitated’. Is such a country trying to turn Sri Lanka into a state like that, a state that doesn’t respect human rights? Is that what China wants?”
The Twitter account the Chinese Embassy in Colombo, known for its sardonic tone, was quick to respond. It said the MP’s understanding of the issue was wrong and incomplete.
“Sorry Mr. MP, your understanding is incorrect and incomplete. China is the biggest supporter to Sri Lanka in fighting COVID=19 and livelihood relief, including in your district Batticaloa. China is also the first responder to Sri Lanka”s financial crisis since its default in April.”
“As a major shareholder of IMF, China has been encouraging IMF and other international financial institutes to promptly support Sri Lanka. China actively participated all the creditors’ meetings of Sri Lanka, and China is not the only or the largest creditor of the island,” the embassy said in a five-tweet long thread.
China also funded the Norochcholai coal plant, the best investment the country has made since Mahaweli projects of the 1980s according to the Auditor General of Sri Lanka.However, China gave several monetary instability loans to Sri Lanka from 1980s onward when forex shortages emerged from money printed under flexible inflation targeting, sometime called ‘bridging finance’ in Sri Lanka.
Such loans were not tied to growth creating reforms unlike budget support loans given by the World Bank and ADB.India also gave credit lines to Sri Lanka in 2022 as forex shortages emerged.
News
Low-quality coal causes power cuts: Ex-LECO Chief
By Shamindra Ferdinando
The use of low quality coal, over a period of time, had led to the developing crisis at the Lakvijaya Coal Power Plant (LVPP) at Norochcholai that compelled the boastful NPP government to implement power cuts, former Lanka Electricity Company (Private) Limited (LECO) Chairman Bandula Chandrasekera said yesterday.
The government imposed one-hour countrywide power cuts on 19 Oct.
Chandrasekera, now a consumer rights activist, warned that though the government declared the power cuts would be limited to three days, the situation could take a turn for the worse.
The top United Republican Front (URF) activist said so in response to the government’s claim that Saturday’s sudden drop in electricity generation at the country’s only coal-fired power plant hadn’t been caused by the quality issue of coal.
The former LEOCO Chief emphasised that the country was paying a very heavy price for the controversial procurement of low-quality coal for the 2025/2026 season.
“Procurement of low quality coal is not an allegation. It has been accepted by a seven-member committee, headed by K. L. R. C. Wijayasinghe, Additional Secretary, Energy Ministry, appointed by Parliament,” Chandrasekera said, pointing out that the government was trying to mislead the public into believing that the use of coal supplied by Trident Chemphar wasn’t the cause of the current power crisis.
The expert committee that investigated the coal scam had disclosed losses caused by substandard coal, Chandrasekera said, adding that the total losses/damages could be as much as Rs 20 bn.
Trouble erupted in Dec, 2025 when LVPP began using coal purchased from the new supplier, whose selection was challenged by the Auditor General in a special report submitted to Parliament, in April this year, he said.
Since the government entered into a deal with the Indian company, LVPP has so far received 19 ship loads of coal. An investigation conducted on the orders of the Public Utilities Commission of Sri Lanka (PUCSL) revealed that the use of low-quality coal had had a detrimental impact on the LVPP.
The Frontline Socialist Party (FSP) exposed the corrupt deal in Sept. 2025. The NPP run Parliament ignored the disclosure made by the JVP breakaway faction.
Chandrasekera said that the Committee asserted that it would cost approximately Rs 80 mn to restore the LVPP to the previous status. Responding to The Island queries, Chandrasekera emphasised the country couldn’t meet the power requirement unless the LVPP operates without hindrance. Those who had been, for whatever reason, switched to South African coal provided by the Indian supplier should be held accountable and punished, Chandrasekera said, recalling how the NPP parliamentary group defeated the no-confidence motion moved against the then Power Minister Kumara Jayakody, who later quit, as the enormity of the scam and its repercussions shook the government.
Chandrasekera said that the government couldn’t maintain services though the powers that be intended to meet the power deficit with the help of hydropower generated by the Victoria power station. The ex-official underscored the need to inquire into the failure of the authorities to implement the backup plan last Saturday. Had Victoria met the requirement, last Saturday’s countrywide power failure, that lasted from 11.43 am to 11 pm could have been averted, Chandrasekera said.
He also questioned the controversial government decision to disconnect solar power over the weekend as the absence of solar generation obviously aggravated the problem. Chandrasekera emphasised that the latest countrywide power outage exposed the government whose basic strategy was to blame everything on the Opposition.
“We sincerely hope the Presidential Commission inquiring into the coal scams also looks into the situation developing at LVPP due to the use of substandard coal. According to him, the loss caused by the recent outage was estimated to be around Rs 16 bn and the crisis could not be addressed by propaganda campaigns, especially on social media. But, if other factors, including the expenditure on hydro and thermal generation were taken into consideration, the losses could be as much as Rs 20 bn.
News
Power cuts continue
Power cuts continued across the country yesterday and are expected to continue today following the shutdown of all three generating units at the Lakvijaya Power Plant in Norochcholai.
The Public Utilities Commission of Sri Lanka (PUCSL) said approval had been granted on Monday (19) following a request by the National System Operator (NSO) to impose scheduled power cuts.
Accordingly, one-hour power cuts were scheduled between 4.30 p.m. and 9.00 p.m., with the country divided into four zones. Hospitals and locations providing essential services were exempted.
The three Norochcholai generating units remain out of operation following the countrywide power failure last Saturday, prompting the NSO to introduce daily power cuts to manage the available electricity supply.
NSO Chief Executive Officer Buddhika Samarasekara said the power cuts would be necessary yesterday and today (21).
News
GL stresses importance of post-war Shangri-La investment after CIABOC questions him
By Shamindra Ferdinando
Prof. G. L. Peiris yesterday said he had not been concerned at all about being arrested when the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) summoned him to record a statement regarding an ongoing investigation.
Addressing the media outside the CIABOC, the former External Affairs Minister emphasised that his family had never taken anything from people but contributed to their welfare. The internationally renowned academic said that he didn’t accept lucrative opportunities abroad but remained committed to do whatever possible for the public here.
The CIABOC questioned Prof. Peiris on the launch of the Shangri-La Hotel project here. The Convener of the Janathawadi Joint Opposition said that when the top management of the hotel got in touch with
him, he had brought the matter to the notice of the then President Mahinda Rajapaksa, who promptly gave the go ahead.
Shangri-La was opened in Nov. 2017 with the participation of the then President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.
Prof. Peiris said that he had been appointed External Affairs Minister nearly a year after the successful conclusion of the war against the LTTE in May 2009. Shangri-La, which owned over 100 hotels at that time, was keen to explore the possibility of opening a hotel here and the government had swiftly grabbed the opportunity. Referring to the opening of ITC Ratnadeepa, in late April 2024, Prof. Peiris explained the importance of foreign investment, particularly after the end of the 30-year war that caused massive devastation.
Responding to media queries, Prof. Peiris said that he strongly opposed efforts to silence political opponents but accepted the need to investigate waste, corruption and irregularities. “People shouldn’t be targeted over their political stand,” the ex-lawmaker said, adding that he as the Minister tasked with attracting such special investments worked in line with the overall government policy.
-
Features3 days agoKotahena:A Small Enclave, An Extraordinary Legacy
-
News4 days agoAsgiri Mahanayake calls for immediate release of Gnanasara Thera
-
News3 days agoRecord 1,600 students take Russian Classical Ballet examination in Sri Lanka
-
News6 days agoAC President recuses himself from hearing prison attire case pertaining to Gnanasara Thera
-
News5 days agoNaval officer testifies Yoshitha received Rs. 5.15 mn in salaries during SLN service
-
News3 days agoKarannagoda pushed for £24,536 for Yoshitha’s UK training, Court told
-
Editorial5 days agoSaving Anojan: Beyond Executioner’s Blade
-
News6 days agoCID informs Fort Magistrate’s Court investigation into money laundering case against Namal completed
