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CB Governor: Lanka now in a position to pay for essentials

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‘Inflation will not be as high as initially expected’

Inflation will not be as high as initially expected and there are signs of economy stabilising, Central Bank Governor Dr. Nandalal Weerasinghe says.Dr. Weerasinghe said that during the past few months a number of initiatives had been made to improve the economy and they were yielding the desired results.

“During the last review, we thought the inflation would reach 70%. However, now we believe that the inflation will not be that high even with the electricity tariff hike,” he said.

Dr. Weerasinghe said that the severity of the shortage of foreign currency had lessened. The country was now in a position to import fuel, gas and medicines.

“This has become possible because of the decisions we took. Imports have decreased. Export revenue has somewhat increased. Even without short-term loans we have been able to meet our basic needs. This is a positive development,” Dr. Weerasinghe said.The CB Governor said that inflation driven by demand had lessened because the expansion of loans had been curtailed.The supply side inflation too would drop with price and foreign exchange stabilisation.

“Still the inflation is about 60% and that’s why we need to maintain the current high policy rates. Once the government adjusts the fiscal policy, tax, and presents the new budget, things will improve. I think you can also see this. We are seeing positives,” he said.

Dr. Weerasinghe also urged exporters to bring back the foreign exchange earnings, and that the Central Bank had taken steps to ensure that exporters abided by the CB regulations.

“The irregularities due to open accounts, hawala and undial are being controlled and the black market premium is dropping. The foreign exchange liquidity in the banking sector has increased,” he said.

The Governor added that negotiations with the International Monetary Fund (IMF) had made good progress. An IMF delegation was expected to visit Sri Lanka by the end of August to reach a staff-level agreement.After Sri Lanka reached a staff-level agreement with the IMF, it had to start engaging with its creditors on debt restructuring.

“Once we reach an agreement with the IMF the situation will improve further,” he added. (RK)

(See related stories in the business section)



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Former Minister Mahinda Wijesekara passes away aged 83

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Former Matara District Member of Parliament and Cabinet Minister Mahinda Wijesekara has passed away this morning (02) at the age of 83 family sources have announced.

Mahinda Wijesekara served as a Member of Parliament for the Matara district  for over two decades (1989 to 2010), representing the People’s Alliance, the United National Party and the United People’s Freedom Alliance.

He held several ministerial portfolios, including Minister of Postal and Telecommunication Services in 2008, Minister of Forestry and Envioronment  1999-2001,  Minister of Fisheries and Ocean Resources from 2001 to 2004 and Minister of Special Projects 2007-2008

He was in poor health  following injuries sustained in the 2009  bomb attack by the LTTE terrorists in Godapitiya, Matara.

He was the father of former Minister Kanchana Wijesekara.

 

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Navy seize 323kg of heroin from fishing vessel in southwestern seas

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In a decisive strike against the drug menace, the Sri Lanka Navy intercepted a local multiday fishing trawler carrying a staggering haul of suspected narcotics in the seas southwest of the island.

This operation, carried out under the national mission “A Nation United”, resulted in the apprehension of six suspects (06) and the seizure of the trawler used to smuggle the illicit substance.

Following the mid-sea interception, the trawler was escorted to the Dikkowita Fisheries Harbour on the morning of 01 Apr 2026. A meticulous inspection conducted by the Police Narcotic Bureau (PNB) subsequently confirmed that the sacks (19) aboard contained more than 323kg of heroin.

The Commander of the Navy, Vice Admiral Kanchana Banagoda, accompanied by the Commander Western Naval Area and the Director General Operations, visited the Dikowita harbour to personally  inspect the drug haul.

Addressing the media, the Navy Commander emphasized that these intensified surveillance efforts are carried out under the direct guidance of the Ministry of Defence. He highlighted that the Navy and the Sri Lanka Coast Guard have strategically coordinated operations across the island’s maritime zones to disrupt trafficking routes and ensure national security.

The Commander of the Navy stated that through surveillance operations conducted this year, the Navy has intercepted local multi-day fishing trawlers attempting to bring illegal substances. This has enabled the seizure of a large quantity of narcotics intended to be smuggled into Sri Lanka.

Furthermore, based on foreign intelligence received by the Sri Lanka Navy, continuous surveillance operations carried out off the Beruwala sea area over the past few days led to the recent (01 April) successful operation, he opined.

The Naval Chief stated that so far this year, 07 local multi-day fishing trawlers have been apprehended by the Navy. The street value of the narcotics seized from these boats is estimated to be approximately Rs. 40 billion.

The 06 suspects, the fishing trawler, and the seized heroin were handed over to the Police Narcotic Bureau for comprehensive investigation and onward legal proceedings.

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PM opens ‘Silver Age Center,’ an Elder Care, Training and Research Centre built with modern facilities in Kataragama

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Prime Minister Dr. Harini Amarasuriya stated that a society must be built where all senior citizens can lead lives of safety, freedom, happiness, health, mobility, and spiritual well-being, with their rights safeguarded. She further emphasized that this is a responsibility shared by both the government and society.

The Prime Minister made these remarks on Tuesday (31st of March) while virtually participating in the opening of the ’Silver Age Center,’ an Elder Care, Training and Research Centre constructed with modern facilities in Kataragama. The event was held at the Ministry of Rural Development, Social Security and Community Empowerment, located in the new Sethsiripaya building.

During the event, the Prime Minister was presented with a draft of regulations and guidelines related to the regulation of institutions that provide residential care for senior citizens, by representatives of the National Council for Senior Citizens.

Expressing her views further, the Prime Minister  stated:

“This project, which commenced in 2022, had been halted due to various reasons. However, we have now resumed the project and are pleased to hand it over to the public today.

One of the key commitments of our policy is to create a society that ensures safety and protects the rights of all. Everyone, from the young to the elderly, deserves to enjoy these rights, freedom, and happiness.

A significant portion of our population is rapidly transitioning into senior age. However, the age of 60 still represents an active stage of life where individuals can contribute meaningfully to society and the economy. Senior citizens have needs, as well as abilities and valuable experience. We must recognize that they can continue to engage with society and remain active contributors.

Institutions that provide services for senior citizens play a vital role, and maintaining them is a social responsibility. It is essential to ensure the rights and provision of necessary services for all senior citizens, whether they live within families, independently, or in institutional settings.

We must ensure access to healthcare, transportation, lifelong learning, freedom, happiness, and spiritual well-being for senior citizens, while safeguarding their rights.

We should move beyond the traditional concept of ’elders homes’ and instead develop institutions that cater to the diverse needs of senior citizens, enabling them to spend their later years with dignity and respect.”

The opening of the ’Silver Age Center,’ Elder Care, Training and Research Centre, was carried out by Deputy Minister of Trade, Commerce, Food Security and Cooperative Development, R. M. Jayawardhana, along with regional public representatives and government officials. The occasion was attended virtually by the Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage; Secretary to the Ministry, Sampath Manthrinayake; and other ministry officials.

(Prime Minister’s Media Division)

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