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CB Governor Weerasinghe honoured with prestigious “A Grade” award by Global Finance Magazine

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Dr. Nandalal Weerasinghe, has been awarded the “A Grade” by Global Finance magazine at the 2025 World’s Best Central Bank Governors awards, held alongside the IMF–World Bank Annual Meetings in Washington

Central Bank Governor Dr. Nandalal Weerasinghe has underscored the importance of timely restructuring, transparency, and sustained reform, and emphasised a focus on countries with sustainable debt, but high debt servicing burdens. He said so at a Global Sovereign Debt Roundtable (GSDR) in Washington.

According to CBSL, Sri Lanka advocated for clearer processes in commercial debt restructuring, regular updates on bilateral agreements, practical guidance on liability management, and greater debt transparency.

The Sri Lankan delegation, led by CB Governor Dr. Weerasinghe actively participated in a series of high-level bilateral and multilateral meetings during the 2025 World Bank Group/ International Monetary Fund (IMF) Annual Meetings in Washington, D.C., between October 13 and18, 2025.

The CB Governor, during his participation at the Annual Meetings, met with the Managing Director of the IMF, the President of the World Bank Group, senior officials from both institutions, and representatives from the US Department of Treasury, the CBSL said.

The delegation, which included senior officials from the Central Bank of Sri Lanka and the Ministry of Finance, received strong support for Sri Lanka’s ongoing economic reform efforts. There was widespread recognition of the country’s prudent macroeconomic management, encompassing sound fiscal and monetary policies, efforts to safeguard financial system stability, strengthened social safety nets, and continuous improvements in governance.

Discussions with multilateral and bilateral partners focused on advancing development cooperation in infrastructure, energy, and digital transformation, with particular interest in securing new financing and technical assistance on capacity building. The delegation also engaged productively with the sovereign credit rating agencies, providing updates on economic recovery and reform milestones that were well received and helped reinforce market confidence.

Constructive interactions with the US Chamber of Commerce and active participation in investor forums further highlighted Sri Lanka’s commitment to transparency, investment promotion, and fostering renewed investor confidence. Progress on debt restructuring was highly commended, future collaboration was encouraged, and updates on economic recovery and reform milestones were well received.

During the Global Sovereign Debt Roundtable (GSDR), Sri Lanka welcomed global efforts to address debt vulnerabilities and strengthen coordination, emphasising the near completion of its debt restructuring and recent IMF programme milestones.

Governor Dr. Weerasinghe underscored the importance of timely restructuring, transparency, and sustained reform, and emphasised a focus on countries with sustainable debt, but high debt servicing burdens. Sri Lanka advocated for clearer processes in commercial debt restructuring, regular updates on bilateral agreements, practical guidance on liability management, and greater debt transparency.

The intervention endorsed the updated Restructuring Playbook and called for enhanced international support to sustain reforms and restore market access, reaffirming Sri Lanka’s commitment to ongoing global debt coordination efforts, the statement said.

The outcomes of these meetings and the GSDR intervention underscore the international community’s confidence in Sri Lanka’s reform trajectory. Constructive engagement with key partners and financial institutions has reinforced support for Sri Lanka’s economic recovery, debt sustainability, and investment climate.

The delegation’s transparent dialogue and commitment to best practices send a strong signal to markets and investors: Sri Lanka is on a firm path to stability and growth, backed by robust policies and global partnerships, it added.

A highlight of the week was the recognition of Dr. Nandalal Weerasinghe with the prestigious “A Grade” award by Global Finance Magazine at the 2025 World’s Best Bank Awards Ceremony. This accolade was in recognition of prudent monetary policy, supervision of the financial system, and the Central Bank’s leadership in navigating challenging global conditions.



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Diesel replacement costs up to Rs. 4.5 bn in April

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Norochcholai Power Plant

Coal power generation falls by 27 GWh

A sharp decline in coal-fired electricity generation in April 2026, compared to the corresponding month last year, may have cost Sri Lanka more than Rs. 4.5 billion, as the country was compelled to rely on significantly more expensive diesel-powered generation to make up the shortfall, according to power sector data.

The coal-based electricity generation, in April 2026, was 27 GWh lower than in April 2025, a development that has sparked concern among energy experts and economists over the mounting financial burden on the country’s already strained power sector.

Industry calculations reveal that generating the lost 27 GWh through diesel-fired power plants would require approximately 8.1 million litres of fuel, based on a standard consumption rate of 0.3 litres per kilowatt-hour.

With fuel costs estimated at around USD 286 per barrel, or roughly USD 1.80 per litre, the replacement power would have cost approximately USD 14.57 million. At the prevailing exchange rate of about Rs. 315 to the US dollar, the bill exceeds Rs. 4.5 billion for April alone.

Energy sector analysts say the figure highlights the enormous economic value of maintaining high availability at coal-fired power plants, particularly at a time when Sri Lanka is seeking to reduce electricity costs and strengthen energy security.

“The financial impact of losing low-cost coal generation is substantial. Every unit not generated by coal has to be replaced by a much more expensive source, usually diesel or fuel oil, which ultimately affects the finances of the power sector and the wider economy,” a senior energy analyst said.

Even under a more conservative calculation, based on the average electricity generation cost of around Rs. 72 per unit recorded in 2025, the loss remains significant. The 27 million units not generated from coal would translate into an additional cost burden of nearly Rs. 2 billion.

The decline in coal generation comes at a critical juncture for Sri Lanka’s energy sector.

 The government has repeatedly emphasised the need to maintain affordable electricity tariffs, while reducing dependence on imported fossil fuels and expanding renewable energy capacity.

Experts warn that any sustained reduction in low-cost baseload generation could undermine these objectives, increasing the need for costly thermal power and placing additional pressure on foreign exchange reserves.

The latest figures are expected to intensify scrutiny of generation planning, fuel procurement strategies and the operational performance of major power plants. They also underscore the importance of ensuring uninterrupted operation of coal-fired facilities until sufficient renewable and storage capacity is available to replace them reliably.

With the country striving to maintain economic stability and energy affordability, analysts argue that avoiding such generation shortfalls must remain a top priority for policymakers and power sector planners.

By Ifham Nizam

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Sallay on hunger strike: Counsel warns CID

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Sallay

Asith Siriwardena Counsel for former Director of State Intelligence Service, Major General (Retd.) Suresh Sallay, detained under the Prevention of Terrorism Act (PTA) over the 2019 Easter Sunday attacks, has called upion the Director of the CID, SSP G. S. Abeysekara, to transfer his client either to a private or government hospital to receive urgently needed teatment.

Sallay was on a hunger strike, claiming mistreatment by the CID, his wife said, after visting him, yesterday.

Siriwardena wrote to the CID Director yesterday (07) after Sallay was visited by his wife, son and brother.

The text of the letter: “The family observed that Mr. Sallay’s physical condition has deteriorated to an alarming and critical level.

“He is reportedly unable to attend the visitation without the physical assistance of two officers. During the visit, he informed his family that he had refused medication, saline, food, and water. He further expressed a belief that his death is imminent and requested that arrangements be made for the donation of his eyes. He also requested an immediate visit from his Attorney for the purpose of executing his last will and other related legal documentation.

“These statements, and circumstances, demonstrate a grave deterioration in his physical and psychological condition. It is apparent that he is no longer capable of making rational decisions concerning his own welfare, health, and survival.

The prolonged conditions, under which he is presently being held have, at the very least, created a serious and immediate risk to his life.

“The State assumes a non-delegable duty of care toward every person held in its custody. Once an individual is deprived of liberty, the responsibility for safeguarding that person’s life, health, and wellbeing rests squarely upon the authorities exercising control over that individual. Any failure to discharge that duty in the face of a known and imminent medical emergency is a matter of the utmost legal seriousness.

“You are hereby formally notified that Mr. Sallay requires immediate medical intervention by qualified independent medical professionals and urgent transfer to an appropriate hospital facility capable of providing comprehensive assessment and treatment. Any delay, refusal, or failure to act despite clear knowledge of his precarious condition may give rise to personal and institutional liability under the criminal and civil law of Sri Lanka

“Should General Sallay suffer irreversible injury or death while remaining in the present conditions despite this explicit warning, it will be open to the relevant authorities, courts, and investigative bodies to examine whether such conduct amounts to a deliberate disregard of a known and foreseeable risk to life. Those responsible for decisions concerning his continued detention and medical care may be required to account personally for their actions and omissions.

“Accordingly, I demand that:

1. Mr. Sallay be transferred forthwith to a government or private hospital equipped to provide urgent medical treatment;

2. He be examined immediately by independent medical specialists, including psychiatric professionals if necessary; His legal representatives and family be granted reasonable access to him;

3. A written update on his medical status and the measures taken for his protection be provided without delay. This letter constitutes formal notice. Any further failure to act despite knowledge of the circumstances set out herein will be relied upon in any future judicial, criminal, constitutional, or international proceedings arising from harm suffered by my client.”

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Opp. questions why Rs 10 bn meant for Ditwah victims held in Treasury account

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Sanjeewa

The Opposition says the NPP government should explain why the funds received by Rebuilding Sri Lanka haven’t been utilised to provide relief to those affected by Ditwah cyclone in late November last year.

The failure on the part of the government to utilise as much as Rs 10 bn, received from local and foreign donors, came to light when the National Audit Office (NAO) appeared before the Public Finance Commission recently.

The NAO told the House Committee that no statutory fund currently existed under the name “Rebuilding Sri Lanka” and the programme operated through an account maintained under the Deputy Secretary to the Treasury.

The NAO declared that no payments had been made through this account to date.

Former SLPP MP Sanjeewa Edirimanne said that until the disclosure made by the NAO the country had been led to believe the Rebuilding Sri Lanka fund provided post-Ditwah relief. Pointing out that JVP General Secretary Tilvin Silva’s declaration in Jaffna that funds allocated to hold Provincial Council polls

had been utilised to assist Ditwah victims, Edirimanne said such blatant lies were propagated while the government held on to Rs 10 bn meant for the disaster victims.SJB MP Mujibur Rahman questioned the rationale behind keeping funds received specifically for Ditwah victims still living under extremely difficult conditions. (SF)

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