News
CBSL Governor calls for political stability to rescue economy
… warns he will have to resign if chaos continues
Extended power cuts possible if political instabilty persists
Curtailment of expenditure on imports necessary for economic recovery
Sri Lankan economy would collapse if political stability was not restored soon, the Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe, said yesterday.
Dr. Weerasinghe warned that he would be left with no alternative but to resign within two weeks if political instability continued. He warned that the prevailing political instability, acts of violence and the failure on the part of the State to maintain law and order had made it harder for Sri Lanka to overcome the current economic crisis.
Political stability was essential for economic recovery, said the CBSL chief, adding that when he assumed duties as the Governor, it was thought that the economy could be stabilised soon, but the unfolding events would put paid to efforts that the Central Bank and the Finance Ministry were making to straighten up the economy.
Dr. Weerasinghe said that when he assumed duties one month back, he expected political stability to be restored within two weeks, and they would be able to implement their economic programme.
If all political parties did not come together, no one would be able to rescue the c economy, whoever held the post of the Central Bank Governor, Dr. Weerasinghe said.
“As the Central Bank, we have to state that if such a stable condition cannot be achieved within a very short period of time, the existing situation would worsen further,” he said.
He also said that there was so much that the Central Bank could do and that a solution to the crisis could be achieved by only policy makers.
“There is a serious shortage of foreign exchange in the country and already there is a scarcity of some essential items. Although fuel and gas stocks are available to some extent and power cuts are limited to around three hours, things can change for the worse soon,” he warned.
“If this situation continues even for another two or three days, there will be 10-12-hour power cuts again. We will see a severer shortage of fuel. We will see longer queues for cooking gas. This will lead to more protests and social unrest. We at the Central Bank hope there will be political stability soon so that we will be able to implement our policies and find some foreign exchange to address these current shortages of essentials.”
Dr. Weerasinghe said that Sri Lanka needed a stable government, a Cabinet, a functioning parliament, a prime minister and a finance minister to reach an agreement with the IMF.
“Without a stable administration that is respected by the people, it is very difficult for us to make any progress. This is why I have been repeating the urgent need for a stable administration and law and order in the country so that everyone can engage in their normal day-to-day activity,” he said.
The President and all the Members of Parliament have to come together and find a workable solution soon without placing the country at a bigger risk, he said. “Otherwise, there will be no progress and everyone will have to undergo more suffering.”
Dr. Weerasinghe also urged people to reduce the consumption of imports. If someone needs to buy a mobile phone, a TV or a refrigerator, he or she should wait a month or two, he said. “There are many items in showrooms despite import restrictions. They are also trying to make undue profits. I think people should cut down on these purchases. If we don’t spend money on these, we will have more money for essentials. Also, vendors will have to reduce prices. Remember what happened to cement; traders stocked up and jacked up prices, but because people didn’t buy, cement prices plummeted.”
Sri Lanka and Thailand have concluded negotiations on a landmark labour cooperation framework that will pave the way for the recruitment of 10,000 Sri Lankan workers under a pilot project approved by the Thai Cabinet.
The development follows a series of virtual negotiations between officials of both countries to finalise two key bilateral instruments — a Memorandum of Understanding on Labour Cooperation and an Agreement on the Employment of Sri Lankan Workers in Thailand.
The discussions were facilitated by Sri Lanka’s Embassy and Permanent Mission in Bangkok, with the participation of Ambassador and Permanent Representative Wijayanthi Edirisinghe and officials from the Ministry of Labour and the Sri Lanka Bureau of Foreign Employment (SLBFE), alongside their Thai counterparts.
According to officials, the Thai Cabinet has already granted approval to recruit 10,000 Sri Lankan workers to address labour shortages in several sectors of the Thai economy. The pilot initiative is expected to generate structured and gainful employment opportunities for Sri Lankans in fields including construction, agriculture and livestock, food and beverage, industry, educational institutions, aquatic animal processing and mining.
Following comprehensive discussions, both sides finalised the draft texts of the two agreements.
The documents will now be submitted to the respective Governments for formal approval prior to signing. The signing ceremony is expected to take place at ministerial level in the first quarter of 2026.
Officials described the conclusion of negotiations as a significant milestone in bilateral relations, noting that the framework is designed to ensure safe, orderly and regular labour mobility while safeguarding the rights and welfare of Sri Lankan workers under a transparent and regulated mechanism.
The initiative comes amid ongoing efforts by Sri Lanka to expand overseas employment opportunities and enhance foreign remittance inflows, while ensuring stronger protection for migrant workers through government-to-government arrangements.
Officials from the Digital Economy Ministry state that there are plans to provide every person in the country with High-Speed Broadband connectivity by 2029, parliament sources said on Friday.The announcement was made during a meeting of the Sectoral Oversight Committee on Science, Technology and Digital Transformation held in Parliament on February 6, chaired by MP Dr. Janaka Senarathne, where the allocation of 2026 budget provisions for the Ministry of Digital Economy and the Ministry of Science and Technology was discussed.
During the session, Dr. Hans Wijayasuriya, Senior Advisor to the President, presented details of the nationwide High-Speed Broadband programme. He confirmed that 100 new telecommunication towers will be installed this year as part of the initiative, with a total of 600 to 1,000 towers planned to meet national requirements, to be rolled out in stages.
Dr. Wijayasuriya noted that while current internet coverage stands at approximately 98%, it falls short of High-Speed Broadband standards. He emphasized that existing capacity must be increased by around 25% to ensure that every citizen, including schoolchildren, has access to high-speed internet.
He also stated that a commercial model will be developed for the telecommunication towers, allowing private sector participation through a bidding process.
The Committee additionally highlighted the importance of digital literacy initiatives in areas outside Colombo, proposing programmes to be coordinated through District Secretariat offices.
The meeting further covered the allocation of 2026 budget provisions for the Ministry of Science and Technology, with several annual and performance reports of affiliated institutions approved.The session was attended by Deputy Minister Chathuranga Abeysinghe and MPs Chandima Hettiarachchi, Lasith Bhashana Gamage, Chathura Galappaththi, Aboobucker Athambawa, and Ruwan Wijeweera.
The Parliamentary Committee on High Posts has approved the nominations of four Heads of Mission to Israel, Palestine, Lebanon and Kenya.
The Committee granted approval for the appointment of Horana Mahawatte Gedara Saman Kumar Chandrasiri as Sri Lanka’s Ambassador to Israel.
The nomination of Mohamed Farook Mohamed Fawzer as Sri Lanka’s Representative to Palestine also received the Committee’s consent.
Warnakulasuriya Peter Rohan Dhammika Fernando was approved as Sri Lanka’s High Commissioner to Kenya, while Anura Withanage secured approval as Ambassador to Lebanon.
The approvals pave the way for the formal appointment of the four diplomats to their respective overseas missions.
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