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‘Changing medication will not help unless we change the doctor to solve the country’s problems’ – Eran Wickramaratne, MP
MP Eran Wickramaratne speaking in the debate on the Central Bank of Sri Lanka (CBSL) annual report – 2020 in Parliament last week said that under this government, Sri Lanka is currently facing crises such as higher spending than revenue, higher import expenditure than exports indicating a deficit in the current account and widening budget deficit.
He said what needs to be done is to change the doctor rather than changing the medication to resolve these problems faced in the country.
He further said that the cost of living and the price of petrol have gone up and the country was facing huge problems. Even a school child realizes that government revenue has declined. Now 70% of government revenue is spent on interest on loan repayment. Lebanon is the only country in the world that pays higher interest than Sri Lanka as a percentage of national revenue.
Wickramaratne said that it was first thought that changing ministers was useless for this issue and the policies should be changed. But the Government ministers were saying that though the opposition was pinpointing the disease they did not propose any solution.
The solution to the problem in this country is to change the doctor. There is no point in changing the medication, he suggested.
Today Sri Lanka is facing a dual crises. One is that spending is higher than our national revenue. This is an average deficit of 7.6 per cent of GDP since 1990. Incomes began to fall since 1995. This problem has been exacerbated by the gradual decline in the country’s revenue from 17.3% to 11.6% of GDP from 2006 to 2014 under the Government of President Mahinda Rajapaksa.
“However, the previous government had set its sights on the increase of revenue in 2018. We then said that we should take a basic step to reduce the budget deficit and increase revenue. Accordingly, the good governance government was able to increase the revenue to 13.5% by 2018. But due to the 2018 coup, government revenue fell to 12.6 percent, Wickramaratne further said.
The second structural crisis is the deficit in the current account. Since 2000 exports revenue continue to decline as a percentage of GDP. As a result of these two issues, we have to borrow internationally and locally, he said.
Governments in our country have not addressed these fundamental issues. Even today this government does not seem to have focused on this need. If there is a change in policy, we look forward to hearing about that change in the next budget.
Minister Cabraal, who spoke today, for the first time in 2007 went to the international market as the Governor of the Central bank and obtained a $ 500 million ISB (International Sovereign Bond) loan to address the issues of the budget deficit.
Of course, he is now delivering sermons telling different stories that the government does not need international money. That was the first time Sri Lanka had obtained an ISB loan through Mr. Cabraal. The then government started borrowing in 2007 as a new source to cover the fiscal deficit. Since then, it has continued to borrow dollars at higher interest rates. This is the problem faced by this country now.
Under such a context who will come and invest in Sri Lanka? We borrowed and created white elephants. This Government during its previous regime launched projects such as Nelum Kuluna and Hambantota Conference Hall that do not directly benefit the people or the country. Implementing such projects making use of loans is not an appropriate decision. Bandaranaike Conference Hall is a gift from China.
Even in the future, if we take a loan, we should invest them in a project that would generate income for the masses and the country.
Everyone remembers that in the last quarter of 2018, the foreign reserves stood at $ 7.8 billion. But by the time of the 2018 coup, it was down by $ 1 billion. Sri Lankan rupee depreciated by 10 rupees. Although GDP was said to have declined during the previous government, the average growth rate remained at 4.3% until the third quarter of 2018. This government has lied that growth has slowed. This problem in this country arose because of the conspiracy that preceded the Easter attack.
The previous government introduced a modernized Finance Bill for national accounting. The accounting system was changed. The income from it gradually increased. Now it must be said that the Central Bank has done some mathematical gimmicks with its report.
The Central Bank report 2020 showed that expenditure has decreased in that year. The national accounting by the CBSL continues to be calculated on cash basis. CBSL has changed the accounting system into accrual basis in 2020 and though it showed that the budget deficit is 11 % by transferring the expenses of Rs 420 billion to previous year’s account. Actually the deficit is 14 % of GDP, the highest fiscal deficit recorded in this country in 38 years.
Another gimmick was to show that the total debt to GDP ratio by 2020 was 101%, but it is 109% when combined with loans obtained by state-owned enterprises separately. In addition, the Petroleum Corporation’s debt of Rs. 345 billion increased by 16% by 2020. In 2019 it went up from Rs 297 b to Rs 345 b while the world oil prices were low, while the country used less oil because of the lockdown. When the oil prices fell the government did not pass on the benefit to consumers.
There was a third gimmick in this report. Although it is said that our foreign borrowing has come down, this is really a numbered game. The value of international sovereign bonds is stated in market value, but it should have been stated based on the face value. The billion dollar ISB paid recently was also based on face value. Therefore, in order to know the true value of the loan, the face value of the loan must be stated. If the face value is mentioned, the amount of foreign loans will increase further.
Wickramratne urged not to use this numbered game if we are to create credibility and the confidence in investors and rating agencies when building a country. He also called on the members of the Monetary Board to protect the independence of the Central Bank.
News
The Government is taking steps to regulate early childhood education to ensure quality education while enhancing the professionalism of preschool teachers. — PM
Prime Minister Dr. Harini Amarasuriya stated that the Government is taking steps to maintain early childhood education within an appropriate regulatory framework, while ensuring quality education by enhancing the professionalism of preschool teachers.
The Prime Minister made these remarks while participating in the awareness programme for preschool teachers of the Puttalam District on the National Early Childhood Education Curriculum Framework, held under the theme “A Safe World for Children, A Creative Future Generation” on Friday [16th of January] at the Sudasuna Hall in Chilaw.
The Prime Minister stated,
“The main objective of our government in 2024 was to bring about a transformative change in this country. We bear a major responsibility in achieving that transformation. When we assumed office, one of our primary responsibilities was to build a stable and resilient economy. However, I believe that with equal responsibility and commitment, our government has prioritized creating a transformative change in the education system of the country. We assumed office with that objective in mind. The discussions within our party and political movement on the necessary changes in education did not begin recently. They are the result of a long-standing process.
This transformation cannot be achieved overnight or within a single year. It is a step-by-step process. When implementing this decisive and qualitative change within the education system, it is essential to consider the system as a whole. We made this intervention by examining every stage of a child’s educational journey. Therefore, we have recognized early childhood education, from age one to age five, as an integral part of education and development.
Thereby, Early childhood development is viewed as the very first step of our education structure. At present, early childhood education exists in an unregulated manner. Our aim is to develop this early childhood education in an organized and systematic way, while enhancing the professionalism of teachers and ensuring quality education within an appropriate regulatory framework.
Accordingly, the Ministry of Women and Child Affairs and the Ministry of Education have jointly appointed a committee and initiated discussions to formulate a policy and curriculum framework for early childhood education. During the past year, we developed the preschool curriculum framework. We are working towards implementing a unified curriculum across all preschools in a structured manner. It is essential to integrate early childhood development with primary, secondary, and university education. Early childhood development is one of the most critical stages of an individual’s life. The responsibility of socializing the child, introducing them to society in a structured manner, and nurturing a disciplined, empathetic individual lies with you. This is not something that can be achieved at the primary level or beyond.
There is a common criticism that children are not taught letters and numbers at preschool. However, early childhood development is not about formal schooling. It is about helping children to develop their social skills.
It is also an objective of our government to ensure that both preschools and schools become places where parents can confidently leave their children, knowing they are safe.
We are aware of the issues relating to your allowances and pensions. Discussions have been held in this regard between the Ministry of Education and the Ministry of Women and Child Affairs. Granting due recognition to preschool certificates during school admissions is also very important, and the government’s attention has been drawn to all these matters”.
The event was attended by Minister of Public Administration, Provincial Councils and Local Government prof. Chandan Abayarathna; Members of Parliament Gayan Janaka, Hiruni Wijesinghe, and Mohamed Faisal; officials of the North Western Province Early Childhood Education Development Authority; and a large number of preschool teachers from the Puttalam District.


[Prime Minister’s Media Division]
News
Police step up crackdown on organised crime after securing 95 Interpol Red Notices
Police have stepped up their crackdown on organised crime, after securing Interpol Red Notices for 95 suspects believed to be hiding overseas.
Police Spokesman SSP F. U. Wootler told a media briefing yesterday that the move marked a major escalation in efforts to track down and extradite high-profile figures linked to organised crime syndicates and online fraud networks.
He said the strategy was already producing results. In 2024, Sri Lanka secured the return of 10 suspects through Interpol channels, while a further 11 were extradited in 2025 to face legal proceedings.
In addition to Red Notices, authorities have relied on formal legal mechanisms to overcome jurisdictional barriers. “During the 2024–2025 period, 21 suspects were extradited under the Extradition Act,” SSP Wootler said.
The briefing coincided with three more fugitives being escorted back to Sri Lanka yesterday following the issuance of Interpol Red Notices.
SSP Wootler said many of the fugitives had continued to coordinate criminal activities here from abroad, including sophisticated online scams, underscoring the importance of international cooperation.
Two male suspects, for whom Red Notices had been issued and who were overseas, and a female suspect wanted in connection with defrauding state funds, were flown back.
Following their arrival yesterday morning at Katunayake Airport, they were taken into custody by a team of officers from the CID.
The arrested suspects are residents of Kandana and Uragasmanhandiya, aged 30 and 52, respectively. The female suspect is a 56-year-old resident of Mount Lavinia.
The suspect residing in Kandana is an individual wanted in connection with an attempted murder. It has been revealed that while overseas, he is connected to a range of crimes, including orchestrating a shooting incident that resulted in a homicide in the Kandana area on 2025.07.03. This suspect has been handed over to the Officer-in-Charge of the Kelaniya Division for further investigations.
The one hailing from Uragasmanhandiya is a suspect wanted in connection with carrying out homicides using sharp weapons and being involved in a series of organised crimes in the Uragasmanhandiya area. This suspect has been handed over to the Officer-in-Charge of the Elpitiya Division for further investigations.
The female suspect, residing in Mount Lavinia, who is reported to have worked at an Embassy in 2014, is an accused in a case where the Criminal Investigations Department is investigating the defrauding of state funds. She has been sentenced to imprisonment, fines, and also ordered to compensate victims by the Colombo High Court.
“These operations were carried out with the strong support of the Government of the United Arab Emirates, including Abu Dhabi International Police, Dubai Police, as well as Sri Lankan diplomatic missions,” he said.
Interpol Red Notices function as international alerts requesting law enforcement agencies worldwide to locate and provisionally arrest individuals pending extradition.
Wootler said efforts would continue to identify and pursue suspects operating from foreign jurisdictions, particularly those involved in organised and cyber-related crimes posing threats to national security.
By Norman Palihawadane and Hemantha Randunu
News
Julie’s exit gladdens Udaya’s heart
Leader of the Pivithuru Hela Urumaya (PHU), Udaya Gammanpila, yesterday launched a scathing attack on outgoing United States Ambassador to Sri Lanka Julie Chung, accusing her of interfering in Sri Lanka’s internal affairs and exerting undue influence over recent political developments.
Addressing a press conference in Colombo, Gammanpila said Chung’s departure, after a four-year tenure, marked a “day of national relief,” claiming her presence had been harmful to the country.
He said patriots marked the occasion by sharing kiribath (milk rice), which he described as a symbolic celebration.
Gammanpila alleged that Ambassador Chung had remained in Sri Lanka longer than the customary three-year diplomatic term because of, what he described as, her success in bringing the country under American influence. Drawing comparisons with past foreign diplomats, he claimed that Chung was the most influential envoy since Indian High Commissioner J.N. Dixit in the 1980s. He alleged that successive Sri Lankan governments had failed to challenge what he described as interference by the envoy.
The PHU leader accused Chung of playing a behind-the-scenes role in the 2022 protest movement, commonly known as the Aragalaya, claiming it was orchestrated to destabilise the country. He alleged that young protesters were unknowingly “acting out a foreign script” under the guise of patriotism.
Gammanpila also alleged that Chung played a key role in elevating the National People’s Power (NPP), which he referred to as the “Malimawa” movement, into a governing force in 2024. He claimed the movement had been transformed from its earlier ideological roots into, what he described as, a pro-Western political project, asserting that President Anura Kumara Dissanayake had come to power with foreign backing. He cited a photograph shared on Chung’s social media account of her visit to the NPP headquarters as evidence of what he termed political proximity.
According to Gammanpila, Ambassador Chung’s public criticism of governance issues sharply declined following the change of government. He alleged that while she had frequently commented on incidents under previous administrations, she had remained silent on alleged corruption and governance failures over the past 14 months.
Turning to the future, Gammanpila urged caution regarding the incoming US Ambassador, Eric Meyer, stating that any engagement on religious or cultural matters should be viewed carefully. He called on President Dissanayake to pursue an independent foreign policy, free of external influence.
Gammanpila also criticised the government over, what he described as, repeated “policy blunders,” particularly in relation to issues affecting children and social values. He cited several instances, including proposals to promote Sri Lanka as a destination for same-sex couples, educational material controversies, and a recent People’s Bank advertisement that he claimed subtly promoted same-sex symbolism. While stating that he held no animosity towards the LGBTQ community, Gammanpila said he opposed, what he described as, attempts to influence children through state institutions.
In addition, the PHU leader condemned legal action taken by the Coast Conservation Department against nine individuals, including four Buddhist monks, for installing a Buddha statue within a coastal conservation zone in Trincomalee. He described the arrests as discriminatory, alleging that similar structures belonging to other religions and commercial entities had been overlooked.
Calling the current administration “anti-Buddhist,” Gammanpila urged authorities to apply the law equally and not just in words, and “not to turn legal frameworks into instruments against Buddhism.” He also accused members of the government of ingratitude, alleging that many had once sought refuge in temples during periods of political violence.
By Anuradha Hiripitiyage
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