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Contradictions in Trinco oil tank deal

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By Neville Ladduwahetty

According to media reports the government of Sri Lanka (GOSL) has signed three new Agreements, dated 6 January, 2022 relating to the Trinco oil Tank Farms. The first with the Ceylon Petroleum Corporation (CPC), the second with the Lanka IOC PLC (LIOC), and the third with a Joint Venture Company incorporating the CPC holding 51% and LIOC holding 49% called Trinco Petroleum Terminal (Pvt.) Ltd. The three Agreements relate to the ninety-nine (99) Oil Tanks built during WWII on the basis of State leases, for a period of fifty (50) years. The first relates to twenty-four (24) tanks, the second to fourteen (14) tanks and the third to sixty-one (61) tanks.

As stated by the Minister of Energy Udaya Gammanpila, this current agreement is an outcome of the three previous agreements. In the course of an interview, he stated that the first was when “President J. R. Jayewardene agreed with India to develop and operate this tank farm jointly with India, so we have a bilateral obligation with India to develop jointly”. The second was when “Prime Minister Ranil Wickramasinghe, on 7 February 2003, leased out these tanks to India for 35 years. That is how they came into possession of these tanks. The third was when “Malik Samarawickrama – Sushma Swaraj MoU agreed with India to lease out the entire tank farm of 99 tanks to LIOC for a period of 99 years” (The Sunday Morning, January 16, 2022).

Minister Gammanpila has also said, “Sri Lanka was under obligation to India in respect of this tank farm through these three agreements. I had to negotiate with India in this backdrop. If I could ignore these agreements, I would have taken the entire tank farm into Sri Lanka’s possession; I would love to do that. Unfortunately, there are three agreements signed by previous governments and I am bound by them” (Ibid).

To claim that Sri Lanka is obligated by all three previous agreements is not only to assign equal status to all but also to accept the contradictions in the terms among the three agreements. For instance, the first agreement between Sri Lanka’s Head of State and the Prime Minister of India has no time bar while the second is by a Prime Minister of Sri Lanka to lease the tanks to India for a specified period of 35 years and the third, an agreement to lease all the tanks for 99 years, not to India but to a State entity of the government of India, LIOC. Furthermore, the first agreement was to develop the tanks jointly while the other two are on the basis of leasing them. Perhaps, India did not make an issue of violating the terms of the Indo-Sri Lanka Accord because the subsequent agreements are more favourable to it.

The specifics of the latter two agreement are not available to the public. Even if their contents are available to the Minister and he was aware of the circumstances that caused a lease for 35 years with the State of India to be extended for 99 years to an entity of that State as being of equal standing as the Indo-Sri Lanka Accord, this is not a tenable proposition. Furthermore, the Indo-Sri Lanka Accord is not limited to the oil tanks, whereas the other two agreements specifically relate only to the tanks. Therefore, as far as the tanks are concerned, there is every justification to address issues relating to them from a totally fresh perspective.

Minister Gammanpila claims this deal was a major achievement. The reason for such a claim is that until the agreements of January 6 2022 were signed, all 99 tanks had been leased either for 35 years or 99 years depending on which agreement one considers to be valid. Therefore, the agreement of January 6 2022 is a considered a gain because it regained 85 tanks that were in the possession of LIOC. Furthermore, the fact that 24 of the 85 would be exclusively operated by Sri Lanka and 61 jointly means a decided improvement. However, it must be clearly understood that the so called “gain” is only in respect of the tanks taken in isolation and not as part of a viable asset.

Could Sri Lanka have done even better and taken over all 99 tanks to be developed by Sri Lanka, while leaving the 14 tanks currently operated by LIOC for the remainder of the 35-year lease period as a measure of good faith? Since the provision of the Indo-Sri Lanka was for operating the entire Tank Farm jointly, and the agreements of 2003 and 2017 violated this provision, a claim could be made that sufficient grounds existed to take possession of all 99 tanks; a wish the Minister himself entertained during his interview.

REVISITING the AGREEMENT and its TERMS

How best to exploit the potential of these tanks has been the topic of much discussion and debate. However, the majority of these discussions have focused on these tanks as a legacy of World War II and how best to exploit its potential. It cannot be denied that taken in isolation, these tanks are nothing but 99 rusting steel tanks without much utilitarian value.

It is only in the context of its location that these tanks take on a whole new dimension and come alive as a vital economic asset because of its proximity to one of the best natural harbours in the world – the Trinco Harbour. Therefore, it is the Trinco Harbour that make these tanks a valuable asset.

These tanks were sited at this particular location because of the Trinco Harbour. Therefore, the tanks cannot be considered in isolation and independent of the Trinco Harbour. The tanks and harbour are inextricably linked and therefore it is absolutely vital that the tanks and the harbor are considered and treated as a single asset and not as separate assets. On such a basis, for the LIOC to hold 49% stake in the joint venture should be unacceptable because it amounts to the harbor being a give-away – a free gift to which a value cannot be assigned. Furthermore, the fact that the tanks amount to nothing but 99 steel containers without the harbour, strong grounds exist for Sri Lanka to revisit the deal and take possession of the tanks because the asset that transforms the tanks into an economically viable asset is the Trico Harbor, which is not associated with the deal.

Having taken possession of the tanks, Sri Lanka should perhaps restore a few tanks per year by seeking funds through local banks and pay back the loans by renting them to interested parties such as the LIOC and others who may find it profitable to store petroleum products when prices are low. Such an approach would be in keeping with the current government’s policy of self-reliance. Furthermore, the pace of restoration could be undertaken to keep in pace with the demand from interested parties.

CONCLUSION

The current agreement signed on 06 January 2022, which entitles Sri Lanka to operate 24 tanks exclusively and 61 tanks as a joint venture with India is decidedly an achievement over the agreements of 2003 and 2017, which leased these tanks for 35 and 99 years, respectively. However, the implication of these agreements is that both India and Sri Lanka have agreed that deviating from the basis of developing the tanks jointly as stated in the Indo-Sri Lanka Accord is acceptable.

All these agreements relate to the 99 tanks that by themselves amount to nothing but steel storage containers without much utility value. However, they have the potential to be transformed into a vital economic asset because of their proximity to one of the best natural harbours in the world – the Trinco Harbour. Therefore, any agreement relating to the tanks should take into account the fact that without the Trinco Harbour the tanks by themselves have little value. Consequently, the tanks and the Trinco harbour should be treated as a single asset and not as separate and unrelated assets. Under the circumstances, a share distribution of 51/49 favours India disproportionately because the asset that makes the enterprise a viable venture, namely the Trinco Harbour, belongs to Sri Lanka. It is this aspect that makes the 06 January2022 agreement unacceptable because the asset value of the Trinco Harbour has been totally disregarded.

Coupling such a context with the policy to deviate from the concept of jointly developing the tanks into one of leasing in the agreements of 2003 and 2017 gives Sri Lanka the opportunity to renegotiate and take possession of all 99 tanks, but permits LIOC to continue operating the 14 tanks until the current lease period lapses. Having renegotiated a fresh deal, Sri Lanka should restore a few tanks at a time with finances from local Banks, and pay back the loans by renting them to interested customers to store petroleum products.

Such a strategy would be in keeping with the spirit of self-reliance that has been with the Peoples of Sri Lanka and manifests itself occasionally, the most recent being the demand for Sri Lanka to construct the East Container Terminal that the Government intended to outsource. The spirit of self-reliance is not dead. Its resurgence awaits leadership. It is in such a spirit that the Trinco Tank Farm deal should be revisited.



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Sri Lanka’s vanishing wetlands put elusive otter under growing threat

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International Eurasian Otter Workshop-Colchester, United Kingdom

The world marked World Otter Day 2026 recently. Conservationists are warning that Sri Lanka’s rapidly disappearing wetlands, polluted waterways and unplanned development are placing increasing pressure on one of the island’s most elusive freshwater predators, the Eurasian otter (Lutra lutra).

The species, locally known as “Diya Balla”, is the only otter found in Sri Lanka and is regarded as a key indicator of healthy freshwater ecosystems. Yet despite its ecological importance, experts say the animal remains poorly studied and largely overlooked in national conservation planning.

Naturalist and conservationist Chaminda Jayasekara, who has spent years documenting otters in Sri Lanka, said the species is facing mounting environmental pressures across the island.

Speaking to The Island, Jayasekara said habitat destruction, chemical pollution, road kills, sand mining, and increasing human disturbance are fragmenting the waterways on which otters depend.

“Otters are extremely sensitive animals. When wetlands are degraded or rivers become polluted, they disappear very quickly. Their survival is directly linked to the health of freshwater ecosystems,” he said.

Jayasekara, who specialised in MSc Environmental Management at the University of Hertfordshire, noted that while the species has been recorded across Sri Lanka’s wet zone, dry zone and coastal wetlands, scientific data on population numbers and distribution remain limited.

According to him, the decline of wetlands has become one of the most serious environmental issues facing Sri Lanka. Marshes, mangroves, irrigation tanks and riverine habitats are increasingly being altered by urban expansion, tourism infrastructure, encroachment and agricultural runoff.

He warns that the loss of these habitats not only threatens otters, but also weakens flood control systems, freshwater security and biodiversity resilience at a time when climate-related disasters are becoming more frequent.

Jayasekara said otters play a vital ecological role by helping maintain balanced fish populations and healthy aquatic ecosystems.

“When otters thrive, it tells us the river system is functioning properly. Their presence is a sign that water quality, fish diversity and habitat conditions remain healthy,” he explained.

One of the best-known locations for otter sightings in Sri Lanka is Aranga Pond, within the Horton Plains National Park, where the species has adapted to the island’s cold montane ecosystem.

However, conservationists stress that even protected areas are not immune to broader environmental degradation occurring outside park boundaries.

Jayasekara’s own work on otters gained prominence through long-term conservation efforts at Jetwing Vil Uyana, where a former degraded chena landscape was restored into a functioning wetland ecosystem.

The restored habitat eventually attracted Eurasian otters, fishing cats, grey slender lorises and numerous wetland bird species.

Over 14 years, Jayasekara carried out field observations, camera trapping and awareness programmes involving hotel staff, surrounding schools and local communities.

“What happened at Vil Uyana clearly showed that habitat restoration works. If degraded ecosystems are given time to recover, wildlife can return naturally,” he said.

He added that wetland restoration should become a central component of Sri Lanka’s environmental policy, particularly as climate change intensifies droughts, floods and biodiversity loss.

Chaminda collecting scat for research purposes in Sigiriya

He says wetlands are among the planet’s most productive ecosystems, functioning as natural water filters and carbon sinks while providing breeding grounds for fish, amphibians and aquatic mammals.

Yet globally, wetlands are disappearing at an alarming rate, and Sri Lanka is no exception.

Conservation groups have repeatedly warned that illegal waste disposal, pesticide contamination and poorly planned infrastructure projects are severely affecting freshwater ecosystems throughout the country.

Jayasekara also highlighted the importance of stronger environmental education and community participation in conservation.

“Awareness is still very limited. Many people living close to wetlands do not realise the ecological importance of otters or the threats they face,” he said.

According to him, involving local communities in conservation monitoring is essential if Sri Lanka hopes to safeguard the species in the long term.

He also pointed to the growing international interest in otter conservation.

In November 2025, Jayasekara represented Sri Lanka at the International Eurasian Otter Conservation Workshop held at Colchester Zoo and organised by the International Otter Survival Fund.

The workshop brought together nearly 100 researchers, conservationists and wildlife experts from 33 countries to discuss emerging threats facing Eurasian otter populations.

Jayasekara presented Sri Lanka’s experience under the theme Rewilding Through Hospitality, focusing on how habitat restoration and sustainable tourism practices at Vil Uyana contributed to otter conservation.

“The international response was extremely encouraging. Many delegates were surprised that a tourism property in Sri Lanka had quietly carried out wetland conservation work for more than a decade,” he said.

Discussions at the workshop also examined wider environmental concerns including river pollution, declining fish stocks, illegal killings and habitat fragmentation affecting otter populations across Europe and Asia.

New conservation technologies such as AI-assisted wildlife tracking and environmental DNA surveys were also highlighted as emerging tools for monitoring elusive species.

Jayasekara said Sri Lanka urgently requires more scientific surveys, stronger environmental law enforcement and greater investment in freshwater conservation research.

He warned that unless wetlands and waterways are protected, several lesser-known freshwater species could face severe decline in the coming decades.

Environmentalists say otter conservation should not be viewed in isolation but as part of a broader effort to protect entire freshwater ecosystems that millions of Sri Lankans depend on for drinking water, irrigation and livelihoods.

He further noted that healthy wetlands also strengthen climate resilience by absorbing floodwaters, reducing soil erosion and supporting groundwater recharge.

As Sri Lanka experiences increasingly erratic weather patterns linked to climate change, conservationists argue that protecting wetlands is becoming both an ecological and economic necessity.

Jayasekara believes Sri Lanka still has an opportunity to become a regional example in balancing tourism, biodiversity conservation and habitat restoration.

“The otter teaches us an important lesson,” he said. “If rivers are protected and wetlands are respected, nature has an incredible ability to recover.”

This year’s observance of World Otter Day 2026 is, therefore, serving not only as a celebration of one of the world’s most charismatic mammals, but also as a reminder of the urgent need to conserve the fragile freshwater ecosystems upon which both wildlife and human communities ultimately depend.

Eurasian otter

By Ifham Nizam

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Malaiyaha Tamil people: Healing the Oldest Wound of Independence

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Hands of a Maliayaha tea estate worker

In their Vesak messages this year, President Anura Kumara Dissanayake and Prime Minister Harini Amarasuriya highlighted the values of reconciliation, coexistence and justice as essential to Sri Lanka’s future. President Dissanayake emphasised that Buddhism’s teachings remain deeply relevant to contemporary society and described Vesak as a symbol of “mutual understanding, unity and coexistence among all communities” and of reconciliation itself. Prime Minister Amarasuriya similarly called for the building of a society in which justice is assured to all irrespective of caste, race or religion. These messages were not merely religious aspirations, they were a direct challenge to the most serious failures in Sri Lanka’s post-independence history. These include the three-decade-long war, its human rights violations and the inability to implement a political solution.

These have been and continue to be the challenges that have prevented Sri Lanka from reaching its full potential. Added to this have been the persistence of social and economic inequalities that continue to marginalise communities at the bottom of the social hierarchy. One of the most enduring examples of such injustice is the experience of the Malaiyaha Tamil community. The scale of the original exclusion is worth understanding clearly. According to the 1946 Census, the Malaiyaha Tamil community numbered approximately 780,600 persons and constituted 11.73 percent of the country’s population making them the second largest ethnic community, larger than the Sri Lankan Tamil community who numbered 733,700 or 11.02 percent of the population at the time

The denial of citizenship and voting rights to the Malaiyaha Tamil community was the first major injustice inflicted on an ethnic minority in post-independence Sri Lanka. The consequences were devastating and long-lasting. A community that had contributed enormously to the country’s economy through its labour on the plantations was excluded from political participation and denied basic rights. This was a political and moral failure that cast a long shadow over the country’s post-independence history. Responsibility for that injustice needs to be shared widely. Political leaders across ethnic lines failed to resist it. The result was the marginalisation of a community whose contribution to national prosperity far exceeded the recognition it received. Today, nearly eight decades later, Sri Lanka has an opportunity to correct that historic wrong but only if economic reform is matched by genuine social inclusion.

Longstanding Grievances

The NPP government has repeatedly acknowledged the need to address the longstanding grievances of the Malaiyaha Tamil people. In its election manifesto, the NPP pledged to improve living conditions in plantation areas, strengthen land and housing rights, ensure equal access to education and public services, and integrate plantation communities more fully into national development. The NPP’s Nuwara Eliya Declaration of 2023 similarly recognised that the plantation community had suffered generations of exclusion and promised measures to address disparities in housing, land ownership, infrastructure, education and economic opportunity. The need for such action is plain to see. While citizenship issues have largely been resolved over time, the socio-economic consequences of decades of exclusion remain deeply entrenched and continue to shape daily life in plantation communities.  A conference organised by the Institute of Social Development to mark International Tea Day on May 21 at the BMICH brought out this and many other salient issues.  Headed by P Muthulingam the organisation has advocated for the rights of the Malaiyaha Tamil people for the past 35 years to be equal citizens who enjoy social and economic justice.

The central problem facing many plantation workers is the low level of income they receive. Daily wages remain among the lowest in the country relative to the difficulty and intensity of the work. Plantation labour continues to depend heavily on methods that have changed little over generations. Productivity remains low compared to competing tea-producing countries — not because workers lack capability, but because sustained investment in their welfare, skills and economic mobility has been withheld. Workers consequently remain trapped in a cycle of low wages and limited economic mobility. Their housing situation compounds these difficulties. Many plantation families continue to live in housing owned either by plantation companies or the state. Lack of secure ownership limits their ability to accumulate assets, access credit or make independent decisions regarding their future. When Cyclone Ditwah damaged plantation housing, it exposed the inability of those living in that housing to access state compensation as they did not own the housing in which they lived.

The problems extend beyond the central highlands. Plantation workers living in private estates and smallholdings in other parts of the country face similar challenges. A recent Amnesty International report documented serious abuses affecting Malaiyaha Tamil workers in private tea estates in the Southern Province.  These include wage withholding, debt dependency, restrictions on movement and intimidation and practices the report argued correspond to internationally recognised indicators of forced labour. These findings are not peripheral. They reveal that the structural exclusion of the Malaiyaha Tamil community is not a relic of the past but an active, ongoing condition. Economic vulnerability and social marginalisation continue to leave many plantation workers without effective protection or access to justice. It is against this backdrop that the government’s recent plantation reform initiative assumes special significance.

Second Phase

The government has announced the second phase of a programme to make underutilised plantation lands and assets available for investment. The objective is to transform underperforming assets into productive enterprises capable of generating employment, attracting investment and revitalising regional economies. The programme seeks to modernise the plantation sector, improve productivity and create new opportunities in tourism, renewable energy and export-oriented industries. These objectives are necessary and welcome. However, economic reform alone will not be sufficient and Sri Lanka’s own history provides the warning. Previous rounds of plantation modernisation pursued productivity gains without addressing the structural disempowerment of the people at the centre of the industry. The result was investment that generated wealth without distributing it.  The workers who produced the wealth were once again treated as labour inputs rather than as beneficiaries. If the current reform follows the same logic, it risks reproducing the same failure.

For reform to succeed, plantation workers must be recognised not merely as a labour force but as stakeholders with rights, aspirations and a legitimate claim to share in the benefits of development. Housing ownership, secure land tenure, quality education, vocational training and entrepreneurship need to be built into the reform process from the outset. The government’s commitments to the Malaiyaha Tamil community therefore need to be incorporated into every stage of the reform process. On the contentious question of land, the government should consider establishing an independent national land commission. Such a body should include respected government officials, professionals and representatives from all ethnic and religious communities. It should review land policy comprehensively, develop transparent principles for allocation and use, ensure fairness in decision making and provide a trusted mechanism for resolving disputes. A credible land commission would help build public confidence that land reforms are being undertaken in the national interest rather than for the benefit of particular groups.

The correction of historic injustices should not be viewed as a concession to one community. It should be understood as an investment in national unity, because societies do not become stronger by maintaining the exclusion of those they have wronged.  On the contrary, they become stronger by ending it. The first great injustice committed against an ethnic minority after independence cannot be undone. But its consequences can be addressed, and doing so would strengthen reconciliation, enhance social cohesion and bring Sri Lanka closer to the vision of a country in which all communities live with equal dignity and equal hope. This is what the Vesak messages of the President and Prime Minister promised. The plantation reform now underway is the moment to make good on that promise not in words alone, but in sustained policy that endures beyond any single government and reaches the people who have waited longest for it.

by Jehan Perera

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IMF relief is not economic recovery: Sri Lanka’s real test begins now

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The IMF’s latest decision to release approximately US$695 million to Sri Lanka provides an important measure of financial relief, but it should not be mistaken for full economic recovery. While the approval reflects progress in stabilisation, fiscal discipline, and reform implementation, the country still faces deep structural weaknesses, social pressures, and external risks. The real test begins now: whether Sri Lanka can convert this temporary breathing space into lasting reform, productive growth, stronger institutions, and national resilience. This moment should not be used for political celebration, but for serious national reflection and responsible action. Sri Lanka must now resolve to support a clear policy direction, a practical reform programme, and a long-term national development path — not merely an individual, a party, or a political camp.

1. IMF Relief: A Necessary Step, but Not a Final Solution

The IMF Executive Board recently completed the combined Fifth and Sixth Reviews under Sri Lanka’s Extended Fund Facility, allowing the country immediate access to SDR 508 million, approximately US$695 million. This decision represents an important step in Sri Lanka’s ongoing economic recovery process following the severe crisis that led to sovereign debt default, shortages of essential goods, high inflation, and the collapse of foreign reserves in 2022.

However, this decision must be understood with great sensitivity. IMF relief is not the same as full economic recovery. It gives Sri Lanka temporary breathing space, helps rebuild a certain level of international confidence, and supports the continuation of the reform programme. However, this relief is not a magic solution that can automatically resolve the country’s deep-rooted economic problems. Fundamental challenges such as the debt burden, weak productive capacity, low export earnings, poor public revenue performance, weak fiscal management, excessive dependence on imports, corruption, and inefficient state-owned enterprises still remain unresolved. Addressing these challenges requires domestic reforms, disciplined policies, stronger production and export capacity, and a long-term national development programme. Therefore, the IMF decision should not be treated as a political victory or as proof of complete economic success. Rather, it should be seen as a reminder that Sri Lanka still has a long and difficult journey ahead.

2. Sri Lanka’s Progress Recognised by the IMF and Its Limits

The IMF’s approval indicates that Sri Lanka has made progress in several important areas. Inflation has been brought under control compared to the extreme levels experienced during the crisis. Foreign reserves have improved, the exchange rate has shown greater stability, and fiscal management has become more disciplined. The government has also continued to implement reforms in taxation, public finance, energy pricing, and debt restructuring.

According to the IMF assessment, performance under the programme has generally been strong. Several quantitative performance targets have been met, while many structural benchmarks have either been achieved or implemented with some delay. This shows that Sri Lanka has remained broadly committed to the reform path agreed under the IMF-supported programme.

Yet this progress remains fragile. Stability achieved through external support must now be converted into genuine economic strength.

3. Conditions and Responsibilities Attached to the IMF Programme

IMF support does not come merely as financial relief; it comes with a set of important reform conditions and responsibilities that Sri Lanka must fulfil. Key among them are maintaining fiscal discipline, improving government revenue, continuing cost-reflective pricing for fuel and electricity, strengthening public financial management, restructuring state-owned enterprises, protecting institutional independence, and preventing the accumulation of new external payment arrears.

The main objective of these conditions is to restore macroeconomic stability, strengthen fiscal credibility, and rebuild international confidence in Sri Lanka. However, these reforms also carry social and political consequences. Higher taxes, market-based utility pricing, and strict expenditure controls can place a heavy burden on ordinary citizens, especially low-income families, small businesses, pensioners, and salaried workers. Therefore, in implementing reforms, economic discipline alone is not enough. Fairness, transparency, and social sensitivity towards vulnerable groups must also be treated as essential priorities.

4.The Impact of IMF Conditions on People and the Economy

One major social consequence of the IMF programme is the increased pressure it can place on household incomes and living standards. When electricity, fuel, and other essential services are priced on a cost-recovery basis, people may have to face a higher cost of living. Although such reforms are necessary to reduce the losses of state-owned enterprises and maintain fiscal discipline, they can weaken the purchasing power of ordinary citizens if strong social protection programmes are not in place.

Another important consequence is the pressure placed on the operating costs and stability of small and medium-sized enterprises. Higher taxes, increased utility costs, fuel and electricity expenses, and the rising cost of borrowing can affect business survival, job creation, and new investment decisions. If reforms are implemented without sufficient attention to production, exports, and small businesses, the country may achieve short-term fiscal stability, but long-term economic growth could remain weak.

There is also a political risk that cannot be ignored. If people feel that the burden of reform is not being shared fairly, reform fatigue and public frustration may emerge. If ordinary citizens are expected to make sacrifices while corruption, waste, and political privileges continue, public confidence in the reform process will decline. Therefore, for IMF-supported reforms to succeed, fairness, transparency, and social sensitivity must be firmly ensured alongside economic discipline.

5. The Real Test Before Sri Lanka

Sri Lanka’s real test begins now. Beyond temporary financial relief, the country must now prove that it can build a strong economy that generates income and can withstand external shocks. Therefore, our objective should not be limited to securing the next IMF tranche. While an IMF tranche may provide short-term breathing space, it does not guarantee long-term economic independence or stability. The real objective should be to create an economy that does not have to return to the IMF repeatedly during every crisis, but can stand on its own productive strength, export earnings, and fiscal discipline.

This requires fiscal discipline. However, discipline alone is not enough; economic growth is also necessary. Taxation is necessary. But increasing taxes alone is not a solution; production, investment, and exports must also be expanded. Debt restructuring is necessary. But beyond reducing the debt burden, Sri Lanka must also build an economic foundation that does not depend excessively on borrowing in the future. Sacrifices may be asked of the people. But for those sacrifices to be fair, accountability, transparency, and exemplary conduct from leaders are also essential.

Economic recovery cannot be sustained in the long term through financial assistance alone. Such support can provide breathing space during a crisis, but a country is rebuilt on the strength of its own institutions, productive capacity, export competitiveness, and public trust. Therefore, what Sri Lanka needs today is strong institutions, income-generating industries, a broader export base, food security, energy security, and a system of governance that people can trust.

6. Policy Priorities for Sustainable Recovery

Sri Lanka must now move from crisis management to national transformation. First, fiscal discipline should continue, but it must be fair. Revenue mobilisation should not rely only on increasing taxes on the same groups of people. The tax base must be broadened, tax administration must be improved, and tax evasion must be reduced.

Second, social protection must be strengthened. The most vulnerable groups should be protected through well-targeted assistance. Reforms will be more acceptable if people feel that the poor, elderly, disabled, and low-income families are not abandoned.

Third, state-owned enterprise reform should be carried out with transparency and public accountability. The objective should not merely be privatisation, but efficiency, professionalism, financial discipline, and better service delivery.

Fourth, Sri Lanka must prioritise export-led growth. The country cannot build a stable future by depending mainly on borrowing, remittances, and consumption. Agriculture, tourism, manufacturing, IT services, logistics, education, and value-added exports must become central pillars of national development.

Fifth, governance reform is essential. Without reducing corruption, political interference, wasteful expenditure, and weak implementation, no IMF programme can create lasting recovery. Economic reform and governance reform must move together.

7. From Temporary Relief to Lasting Recovery

The IMF decision gives Sri Lanka an important opportunity. It provides the country with space to strengthen economic stability, rebuild international confidence, and move forward with essential reforms. However, it is not a guarantee of success. It is only a step that gives the country some breathing space. It is now Sri Lanka’s responsibility to use that space wisely, with discipline and accountability to the people.

The country must now decide whether it will continue the old cycle of crises, debt, temporary relief, and political blame, or whether it will build a new national programme based on discipline, productive capacity, fairness, and accountability.

At this moment, true success cannot be measured by the amount of money received. It must be measured by whether Sri Lanka can build an economy that produces more, exports more, saves more, is governed better, and protects its people more effectively. The real victory is not receiving IMF relief, but building a strong national economy that will not depend excessively on such relief in the future.

Public Appeal: Let Us Choose a Programme, Not a Personality

This US$695 million will not solve every problem in our country. It may provide temporary financial relief and support the continuation of reforms, but it cannot replace the hard work required to build a productive, disciplined, inclusive, and self-reliant economy.

Therefore, this is the right time for all Sri Lankans to rise above narrow political loyalties and support a clear policy direction, a practical reform programme, and a long-term national development agenda — not merely an individual, a party, or a political camp. What Sri Lanka needs today is not the victory of a personality, but the victory of a responsible national programme that can restore confidence, protect the vulnerable, promote production, strengthen exports, ensure accountability, and secure a better future for the next generation. The question before us is simple but decisive: are we ready to make that choice?

by Prof. Ranjith Bandara,
PhD (Qld.,)

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