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Debt restructuring: opposition MP warns of “China go home” protests

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ECONOMYNEXT —TNA Batticaloa District MP Shanakiyan Rasamanickam, who has been on the warpath with Beijing over an apparent lethargy in helping the crisis-hit Sri Lanka to restructure its debt, has warned of a “China, go home” protest campaign similar to the “Gota, go home” protests that unseated the country’s powerful former president in July.

The TNA MP told parliament on Friday that Sri Lanka owes 7.4 billion dollars to China, a nearly 20-trillion dollar economy, and if the latter was a true friend, it would agree to either write off this debt or at least help restructure it.

“If China, who has nearly 20,000 billion dollars, is truly Sri Lanka’s friend… offering nine million litres of diesel or half a million kilos of rice isn’t real help,” said Rasamanickam, speaking in Sinhala.

“I say to China and the Chinese embassy that, as 22 million Sri Lankans irrespective of ethnic or religious differences got together to say ‘Go home, Gota’, don’t push us to a place where we will be saying ‘China, go home’,” he said.

The Batticaloa district lawmaker has been raising his voice in parliament and elsewhere in recent days over what he claims is a hesitance on the part of China to assist in Sri Lanka’s debt restructuring efforts. The 2.9 billion dollar extended fund facility (EFF) that the International Monetary Fund (IMF) has offered the island is contingent upon the successful restructure of this outstanding debt as well as stringent reforms.

Colombo has been vague at best on the status of ongoing restructure talks with Sri Lanka’s creditors, and opposition lawmakers and others have expressed concern over what seems to be a worrying delay. Rasamanickam and others have claimed that China, Sri Lanka’s largest bilateral creditor, is the reason for the apparent standstill.

Addressing parliament on Wednesday, the TNA MP said China was not Sri Lanka’s friend but rather a friend of former President Mahinda Rajapaksa’s. He pointed to the Colombo Lotus Tower and the largely unused convention centre in the southern Rajapaksa stronghold of Hambantota as examples.

“What have the Chinese done in this country? If you look at the [Chinese built] Hambantota Port, China has taken it over. Tell me a single investment that the Chinese have made in this country where Sri Lankan people have been given employment [besides labour]. There’s not a single industry,” he said.

“They have forced investments down this country thanks to the Rajapaksa family. Investments that are useless,” he added.If China was a true friend, the MP reiterated, it would help the IMF programme.

“There is no democracy in China, no human rights, Uyghur Muslims are being detained and ‘rehabilitated’. Is such a country trying to turn Sri Lanka into a state like that, a state that doesn’t respect human rights? Is that what China wants?”

The Twitter account the Chinese Embassy in Colombo, known for its sardonic tone, was quick to respond. It said the MP’s understanding of the issue was wrong and incomplete.

“Sorry Mr. MP, your understanding is incorrect and incomplete. China is the biggest supporter to Sri Lanka in fighting COVID=19 and livelihood relief, including in your district Batticaloa. China is also the first responder to Sri Lanka”s financial crisis since its default in April.”

“As a major shareholder of IMF, China has been encouraging IMF and other international financial institutes to promptly support Sri Lanka. China actively participated all the creditors’ meetings of Sri Lanka, and China is not the only or the largest creditor of the island,” the embassy said in a five-tweet long thread.

China also funded the Norochcholai coal plant, the best investment the country has made since Mahaweli projects of the 1980s according to the Auditor General of Sri Lanka.However, China gave several monetary instability loans to Sri Lanka from 1980s onward when forex shortages emerged from money printed under flexible inflation targeting, sometime called ‘bridging finance’ in Sri Lanka.

Such loans were not tied to growth creating reforms unlike budget support loans given by the World Bank and ADB.India also gave credit lines to Sri Lanka in 2022 as forex shortages emerged.



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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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