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DEW: IMF can’t intervene in rescheduling international sovereign bonds; SJB disagrees

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By Shamindra Ferdinando

Former outspoken Minister D. E. W. Gunasekera says the unprecedented crisis faced by cash-strapped Sri Lanka in meeting its external debt obligations in 2022 and 2023 cannot be solved by seeking IMF intervention.

The government has ignored repeated calls by various parties, both in and out of Parliament, to seek IMF intervention as it is aware the IMF is not in a position to intervene as close to half of the country’s external debt obligations were to the international money market, one-time General Secretary of the Communist Party told The Island yesterday.

Referring to the New York-based Fitch rating agency, downgrading Sri Lanka’s sovereign rating to ‘CC’ last Friday (17) as the country struggled to meet two major obligations repayment of two international sovereign bonds of $500 million due in January 2022 and $1 billion due in July 2022, the ex-lawmaker said the government and the Opposition should stop playing politics with this issue.

The former MP said that there were other scheduled repayments during this period both foreign and local.

The Fitch statement reflected the daunting challenges faced by Sri Lanka, the former CP Chief said, urging the government to announce how it intended to meet its debt obligations.

The latest downgrade was announced in the wake of Finance Minister Basil Rajapaksa leaving the country. Foreign Minister Prof. G.L. Peiris, who is also the Chairman of the ruling SLPP, will handle the finance portfolio.

Gunasekera said that the IMF’s role would be limited as well over 50 percent of total debt comprised international sovereign bonds and Chinese and Japanese loans.

“The government also faces foreign-currency debt service payments, including principal and interest, of $6.9 billion in 2022, equivalent to nearly 430% of official gross international reserves as of November 2021. Cumulative foreign-currency debt service, including interest and principal, amounts to about $26 billion from 2022 through to 2026,” the rating agency said.

Asked whether the IMF could help re-schedule international sovereign bonds, former Central Bank Governor W.D. Lakshman told The Island that it was possible.  The government in Sept replaced Lakshman who had served as Governor since Dec 2019 with Ajith Nivard Cabraal. Underscoring the importance of addressing the issue at hand, Lakshman emphasized that Sri Lanka had never defaulted before.

SJB spokesman Dr. Harsha de Silva, MP, reiterated that the IMF could reschedule international sovereign bonds, too.  The former State Minister said that was his position throughout this period.

Gunasekera, too, stood by his assertion that the IMF couldn’t intervene in this regard.

Former Governor of Uva, Southern and Central Provinces Rajith Keerthi Tennakoon yesterday said that the snowballing problem couldn’t be solved by those countries willing to help Sri Lanka and international lending agencies as Sri Lanka obtained the majority of loans from the capital market. Tennakoon asserted that Sri Lanka faced a huge challenge in addressing this issue amidst continuing political turmoil. The civil society activist emphasized that those who sought to address the crisis by printing lorry loads of money owe the country an explanation. The debt-serving crisis and the growing difficulty in meeting the oil bill would ultimately overwhelm the country, Tennakoon said.



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Financial contributions received for ‘Rebuilding Sri Lanka’ Fund

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The Government’s ‘Rebuilding Sri Lanka’ Fund, established to provide relief and support to communities affected by Cyclone Ditwah, continues to receive financial contributions on a daily basis.

Accordingly, the Containers Transport Owners Association made a financial contribution of Rs. 1.5 million, while the Association of SriLankan Airlines Licensed Aircraft Engineers contributed Rs. 1.35 million to the Fund.

The respective cheques were formally presented to the Secretary to the President, Dr. Nandika Sanath Kumanayake, at the Presidential Secretariat on Friday (19).

The occasion was attended by  W. M. S. K. Manjula, Chairman of the Containers Transport Owners Association, together with  Dilip Nihal Anslem Perera and  Jayantha Karunadhipathi.

Representing the Association of SriLankan Airlines Licensed Aircraft Engineers were Deshan Rajapaksa,  Samudika Perera and  Devshan Rodrigo handed over the cheque.

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UNICEF representatives and PM discuss rebuilding schools affected by the Disaster

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A meeting between Prime Minister Dr. Harini Amarasuriya and a delegation of UNICEF representatives was held on Saturday,  (December 20) at the Prime Minister’s Office.

During the meeting, the Prime Minister explained the measures taken by the Government to ensure the protection of the affected student community and to restore the damaged school system, as well as the challenges encountered in this process.

The Prime Minister stated that reopening schools located in landslide-prone areas would be extremely dangerous. Accordingly, the Government is focusing on identifying such schools and relocating them to suitable locations based on scientific assessments.

The Prime Minister further noted that financial assistance has been provided to students affected by the disaster, enabling parents to send their children back to school without an additional financial burden. Emphasizing that school is the safest place for children after their homes, the Prime Minister expressed confidence that the school environment would help restore and improve students’ mental well-being

The Prime Minister also highlighted that attention has been given to several key areas, including the relocation of disaster-affected schools, restoration of school infrastructure, merging and operating certain schools jointly, facilitating teaching and learning through digital and technological strategies, and providing special transportation facilities. She emphasized that the Government is examining these issues and is committed to finding long-term solutions.

The UNICEF representatives commended the Government’s commitment and the initiatives undertaken to restore the education sector and assured their support to the Government. Both parties also discussed working together collaboratively on future initiatives.

The meeting was attended by the UNICEF representatives to Sri Lanka Emma Brigham, Lakshmi Sureshkumar, Nishantha Subash, and Yashinka Jayasinghe, along with Secretary to the Ministry of Education Nalaka Kaluwewa, Director of Education Dakshina Kasturiarachchi, Deputy Directors Kasun Gunarathne and Udara Dikkumbura.

(Prime Minister’s Media Division)

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NMRA laboratory lacks SLAB accreditation

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Dr. Sanjeewa

Drug controversy:

 “Setting up state-of-the-art drug testing facility will cost Rs 5 billion”

 Activists call for legal action against politicians, bureaucrats

Serious questions have been raised over Sri Lanka’s drug regulatory system following revelations that the National Medicines Regulatory Authority’s (NMRA) quality control laboratory is not accredited by the Sri Lanka Accreditation Board (SLAB), casting doubt on both the reliability of local test results and the adequacy of oversight of imported medicines.

Medical and civil rights groups warn that the issue points to a systemic regulatory failure rather than an isolated lapse, with potential political and financial consequences for the State.

Chairman of the Federation of Medical and Civil Rights Professional Associations, Specialist Dr. Chamal Sanjeewa, said the controversy surrounding the Ondansetron injection, which was later found to be contaminated, had exposed deep weaknesses in drug regulation and quality assurance.

Dr. Sanjeewa said that the manufacturer had confirmed that the drug had been imported into Sri Lanka on four occasions this year, despite later being temporarily withdrawn from use. The drug was manufactured in India in November 2024 and in May and August 2025, and imported to Sri Lanka in February, July and September. On each occasion, 67,600 phials were procured.

Dr. Sanjeewa said the company had informed the NMRA that the drug was tested in Indian laboratories, prior to shipment, and passed all required quality checks. The manufacturer reportedly tested the injections against 10 parameters, including basic quality standards,

pH value, visual appearance, component composition, quantity per phial, sterility levels, presence of other substances, bacterial toxin levels and spectral variations.

According to documents submitted to the NMRA, no bacterial toxins were detected in the original samples, and the reported toxin levels were within European safety limits of less than 9.9 international units per milligram.

Dr. Sanjeewa said the credibility of local regulatory oversight had come under scrutiny, noting that the NMRA’s quality control laboratory was not SLAB-accredited. He said establishing a fully equipped, internationally accredited laboratory would cost nearly Rs. 5 billion.

He warned that the failure to invest in such a facility could have grave consequences, including continued loss of life due to substandard medicines and the inability of the State to recover large sums of public funds paid to pharmaceutical companies for defective drugs.

“If urgent steps are not taken, public money will continue to be lost and accountability will remain elusive,” Dr. Sanjeewa said.

He added that if it was ultimately confirmed that the drug did not contain bacterial toxins at the time it entered Sri Lanka, the fallout would be even more damaging, severely undermining the credibility of the country’s health system and exposing weaknesses in health administration.

Dr. Sanjeewa said public trust in the health sector had already been eroded and called for legal action against all politicians and public officials responsible for regulatory failures linked to the incident.

by Chaminda Silva ✍️

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