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Diana dreams of dollarized tourism Macau in Mannar

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ECONOMYNEXT –Sri Lanka can build Mannar Island into an entertainment filled tourism hotspot which will use dollars as its currency like Macau, newly appointed state minister for tourism Diana Gamage has said.Macau adds to a long list of dream countries with stable single anchor monetary regimes with currency boards of currency board like systems.Other such countries that Sri Lanka frequently aspires to become economic hubs like Singapore (modified currency board), Dubai (currency board like system) or Hong Kong (orthodox currency board).

“We can make the Mannar Island like entertainment location like Macau Island,” Minister Gamage told after assuming duties.

“Business can be done in dollars. No rupees.”

Macau has a currency board with Hong Kong dollar at 1.03 Macau Pataca and also currency competition where foreign currencies like the US dollar can be used.In Sri Lanka the central bank and police arrest people who try to protect their savings from depreciation using draconian legal tender laws after printing money to create forex shortages. In 2022 a money laundering law was also deployed against the people.

Sri Lanka has a Latin America style unstable intermediate regime (a reserve collecting peg with liquidity injections to suppress rates) now called a ‘flexible exchange rate’.

A Chinese backed reclaimed area off the capital Colombo called Port City is already dollarized.Sri Lanka is now facing the worst currency crises in the history of the central bank after two years of money printing to suppress interest rates.

The dual anchor intermediate regime was set up in 1950 bringing high inflation and depreciation after abolishing a currency board which had kept the economy stable through World Wars and a Great Depression.Due to the liquidity injection tools of the central bank which trigger forex shortages Sri Lanka frequently runs into forex shortages and currency crises which lower living standards of the people and trigger social unrest.Sri Lanka now has difficulty in importing oil and other essentials, though the central bank has allowed rates to go up, reduced money printing and domestic credit allowing the external sector to stabilize.

“When we were small our parents used to scare us saying that you may be taken to Mannar to make dry fish,” Minister Gamage said.

“Is making dry fish the solution to Sri Lanka? Why do we keep Mannar to produce dry fish, when we can earn dollars?

Since the setting up of the Latin America style central bank the rupee had depreciated from 4.70 to the US dollar to 360. Sri Lanka defaulted on dollar loans in April 2022 for the first time.



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Landslide Early Warnings issued to the Districts of Kandy and Nuwara Eliya extended

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The landslide early warnings issued to the Districts of Kandy and Nuwara Eliya by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 0600 hrs on the 14th of February 2026.

Accordingly,
The Level II [AMBER] landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas  of Walapane and Nildandahinna in the Nuwara Eliya district and

the Level I [YELLOW] landslide early warnings issued to the Divisional Secretaries Division and surrounding areas  of Pathahewaheta in the Kandy district have been extended till 0600AM on Saturday [14]

 

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Royal Navy of Oman Vessel “SADH” departs island

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The Royal Navy of Oman Vessel “SADH” which arrived in Sri Lanka for replenishment purpose, departed the island on 12 Feb 26.

In accordance with naval tradition, the Sri Lanka Navy extended a customary farewell to the departing ship.

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“We will not make decisions for rural level schools while sitting in Colombo” – PM

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The Minister of Education, Higher Education and Vocational Education Prime Minister Dr. Harini Amarasuriya stated that aligning with the development activities carried out under the new education reforms, decisions at the rural level will not be taken from Colombo and plans should be sent based on the requirements of the rural level through the District Coordination Committees by structural committees. She further noted that all officials, from the Ministry of Education down to the school level, must commit to working efficiently and with a human-centered approach.

The Prime Minister made these remarks while addressing a discussion held with education authorities of the Hambantota District on Thursday [February 12]  at the auditorium of the Hambantota District Secretariat regarding the new education reforms and prevailing issues in the education sector.

During the meeting, the Prime Minister provided an opportunity for education authorities including chief prelates of pirivenas, zonal education directors, teacher advisors, and principals to present the challenges they face and officials raised concerns including salary disparities among principals, developing school infrastructure, issues arising from the division between national and provincial schools, and uplifting  pirivena education.

Further elaborating, Prime Minister stated:

“The new education reforms were initiated from 2025 through dialogue, consultations, and the collection of necessary data. As officials, you have extended your support to us during this process. We have embarked on a difficult and long journey, and we look forward to your continued cooperation.

We initiated these reforms in response to a strong social demand. Many have attempted such reforms at different times. Within our political vision, we understood clearly that if this country is to be rebuilt, an educational transformation is essential. The human resource is the most valuable resource of this country and it should be nurtured properly.

Solutions to many of the crises our country faces lie within the education system. Addressing the issues in economic challenges, social issues, drug abuse, violence, the breakdown of political culture, corruption, waste, and even the deterioration of human relationships all lie within the education.

In order to achieve the transformation we envision as a government, that an education transformation is necessary.

This education system should focus on reducing the pressures within the system, minimize school dropouts, increase employability, and instill confidence in children about their future.

There are disparities within the school system, between rural and urban schools, national and provincial schools, and difficult schools. This should not happen. All children must have equal opportunities.

Decisions regarding the establishment of schools or expansion of classes should not be political decisions. They must be decisions taken through Structural Committees. Those representatives understand their divisions, village economies, and population dynamics. Based on your decisions and assessments of needs, prepare the plans, discuss them with the District Coordination Committees, and submit them to us. We will then take steps to provide the necessary allocations and other support. We will not make decisions for the rural level while sitting in Colombo.

We are taking steps to minimize salary disparities. A Cabinet paper regarding the salary anomalies of principals has already been prepared for submission. Steps are also being taken to introduce new reforms in pirivena education through the Pirivena Committee of the Ministry of Education. We require the support of the chief prelates in this regard.

A significant number of teachers turn to human rights due to delays caused by inefficiency. Therefore, all officials from the Ministry of Education down to the schools must commit to working efficiently and in a humane manner”

The discussion was attended by Chief prelates of pirivenas, deputy ministers, Members of Parliament, zonal directors, principals, and other education sector officials.

[Prime Minister’s Media Division]

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