News
Dr. Godahewa asks can individuals responsible for unprecedented economic crisis be architects of recovery
Former State Minister Dr. Nalaka Godahewa, MP, says that the ruling party politicians were labouring under the misconception that the very individuals responsible for the unprecedented economic crisis could be the architects of the economi recovery process.
The Gampaha District MP said that unless that notion was challenged and publicly disapproved it could lead the country down a perilous path and by the time the political leaders realised this grave error, it would be too late for a course correction.
The MP said so addressing a recent seminar organised by the Freedom People’s Congress in Matara.
“It’s no secret that Sri Lanka finds itself in a dire financial situation today. We stand at the precipice of bankruptcy, a situation that has evolved over time due to an unmanageable debt burden that came to a head in early 2022. But in this moment of reflection, I pose a question: How many of us truly understand the root causes of this crisis, and who bears the primary responsibility for leading our nation into this perilous debt trap?
The prevailing sentiment among many is to point the finger at former President Gotabhaya Rajapaksa, asserting that he could have paid off a substantial $6.7 billion debt in 2020 when he held office. Furthermore, it is argued that subsequent administrations were saddled with annual payments exceeding $5 billion, leading to the eventual declaration of bankruptcy.
However, it’s crucial to clarify that these loans were not secured during President Gotabaya Rajapaksa’s tenure. So, the question lingers: who exactly initiated this borrowing spree?
Our nation gained independence in 1948, and as of 2015, a staggering 67 years had passed. During this time, the total debt had mushroomed to a staggering 7,400 billion rupees when converted from local and foreign denominations. It’s important to recognize that many of the significant infrastructure projects we see today, including ports, airports, highways, railways, the Mahaweli project, irrigation systems, power plants, universities, schools, and hospitals, were financed through loans secured over these six decades.
In a surprising twist, the period between 2015 and 2019 witnessed a 75% increase in the country’s total debt, with no commensurate large-scale development projects to show for it. By the time the “good governance” government was replaced in 2019, the debt had soared from 7,400 billion to a staggering 13,000 billion rupees, including foreign debt exceeding $40 billion, with $11.05 billion in short-term commercial debt or sovereign bonds looming ominously.
This debt crisis, ultimately, was inherited by Gotabaya Rajapaksa, and the resulting shortages in oil, gas, and electricity in early 2022 caused public outrage, leading to his removal from office. However, it’s important to note that he was not the architect of this economic quagmire.
We must pause to reflect on who managed our nation’s economy during the years 2015-2019, a period that witnessed a decline in economic growth from 5.5% in 2015 to a mere 2.1% by 2019. During this same time frame, the total debt swelled from $54 billion to $74 billion, all while our national resources failed to see a corresponding increase.
Consider the parallels with the present day. In the past year, our debt has skyrocketed, reaching $96 billion by June 2023. The key difference now is that we are not servicing this debt, sparing us the queues for oil and gas, but it has not been offset by an increase in foreign income.
In 2022, our economy contracted by a staggering 7.8%, and the first quarter of 2023 saw an even more alarming contraction of 11.5%. The government has yet to reveal the full extent of the second-quarter decline, but early indications suggest a crisis of greater magnitude.
So, let us ask ourselves: Is it rational to believe that the individual held responsible for this crisis can simultaneously be its savior? This question may linger, but time may be running out for us to find the answer.
In the days ahead, the true origins of this crisis will become increasingly clear, but by then, it might be too late to reverse the course we are on. It is imperative that we scrutinize our leaders and policies closely, and work collectively to chart a path toward financial stability and prosperity for our beloved Sri Lanka.”
News
Diesel replacement costs up to Rs. 4.5 bn in April
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
News
Sallay on hunger strike: Counsel warns CID
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.”
News
Opp. questions why Rs 10 bn meant for Ditwah victims held in Treasury account
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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