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Dr. Nicholas advises Lanka against swallowing IMF dope

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By Shyam Nuwan Ganewatta

The IMF in 2020 told nations around the world that they should maintain a budget deficit to tackle the effects of COVID-19, however, two years later, the IMF insists that this would lead to chaos, Dr. Howard Nicholas, senior lecturer at Erasmus University – Rotterdam, and International Institute of Social Studies – The Hague told The Island.

“Obviously, the IMF is playing a game here. If you look at the past, it is obvious that IMF recommendations have not helped countries like Sri Lanka,” Dr. Nicholas said, adding that Sri Lanka needed to seriously think about its future.

“Apart from privatising State Owned Enterprises (SOEs) the government is not doing anything. This has not helped the economic development of any country. The IMF says that Sri Lanka must reform its state administration, and there is some truth to this. However, this is no solution to the country’s economic problems,” Dr. Nicholas said.

Dr. Nicholas said that Sri Lanka must take a path of export-oriented industrialisation. He has been urging successive Sri Lankan governments to take this road for 35 years, Dr. Nicholas said.

“The main reason why Sri Lanka is in crisis is because of the chronic balance of payment issues. Import expenditure was higher than export earnings for 40 years. The trade deficit on average was about 10 percent of the Gross Domestic Product (GDP). The country scraped by with tourism earnings and remittances from workers. However, this wasn’t enough, and loans had to be drawn. As you know, whenever there is a global crisis, there is a drop in tourism and remittances,” he said.

Dr. Nicholas said Sri Lanka had been borrowing heavily from the International Sovereign Bond markets since 2007. The country borrowed over 14 billion dollars from the bond market between 2015 and 2019.

“This had a severe impact on debt sustainability, and then came COVID-19, and everything unraveled. But the root cause of the problem is trade deficits, which started 40 years ago. The problem remains,” he said.

The Gotabaya Rajapaksa administration in 2019 implemented a serious tax cut, and that was a disastrous move, Dr. Nicholas said. The Rajapaksa administration had also dramatically reduced interest rates and stopped the import of agrochemicals without a real plan to transform our agriculture, he said.

“His government made a lot of mistakes that led to the shrinking of Sri Lanka’s foreign reserves. The government, like everyone else before them, had no interest in boosting import revenue,” he said.



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486 dead, 341 missing, 171,778 displaced as at 0600hrs today [05]

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The situation report issued by the Disaster Management Center at 0600hrs today [5th December] confirms that 486 persons have died and another 341 persons are missing after the devastating weather conditions in the past week.

171,778 persons have been displaced and have taken refuge at 1,231 safety centers established by the government.

 

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Media slams govt.’s bid to use Emergency to silence critics

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Sunil Watagala

Media organisations have denounced Deputy Minister of Public Security and Parliamentary Affairs Sunil Watagala after he urged law enforcement authorities to use emergency regulations to take action against those posting allegedly defamatory content about the President and senior ministers on social media.

The Sri Lanka Working Journalists Association (SLWJA) yesterday issued a strongly worded statement condemning Watagala’s remarks, warning that they posed a direct threat to freedom of expression and media rights, particularly at a time when the country is struggling through a national disaster.

Watagala made the controversial comments on 2 December during a meeting at the Malabe Divisional Secretariat attended by government officials and Deputy Media Minister Dr. Kaushalya Ariyarathna. During the discussion, the Deputy Minister claimed that a coordinated effort was underway to spread distorted or false information about the disaster situation through physical means, social media, and even AI-generated content. He also alleged that individuals based overseas were contributing to such activity.

According to the SLWJA, Watagala went further, directing police officers present at the meeting to treat those posting such content “not merely as suspects but as offenders” and to take action against them under emergency regulations currently in force.

The SLWJA accused the government of abandoning the democratic principles it once campaigned on, noting that individuals who publicly championed free speech in the past were now attempting to clamp down on it. The association said this was not an isolated incident but part of a pattern of growing state pressure on journalists and media platforms over the past year.

It warned that attempts to criminalise commentary through emergency powers especially during a disaster constituted a grave violation of constitutional rights. The union urged the government to respect democratic freedoms and refrain from using disaster-related powers to silence criticism.

In a separate statement, Internet Media Action (IMA) also expressed “strong objection” to Watagala’s comments, describing them as a “serious threat to freedom of expression”, which it said is a fundamental right guaranteed to all Sri Lankan citizens.

The IMA said Watagala’s assertion that “malicious character assassination attacks” were being carried out against the President and others through social media or other media channels, and that such acts should attract severe punishment under emergency law, represented “an abuse of power”. The organisation also criticised the Deputy Minister’s claim that false opinions or misrepresentations whether physical, online, or generated by AI could not be permitted.

Using emergency regulations imposed for disaster management to suppress political criticism amounted to “theft of fundamental rights”, the statement said, adding that the move was aimed at deliberately restricting dissent and instilling fear among social media users.

“Criticism is not a crime,” the IMA said, warning that such rhetoric could lead to widespread intimidation and self-censorship among digital activists and ordinary citizens.

The group demanded that Watagala withdraw his statement unconditionally and insisted that freedom of expression cannot be curtailed under emergency laws or any other legal framework. It also called on the government to clarify its stance on the protection of fundamental rights amid increasing concerns from civil society.

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Cardinal calls for compassionate Christmas amid crisis

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Archbishop of Colombo

Archbishop of Colombo, Cardinal Malcolm Ranjith, has called on Sri Lankans to observe this Christmas with compassion and restraint, as the nation continues to recover from one of its worst natural disasters in recent memory.

In his message, the Colombo Archbishop has highlighted the scale of the crisis, noting that more than 1.5 million people have been displaced, while an “uncounted number” remain buried under debris in the hill country following landslides and severe flooding.

“It is a most painful situation,”

he has written acknowledging the difficulty of celebrating a season traditionally associated with joy while thousands are mourning lost loved ones, living in refugee centres, or left with nothing but the clothes they were wearing.

The Cardinal has urged the faithful to temper excessive celebrations and extravagance, instead focusing on helping those affected. “Celebrate, by all means, yes, but make it a moment of spiritual happiness and concern for the needs of those who suffer,” he said. “Assist as much as possible those who lost their loved ones, their homes, and their belongings.”

He has called for a Christmas marked by love, sharing, and solidarity, describing it as an opportunity to make the season “a deeply spiritual and joyful experience.”

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