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Govt. steps up economic reforms and support for paddy farmers: Presidential advisor

Published

1 year ago

2024/11/9

The government was taking steps to stabilise the economy and ensure fair conditions for paddy farmers, Senior Advisor to the President on Economic Affairs and Finance, Prof. Anil Jayantha Fernando, told The Island on Wednesday (06).

Addressing the challenges faced by the agricultural sector, Fernando noted that Sri Lanka’s rice market was dominated by a few major players. “The government has to make temporary interventions until the conditions for a competitive market are established,” Fernando said, adding, “We are already planning to purchase substantial amounts of paddy from farmers, in the next harvest season, to support them and prevent market manipulation.”

Prof. Fernando pointed out that the government has extended a fertiliser subsidy to paddy farmers, with the expectation that yields will improve in the coming seasons. He questioned the logic of leaving market conditions unchecked when a few large buyers acquire significant stocks, controlling prices at the expense of farmers. “Can we do nothing by saying this is how the invisible hand of the market operates?” he asked, stressing the need for government intervention to ensure farmers can at least recover production costs.

Addressing broader economic policies, Fernando asserted that the National People’s Power (NPP) government is steering the economy in the right direction, although he cautioned that visible results may take time. “When we took over, we recognised the economic challenges left by the previous administration. We identified key priority areas, though they may not always align with the public or media’s immediate concerns,” he said, adding that the focus remains on strengthening productive sectors and restoring price stability in the long run.

One significant challenge, according to Fernando, is rebuilding trust with both local and international investors. “We’ve made progress, but winning confidence back takes time,” he explained. Additionally, Fernando highlighted the lack of coordination among state agencies, which has hampered development efforts. In response, the government has appointed Dr. Hans Wijayasuriya, CEO of Axiata’s Telecommunications Business, as Chief Advisor to the President on Digital Economy. Wijayasuriya is tasked with creating common databases and a centralised platform to streamline efforts across sectors.

Regarding the country’s limited land resources, Fernando emphasised the need for scientific land management and criticised the stagnation in agricultural productivity over the past 40 years. National physical plans need to be updated, he argued, to ensure sustainable land use.

In response to allegations of money printing, Fernando clarified that the government is not engaged in this practice. He explained that what some media outlets refer to as “money printing” is actually a system through which the Central Bank temporarily provides funds to banks, which are returned within a day or a week. This mechanism is aimed at gradually lowering interest rates in the money market to stimulate the economy, he said. “This is not the same as the Central Bank buying Treasury bills and lending to the government. That practice has been completely halted.”

Explaining the rationale behind this approach, Fernando outlined how daily liquidity management supports the banking sector. “If the Central Bank doesn’t do this, the banking system might collapse,” he warned, noting that liquidity imbalances among banks require a regulatory solution to prevent systemic risk.

Fernando also addressed recent criticisms from opposition figures regarding fuel prices. He explained that Sri Lanka’s debt restructuring agreement with the International Monetary Fund (IMF) mandates an increase in government revenue to 15% of GDP by 2025. “Fuel taxes are essential for meeting this revenue target,” he said, adding, “If we can demonstrate to the IMF that we are on the right track, we may consider tax reductions in the future.”

In summary, Fernando outlined the government’s multi-pronged approach to stabilise the economy, support paddy farmers, and maintain fiscal discipline. However, he cautioned that the public might need to wait for significant improvements, as the NPP government’s policies are designed for long-term recovery rather than immediate relief. (RK)

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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

Published

1 hour ago

2026/01/3

Priyan

Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

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CEB demands 11.57 percent power tariff hike in first quarter

Published

4 hours ago

2026/01/3

Thilina Walpola

The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️

News

Health Minister sends letter of demand for one billion rupees in damages

Published

4 hours ago

2026/01/3

Thilina Walpola

Ondansetron controversy

Minister of Health and Mass Media Dr Nalinda Jayatissa has sent a letter of demand for Rs. 1 billion in damages from YouTube content creator Dharmasri Kariyawasam, accusing him of disseminating false and defamatory material linking the Minister to the importation of Ondansetron and inciting public unrest.

The notice, sent through the Minister’s lawyers, states that investigations are currently under way into 10 medicines, including Ondansetron Injection, manufactured by India-based Maan Pharmaceutical Limited.

Ondansetron Injection was among nine injectable drugs recently suspended by the National Medicines Regulatory Authority (NMRA) following reports of patients administered with the drug suffering adverse complications.

Despite the ongoing investigations, Kariyawasam allegedly aired a widely viewed programme on his YouTube channel titled “The hidden story of the Indian drug that claimed lives, Mayor Balthazaar’s relative, and Minister Nalinda’s cover-up.”

According to the letter of demand, the programme falsely portrayed Minister Jayatissa as being directly responsible for importing the drug, colluding with the supplier, and attempting to conceal the issue, while depicting him as indifferent to public suffering.

The Minister’s lawyers maintain that these allegations are entirely false and defamatory, citing passages in which Kariyawasam allegedly accused Jayatissa of lying about the supplier, concealing facts related to PTC Medicals (Pvt) Ltd., the actual importer, and showing a lack of concern over deaths purportedly linked to the drug.

The programme also claimed links between the directors of PTC Medicals and family members of Colombo Mayor Vraîe Cally Balthazaar, implying political favouritism.