News
Govt. under pressure to stop money printing
… finds it difficult to conduct basic functions – Cabinet Spokesman
By Rathindra Kuruwita
The International Monetary Fund and other lending bodies had asked Sri Lanka not to print more money, and thus the government was finding it impossible to conduct the most basic functions, Cabinet Spokesman Minister Bandula Gunawardane said on Tuesday during the post-Cabinet Press Conference.
Gunawardena said that President Ranil Wickremesinghe had told the Cabinet that five percent of the estimated expenditure in Budget 2023 to all ministries would be curtailed due to resource constraints.
“The President has said that in 2023 the Treasury will face a bigger crisis than previously thought. The main reason is that our economy contracted in 2022 and tax revenue dropped sharply. Expenditure has increased as we have to pay salaries, pensions and interests for money we have borrowed.
Minister Gunawardane said that after paying the salaries and pensions, the government found it difficult to carry out any activity and that the Samurdhi payment for January could be delayed by a week or two.
He said that in the past Sri Lanka had met the revenue shortfall by printing money and borrowing from foreign sources.
“We are in trouble because we printed and borrowed so much in the last 74 years. Now, we can’t pay back the money we have borrowed. Also, the IMF, and other lenders have demanded that we stop printing money. So, the coming months will be tough,” he said.
Approval of the Cabinet of Ministers was granted to the preparation of the Appropriation Bill for the financial year of 2027 at their meeting held on 30.06.2026.
Accordingly, clearance of the Attorney General has been given to the Appropriation Bill prepared by the Legal Draftsman.
Therefore, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to publish the aforementioned draft bill in the government gazette notification and thereby submit the same to the Parliament for its concurrence.
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Cabinet approves aditional Rs. 2,500 million to the Paddy Marketing Board to purchase 2026 Yala harvest
The Cabinet of Ministers has approved the resolution furnished by the Minister of Agriculture, Livestock, Land and Irrigation to provide an additional Rs. 2,500 million to the Paddy Marketing Board on a reimbursable basis from the Rs. 7,500 million additional allocations granted to the Ministry to implement
the expedited paddy purchasing program for the 2026 Yala harvest.
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Cabinet nod to host the 8th Asian Regional Conference of the Commonwealth Parliamentary Association and the 3rd Joint Asian and South-East Asian Regional Conference of the Commonwealth Parliamentary Association
The 8th Asian Regional Conference of the Commonwealth Parliamentary Association (CPA) and the 3rd Joint Asian and South-East Asian Regional Conference of the CPA are planned to be held over three days in Colombo during April/May 2027.
Approximately 90 delegates including speakers, Deputy Speakers, Member of Parliamentarians, and Parliamentary officers representing member countries of the Commonwealth Parliamentary Association, in the Asian and South-East Asian regions, are expected to participate in these conferences.
The Cabinet of Ministers has approved the resolution furnished by the Prime Minister of the Parliament of Sri Lanka to host the said conferences considering the opportunities to strengthen parliamentary diplomacy and regional cooperation, as well as to enhance international recognition of the Parliament of Sri Lanka within the Commonwealth Parliamentary Association.
Draft of the Appropriation Bill for the Financial Year 2027 su mitted to the Parliament
Cabinet approves aditional Rs. 2,500 million to the Paddy Marketing Board to purchase 2026 Yala harvest
Cabinet nod to host the 8th Asian Regional Conference of the Commonwealth Parliamentary Association and the 3rd Joint Asian and South-East Asian Regional Conference of the Commonwealth Parliamentary Association
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