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Govt. vows to overhaul loss-making national airline
(AFP) President Anura Kumara Dissanayake vowed Friday to overhaul the country’s loss-making national airline after the government failed to find a buyer, in line with commitments under an IMF bailout.
Successive administrations have sought to sell SriLankan Airlines, which has been burdening the state budget, but Dissanayake told parliament there had been “no takers” despite sustained efforts to attract a foreign buyer.
The International Monetary Fund (IMF) granted a $2.9 billion bailout loan to Sri Lanka in 2023 and had insisted that loss-making state enterprises, including the carrier, should be restructured or sold to ease the strain on public finances.
The carrier, with accumulated losses nearing $2 billion by the end of March 2025, still has an outstanding $175 million sovereign-guaranteed bond awaiting rescheduling.
Dissanayake said the process was expected to be completed by year’s end.
“We will also restructure the management of SriLankan Airlines early next year,” Dissanayake told parliament while unveiling the 2026 budget for the country, which is emerging from its worst economic meltdown in 2022.
He said the management has been asked to formulate a credible business plan to salvage the carrier.
“Should the taxpayers carry the huge burden of SriLankan Airlines?” he asked, warning that if the reforms failed “alternative action” would follow, without elaborating.
The country defaulted on its $46 billion foreign debt in April 2022 after running out of foreign exchange.
The government was on track to resume repaying its own commercial external debt from 2028, thanks to better-than-expected export earnings and remittances, Dissanayake said.
He also proposed reducing the government’s borrowing limit by $200 million next year as the country’s debt burden is expected to gradually decline in the short term.
The IMF has said Sri Lanka’s reforms are paying off, but the country should maintain the momentum amid the “heightened downside risks” posed by global trade uncertainties.
Sri Lanka’s 2022 economic crisis led to months of street protests that eventually toppled then-president Gotabaya Rajapaksa.
The World Bank has warned that Sri Lanka’s recovery remains “uneven and incomplete”, with many households yet to regain livelihoods lost during the 2022 crisis.
by Amal Jayasinghe ✍️
News
Catholic bishops call for impartial probe into Chemmani mass grave
The Catholic Bishops’ Conference of Sri Lanka (CBCSL) has called for an impartial investigation into the alleged mass graves in the Chemmani area of the Jaffna Peninsula, stressing the need to establish the truth and ensure accountability for alleged crimes committed during the country’s long civil conflict.
In a statement issued yesterday following its Plenary Session held from August 18 to 20, the CBCSL said the ongoing Chemmani excavations should be completed, describing the investigation as essential to securing truth and accountability.
Full text of the statement: The Catholic Bishops’ Conference in Sri Lanka, during the Plenary Session held from 18th to 20th August 2026, focused its attention on some of the important issues that have a direct impact on justice, peace and reconciliation in the country.
The Bishops were appreciative of certain recent initiatives of the Government in view of promoting equality and justice in society. Among such initiatives, special attention was drawn towards the proposed Wind Power Plants in Mannar. Fourteen wind power plants have been installed, and as promised, no further expansion of such power plants is to be done.
The CBCSL is also thankful to the Government for the salary increment of the Tea Plantation workers. This need was placed before His Excellency the President of Sri Lanka by the CBCSL in August last year. It had been a long-standing need, and the CBCSL appreciates the salary increment for this sector of society, which is greatly instrumental in promoting the country’s economy.
While the CBCSL appreciates these decisions, the CBCSL also would like to highlight the need to have an impartial investigation into the issue of mass graves in the Jaffna Peninsula. The already protracted Chemmani Excavations are to be completed. This effort is needed to secure truth and accountability for the alleged crimes associated with Chemmani.
Similarly, there are also other episodes of terrorism and mass killings which had taken place during the protracted civil war for nearly 30 years and even acts of terrorism experienced during the era prior to this period.
The CBCSL is also concerned about the sand mining activities in Mannar Island causing major environmental damage. While people are disturbed by this ecologically damaging activity, the CBCSL has also received information about the drilling of land surrounding Mannar Island for oil and Gas exploration. These may be positive initiatives towards economic development. Nevertheless, it is the duty of those responsible to conduct proper environmental assessments in a transparent manner and to make the public aware of such projects. A proper consultation to ascertain the local public opinion should be done prior to any such development activity. The livelihood of the fishing community and the water resources in Mannar Island should not be affected by such activity, so that the rights and the dignity of the people will be safeguarded.
The CBCSL is further concerned about the extensive environmental damage caused by the Express Pearl Ship and the need to adhere to the Court’s decision to claim the imposed compensation. Moreover, the environmental hazards that are taking place due to the current reclamation of Muthurajawela wetland by filling it, need to be attended to, and the necessary measures should be taken to ensure the conservation of the Muthurajawela wetland against hazardous development plans.”
The statement has been signed by Rt. Rev. Dr. Harold Anthony Perera President – CBCSL Bishop of Kurunegala, Rt. Rev. Dr. P. Anton Ranjith Secretary General – CBCSL Bishop of Jaffna Apostolic Administrator of Batticaloa, His Eminence Malcolm Cardinal Ranjith Archbishop of Colombo, Rt. Rev. Dr. Noel Emmanuel Vice President – CBCSL Bishop of Trincomalee, Rt. Rev. Dr. Valence Mendis Bishop of Kandy, Rt. Rev. Dr. Raymond Wickramasinghe Bishop of Galle, Rt. Rev. Dr. Jude Nishantha Silva Bishop of Badulla, Rt. Rev. Dr. Wimal Siri Jayasuriya Bishop of Chilaw, Rt. Rev. Dr. Anton Wyman Croos Bishop of Ratnapura, Rt. Rev. Dr. Anthonipillai Gnanapragasam Bishop of Mannar, Rt. Rev. Dr. Sagara Jayamanna, SSS Bishop of Anuradhapura, Rt. Rev. Dr. Maxwell G. Silva Auxiliary Bishop of Colombo and Rt. Rev. Dr. J. D. Anthony Jayakody Auxiliary Bishop of Colombo.
News
Ex-‘VVIP’ astrologer makes statement to Bribery sleuths
Former President Mahinda Rajapaksa’s astrologer Sumanadasa Abeygunawardena left the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday after making a statement for nearly three hours.
Abeygunawardena arrived at the CIABOC premises yesterday morning after being summoned to make a statement in connection with an ongoing investigation into the ‘Siriliya Saviya’ organisation.
The investigation concerns matters relating to the Siriliya Saviya organisation, which has been the subject of inquiries by the Bribery Commission.
Abeygunawardena, who previously served as the astrologer of the former presidential family, was summoned by CIABOC as part of the ongoing investigation.
News
Complaint to HRCSL alleges woman framed in heroin case
A complaint was lodged with the Human Rights Commission of Sri Lanka (HRCSL) against a Sub-Inspector and a woman police constable attached to the Badowita Police Post of the Mount Lavinia Police Station, alleging that they had falsely implicated a woman in a heroin case.
The complaint was lodged yesterday by family members of the woman through a lawyer, alleging that she was taken into custody by the two police officers on Wednesday and subsequently produced before the Magistrate’s Court.
According to the complaint, the woman was placed in police custody and later learned in court that police had informed the Magistrate that she had been arrested with 10 milligrams of heroin. She was subsequently remanded until next Monday and is due to be produced before the High Court in connection with the alleged possession of heroin.
The complainant alleges that the woman had initially been questioned by the Sub-Inspector and the WPC about suspected narcotic dealers operating in the Badowita area. They claim that, after she failed to provide information, she was taken to the Badowita Police Post and subsequently implicated in the drug case.
The complaint further alleges that the Sub-Inspector has previously been accused of introducing narcotics and falsely implicating individuals in drug cases. The complainants have also alleged that the officer had recorded videos of suspects allegedly being tortured and shown the recordings to his girlfriend.
It also refers to alleged audio recordings circulating on social media concerning complaints made against the officer to the Inspector General of Police and Police Headquarters.
The complainant has further alleged that the officer was involved in a road traffic accident several weeks ago, but that no proper investigation has been conducted.
They also cited a previous allegation that the officer had assaulted a suspect at the police station and subjected him to electric shocks, following which the suspect allegedly collapsed and was admitted to the Kalubowila Hospital.
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