Connect with us

News

Harsha urges dialogue between govt. and opposition on grave foreign exchange crisis

Published

on

“Better understand problem….we’re all in this together”

Opposition SJB MP, Dr. Harsha de Silva, last week urged President Gotabaya Rajapaksa to initiate a dialogue with the opposition to find a way out of the country’s precarious foreign exchange crisis “to better understand the problem as we’re all in this together.”

Quoting several recent news reports and accusing the Central Bank Governor Ajith Nivard Cabraal of making “factually incorrect statements,” the respected economist MP said: “……. I urge President Gotabaya Rajapaksa to initiate a dialogue with us, the Opposition, to better understand the problem and find solutions together, as we are all in this together.”

He prefaced his request for a dialogue with the following remarks:

“The Governor of the Central Bank reiterates his factually incorrect statements to a certain newspaper today that there is no dollar shortage in the country. However, many other newspapers report otherwise. In fact, one of the leading newspapers states that we are in need of $20mn to clear 2,000 containers stuck at the port, while another claims that we are not able to import medicine as there is a shortage of dollars.

“Meanwhile, another prominent newspaper states that the Central Bank is preparing to sell more of our gold reserves, as we do not have sufficient financial resources to keep the country functioning. Who is the Central Bank Governor trying to fool? We are at the brink of an economic collapse with insufficient dollars to import essential commodities such as medicine, milk powder, fuel, food etc

“According to the Central Bank data, at the end of November 2021, we had a mere $1.5 bn of reserves left. Thereafter, at the end of December 2021, the Central Bank claimed that they possessed $3 bn of reserves after manipulating the data with a currency swap from China for an amount of $1.5 bn.

“However, at the end of January 2022, we possessed only $2.3 bn even with the currency swap with China, thus ending up with only $700 mn of usable reserves. Therefore, we are in a precarious situation as the Central Bank needs to settle a debt payment of $70 mn today (Feb. 9) and another Sri Lanka Development Bond payment on February 17 for $160 mn.

“These two payments themselves come to a total of $230 mn, thus depleting our reserves even further. Neither the Government nor the Central Bank has a plan to try and get us back on track and bring in dollars to not only pay off our debts but also money to pay for our essentials.

“Thus, I urge President Gotabaya Rajapaksa to initiate a dialogue with us, the Opposition, to better understand the problem and find solutions together, as we are all in this together.”



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Sri Lanka, India caught in US-Iran ship crisis

Published

on

AI Generated Image

By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

Continue Reading

News

Namal further remanded

Published

on

MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

Continue Reading

News

IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

Published

on

Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

Continue Reading

Trending