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IMF applauds the country’s significant progress in implementing economic reforms

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During a meeting between President Ranil Wickremesinghe, Sri Lankan authorities and the International Monetary Fund (IMF) on Thursday (11), the IMF congratulated the country on completing the first review under its program. The IMF highlighted the positive start of the program, recognizing the challenging reforms undertaken by Sri Lanka and their significant impact on the domestic population. Directors at the executive board meeting applauded Sri Lanka’s courage in publishing the governance diagnostic, a pioneering effort in Asia.

Senior Mission Chief for Sri Lanka, Peter Breuer noted that encouraging signs were noted regarding the program’s impact on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting revealed promising revenue collection, indicating the effectiveness of implemented policies since reaching a staff level agreement in the second half of 2022.

Mr. Peter Breuer told President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.”

The board meeting recognized Sri Lanka’s success in reducing inflation significantly, attributing it to the government’s efforts in monetary policy and scaling back monetary financing. Positive outcomes, such as an increase in reserves, were also observed. The ongoing governance reforms were acknowledged as positive indicators, contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.

As the IMF plans its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs and urgent preparations for property taxation. The IMF stressed the importance of perseverance with ongoing reforms, addressing fiscal issues and advancing governance agendas.

The meeting also highlighted the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector.

On the governance front, operationalizing the Anti-Corruption Commission, publishing action plans and meeting with the Constitutional Council for insights into commissioner selection processes were discussed.

The IMF commended Sri Lanka’s partnership on capacity development, emphasizing the importance of enhancing the skills of the civil service for the success of ongoing reforms. The program aims to build capacity in the civil service, crucial for the implementation of reforms.

The authorities expressed approval for the program and discussions on its rollout and impact will continue in the coming weeks.

As the two-week mission unfolds, further discussions between Sri Lankan authorities and the IMF are expected to delve deeper into these key areas, providing a comprehensive overview of the progress and challenges in Sri Lanka’s economic reform journey.

(PMD)



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Landslide early warnings in force in the Districts of Badulla, Kandy, Kegalle, Kurunegala, Matale, Nuwara Eliya and Ratnapura

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The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the Districts of Badulla, Kandy, Kegalle, Kurunegala, Matale, Nuwara Eliya and Ratnapura valid until 1600hrs on 14th December 2025.

Accordingly,
LEVEL III RED warnings are in force in the Divisional Secretaries Divisions and surrounding areas of Ududumbara, Medadumbara, Ganga Ihala Korale, Pathadumbara, Panvila, Udapalatha, Doluwa, Deltota and Minipe in the Kandy district, and Rideegama in the Kurunegala district.

LEVEL II AMBER warnings are in force in the Divisional Secretaries Divisions and surrounding areas of Uva Paranagama, Passara, Welimada, Haputhale, Lunugala, Soranathota, Ella, Kandeketiya, Bandarawela, Meegahakivula, Badulla, Hali_Ela and Haldummulla in the Badulla district, Harispattuwa, Pathahewaheta, Thumpane, Udunuwara, Poojapitiya, Hatharaliyadda, Gangawata Korale, Yatinuwara, Kundasale, Akurana and Pasbage Korale in the Kandy district, Rambukkana, Yatiyanthota, Aranayaka, Kegalle, Bulathkohupitiya, Mawanella, Warakapola and Galigamuwa in the Kegalle district, Polgahawela, Mallawapitiya, Alawwa and Mawathagama in the Kurunegala district, Ukuwela, Naula, Wilgamuwa, Matale, Laggala Pallegama, Rattota, Ambanganga Korale, Yatawatta and Pallepola in the Matale district, Walapane, Hanguranketha, Nuwara Eliya, Kothmale East, Mathurata, Nildandahinna, Thalawakele, Norwood, Kothmale West and Ambagamuwa Korale in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela in the Ratnapura district.

LEVEL I YELLOW warnings are in force in the Divisional Secretaries Divisions and surrounding areas of Dehiowita, Deraniyagala and Ruwanwella in the Kegalle district, and Kalawana, Kuruwita, Elapatha, Ayagama, Kiriella, Balangoda, Openayake, Imbulpe, Ratnapura, Kaltota, Eheliyagoda, Pelmadulla and Nivithigala in the Ratnapura district.

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The rights of the fishing community will never be compromised – President

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President Anura Kumara Dissanayake affirmed that the Government will never allow the violation of the rights of the fishing community, emphasizing the State’s firm commitment to protecting both land resources and the coastline.

The President also stated that the Government will address the challenges faced by fishing communities across the country through discussion and constructive engagement, ensuring sustainable solutions while safeguarding livelihoods.

President Anura Kumara Dissanayake made these remarks while attending a Special District Coordination Committee Meeting held on Saturday  (13) afternoon at the Mannar District Secretariat, convened to review on-going efforts to restore normalcy to public life and rehabilitate infrastructure in the Mannar District following the recent disaster.

Highlighting the urgent need for a permanent solution to flooding in the Mannar District, the President instructed officials to proceed with the proposed flood control project after conducting comprehensive studies to ensure its long-term effectiveness.

Special attention was drawn to the severe impact of the disaster on the fishing sector. It was revealed that approximately 12,000 fishermen are currently unable to engage in fishing activities due to flooding and adverse weather conditions.

The President directed that dry ration packs be provided for one week to fishing families who, although not directly affected by floods, have lost their livelihoods due to unfavourable weather conditions.

Additionally, discussions were held on engaging with the Chinese Embassy to distribute a stock of fishing gear donated by the Government of China to fishermen affected by the disaster.

Attention was also focused on illegal land encroachments within the water catchment area of the Yodha Wewa Sanctuary. The President instructed that strict legal action be taken against individuals obstructing the placement of boundary markers around the reservoir.

It was reported that 70 families in the Mannar District have lost their homes due to the disaster. Discussions were held on rebuilding these houses and identifying suitable land for resettlement. A committee will be appointed to identify the required land within the next two weeks.

The meeting also addressed the expansion of facilities at Mannar Base Hospital and other hospitals, along with restoring health services and normalizing educational activities in the district.

The President further instructed that the Rs. 15,000 assistance provided by the Treasury for schoolchildren be disbursed promptly through Divisional Secretaries, based on recommendations from Grama Niladhari officers.

Extensive discussions were also held on reconstruction of damaged roads and bridges, restoration of water and electricity supply, rehabilitation of irrigation systems, compensation for losses in agriculture and livestock sectors and supporting affected communities to restart their livelihoods without delay

The meeting was attended by Deputy Minister of Cooperative Development and Chairman of the Vanni District Coordination Committee Upali Samarasinghe, Northern Province Governor N. Vethanayahan, Members of Parliament S. Thilaganathan, M. Jegatheeswaran, T. Ravikaran, Sathiyalingam, Selvam Adaikkalanathan, Kader Mastan and Rishad Bathiudeen, along with other government and opposition parliamentarians.

Also present were the Secretary to the Ministry of Finance, Secretary to the Ministry of Defence, Northern Province Chief Secretary D. Murugesan, Mannar District Secretary K. Kanageswaran, senior government officials, and representatives of the security forces.

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Prioritize rebuilding the livelihoods of disaster-affected communities – President

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President Anura Kumara Dissanayake has instructed officials to give top priority to restoring the livelihoods of communities affected by the disaster. He emphasized the need to expedite compensation payments for damages and to take immediate measures to revive the agriculture, fisheries and industrial sectors.

The President further directed that all compensation payments for crop damage be completed before December 25.

These instructions were issued during a special District Coordinating Committee meeting held on Saturday (13) morning at the Puttalam District Secretariat.

President Anura Kumara Dissanayake described the recent cyclone as one of the largest disasters the entire country has faced in recent times. He commended the dedicated efforts of the tri-forces, Police and public officials in restoring the lives of affected communities. The President noted that, thanks to their commitment, a significant portion of essential infrastructure including electricity, water supply and roads has already been rehabilitated.

He further emphasized that the Government’s ability to provide such substantial compensation to disaster-affected communities is the result of the strong fiscal discipline of the Government.

Taking into account the challenges that have arisen in the distribution of allowances and aid so far, the President instructed Divisional Secretaries to ensure that compensation is provided strictly to eligible recipients and to fully intervene to prevent any deviation from this policy under any circumstances.

During the meeting, the rehabilitation of damaged highways and bridges in the district was discussed in detail. The President inquired into issues arising during these reconstruction efforts and provided on-the-spot solutions in consultation with the relevant officials.

The construction of the Lower Kala Oya Bridge was also discussed. The President instructed that a temporary bridge be built to meet the needs of the tourism sector. He emphasized that all construction activities should be carried out with a thorough understanding of necessity and proper structural assessments.

The President further highlighted that previous large-scale projects were abandoned without delivering tangible benefits or the intended outcomes. He stressed that future infrastructure development should focus not only on regional needs but also on the broader economic benefits for the country as a whole.

The President inquired about the ongoing efforts to restore electricity supply in the district and emphasized the need to complete these works without delay.

He also reviewed measures being taken to re-establish water supply and instructed provincial authorities to intervene promptly, noting that current well cleaning efforts in the district are insufficient.

Regarding agriculture, the President inquired about preparations by local farmers for the upcoming Maha paddy cultivation. He directed officials to swiftly create a conducive environment for farming, minimize the amount of abandoned land and explore alternative methods to ensure productive use of farmland.

He instructed that all compensation due to farmers be disbursed before December 25, that payments be made regardless of whether the land is in reserves or legally protected areas, and that systematic measures be implemented to prevent cultivation on reserved lands.

The President also highlighted the need for comprehensive soil conservation programmes in areas such as Kalpitiya.

The President emphasized the need to provide fair compensation to those engaged in the livestock sector in order to restore their livelihoods. He also highlighted the importance of obtaining accurate ground-level data and stressed the necessity of introducing legislation to ensure the registration of all livestock farms.

Due to the disaster, 627 houses in the district were completely destroyed, and 20,813 houses sustained partial damage. The President instructed that compensation for the affected families be expedited, emphasizing priority resettlement on government land. Where government land is unavailable, he directed that Rs. 5 million be provided to each family for the purchase of alternative land.

For those whose houses were completely destroyed, the President directed that new housing projects be implemented in a manner that ensures ownership of a house valued at Rs. 5 million for each beneficiary.

Attention was also given to the fisheries sector. Discussions were held on providing assistance for the repair of damaged fishing boats, as well as implementing fair compensation and concessional bank loan schemes for prawn farmers.

President Dissanayake also inquired into the operations at Chilaw Hospital. Authorities informed him that patient admissions and the functioning of several units could resume by next week.

Minister of Public Administration, Provincial Councils, and Local Government and Chairman of the Puttalam District Coordination Committee Chandana Abeyratne, Deputy Minister of Environment Anton Jayakody, North Western Province Governor Tissa Warnasuriya, Government and Opposition Members of Parliament from Puttalam District, Local Government Representatives including the North Western Provincial Secretary, Secretary to the Ministry of Finance Dr. Harshana Suriyapperuma, Puttalam District Secretary, Divisional Secretaries, Government Officials, and Security Forces Representatives were present at the event.

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