Connect with us

News

IMF cranks up pressure on SL; next tranche put off to April – Verite chief

Published

on

Nishan de Mel

The International Monetary Fund (IMF) was cranking up pressure on the government of Sri Lanka to do its bidding, Executive Director of Verité Research Nishan de Mel said in a recent televised interview.

The IMF has converted some indicative targets given to Sri Lanka into quantitative targets,

“For example, the IMF has said Sri Lanka must publish the tax breaks it gives to various entities to ensure transparency. This was a normal commitment. Now, it has been converted into a structural commitment. It means that this commitment will be taken more seriously when the IMF releases the next tranche,” he said.

De Mel said that the IMF had insisted that tax exemptions not be given. However, the government continues to do so, he said.

“Successive governments have used the Strategic Development Projects Act (SDPA) to give significant tax concessions to various companies. On 22 December 2023, it used SDPA to give big tax breaks to China Merchants Port Holdings Company Limited (CMPort),” he said.

De Mel said that there should be a way to contrast the revenue forgone from such projects against their potential benefit in a transparent process.

“The IMF, on 12 December 2023, again insisted this. They said giving tax exemptions must end in December itself. But as mentioned, on 22 December, a tax exemption was given.

“This shows we are not serious about the national interest. We must not give tax exemptions if there is no rational basis. The more tax exemptions we give, the more taxes we will have to impose on people. VAT will have to be increased more, etc. The government needs revenue, but there must be some element of justness,” he said.

The Executive Director of Verité Research said that it was likely that the country will be able to finalise external debt restructuring by the end of March 2024. “The going has been slower than expected. Initially, the government said that could be done in June 2023. Then they said August 2023. The deadline was again postponed to December. Now, we are in January. We expect that this can be finalised by the end of the first quarter of 2024,” he said.

The IMF was to give the next tranche by March 2024, but it had been postponed to April, he said.

“It is best if we can finish debt restructuring as soon as possible. We must also ensure that we get an adequate haircut on the debt. It will be hard for us to recover if the haircut is too small,” he said. (RK)



Latest News

Advisory for severe lightning for the Western and Sabaragamuwa provinces and Galle and Matara districts

Published

on

By

Advisory for Severe Lightning Issued by the Natural Hazards Early Warning Centre at 12.15 p.m. 06 December 2025 valid for the period until 11.00 p.m. 06 December 2025.

The public are being cautioned that thundershowers accompanied with severe lightning are likely to occur at some places in the Western and Sabaragamuwa provinces and in Galle and Matara districts.

There may be temporary localized strong winds during thundershowers.

The General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:

 Seek shelter, preferably indoors and never under trees.

 Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.

 Avoid using wired telephones and connected electric appliances during thunderstorms.

 Avoid using open vehicles, such as bicycles, tractors and boats etc.

 Beware of fallen trees and power lines.

 For emergency assistance contact the local disaster management authorities.

Continue Reading

News

Government briefs Diplomatic Community on recovery progress

Published

on

By

A special briefing for the diplomatic community in Sri Lanka was held on 4 December at the Ministry of Foreign Affairs, Foreign Employment and Tourism, chaired by Prime Minister Dr. Harini Amarasuriya together with the Minister of Foreign Affairs, Foreign Employment and Tourism,  Vijitha Herath. Senior government officials, including representatives of the Disaster Management Centre (DMC) and the Sri Lanka Tourism Development Authority (SLTDA), also participated.

Opening the session, Prime Minister Dr. Harini Amarasuriya expressed her gratitude  to the diplomatic community for their immediate support and solidarity following the recent floods and landslides. She noted that Sri Lanka had endured one of the most severe disasters in recent years, but the resilience of the people and the coordinated efforts of government agencies had enabled a rapid response and significant progress in relief operations. She confirmed that not a single tourist has been reported harmed during the disaster and noted that the previously inaccessible areas are now reachable. Massive cleanup and decontamination operations are underway to ensure that lands and public spaces are safe for return, and communications have been restored in the affected areas.

The Prime Minister emphasized that relief, evacuation, and emergency assistance were carried out with the collective effort of the tri-forces, police, public officers, health workers, volunteers, and local authorities. She acknowledged the continuing challenges, including the restoration of infrastructure, resettlement needs, and long-term disaster-mitigation work, and welcomed the technical, humanitarian, and financial support offered by partner countries.

Maj. Gen. Sampath Kotuwegoda (Retd), Director General of the Disaster Management Centre, delivered a detailed presentation on the current status of the disaster, including the number of affected families, evacuation centres, damage assessments, and the ongoing coordination with international agencies for recovery planning. The cyclone affected almost the entire country, with 22 districts severely impacted. Some locations recorded up to 540 mm of rainfall and winds of up to 70 km/h, causing widespread infrastructure damage. Early assessments indicate that 2.3 million people were exposed to flooding, with 1.8 million people directly affected on the ground and 1.1 million hectares of land impacted. The assessment also identified 40,152 pregnant women among those affected, who have been prioritized for support. He also highlighted areas where further technical cooperation, such as early-warning systems, mapping capabilities, and climate-response technologies would be valuable.

Buddhika Hewawasam, Chairman of the Sri Lanka Tourism Development Authority, briefed the diplomatic community on the impact of the disaster on the tourism sector. He reassured attendees that major tourism zones remain operational, safety assessments are underway, and contingency measures have been activated to support visitors and protect the industry during the upcoming peak season. The Chairman of the Hotel Association of Sri Lanka Ashoka Hettigoda confirmed that the Coastal and resort hotels from Maravila to Passikudah are operating, with many reporting 60–65 percent occupancy; the hotels in Nuwara Eliya are partially operational. He made an appeal that the best assistance that the international community can give to Sri Lanka is the continued support provided through tourism.

Several diplomats conveyed their condolences to affected communities and reaffirmed their governments’ readiness to assist Sri Lanka in both immediate relief efforts and long-term rebuilding. They expressed appreciation for the government’s transparent engagement and the coordinated approach to managing the crisis.

Prime Minister thanked the diplomats for their continued cooperation and underscored the government’s commitment to ensuring an effective and inclusive recovery. She stressed that strengthening disaster preparedness, climate resilience, and institutional capacity will be central to Sri Lanka’s national development agenda moving forward. Deputy Minister of Foreign Affairs, Foreign Employment and Tourism,  Arun Hemachandra, Secretary to the Prime Minister, Pradeep Saputhanthri, and Secretary to the Ministry of Foreign Affairs, Ms. Aruni Ranaraja, also attended the meeting.

[Prime Minister’s Media Division]

Continue Reading

News

All parties have agreed to recruit Development Officers into the teaching service through a competitive examination – PM

Published

on

By

Addressing Parliament on Friday  (05), the Prime Minister stated that, in accordance with the Supreme Court decision, the recommendations issued by the Public Service Commission, and the Sri Lanka Teachers’ Service Minute, all parties have agreed to recruit teachers through a competitive examination. The Prime Minister further noted that during the second phase of the recruitment process, the Development Officers currently serving in schools will be given preference during the interviews.

Addressing further, the Prime Minister stated,

“In compliance with the final order of the Supreme Court and the provisions of the Sri Lanka Teachers’ Service Minute, the Development Officers will be given the opportunity to join the Sri Lanka Teachers’ Service.

It has been decided to revise the maximum age limit of 40 years, as specified in the examination notification for applicants, to 45 years for this instance only”.

The Prime Minister further stated that, in accordance with the Supreme Court decision, arrangements have been taken to revise the age limits for graduates employed in the public service and graduates not employed in the public service, and to conduct separate examinations accordingly, in order to recruit teachers to Grade 3. i (a) of the Teachers’ Service to fill the available vacancies.

[Prime Minister’s Media Division]

Continue Reading

Trending