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IMF hopes to complete Sri Lanka aid talks ‘as quickly as possible’
The International Monetary Fund (IMF) intends to complete talks with Sri Lanka “as quickly as possible,” Managing Director Kristalina Georgieva said on Wednesday, hours before the Parliament voted Acting President Ranil Wickremesinghe as the President.
Speaking with Nikkei Asia in Tokyo, Georgieva said the fund was “very deeply concerned about the well-being of the people in Sri Lanka,” which has been gripped by severe shortages of fuel, food and other essentials after its foreign reserves dried up.
Frustrated citizens have turned their anger on the government, clouding the outlook for debt restructuring and driving once-powerful President Gotabaya Rajapaksa to go into exile and resign last week. On Wednesday, the Sri Lankan parliament elected Ranil Wickremesinghe as his replacement.
Georgieva vowed that “the moment there is a government that we can continue our discussions with, our team will be there.” She added that she was “very hopeful that based on the good technical work we have already done, and the fact that this technical team of Sri Lanka is there, we can complete program negotiations as quickly as possible.”
Wickremesinghe is no stranger to the IMF, as a finance minister and six-time prime minister who has had a hand in negotiations. But he is deeply unpopular with the public.
Georgieva said that the IMF would work with any Sri Lankan administration “as long as the next leader enjoys support and has the longevity to lead the country.”
Sri Lanka is not the only South Asian country facing serious economic pressure. Others include Pakistan, with which the IMF recently reached a staff-level agreement to extend about $1.2 billion in aid, and the Maldives, whose debt-to-gross domestic product ratio stood 123.4% last year according to the IMF’s estimate.
“It is very important for all countries that have had that burden to stare it in the face and not pretend that somehow the problem can go away,” Georgieva warned. “Because it won’t.”
The managing director, who was stopping in the Japanese capital after attending the Group of 20 finance ministers meeting in Indonesia last week, went on to say: “Countries that are faced with severe problems of bad management need to understand that, in this context, markets are jittery. Sentiment is such that there is more anxiety. So if you need to be prudent in good times, you have to be even more prudent in bad times where we are today.”
In the case of Sri Lanka, which “pre-emptively” defaulted on its foreign debt for the first time earlier this year after COVID-19 devastated its core tourism sector, the government was due to submit a debt restructuring plan to the IMF by next month.
“What we would need for the program is financial assurances that will be sustainable, not immediately, but that we have a credible plan to get to that point,” Georgieva said. She added that the incoming government has “a very important role to play, reaching out to both bilateral creditors and private-sector creditors.”
Sri Lanka’s large creditors include Japan, China and India. Georgieva said that she has discussed the situation with the countries during her Asia trip, and was encouraged because “there is an understanding that protracted negotiations are simply not viable, that there has to be decisive action as early as the weeks after a [new] government is in place.”
More broadly, on the global economy, Georgieva said that the IMF will further lower its projection for global GDP growth when it releases its latest World Economic Outlook on July 26. This will mark the third downgrade this year alone. In April, the IMF lowered the outlook for 2022 to 3.6% from 4.4% in January.
She said that the new growth projections would remain in positive territory both for 2022 and 2023. But the downside risks, such as the Ukraine war and inflation, “remain very present.”
“The risk of recession has gone up,” she said.
Georgieva said there will be a “quite significant downgrade” for China, from its 4.4% growth forecast in the IMF’s April projections due to the impact of COVID-19 lockdowns and real estate problems.
She noted that Beijing has started to use monetary as well as fiscal policy levers, but said the question is “how quickly they can produce results.”
When asked about the weakening Japanese yen and the Bank of Japan’s monetary policy, she pointed out that Japan is an export-oriented economy. Hence, the exchange rate is helping Japanese exporters.
“The economy is not yet achieving its inflation target [of 2%] in a sustained manner,” she said. “And therefore, monetary policy accommodation remains the right choice.”
News
GMOA warns of trade union action unless govt. urgently resolves critical issues in health sector
Influx of substandard drugs is of particular concern
The Government Medical Officers’ Association (GMOA) has warned of renewed and intensified trade union action if the government fails to fulfil its promise to resolve the ongoing crisis in the health sector within the next few days.
GMOA Executive Committee member Dr. Prasad Colombage said his association was hopeful that commitments made by the government, including those formally stated by the Minister of Health in Parliament and recorded in the Hansard, would be implemented.
He called for urgent remedial action in view of the influx of substandard medicines into the country, patient deaths linked to such drugs, difficulties faced by doctors in prescribing medicines, and disruptions to patient care services caused by the continued migration of medical professionals. These factors, he warned, had placed patients’ lives at serious risk.
Dr. Colombage said discussions had already been held with all relevant authorities, including the President and the Minister of Health. He expressed hope that swift solutions would be forthcoming based on agreements reached at discussions. However, he cautioned that the GMOA would not hesitate to resort to strong trade union action if tangible progress was not seen in the coming days.
Meanwhile, the Federation of Medical and Civil Rights Professional Associations yesterday (01) handed over a special memorandum to President Anura Kumara Dissanayake, calling for immediate action to resolve the deepening crisis in the health sector.
Federation President, Consultant Dr. Chamal Sanjeewa, said Sri Lanka’s health system was currently facing a severe crisis and had sought an opportunity to hold discussions with the President on the matter.
The memorandum calls for the President’s direct and immediate intervention on several key issues, including the Indo–Sri Lanka health agreement, shortages of essential medicines including cancer drugs, continued allegations surrounding the administration of the Ministry of Health, reported irregularities at the National Hospital, Colombo, and the absence of an internationally accredited quality control laboratory for the National Medicines Regulatory Authority to test medicines. The Federation has also requested a meeting with the President to discuss these concerns in detail.
By Sujeewa Thathsara ✍️
News
Elephant census urged as death toll nears 400
Sri Lanka’s latest elephant census must result in immediate policy action, not remain a paper exercise, Centre for Environmental Justice (CEJ) Managing Director Dilena Pathragoda warned, as nearly 400 wild elephants have already died in 2025 alone amid escalating human–elephant conflict.
With the national elephant population estimated at around 5,879, Pathragoda said the figures would be meaningless unless they shape land-use planning, habitat protection and enforcement.
“As of mid-December, close to 397 elephants have died in 2025, mostly due to shootings, electrocution, train collisions and other human-related causes,” he told The Island. “When deaths continue at this scale, census numbers alone offer little reassurance.”
Official data show that 388 elephants died in 2024, while 2023 recorded a staggering 488 deaths, one of the highest annual tolls on record. Conservationists warn that the trend reflects systemic failure to secure habitats and elephant corridors, despite repeated warnings.
“An elephant census should not end with a headline figure,” Pathragoda said. “If these statistics do not influence development approvals, infrastructure planning and land-use decisions, they fail both elephants and rural communities.”
Elephant populations remain unevenly distributed, with higher densities in the Mahaweli, Eastern and North Western regions, while other areas face sharp declines driven by habitat fragmentation and unplanned development.
Pathragoda said recurring fatalities from gunshots, illegal electric fences, improvised explosive devices along with poisonings and rail collisions expose the limits of short-term mitigation measures, including ad hoc fencing projects.
“The crisis is not a lack of data, but a lack of political will,” he said, calling for binding conservation policy, transparent environmental assessments and accountability at the highest level.
He urged authorities to treat elephant conservation as a national governance issue, warning that failure to act would only see future censuses record further decline of these majestic animals.
“Elephants are part of Sri Lanka’s natural heritage and economy,” Pathragoda said. “Ignoring these warning signs will come at an irreversible cost.”
By Ifham Nizam ✍️
News
CTU raises questions about education reforms
The Ministry of Education has yet to clarify whether school hours will be extended by 30 minutes from next Monday (05) under the proposed new education reforms, Ceylon Teachers’ Union (CTU) General Secretary Joseph Stalin has said.
Stalin told The Island that the Ministry should reconsider the planned reforms, warning that decisions taken without adequate study and consultation could have serious repercussions for nearly four million schoolchildren.
He said the Education Ministry had announced that education reforms would be implemented in Grades from 1 to Grade 6, but it had not said anything about the Grades above 6. This lack of clarity, he said, had created confusion among teachers, parents and students.
Stalin also noted that although learning modules had been issued, students are required to obtain photocopies based on the codes introduced in these modules. However, the Ministry had not revealed who would bear the additional financial burden arising from those costs, raising further concerns over the practical implementation of the reforms.
by Chaminda Silva ✍️
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