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IMF: Lanka must continue reforms amid global uncertainty

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The International Monetary Fund on Friday (11) said that the recent external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis.

IMF Mission Chief For Sri Lanka,  Evan Papageorgiou in a statement said that more time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be addressed within the contours of its IMF-supported program.

“The government’s sustained commitment to program objectives is ensuring policy continuity and program implementation remains strong. Going forward, sustaining the reform momentum is critical to safeguard the hard-won gains of the program and put the economy on a path toward lasting macroeconomic stability and higher inclusive growth,” he added.

He warned that against increased global uncertainty, sustained revenue mobilization efforts and prudent budget execution in line with Budget 2025 are critical to preserve the limited fiscal space.

“Boosting tax compliance, including by reinstating an efficient and timely VAT refund mechanism, will help contribute to revenue gains without resorting to additional tax policy measures. Avoiding new tax exemptions will help reduce fiscal revenue leakages, corruption risks and build much needed fiscal buffers, including for social spending to support Sri Lanka’s most vulnerable. Restoring cost recovery in electricity pricing will help minimize fiscal risks arising from the electricity state-owned enterprise,” he said.

IMF Mission Chief For Sri Lanka,  Evan Papageorgiou stressed that the Sri Lankan government has an important responsibility to protect the poor and vulnerable at this uncertain time. “It is important to redouble efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.”

“While inflation remains low, continued monitoring is warranted to ensure sustained price stability and support macroeconomic stability. Against ongoing global uncertainty, it remains important to continue rebuilding external buffers through reserves accumulation,” he added.

“Discussions are ongoing, and the authorities are encouraged to continue to make progress on restoring cost-recovery electricity pricing, strengthening the tax exemptions framework, and other important structural reforms,” said the IMF Mission Chief.

The statement said that the International Monetary Fund (IMF) staff team had very productive discussions with the Sri Lankan authorities on economic performance and policies underpinning the Fourth Review under the IMF Extended Fund Facility (EFF) arrangemenAn IMF team led by Evan Papageorgiou visited Colombo from April 3 to 11, 2025.



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Landslide Early Warnings issued to the districts of Colombo, Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura

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The National Building Research Organisation [NBRO] has issued landslide early warnings to the Districts of Colombo, Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura valid from 09:00 hrs on 23.05.2026 to 09:00 hrs on 24.05.2026

Accordingly,
LEVEL III [RED] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Deraniyagala, Ruwanwella and Dehiowita in the Kegalle district and Ratnapura, Ayagama, Kuruwita and Eheliyagoda in the Ratnapura district.

LEVEL II [AMBER] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka and Padukka in the Colombo district, Attanagalla in the Gampaha district, Palindanuwara, Ingiriya, Bulathsinhala and Horana in the Kalutara district, Yatiyanthota in the Kegalle district and Pelmadulla, Kiriella, Kalawana, Nivithigala and Elapatha in the Ratnapura district.

LEVEL I [YELLOW] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Divulapitiya and Mirigama in the Gampaha district, Mathugama and Agalawatta in the Kalutara district, Bulathkohupitiya in the Kegalle district, and Ambagamuwa in the Nuwara Eliya district.

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Most people seeking green cards must now apply from outside US

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The US has announced a new policy that means most immigrants seeking a green card will have to leave the country and apply at an embassy or consulate abroad.

The US Citizenship and Immigration Services (USCIS) said on Friday that people seeking a change in status must do so through consular processing outside of the country “except in extraordinary circumstances”.

The move – a part of the Trump administration’s effort to curtail illegal immigration – closes a loophole that had allowed visa holders and visitors to apply for a green card while still in the US.

Critics of the policy say the longstanding system allowed families to stay together during the lengthy application process.

The new method could also make it difficult or impossible for some immigrants who leave the country in hopes of gaining a green card to return.

The USCIS policy memo states that people such as students, temporary workers or people on tourist visas need to go through the Department of State from outside of the US.

“When aliens apply from their home country, it reduces the need to find and remove those who decide to slip into the shadows and remain in the US illegally after being denied residency,” USCIS said, making the system “fairer and more efficient”.

On X, the Department of Homeland Security, which oversees USCIS, said: “The era of abusing our nation’s immigration system is over.”

“We’re returning to the original intent of the law to ensure aliens navigate our nation’s immigration system properly,” USCIS Spokesman Zach Kahler said.

“From now on, an alien who is in the US temporarily and wants a green card must return to their home country to apply, except in extraordinary circumstances,” he continued.

Kahler said the policy allows the immigration system “to function as the law intended instead of incentivising loopholes” and that visits “should not function as the first step in the green gard process”.

It is unclear whether pending green card applications will be affected.

A spokesperson for the USCIS told the BBC that as the policy is rolled out, “people who present applications that provide an economic benefit or otherwise are in the national interest will likely be able to continue on their current path”.

“Others may be asked to apply abroad depending on individualised circumstances,” it said.

Being a green card holder, or lawful permanent resident, allows a person to live and work permanently in the US. Obtaining one is a multi-step process that can take months to several years.

There are currently more than a million legal immigrants waiting for approval on their adjustment of status green card applications, according to the Cato Institute’s director of immigration studies.

Kahler argued that following the law allows the majority of cases to be handled by the US State Department at consular offices abroad and frees up USCIS resources to focus on processing other cases that fall under its purview – such as visas for victims of violent crime and human trafficking, naturalisation applications, and other priorities.

The move is consistent with longstanding immigration law and immigration court decisions, the agency said. Immigration officers are being directed to “consider all relevant factors and information on a case-by-case basis when determining whether an alien warrants this extraordinary form of relief”.

Michael Valverde, who was a senior official at USCIS under both Republican and Democratic administrations until his departure last year, said to the BBC’s US media partner CBS that Friday’s announcement would “disrupt the plans of hundreds of thousands of families and employers annually”.

“This is a largely unprecedented move that will limit lawful immigration to the US greatly,” Valverde said. “People who followed the rules faithfully now face tremendous uncertainty.”

The Trump administration has instated bans or restrictions on citizens from nearly 40 countries.

Another policy from the administration this year has paused all visa issuances to immigrant visa applicants from 75 countries.

Overstaying a US visa can lead to deportation, ineligibility for future visas and re-entry bans lasting up to 10 years, according to the US State Department.

[BBC]

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Flood warning issued to the Aththanagalu Oya basin extended until 0600AM on Monday [25]

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The warning mentioned in the flood warning message No. 01 issued for the Aththanagalu Oya basin on 22.05.2026 at about 5.30 am will be extended for the next 48 hours.

It is requested that residents in the area and vehicle drivers running through those areas  pay high attention in this regard by the . Disaster Management Authorities are requested to take adequate precautions in this regard

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