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IMF not paying sufficient attention to corruption: GL

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By Shamindra Ferdinando

SLPP MP Prof. G. L. Peiris has found fault with the International Monetary Fund (IMF) for not paying sufficient attention to waste, corruption and economic mismanagement under the Rajapaksa-Wickremesinghe administration.

The former External Affairs Minister emphasised the responsibility on the part of the lending agency to address these issues, particularly against the backdrop of its latest agreement with the government of Sri Lanka worth USD 2.9 bn.

The SLPP National List MP said so yesterday (24) at his weekly media briefing at the Nawala Office of the Nidahasa Jathika Sabawa.

Prof. Peiris said that the Opposition would take up these issues with the IMF delegation, scheduled to be here in June this year. Sri Lanka has secured IMF assistance on 16 previous occasions.

The ex-Minister drew attention of the IMF as well as other stakeholders involved in the debt-restructuring process and the recent disclosure made by Justice Minister Dr. Wijeyadasa Rajapakse, PC, regarding a bribe amounting to USD 250 mn received by a person to derail Sri Lanka’s efforts to secure compensation for the X-Press Pearl ship disaster in May/June 2021.

Pointing out that an expert committee appointed by the MEPA (Marine Environment Protection Authority) had estimated the damages caused by the marine disaster at USD 6.4 bn, Prof. Peiris said that a wider investigation was required to identify and punish those who had conspired to sabotage Sri Lanka’s bid.

 Prof. Peiris compared the USD 2.9 bn loan made available by the IMF over a period of four years with the compensation which could be obtained from the X-Press Pearl owners-X-Press Feeders /insurers.

Environmentalist Dr. Ajantha Perera recently declared that Sri Lanka could obtain as much as USD 50 bn from X-Press Pearl owners/insurers.

Prof. Peiris also questioned the government’s decision to move Singaporean court against X-Press Feeders, a Singaporean-based privately held group.

The law academic stressed that the case should have been filed here as the incident took place in Sri Lankan territorial waters.

When The Island raised this issue with the Justice Minister recently, it was informed that the Cabinet of Ministers had approved Attorney General Sanjay Rajaratnam’s proposal to file a case in Singapore.

Commenting on the recent disappearance of a cash bundle worth Rs 5 million (Rs 5000 denomination) from a vault of the Central Bank, Prof. Peiris said a high-level probe had to be conducted into the incident.

The shortage was revealed during the currency operations on 11.04.2023. Declaring that the government, particularly the Finance Ministry, owed an explanation on how cash could be removed from a high security vault, Prof. Peiris said that the public tends to lose confidence in public finance.

The MP stressed the responsibility of the Central Bank to thoroughly inquire into the issue at hand and take appropriate measures to identify those responsible for what he called an inside job.

At the onset of the briefing, Prof. Peiris reiterated their strong opposition to the restructuring of domestic debt in line with the agreement with the IMF. That would have catastrophic impact on the ordinary people as well as the banking sector, Prof. Peiris said, while questioning the decision to privatize state enterprises.

Responding to media queries on his removal from the post of Chairman of the ruling SLPP, Prof. Peiris said that the decision would be challenged in court. The former minister challenged the legality of a meeting chaired by SLPP leader Mahinda Rajapaksa at their Nelum Mawatha Office last Saturday (22) where the party appointed a new Chairperson.

Prof. Peiris refused to be drawn in on former Premier Mahinda Rajapaksa’s criticism of him.



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Maldives Coast Guard Ship Huravee departs island

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The Maldives Coast Guard Ship Huravee which arrived in Sri Lanka for replenishment purposes, departed the island on 04 Mar 26.

In accordance with naval tradition, the Sri Lanka Navy extended a customary farewell to the departing ship at the Port of Colombo

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‘IRIS Dena was Indian Navy guest, hit without warning’, Iran warns US of bitter regret

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A day after a US submarine sunk an Iranian Navy warship off the coast of Sri Lanka, the Foreign Minister of Iran, Sayed Abbas Araghchi, has warned that the US would “pay bitterly” for targeting a ship in international waters, The Tribune has reported.

Araghchi posted on social media platform X on Thursday saying, “The US has perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores.”

The frigate IRIS Dena, a guest of India’s Navy carrying almost 130 sailors, was struck in international waters without warning, said the Iran Foreign Minister, adding, “Mark my words: The US will come to bitterly regret the precedent it has set.”

US Secretary of War, Pete Hegseth, on Wednesday confirmed that a US submarine fired a torpedo and sank the Iranian Navy vessel IRIS Dena west of Sri Lanka.

In a way, the Iran and US-Israel conflict has reached close to the Indian coast. The strike today at sea was almost 4,000 kms away from Iran, significantly expanding the radius of war. Already, fearing Iranian missile strikes, several US warships have moved eastward towards India.

These ships are in international waters. India has denied that any US Navy assets were using Indian ports. The Iranian ship, hit on Wednesday, was returning after participating in the international fleet review and exercise Milan hosted by India at Visakhapatnam.

The Iranian ship went down with almost 130 sailors on board missing. The Sri Lankan Navy, acting on a distress call, rescued 32 of the Iranian sailors. Hegseth confirmed the act by the US forces, saying the ship was hit in the Indian Ocean, stating, “an Iranian warship that thought it was safe in international waters. .. Instead, it was sunk by a torpedo”.

Hegseth did not name the Iranian ship that was attacked. But earlier, the Sri Lankan Navy reported the distress call from IRIS Dena when it was some 40 kms west of Galle, located on the south-western part of the island country. On February 16, the Iranian ship had sailed into the port of Visakhapatnam, where seventy-four nations participated.

Warships from Australia, Japan, South Korea, Russia, and dozens of others were anchored alongside the now-sunk Iranian vessel. Iran’s Navy Commander, Rear Admiral Shahram Irani, held talks with India’s Chief of Naval Staff on strengthening maritime security cooperation.

The theme was “United through Oceans.” Notably, the US Navy was supposed to send the guided-missile destroyer USS Pinckney to the exercise Milan; however, the ship was diverted to Singapore on February 15. The US did not field its warship in Milan, which had ships from Russia and Iran.

The exercise ended on February 25. Three days later, on February 28, the United States and Israel launched Operation Epic Fury. The IRIS Dena was transiting home. This morning at 5:08 a.m. local time, the IRIS Dena issued a distress call. Sri Lanka’s Foreign Minister, Vijitha Herath, informed parliament that two navy vessels and an aircraft were deployed. Thirty crew members were rescued and admitted to Karapitiya Hospital in Galle.

The Straits Times reported 32 critically wounded survivors. Reuters reported 101 missing and 78 wounded. The Sri Lankan Navy spokesman said the operation was conducted in line with the International Convention on Maritime Search and Rescue.

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Risk of power cuts due to use of low-quality coal,PUCSL warns

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The Public Utilities Commission of Sri Lanka (PUCSL) has warned of a possible risk of power cuts due to the use of inferior quality coal affecting generation capacity at the Lakvijaya Power Plant, according to a recent commission report.

The commission said the risk to the continuous electricity supply was assessed based on the peak demand forecast submitted by the Ceylon Electricity Board (CEB) for 2026.

According to the report, the analysis assumed that hydropower plants could contribute up to 1,300 MW to meet the night peak demand, while the Lakvijaya Power Plant (LVPS) would be able to contribute only up to 690 MW due to a capacity shortfall, assuming a 40 MW generation capacity reduction from each unit.

The PUCSL said the assessment was carried out taking into account the planned maintenance schedule submitted by the CEB. Under the schedule, Unit 1 of the Lakvijaya plant is due to undergo maintenance checks and repairs in June for a period of 25 days, while Unit 2 is scheduled for maintenance in July for another 25 days.

The report also noted that the 270 MW West Coast Power Plant is scheduled to undergo maintenance in April for 10 days, while the 150 MW Kelanitissa Combined Cycle Power Plant (KCCP 2) is expected to undergo maintenance during May, June and July.

Under normal conditions, the report said, there is a potential risk of a generation capacity shortage if electricity demand reaches 3,030 MW in April, 3,070 MW in June and 3,000 MW in July.

The highest recorded night peak demand so far in 2026 was 2,949 MW on February 25.

The PUCSL further warned that if one coal unit or any major power plant becomes unavailable from the existing generation mix, there would be a significant risk of a generation capacity shortage to meet the night peak demand, particularly during April, June and July.

Energy sector analysts said the use of substandard coal could further aggravate operational challenges at the Norochcholai plant, potentially affecting generation efficiency and reliability if corrective measures are not taken promptly.

By Ifham Nizam

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