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IMF says Sri Lanka needs to be on sustainable debt path
The International Monetary Fund (IMF) has said discussions with Sri Lanka on a potential IMF loan programme are at an early stage and any deal will require ‘adequate assurances’ that Sri Lanka’s debt could be put on a sustainable path.
In a statement emailed to the Reuters news agency, IMF Sri Lanka Mission Chief Masahiro Nozaki said that IMF Managing Director Kristalina Georgieva had discussed lending options and policy plans with a Sri Lankan delegation on Tuesday.
“An IMF-supported programme should be designed to resolve Sri Lanka’s acute balance of payments problems and put the economy back on a sustainable growth path as early as possible,” Nozaki said.
The statement came in the wake of Sri Lanka’s Finance Minister formally asking the Fund for a Rapid Financing Instrument (RFI) loan for countries needing urgent balance-of-payments support.
Nozaki said the IMF is “very concerned about the current economic crisis in Sri Lanka and hardships suffered by the people, especially the poor and vulnerable”.
But he noted that IMF staff had determined last month in an annual economic review that Sri Lanka’s public debt was unsustainable, and the country needs to take steps to restore debt sustainability prior to any IMF lending, including the emergency RFI.
Such restoration of debt sustainability typically requires a restructuring or reprofiling of public debts, which in Sri Lanka’s case would require cooperation from China, one of its largest bilateral creditors.
The IMF used the low-conditionality RFI loans extensively to assist countries during the COVID-19 pandemic and has provided such loans to ease balance of payments problems after natural disasters, conflicts and commodity price shocks.
“These considerations would need to be examined for a potential RFI for Sri Lanka, once adequate assurances are obtained that debt sustainability will be resolved,” Nozaki said.
He added that the specific design of a Sri Lanka IMF loan, including program targets and conditionality, would be agreed through extensive discussions between the government and IMF staff.
Latest News
70,297 persons still in safety centers
The Situation Report issued by the Disaster Management Center at 06:00AM on 16th December 2025 shows that 70,297 persons belonging to 22,338 house holds are still being housed at 731 safety centers established by the government.
The number of deaths due to the recent disastrous weather stands at 643 while 183 persons are missing.

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MEPA to crack down on marine polluters
… Warns would-be polluters of criminal prosecution, hefty fines and even blacklisting
The Marine Environment Protection Authority (MEPA) has warned that ship owners, operators and local entities responsible for marine pollution will face criminal prosecution, heavy financial penalties and possible blacklisting, MEPA Chairman Samantha Gunasekera said yesterday.
Gunasekera told The Island that Sri Lanka would no longer tolerate negligence and regulatory breaches that threaten the country’s marine ecosystems, coastal livelihoods and national economy.
“Any party that pollutes our seas—whether foreign vessels or local operators—should be prepared to face the full force of the law,” Gunasekera said. “There will be no room for excuses, delays or backdoor negotiations when marine pollution is involved.”
He said MEPA has intensified surveillance of major shipping routes, ports and environmentally sensitive zones amid rising maritime traffic through Sri Lankan waters, which remain among the busiest in the Indian Ocean.
by Ifham Nizam
News
SC delegation, headed by CJ Surasena, observes Indian Supreme Court in action
A 10-member delegation from Sri Lanka’s Supreme Court, headed by Chief Justice P. Padman Surasena, departed to New Delhi on the 11th of December, 2025, for an official visit to the Supreme Court of India as part of the ongoing official visit by the delegation to India.
The group was accorded a ceremonial welcome in the Court’s main hall, led by the Chief Justice of India (CJI) Surya Kant. CJI Kant told the assembled Judges that “the Indian judiciary was honoured to host” their Sri Lankan counterparts, expressing hope that the visit would be “meaningful and very constructive” and underscoring the “close emotional bonds” between the two countries.
The focal point of the programme was a special sitting of the Supreme Court. Chief Justice Surasena joined CJI Kant and Justice Joymalya Bagchi on the bench, presiding over the Court as a guest Justice. He was accompanied by nine other Supreme Court justices from Sri Lanka, who took seats in the well of CJI Kant’s courtroom to observe the day’s proceedings.
Supreme Court Bar Association President Vikas Singh formally greeted the delegation and praised Justice Surasena’s reformist efforts. Singh recalled the Sri Lankan Chief Justice’s own maxim, “If you want something you have never had, then you have got to do something you have never done”, highlighting the bold changes Surasena had introduced to modernise Sri Lanka’s Court system. Singh noted that these initiatives, particularly court digitization, were aimed at eradicating “the persisting problems of law delays” and streamlining case backlogs.
The Sri Lankan Judges spent the morning observing live Supreme Court proceedings in CJI Kant’s courtroom. This first-hand exposure to Indian court operations formed a key part of the programme’s judicial engagement. During the hour-long session, the visiting justices witnessed a range of cases on the Supreme Court’s roster, with Justice Surasena and the delegation following arguments from the front. The experience was designed to be immersive and following the hearing the Sri Lankan Judges were briefed on India’s own initiatives towards a digitalised court system, e-filing and case management systems.
The official programme then shifted to capacity-building and information exchange. In the early afternoon, Indian Supreme Court officials gave the Sri Lankan delegation detailed briefings on India’s technological initiatives. Court registrars demonstrated the e-filing system and other e-initiatives implemented by the Supreme Court of India. Additional presentations outlined the Court’s new case management systems and administrative reforms. These sessions highlighted how digital tools and better case-listing procedures have been used in India to increase efficiency. The Sri Lankan judges asked questions about India’s experience with electronic court records and the integration of technology in daily judicial work, reflecting their own interest in similar reforms back home.
The visit underscored the growing collaboration between the Indian and Sri Lankan judiciaries. Throughout the proceedings, both sides emphasised their shared legal traditions and mutual respect. As Chief Justice Surasena noted during the sitting, India is Sri Lanka’s “closest neighbour,” and historic links, even dating back to ancient epics, form the backdrop for today’s judicial dialogue. CJI Kant remarked that having the chief justices of two vibrant democracies together on the bench was a “significant moment” for the rule of law.
The Sri Lankan delegation continued its programme in Delhi on 12 December with a visit to the Delhi High Court and its International Arbitration and Mediation Centres. The exchange visit is expected to deepen judicial cooperation and provide practical insights for both courts. Officials on both sides say the engagement aimed at sharing best practices in court administration, reinforce legal ties and support ongoing reforms aimed at reducing case backlogs and delays.
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