News
IMF sees “tentative signs of improvement” of Lankan economy
The Lankan economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions, says Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF) issuing a statement at the conclusion of his visit to Sri Lanka.
However, the economic recovery remains challenging and it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people, he said.
Given below is his statement in full:
“I wish to thank President and Minister of Finance Wickremesinghe, Governor Weerasinghe, Speaker Abeywardena, Foreign Minister Sabry, Justice Minister Rajapakshe, State Minister of Finance Semasinghe, State Minister of Investment Promotion Amunugama, Secretary to the Treasury Siriwardana, and senior government officials for their hospitality, and parliamentarians and representatives of the private sector for their engagement.
“I very much appreciated the constructive discussions I had during my visit, which allowed me to deepen my understanding of the challenges Sri Lanka is facing and to reiterate the IMF’s commitment to support Sri Lanka’s efforts to surmount these challenges.
“I welcomed the authorities’ strong commitment to implement their ambitious economic program which is supported by the IMF. The economic reform program aims to achieve macroeconomic stabilization, restore debt sustainability, safeguard financial stability, strengthen governance, and protect the vulnerable.
“Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.
“The current economic crisis has its genesis in policy missteps aggravated by external shocks. We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability. I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner.
“Continued open dialogue with the creditors will help to reach restructuring agreements to restore debt sustainability in line with the program targets. Undoubtedly, safeguarding the stability of the financial sector is of utmost importance in this process.
“I had the privilege to visit the Parliament building, an architectural marvel, designed by Sri Lanka’s very own renowned architect. While meeting with the parliamentarians, we discussed the importance of strengthening governance, which is a central pillar of the program. The hard-won gains of Sri Lankan people who have relentlessly supported the reform effort can only be safeguarded by good governance.
“During my visit to the dockyard, port terminal, and the port city, I was impressed to see continued economic activity which is a testament to the resiliency of the Sri Lankan economy. I underscored the importance of decisive implementation of structural reforms which can attract investment and boost growth.
“As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis. I was heartened to see that the authorities’ have stepped up efforts to increase public spending on social safety nets while improving targeting and coverage for those who need it.
“Lastly, I very much appreciate the excellent, long-standing relations between Sri Lanka and the IMF, and look forward to our continued partnership through the EFF-supported economic program. I will leave Colombo with fond memories of the country and its welcoming people.”
During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.
The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.
Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.
The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.
Latest News
Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.
Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.
The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.
The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.
Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
Two people killed in magnitude 6.5 earthquake in Mexico
President Trump says the US has ‘captured’ Venezuelan President Nicolas Maduro and his wife and flown them out of the country
Navy seize an Indian fishing boat poaching in northern waters
US Coast Guard suspends search for survivors of Pacific boat strike
Venezuela’s capital hit by explosions, Caracas blames the US
Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Sports6 days agoGurusinha’s Boxing Day hundred celebrated in Melbourne
-
News4 days agoLeading the Nation’s Connectivity Recovery Amid Unprecedented Challenges
-
Features5 days agoIt’s all over for Maxi Rozairo
-
Sports7 days agoTime to close the Dickwella chapter
-
News7 days agoEnvironmentalists warn Sri Lanka’s ecological safeguards are failing
-
News5 days agoDr. Bellana: “I was removed as NHSL Deputy Director for exposing Rs. 900 mn fraud”
-
Opinion3 days agoRemembering Douglas Devananda on New Year’s Day 2026
-
News4 days agoDons on warpath over alleged undue interference in university governance