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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.”
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PM holds bilateral meetings in the Philippines to strengthen cooperation in Education, Skills Development, and Agricultural Research
Prime Minister Dr. Harini Amarasuriya held a series of meetings with key Philippine institutions during her official visit to the Philippines from 09–11 March 2026, focusing on strengthening cooperation in education, higher education, technical skills development, and agricultural research.
On 09 March, the Prime Minister met with the Secretary of Education of the Philippines, Sonny Angara. Discussions focused on strengthening bilateral cooperation in the education sector, including sharing best practices in education policy, teacher training, curriculum reforms, and digital learning initiatives. The Prime Minister also briefed the Philippine delegation on Sri Lanka’s ongoing education reforms aimed at modernizing curricula and integrating technology into learning.
The Prime Minister also met with a delegation of the Commission on Higher Education of the Philippines (CHED), led by Chairperson Dr. Shirley C. Agrupis. Discussions centered on the development of higher education in both countries, with particular attention to research collaboration, academic partnerships between universities, student and faculty exchanges, and strengthening quality assurance frameworks.
In a separate meeting, the Prime Minister held talks with the Secretary and Director General of the Technical Education and Skills Development Authority (TESDA), Jose Francisco B. Benitez. The discussions focused on cooperation in technical and vocational education and training (TVET), including knowledge sharing, institutional partnerships, and possible alignment of qualifications frameworks to enhance skills recognition and workforce mobility.
The meetings reaffirmed the commitment of Sri Lanka and the Philippines, along with international research institutions, to strengthen collaboration in education, skills development, and agricultural research in support of sustainable development and human capital growth.
The Sri Lankan delegation included the Ambassador of Sri Lanka to the Philippines, Dr. Chanaka Talpahewa, and Senior Assistant Secretary to the Prime Minister, Ms. P.H. Piyumee Bandara.
[Prime Minister’s Media Division]
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Heat Index at Caution Level in the Western, Sabaragamuwa and North-western provinces and Monaragala district.
Warm Weather Advisory issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 09 March 2026, valid for 10 March 2026.
The public are warned that the Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in Western, Sabaragamuwa and North-western provinces and in Monaragala district.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body.
This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
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Prof. Dunusinghe warns Lanka at serious risk due to ME war
Prof. Priyanga Dunusinghe has warned that Sri Lanka could face a catastrophic situation due to a rapid and sharp drop in revenue caused by the escalating Gulf war.
Appearing on Derana ‘Big Focus’ yesterday, the Professor in Economics in the Department of Economics, and Head – Department of Information Technology, University of Colombo, Dunusinghe said that that drop in remittances from the Middle East, as well as exports, should be examined against the backdrop of runaway oil prices.
Dunusinghe said so responding to interviewer Pasan de Silva who sought expert opinion on the crisis. Referring to continuing Iranian retaliatory attacks on Gulf countries hosting US military bases, the academic pointed out that approximately one million Sri Lankans were employed in the region.
Global oil prices rose to over $100 per barrel on 08 March, for the first time since the Russia-Ukraine war erupted in February 2022. By noon prices were around USD 115 per barrel.
If a consensus couldn’t be reached soon, the consequences for Sri Lanka would be devastating, Dunusinghe said, suggesting that the government should seriously consider, what he called, a relatively small but immediate fuel hike to cushion the impact of future fuel price hikes.
Dunusinghe explained that in addition to the drop in remittances from the Middle East, Sri Lanka could lose employment opportunities in the war devastated region. Responding to the interviewer, the Prof said that if the situation further deteriorated the government would have to face the daunting challenge of evacuating Sri Lankans from the Middle East.
Referring to the devastating impact of Cyclone Ditwah, Dunusinghe pointed out that in terms of the agreement with the IMF, finalised in 2023, the debt repayment would have to be recommenced in 2028. The new Middle East war has placed the country in an extremely difficult situation, Dunusinghe said, while emphasising the responsibility on the part of the government to address the issues at hand immediately.
The rapidly changing oil markets indicated that regardless of optimism expressed by the US and Israel of swift victory, the ground realities were quite different, the academic said.
By Shamindra Ferdinando
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