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IMF signals difficult obstacle course for Lankan government to complete, including power tariff hikes to ensure cost recovery

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The International Monetary Fund (IMF) says that the approval for the fourth review of Sri Lanka’s programme, under the Extended Fund Facility (EFF), is contingent on the government completing prior actions, including restoring electricity cost recovery pricing.

Addressing the IMF’s weekly press briefing on Thursday the IMF spokesperson Julie Kozack stated that the completion of the review is subject to approval by the executive board and that the IMF expects the board meeting to take place in the coming weeks.

However, Kozack noted that the precise timing of that board meeting is contingent on two things – the first is the implementation of prior actions. She stated that the main prior actions are relating to restoring electricity cost recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism.

The second contingency is the completion of the financing assurances review which will focus on confirming multilateral partners committed financing contributions to Sri Lanka and whether adequate progress has been made in debt restructuring, the IMF spokesperson highlighted.

“So in a nutshell, completion of the review is subject to approval by the executive board. We expect the board meeting to take place in the coming weeks and it is contingent on the two said matters”, Kozack expressed.

On 25th April, the IMF staff and the Sri Lankan authorities reached staff-level agreement on the fourth review of Sri Lanka’s programme under the EFF. Once the review is approved by the IMF executive board, Sri Lanka will have access to about USD 344 million in financing.



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Families of those sentenced to death for killing MP Atukorale seek AKD’s intervention

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FSL assures legal backing for them

Families of those sentenced to death by the Three-member Gampaha High Trial-at-Bar, over the killing of SLPP MP Amarakeerthi Atukorale, and his police bodyguard, met a senior official of the Presidential Secretariat, yesterday (23), to seek backing for their move to appeal against the verdict.

Having made representations, they addressed the media, outside the Presidential Secretariat, where they declared their intention to move the higher court against the decision.

The SLPP MP and his security officer were killed by an Aragalaya mob on 09 May, 2022, at Nittambuwa. The same day Aragalaya mobs unleashed violence against the then government MPs across the country, torching dozens of their properties.

The Frontline Socialist Party (FSP) yesterday said that they would help the families of those sentenced to death to move court against the Gampaha High Court Trial-at-Bar decision. Responding to The Island queries, FSP spokesman Pubudu Jayagoda said that their representatives had already met the families and necessary work was being done to move the Supreme Court. Twenty three persons were acquitted and four handed six-month prison terms, suspended for five years

Jayagoda said that one of the HC judges differed in the ruling. Asked whether they received backing from any other political party and groups that had been involved in the 2022 protest campaign to defend those who had been found guilty, Jayagoda said such support was lacking.

The JVP/NPP played a significant role in the violent protest campaign that forced President Gotabaya Rajapaksa to step down. Pointing out that the Attorney General, too, was appealing against the court decision on the basis that the number of persons sentenced to death should be much higher, Jayagoda said that the Nittambuwa incident couldn’t be examined in isolation without taking into consideration the SLPP goon attack on Galle Face protesters on 09 May, 2022. (SF)

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OPV leaves Baltimore, expected in Colombo in May

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SLN officers wave to those on the shore as the newly acquired P 628 departs Baltimore, US (pic courtesy SLN)

Offshore Patrol Vessel P 628 of the Sri Lanka Navy departed Baltimore, USA, for Colombo, on 20 February.

The ex-United States Coast Guard Cutter, USCGC Decisive was officially handed over to the SLN on 02 December, 2025, as the latest addition to the SLN fleet, under the Pennant Number P 628.

Measuring 64 metres in length, this ‘B-Type Reliance Class 210-foot Cutter’ is equipped with advanced technological systems and facilities, capable of conducting extensive surveillance operations spanning up to 6,000 nautical miles per patrol.

The vessel’s voyage to Colombo is historic, possibly marking the longest-ever passage undertaken by a Sri Lanka Navy ship. Covering approximately 14,775 nautical miles, the journey will see the P 628 navigate from Baltimore through the Atlantic Ocean, the Panama Canal (a first for a Sri Lankan naval vessel), the Pacific Ocean, and into the Indian Ocean, via the Straits of Malacca. The ship is expected to arrive in Sri Lanka during the first week of May, 2026.

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Unions sound alarm over coal procurement and power sector restructuring

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Power sector is once again facing mounting turbulence, with trade unions alleging serious irregularities in coal procurement and warning that ongoing restructuring efforts could trigger far-reaching consequences for the country.

Kosala Abeysinghe, President of the Ceylon Electricity Board Technicians’ Union, said the energy sector is being pushed towards “a dangerous and avoidable crisis” at a time when the nation is still navigating a fragile economic recovery.

Abeysinghe alleged that a “coal scam” has created serious concerns within the sector.

“There are grave questions surrounding the coal procurement process,” Abeysinghe said. “If these irregularities are not immediately investigated and rectified, the financial burden will ultimately fall on the people of this country.”

Coal-fired generation remains a critical pillar of Sri Lanka’s electricity supply. Any disruption in procurement or pricing mismanagement has the potential to increase generation costs and impact consumer tariffs.

“This is not just about a tender or a contract,” he stressed. “It directly affects electricity tariffs, supply stability and the economic wellbeing of millions of citizens.”

Abeysinghe also voiced strong opposition to what he described as an “irregular and unstructured” restructuring of the power sector. According to him, reforms are being carried out without adequate technical consultation or stakeholder consensus.

“The restructuring process appears to be moving forward without a clear, transparent and technically sound framework,” he said. “Weakening the institutional strength of the power sector in this manner could create long-term vulnerabilities.”

He further emphasised that the unfolding situation goes beyond trade union interests.

“This is not merely a labour issue,” Abeysinghe said. “It is a national issue. The stability of the electricity supply underpins every household, every business and every industry in Sri Lanka.”

Warning of possible escalation, he noted that trade unions are prepared to consider further action if their concerns are not addressed.

“We do not wish to inconvenience the public,” he added. “However, we cannot remain silent if decisions are being taken that endanger the country’s energy security.”

With electricity supply forming the backbone of Sri Lanka’s economic activity, the allegations and warnings are likely to intensify scrutiny over the management and future direction of the energy sector in the coming days.

by Ifham Nizam

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