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Implementing budget proposals and reform measures crucial for SL – CBSL Governor

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Hiran H. Senewiratne

Sri Lanka needs to implement budget proposals and reform measures to start earning crucial foreign exchange to help stabilize its economy and ensure it does not return to crisis, Governor of the Central Bank, Dr. Nandalal Weerasinghe said.

“The situation in the island nation is stable but at a very low point and the Sri Lankan economy can turn around by the end of 2023 if budget policies are implemented, which are not limited to the International Monetary Fund’s recommendations, Dr Weerasinghe said at a post-budget panel discussion held at Central Bank auditorium yesterday titled, ‘Dissecting the Budget 2023’. The event was organized by the Centre for Banking Studies of the Central Bank of Sri Lanka, Rajagiriya.

Dr. Weerasinghe added: ‘The budget has to look at what reforms are needed to ensure Sri Lanka remains stable and does not return to crisis, expecting relief from creditors in the process. But in order to convince them to share the pain we also have to show them that we are taking a share of the pain as well.

‘The soaring inflation, a weakening currency and low foreign exchange reserves have left the island of 22 million people struggling to pay for imports of essentials, such as, food, fuel and medicine and is in dire need of an IMF bailout.

‘Sri Lanka signed a staff-level agreement with the IMF in early September but needs to get financing assurances from multiple creditors, including China and Japan, to secure disbursements.

‘The next crucial step is to get financing assurances and the IMF programme and additional financial support so that Sri Lanka can eventually return to a growth path.

‘Sri Lanka needs to reform its loss-making state-owned enterprises so they cease being a burden on the banks, the government and the people.’

Treasury Secretary K. M. Mahinda Siriwardana said at the same event that stabilizing the economy remained a challenge and the private sector must perform its role in aiding the government in pulling the economy out of crisis.

He said the government was setting up a Presidential Committee to monitor and ensure timely implementation of budget proposals.

‘Sri Lanka needs to stop depending on debt for its financing requirements and implement measures to bring in foreign exchange. At present the government has Rs 200 billion in unpaid bills, which need to be settled as soon as possible.

‘Addressing the chronic fiscal and current account deficits, while also collecting more revenue and maintaining a reasonable level of sovereign debt, were all going to be crucial.

‘The economy cannot be reformed overnight. That is a painful process. The next challenge is to implement the budget according to a timeline, Siriwardena added.

Sujeewa Mudalige, Chief Executive Officer, PwC Sri Lanka said that Sri Lanka’s revenue to GDP ratio is around 8.3 per cent, which is the lowest in the world. Further, it is 20 per cent of the budget deficit, which is very unstable.

Mudalige added: “My worry is that our estimated revenue for the 2023 of a 64 per cent increase in revenue expectations was highly optimistic because our economy is going through a contraction. But at this juncture we have to encourage US dollar- earning companies to invest here.

‘ A very high export tax of 30 per cent has really discouraged our exporters and they are now in the process of relocating their operations to other destination like Ethiopia, Bangladesh, Vietnam, Kenya and Egypt, which offer very low taxes for foreign investors.

‘Sri Lanka is spending Rs 500 billion to maintain its three armed forces and police, which would soon touch Rs one trillion. If the government allocated 10 per cent of that Rs 500 billion for health and education we could see a major transformation in the country.

Chairman, Jetwing Group, Hiran Cooray said at the panel discussion that present day youngsters don’t believe in the budget, because they are now unwilling to remain in Sri Lanka due to the uncertainty in it.

“As a country we need to protect our human resources. Therefore, we need to have a proper system to retain our youth in the country, if not we will be left with an aging population.

Executive Director of the Institute of Policy Studies of Sri Lanka (IPS) Dr. Dushni Weerakoon said that revenue targets set by the budget would not be achievable unless we strengthen our political and economic institutions.

‘Macro- economic stability, enhanced productivity and competencies, strengthened factor endowment ensure growth in every sector. This will not be achieved overnight but some genuine effort will take the country into proper growth trajectory.’



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Advocata Institute highlights regulatory barrier limiting women’s overtime earnings

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Advocata Institute says that, a regulatory barrier prevents Sri Lankan women achieving pay parity with their male counterparts despite recent legislative amendments that have opened doors for women to work night shifts.

Despite the 2024 and 2026 liberalizations of the Shop and Office Employees Act (SOEA), which allowed women over 18 to work night shifts in IT, BPO, and hospitality sectors, women remain legally barred from maximizing their income due to rigid overtime restrictions.

Under current regulations, women cannot be employed under the Shop and Office Act for more than nine hours per day, a limit that strictly includes overtime. While Regulation 6 of the Act permits up to twelve hours of overtime per week, this daily “hard cap” creates a practical barrier that prevents women from accessing the full overtime entitlement available to male workers. This creates a regulatory paradox: while the law now permits women to work at night, it simultaneously restricts them from working the hours necessary to take home the same pay as a man performing the same role.

The urgency for reform is underscored by the Sri Lanka Labour Force Survey for the third quarter of 2025, which reveals a significant participation gap. Female labour force participation stands at 33.9 percent, compared to 68.6 percent for men. Closing this gap is a key structural reform priority under Sri Lanka’s International Monetary Fund Extended Fund Facility (EFF) programme, which highlights the importance of modernizing labour laws to expand labour supply and support long-term economic growth.

Debates on reforming these restrictions are often framed around the concern that removing gender-specific protections could expose women to exploitation. However, a woman’s vulnerability in the labour market is shaped less by the absence of gender-specific laws and more by structural challenges such as inadequate public transport, poor workplace infrastructure, weak enforcement of law and order, and limited access to childcare.

Addressing these underlying barriers is critical to ensuring both protection and opportunity. True empowerment requires shifting the focus from paternalistic hour-caps to creating a safe, gender-neutral environment that allows women the agency to maximize their earnings and contribute fully to the national economy.

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Drifting lubricant barrels trigger oil spill on southern coast; 99% of clean-up completed

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Samantha Gunasekara

Authorities have traced the oil contamination reported along sections of the Hikkaduwa and Peraliya coastlines in the Galle District to drifting barrels of industrial lubricant, while rapid response teams have already removed almost all visible oil deposits from the affected beaches.

The Marine Environment Protection Authority (MEPA), together with the Sri Lanka Coast Guard, launched an immediate response after oil patches were detected along about a 20-metre stretch of coastline in the Hikkaduwa and Peraliya areas.

Addressing a media briefing at the Ministry of Environment, MEPA Chairman Samantha Gunasekara said emergency shoreline clean-up operations began on March 7 under the instructions of Environment Minister Dammika Patabendi.

“Nearly 99 percent of the oil patches have already been cleared from the affected coastal stretch,” Gunasekara said, adding that the swift intervention by authorities had prevented the incident from escalating into a wider marine pollution crisis.

Investigations carried out by MEPA have confirmed that the contamination originated from barrels containing Shell Corena S2 P 100 lubricant oil that had apparently been lost at sea and later drifted ashore.

The lubricant manufactured by Shell plc is commonly used to lubricate the internal components of reciprocating piston air compressors. Officials said the substance is not classified as a hazardous or toxic oil, easing initial fears of severe environmental damage.

MEPA General Manager Jagath Gunasekara said monitoring of the coastline was continuing to ensure that no additional oil patches washed ashore.

Meanwhile, the Department of Wildlife Conservation said there had been no confirmed reports of harm to marine animals, including sea turtles and coastal wildlife, following inspections in the affected areas.

Wildlife officials said they were continuing to keep the situation under close observation to ensure that marine fauna along the southern coast remained safe.

Authorities stressed that protecting the ecological integrity of the southern coastal belt—particularly around the Hikkaduwa marine area—remains a priority, while further investigations are under way to determine how the lubricant barrels ended up drifting in Sri Lankan waters.

By Ifham Nizam

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Support for psychological well-being: Launch of telemedicine psychology program in response to Ditwa Cyclone

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The Sri Lanka College of Psychiatrists has launched an innovative telemedicine psychology program designed to provide essential support and mental health care to individuals adversely affected by the Ditwa Cyclone. This initiative is a vital response to the psychological challenges faced by the community in the aftermath of the disaster.

However, the implementation of this program has faced significant obstacles, primarily due to a considerable lack of access to smart devices among the target beneficiaries. Recognizing the urgency of this situation, S-lon Lanka (Pvt) Ltd has made a commendable contribution by donating tablet devices through its corporate social responsibility initiative, the “Suwasahana Charika” Program. This generous donation aims to bridge the technological gap, ensuring that individuals in need can access the psychological services offered by the telemedicine program.

The collaborative efforts were strengthened during a recent event that was attended by key figures, including Mr. S.C. Weerasekara, the Group Director / Chief Operating Officer of The Capital Maharaja Group, and Dr. Dashanthi Akmemana, the Chairman of the Sri Lanka College of Psychiatrists.

The Sri Lanka College of Psychiatrists expressed its gratitude to S-lon Lanka for its support and is committed to addressing the community’s mental health needs during this challenging time.

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