News
JVP predicts crash of economy imminent, due to mismanagement
By Saman Indrajith
The 2020 Central Bank annual report presented to Parliament last week is a testimony to the fact that the country’s economy is in dire straits, says the JVP.
Addressing the media at the party headquarters in Pelawatte yesterday, JVP Politburo member and former MP Sunil Handunnetti alleged that the government was using the funds meant for the development of the country for its projects to cling on to power. “The Central Bank report confirms many warnings we have been issuing in the recent past. The country’s economy is sliding into a recession and there would be a crash soon. The economy recorded a growth of -1.6% during the first quarter of 2020. That was before the onset of the pandemic. The situation worsened in the second quarter. The government is citing the pandemic as the reason for the sharp economic downturn.
“The impact of the pandemic on the economy is evident, but what we are experiencing is mainly due to the economic mismanagement. There are five main crises in our economy. The first is the loan crisis. The revenue received by the Treasury is not sufficient even to pay the installments of loans taken. To pay-back the due installments the country needs to borrow an additional 135 billion rupees. The total outstanding loans as at 2019 was Rs 14,115 billion. That increased to Rs 16,427 billion in 2020. The government has to pay 6.9 billion US dollars as loan repayments. The second is the import-export crisis.
“The government came into power promising to improve the production industry and bring down imports. We have sea areas, which eight times the country’s land masse, but we imported fish worth Rs 34,650 million in 2020. In 2010, we produced 27 percent of the onion requirement in this country; now it has dropped to eight per cent so that we have to import 92 per cent of the country’s onion requirement. We have imported Rs 27,610 million worth of salt, milk and milk products worth Rs 61,930 million. The third crisis is the weak government revenue. In 2016 the government income was around 23 per cent of the GDP. As at 2014 the figure dropped to 11.5 per cent. Now it’s at 9.1 percent.
“The fourth crisis is the collapse of the industrial sector due to the high cost of raw materials, failure to combine technological support with the industrial process and inability to create a proper market for industrial output. The fifth crisis is the inequitable distribution of national wealth.”
Of the total population, the top 10 percent of rich enjoy 38.4% of national income while 10 per cent at the bottom receive only 1.1 per cent of the national income. There is a huge tax burden on the people. This government promised to maintain 40 percent direct taxes and 60 percent indirect taxes. Yet now the indirect taxes are around 80 percent. Sri Lanka is the only country in the world with this much taxes on food consumed by the people. Even in India it’s 49 per cent, in Indonesia its 50 percent and in Thailand it is at 40 percent.”
JVP Central Committee Members Wasantha Samarasinghe and Nalin Hewage also addressed the press.
Latest News
Advisory for low pressure area over South-east Bay of Bengal Sea area
The Natural Hazards Early Warning Centre of the Department of Meteorology has issued an advisory at 11.30 pm on 05 January 2026 regarding a low pressure area over South-east Bay of Bengal Sea area.
The low-level atmospheric disturbance in the Bay of Bengal, to the southeast of the Sri Lanka has intensified into a low-pressure area.
Hence, showery condition over the island, particularly
in the Northern, North-Central, Eastern, Uva and Central provinces is expected to enhance from January 8th.
The Meteorological Department is constantly monitoring the behavior of the system.
The general public are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regards.
News
US raid on Venezuela violation of UN Charter and intl. law: Govt.
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath yesterday (05) told a media conference at his Ministry that the UN should deal with the US for violating international law.
Herath, who is also a senior member of the ruling National People’s Power (NPP) party’s National Executive Council, in addition to being a member of the JVP politburo, emphasised that member states couldn’t violate UN Charter and international laws.
The Minister said so when The Island sought the government’s position on the abduction of legally elected Venezuelan President Nicolás Maduro and his wife in a lightning raid carried out amidst heavy air strikes on that country. We raised the issue at hand pointing out that there were persistent allegations regarding US and Indian interventions in the 2022 regime change operation here and that the NPP finalised defence agreements with Washington and New Delhi.
Minister Herath said that Sri Lanka backed the ongoing UN Security Council bid to deal with the developing situation in Venezuela.
Herath was flanked by Deputy Foreign Minister Arun Hemachandra and Deputy Tourism Minister Prof. Ruwan Ranasinghe.
Minister Herath said that the UN Security Council was scheduled to take up this issue today. The US is one of the five members of the UN Security Council.
In terms of the UN Charter, UN members are to refrain from the “use of force” against the territorial integrity or political independence of any state. Another permanent member of the UN Security Council, France, broke ranks with the Western block to condemn US action. France unequivocally declared that the US operation was a “violation of sovereignty.
Minister Herath didn’t respond to the query whether he discussed the issue at hand with President Anura Kumara Dissanayake.
While pointing out that Sri Lanka had been subjected to foreign interventions, The Island sought the position the JVP in respect of US President Donald Trump threatening to move against Mexico, Cuba and Colombia as the party always took a strong stand against US actions. Declaring that his response would be for the government and not the JVP, Minister Herath said that there was a way to deal with situations through the UN.
Minister Herath strongly defended recently signed agreements with India and US pertaining to defence. Stressing that both agreements were beneficial, Minister Herath pointed out that they weren’t defence agreements but security cooperation arrangements.
The US and Sri Lanka signed a Defence Memorandum of Understanding (MoU) in November 2025, formalising defence cooperation under the State Partnership Programme (SPP) with the Montana National Guard. The MoU with India was signed in April, 2025. It was among seven MoUs.
Referring to devastating Cyclone Ditwah, the Minister said that India provided material support under the MoU signed in April whereas the US provided 10 helicopters to the SLAF recently.
Responding to a query on US-Sri Lanka tariff negotiations, Minister Herath said that about 95% of the negotiations have been finalised.
At the onset of the briefing, Minister Herath and Deputy Ministers Prof. Ranasinghe and Arun Hemachandra explained how the tourism sector and expatriate Sri Lanka work force contributed to the national economy.
Referring to Central Bank figures, they declared that tourism had brought in USD 3.2 bn whereas expatriate workers contributed USD 7.19 bn up to November last year. Once the Central Bank made available December figures it could reach USD 7.8 bn, they said. Tourism and expatriate work force together brought in as much as USD 11.6 bn, they declared, expressing hope 2026 would definitely be better.
Although the devastation caused by Cyclone Ditwah caused concerns that it may cause a significant drop in tourist arrivals, a steady flow of visitors paved the way for a comfortable 15% increase in arrivals by end of 2025, they said.
Minister Herath said that the government was happy that the country recorded the highest number of tourist arrivals this year.
By Shamindra Ferdinando
News
Ban on foreign research vessels: FM promises decision within two months
Foreign Minister Vijitha Herath yesterday said that the government would announce its decision on the ban on foreign research vessels entering Sri Lankan waters.
Addressing the media at the Foreign Ministry, Minister Herath, in response to a query, said that they were in the process of addressing the issue.
Former President Ranil Wickremesinghe declared a moratorium on the entry of foreign research vessels during 2004. Although the NPP government, in December, 2004, declared its position would be made known soon, the decision was not taken during last year. Wickremesinghe took that decision under intense Indian and US pressure to deny entry of Chinese research vessels (SF)
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