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Lanka to launch urgent reforms to address fiscal challenges
(PTI) Cash-strapped Sri Lanka will have to undertake serious fiscal reforms to revive the ailing economy as it has identified a huge gap between the state’s revenue and expenditure, a senior official said on Friday.Addressing a seminar, Secretary to the Treasury Mahinda Siriwardena said, “We have an average monthly income of 145 billion rupees where the monthly expenditure amounts to 157 billion.”
He said the monthly state pay bill was 93 billion with another 27 billion for pensions. With the cost of the poor relief, social welfare costs, and capital expenditure of 11 billion there would be a revenue shortfall.
“We are made to borrow to finance the gap. This is why fiscal reforms were needed to bring down expenditure and raise revenue”, Siriwardena stressed.
The government has been facing opposition to its anticipated tax reforms which would see drastic rises in personal income taxes from employment.All salaries exceeding 100,000 per month are to be taxed at higher bands.
“These tax proposals with direct taxation would only affect 10 per cent of the population. We appeal to them to help the rest of the 90 per cent to live”, Ranjith Siyambalapitiya the state minister of finance had said.
The opposition and professional groups have already raised objections to tax hikes.Trade unions have vowed to lead public protests against tax reforms.
Sri Lanka is going through its worst economic crisis since its independence in 1948, triggered by a severe paucity of foreign exchange reserves.The government in May appointed international legal and debt advisors for debt restructuring after the country declared its international debt default in mid-April this year for the first time in history.
Sri Lanka is nearly bankrupt and has suspended repaying its USD 51 billion foreign debt, of which it must repay USD 28 billion by 2027.The cash-strapped country is now trying to secure a USD 2.9 billion bridge loan from the International Monetary Fund (IMF), and looking at financial assurances from its major creditors — China, Japan, and India — which is requisite for the island nation to get the bailout package.
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Timely and accurate data essential for effective decision making – PM
A meeting was held to discuss post-disaster planning and the reconstruction process, with special focus on flood-prone areas on Monday [8 th of December] at the Prime Minister’s Office under the patronage of the Prime Minister, and attended by representatives from the United Nations Development Programme (UNDP), the World Bank, and the United Nations Office for Project Services (UNOPS).
During the meeting, the Prime Minister emphasized the critical importance of timely and systematic information and data collection to support timely and effective decision-making on a daily basis following the post disaster situations. The Prime noted that accurate data flows are essential for guiding recovery efforts in the short and long term.
The Representatives outlined the need assessment process using RAPIDA and Global Rapid Post-Disaster Damage Estimation (GRADE), the UNDP’s post-crisis assessment initiated by integrating GIS technology, satellite imagery, and ground-level data, to deliver real-time, actionable insights after a crisis to helps identify affected locations, communities, infrastructure damage, debris estimates, and land use changes-providing crucial data.
The representatives of UNDP reaffirmed their commitment to supporting the Government and they expressed their readiness to collaborate closely and to strengthen ongoing partnerships to enhance the efficiency and effectiveness of post-disaster response and reconstruction activities.
The discussion was attended by the Country Manager for World Bank Dr. Gevorg Sargsyan, Resident Representatives for United Nations Development Programme (UNDP) Ms. Azusa Kubota, South Asia Director for United Nations Office for Project Services ((UNOPS), and Secretary to the Prime Minister Pradeep Saputhanthri, Additional Secretary (Development) Ms Sagarika Bogahawaththa and officials from the Department of National Planning.
[Prime minister’s media division]
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Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation
The Bandaranaike Memorial National Foundation has donated Rs. 250 million to the Government to support the rebuild of the country following the emergency situation caused by the Ditva cyclone.
Chairperson of the Bandaranaike Memorial National Foundation, former President Chandrika Bandaranaike, together with the Board of Directors, handed over the cheque to Prime Minister Dr. Harini Amarasuriya on 08 th of December at the Prime Minister’s Office.
Subsequently, a cordial discussion was held between the Foundation’s Chairperson, former President Chandrika Bandaranaike, and Prime Minister Dr. Harini Amarasuriya.
The occasion was attended by the secretary to the Prime Minister Pradeep Saputhanthri, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi, and representatives of the Board of Directors of the Bandaranaike Memorial National Foundation.

[Prime Minister’s Media Division]
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Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
The Level III RED landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 1600hrs tomorrow [10th December 2025].
Accordingly,
The LEVEL III RED landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Panvila, Udapalatha, Minipe, Poojapitiya, Gangawata Korale, Thumpane, Doluwa, Pathadumbara, Ganga Ihala Korale, Harispattuwa, Akurana, Ududumbara, Pathahewaheta, Hatharaliyadda, Yatinuwara, Deltota, Medadumbara, Udunuwara, Kundasale and Pasbage Korale in the Kandy district, Yatiyanthota, Rambukkana, Aranayaka, Warakapola, Galigamuwa, Mawanella and Bulathkohupitiya in the Kegalle district, Mallawapitiya, Rideegama and Mawathagama in the Kurunegala district, and Ukuwela, Pallepola, Rattota, Matale, Laggala Pallegama, Yatawatta, Naula, Ambanganga Korale and Wilgamuwa in the Matale district have been extended.
LEVEL II AMBER landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Uva Paranagama, Hali_Ela, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Ella, Haputhale, Lunugala, Welimada, Haldummulla and Passara in the Badulla district, Ruwanwella, Dehiowita, Kegalle and Deraniyagala in the Kegalle district, Alawwa and Polgahawela in the Kurunegala district and Nuwara Eliya, Nildandahinna, Thalawakele, Kothmale West, Mathurata, Ambagamuwa Korale, Hanguranketha, Walapane, Kothmale East and Norwood in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela in the Ratnapura district have also been extended.
LEVEL I YELLOW landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Mirigama, Divulapitiya and Attanagalla in the Gampaha district, Narammala in the Kurunegala district, and Kiriella, Balangoda, Kuruwita, Openayake, Nivithigala, Kaltota, Pelmadulla, Kalawana, Eheliyagoda, Elapatha, Ayagama, Imbulpe and Ratnapura in the Ratnapura district.
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