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Lanka will slash defence expenditure, President says
There will be cuts in the defence expenditure in the coming interim budget, President Ranil Wickremesinghe has told Reuters in an interview on Thursday.Wicrkemesinghe said that overall state expenses would be slashed by a few hundred billion rupees, and these would be redirected to welfare and debt repayment.Sri Lanka would seek Japanese help on bilateral debt restructuring with the country’s main creditor nations, including China and India, he said.
“Someone needs to call in, invite the main creditor nations. We will ask Japan to do it,” President Ranil Wickremesinghe told Reuters.
The President added that he would travel to Japan next month to meet Japanese Prime Minister Fumio Kishida.Wickremesinghe said that Sri Lanka expectedan IMF facility between 2 billion and 3 billion US dollars.
An IMF delegation was expected to visit Sri Lanka by the end of August to reach a staff-level agreement. After Sri Lanka reached a staff-level agreement with the IMF, it had to start engaging with its creditors on debt restructuring, he said.The President also said that an interim budget will be presented in September. The budget will focus on fiscal consolidation measures agreed with the IMF, he added. A full budget will be presented in November and he will outline broader recovery plans, Wickremesinghe said.
“So, both those budgets will put out government policy. The first one on stabilization and the second one will look at recovery,” he told Reuters.
Wickremesinghe said he believes that the economy will see some recovery, in the second half of 2023. There will be a three percent revenue surplus by 2025, he said.
“I think we are restructuring to make Sri Lanka a very competitive, export-oriented economy,” he told Reuters.
Wickremesinghe has also said that he is not aware of any plans by former President Gotabaya Rajapaksa to return to the country in late August, as reported by some media.
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Landslide Early Warnings issued to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya
The landslide early warning center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya in force from 1200hrs on 06th January to 1200hrs on 07th January 2026.
Accordingly,
Level III RED landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.
Level II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Hanguranketha and Mathurata in the Nuwara Eliya district.
Level I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Hali_Ela, Badulla, Passara, Lunugala, Welimada and * Meegahakiwula in the Badulla district, Doluwa in the Kandy district, Ambanganga Korale in the Matale district, and Bibila in the Monaragala district.
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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
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