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Milinda blames halfhearted economic reforms over the years for current crisis

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Milinda Moragoda

Milinda Moragoda, Founder of the Pathfinder Foundation, yesterday released a six-point statement concerning the present economic situation.

“The bitter truth that half-hearted economic reforms by successive governments have been a major contributory factor to the current economic crisis”, Moragoda says, noting that it is critical that all political parties and society at large come to terms with the fact that economic reform and privatisation are integral components of any successful development programme.

Full text of the statement:

1) We must face the bitter truth that half-hearted economic reforms by successive governments have been a major contributory factor to the current economic crisis. The only solution to Sri Lanka’s present economic predicament is rapid economic growth. This can only be achieved through an outward-looking export and foreign-investment driven economic strategy. Such strategies have driven rapid growth and poverty alleviation in a number of other countries.

2)  In Sri Lanka, such an economic transformation can only take place if the political formation governing the country is unequivocally committed to deep economic reforms that are predicated on clear policies based on competitiveness, global connectivity, privatisation, and small government.

3)  If Sri Lanka is to come out of this economic collapse, the country will require annual growth rates of well over 5% for the next 10 years.

4)  According to present forecasts, the economy is not expected to grow at more than 3% annually until 2032. Furthermore, the GDP-to-debt ratio in 2032 is expected to be at 95%, which will still leave our economy in an extremely fragile and precarious position.

4)  In such a scenario, even after restructuring, Sri Lanka’s ability to service her debt could come into question, resulting in repeated restructuring and the austerity that goes with it.

5) It is critical that all political parties and society at large come to terms with the fact that economic reform and privatisation are integral components of any successful development programme. In that regard, it is incumbent upon all political parties to incorporate these aspects into their election manifestos at the very outset. This will serve to address the repeated policy reversals that have resulted in a lack of stability and predictability in the policy framework.

6) All parties should cost the proposals they put forward and explain how they intend to finance them. The era in which political parties make populist promises during election campaigns, then mislead the citizens after taking office, must be brought to an end.



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PM Harini leads panel to protect public services

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Prime Minister Dr Harini Amarasuriya

The newly appointed Cabinet Committee tasked with ensuring the uninterrupted functioning of Sri Lanka’s public service held its inaugural meeting on Thursday (19) at the Presidential Secretariat under the patronage of Prime Minister Dr Harini Amarasuriya.

The Committee convened to discuss strategies to maintain seamless government operations in the face of potential disruptions caused by the ongoing conflict situation in the Middle East, with particular focus on energy resource management.

According to officials, the discussions emphasised sustaining essential government services, ensuring continued service delivery to the public, and addressing the operational challenges faced by public sector employees during the current circumstances. The Committee also examined measures to mitigate any disruptions that could affect day-to-day administrative and service functions across ministries and departments.

Key attendees at the meeting included the Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abayaratne; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the

Prime Minister Pradeep Saputhanthri; Chief of Staff to the President Prabath Chandrakeerthi; and senior secretaries from key ministries including Health and Mass Media, Transport, Highways and Urban Development, Energy, and Digital Economy.

Representatives from state institutions such as the Ceylon Petroleum Corporation were also present, highlighting the government’s focus on energy security as a central priority. The Committee’s deliberations underscored a coordinated approach to balancing uninterrupted public service delivery with effective management of limited energy resources amid the ongoing geopolitical uncertainties.

Observers note that the formation of this Cabinet Committee reflects the government’s proactive stance in safeguarding national administrative functions and ensuring that critical public services remain resilient during times of external pressures.The Committee is expected to meet regularly to monitor developments, evaluate emerging risks, and implement practical measures to maintain operational continuity across the public sector.

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Sajith slams President over war conduct and economic missteps

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Opposition Leader Sajith Premadasa on Friday lashed out at President Anura Kumara Dissanayake in Parliament, accusing him of failing to uphold international law during wartime.

Premadasa said the President’s claim of neutrality ignored breaches of the UN Charter—including Articles 2.4 and 2.7—and other global conventions. “A neutral stance requires openly acknowledging violations,” he argued, criticizing the absence of ethical mechanisms to safeguard international law.

He also questioned the President’s handling of maritime issues, particularly whether Sri Lanka had been informed of the alleged attack on the Iranian vessel IRIS Dena, stressing that the Exclusive Economic Zone (EEZ) permits only peaceful activity.

On the economic front, Premadasa condemned the government for missing a chance to buy Russian oil during a 30-day U.S. sanctions suspension.

He said attempts to advise the Foreign Ministry, including a meeting with the Russian Ambassador, yielded no progress.

Premadasa further ridiculed the government’s earlier dismissal of the QR code fuel system, noting that officials are now adapting to it.

Turning to broader economic concerns, he called for immediate negotiations with the IMF to secure a new agreement, warning that the current primary balance of 2.3 is unsustainable. He stressed the urgent need for a poverty-reduction program, highlighting that one-third of Sri Lankans live in poverty.

He also demanded that surplus Treasury funds be used to support relief packages, arguing billions in reserves could aid households struggling with income shortfalls.Concluding his address, Premadasa criticized the government for failing to prepare for foreseeable crises, leaving the country vulnerable.

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Johnston Fernando, sons held in Lanka Sathosa lorry misuse case

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Former Minister Johnston Fernando, his two sons, and three others were remanded by the Wattala Magistrate’s Court yesterday (20) until April 2, the court confirmed.

The suspects, including Fernando’s elder son Johan, younger son Jerome, and a former transport manager of Lanka Sathosa, are under investigation by the Police Financial Crimes Investigation Division (FCID).

Authorities allege the Lanka Sathosa lorry was misused for operations linked to an ethanol company reportedly owned by Fernando, causing an estimated Rs. 2.5 million loss to the state.

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