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MR blames economic crisis on Yahapalana leaders

Published

2 years ago

2023/11/29

Mahinda Rajapaksa

SLPP leader Mahinda Rajapaksa yesterday (28) hit back at critics, claiming that a robust economy had been built under his presidency. He said the UNP-SLFP government which ruled the country during the 2015-2019 period should be held responsible for the current economic crisis.

The following is the text of a statement, titled ‘the origins of Sri Lanka’s economic crisis’ issued by former President Rajapaksa: “A heated discussion is now taking place about those responsible for the present economic crisis. The Central Bank reports will show that during my nine years as President, economic growth averaged 6% a year during the four war years, from 2006 to 2009, and it increased to 6.8% in the five post-war years, from 2010 to 2014. Hence Sri Lanka’s per capita GDP increased threefold from USD 1,242, at the end of 2005, to USD 3,819 by the end of 2014. The contribution that my government made to Sri Lanka’s per capita GDP was well over twice that of all other post-independence governments, from 1948 to 2005, put together. Though the per capita GDP came down to USD 3,474 in 2022 as the pandemic caused the economy to contract, that statement remains valid to this day.

The debt to GDP ratio was a very healthy 69% at the end of 2014 having being brought down from 90% at the end of 2005. The All Share Price Index rose from 1,922, at the end of 2005, to 7,299 by the end of 2014. This economic boom was achieved despite the war, the global food crisis of 2007, the global financial crisis of 2008-2009 and the highest crude oil prices in world history. Crude oil cost an average of USD 74 per barrel throughout the entire period from 2006 to 2009 and an average of USD 103 from 2010 to 2014. The IMF Country Report No. 14/285 of September 2014 stated firstly that Sri Lanka’s “Macroeconomic performance has generally exceeded expectations”. Secondly that “Sri Lanka has made notable advances in recent years, and appears to be on its way to joining the ranks of upper middle income countries”. Thirdly that “Sri Lanka’s economic growth has been among the fastest in Asia’s frontier and developing economies in recent years”.

Hence the fact that I left behind a very robust economy in January 2015 is well documented. After I was voted out, the economic growth rate dropped to 4.2% in 2015 and ended up in the negative range at 0.2% below zero by 2019. Sri Lanka’s total outstanding external debt had increased by nearly 28% from USD 42,914 million at the end of 2014, to USD 54,811 million by the end of 2019. The debt to GDP ratio which had been brought down to 69% by the end of 2014, had increased to nearly 82% by the end of 2019. The All Share Price Index declined from 7,299 at the end of 2014 to 5,990 by the end of October 2019. Yet during the entire five-year period from 2015 to 2019 the average price of crude oil was USD 60 per barrel – the lowest in recent history.

There were no external reasons for Sri Lanka’s economic decline between 2015 and 2019. India and Bangladesh experienced average growth rates in excess of 7% and the Maldives over 6% during this period. Even developed countries like the USA and Germany experienced robust economic performance during those years. However, Sri Lanka’s average growth rate between 2015 and 2019 was just 3.5%, equal to the growth rate recorded in 2021 at the height of the pandemic. The accumulation of foreign commercial debt between 2015 and 2019 particularly in the form of International Sovereign Bonds (ISBs) was by far the worst disaster to befall us during that period.

When I was defeated in January 2015, outstanding ISBs amounted to USD 5,000 million and it was amply covered by our foreign reserves of USD 8,208 million. However, between 2015 and 2019 outstanding ISBs increased threefold to USD 15,050 with borrowings of USD 2,150 million in 2015, USD 1,500 million in 2016, USD 1,500 million in 2017, 2,500 million USD in 2018 and USD 4,400 million in 2019. Of this, USD 2,000 million was used to rollover ISB’s taken during my tenure, thus the total amount in new ISB’s issued between 2015 and 2019 is USD 10,050 million. Despite the build-up of the stock of outstanding ISBs to USD 15,050, Sri Lanka’s total foreign reserves was just USD 7,642 million at the end of 2019.

Thus, when I became Prime Minister again in November 2019, our government inherited an economy that was already on its last legs. It was in this weak and vulnerable situation that the Covid-19 pandemic hit Sri Lanka in early 2020 – the consequences of which needs further discussion. In any discussion of the economy, it is vital to note that the per capita GDP is the most fundamental economic indicator used to judge the economic situation of a country and the contribution of my 2006-2014 government to increasing Sri Lanka’s per capita GDP is more than double that of all other post- independence governments put together. The people of this country should base their decisions on proper data and facts and not on noise, lies and propaganda. Sri Lanka cannot afford another political mistake like that of January 2015. “

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Dr. Bellana: “I was removed as NHSL Deputy Director for exposing Rs. 900 mn fraud”

Published

1 hour ago

2025/12/30

Sahan Weerasooriya

Dr. Bellana

Interdicted Deputy Director at the National Hospital, Sri Lanka (NHSL) Dr. Rukshan Bellana yesterday (29) alleged that the powers that be moved against him for seeking the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) investigation into a massive fraud at the NHSL laboratory.

Dr. Bellana said so in response to The Island query regarding the circumstances the Health Ministry interdicted him on 18 December, through a letter, as directed by the Health Committee of the Public Service (PSC) Commission. “That letter has been signed by an Additional Secretary, as Health Secretary Dr. Anil Jasinghe was overseas,” Dr. Bellana said.

Dr. Bellana stated that the government had paid for reagents, contaminated or close to expiry dates, obtained from a leading local medical supplier, since 2022. He emphasised that his complaint to the CIABOC, and subsequent complaint to the Criminal Investigation Department (CID), were entirely based on the issues raised by the National Audit Office (NAO).

Responding to another query, Dr. Bellana said that the public funds, amounting to Rs. 900 mn, had been spent on chemical reagents past expiry dates. Regardless of the intervention made by the NAO, the NHSL continued to procure supplies from the same company, Dr. Bellana said, adding that he had received the unconditional support of the civil society. Among them were Dr. Chamal Sanjeewa, President of Medical and Civil Rights Professional Association of Doctors (MCPA), President of Academy of Health Professionals Ravi Kumudesh, and leader of Mage Rata Sanjaya Mahawatta.

Dr. Bellana said that he had complained about the scam to the CIABOC in June this year.

Dr. Chamal Sanjeewa, who also lodged a complaint with CIABOC, regarding the same matter, is on record as having said in September this year that the reagents had been procured over a three-year period without the proper approval of the Medical Supplies Division of the Ministry. Dr. Sanjeewa has alleged that some of the reagents were either contaminated or close to expiry dates, while contracts had been given to a single company at unapproved prices.

Dr. Bellana said that had there been a proper system for CIABOC and law enforcement authorities to act on findings made by the NAO they wouldn’t have personally intervened in the NHSL laboratory matter. “Parliament should look into this. Did Parliament take up the NHSL laboratory matter at the relevant watchdog committee or at the Sectoral Oversight Committee that handled health?” Dr. Bellana asked.

Asked whether the letter that informed him of his interdiction gave any specific reason for the action taken, Dr. Bellana said the Ministry had found fault with him for speaking to the media. The irate ex-official said that he never hesitated to take a stand against injustice. “When former Health Minister Keheliya Rambukwella was accused of corruption, pertaining to medical procurement, I condemned the Minister. Lambasted those responsible for wrongdoings.”

Dr. Bellana said that the NAO had dealt with mega crime involving the public and private sector. “That is the undeniable truth. Parliament should look into this as public money is its responsibility. Having vowed to stamp out corruption, the NPP was allowing and encouraging those who had been making money at the expense of the sick, Dr. Bellana said.

Dr. Bellana said that as many as 10,000 tests were conducted daily at the NHSL. The racketeers had been active during Aragalaya as the NHSL and the private supplier reached agreement in 2022 and the process continued even after the last presidential election, conducted in September 2024.

Dr. Bellana said that the long delay in finalising the Auditor General’s appointment exposed the government. If those holding high political office were genuinely interested in fighting corruption, they wouldn’t have allowed that Office of AG stay vacant even for a day.

Dr. Bellana noted the tough statements issued by the Bar Association, Transparency International Sri Lanka and the Committee on Public Finance demanding the immediate appointment of AG.

Health Ministry officials were not available for comment.

By Shamindra Ferdinando

News

BIA unions demand bonuses equal to five months’ basic salaries

Published

1 hour ago

2025/12/30

Sahan Weerasooriya

BIA unions, including those affiliated to political parties, are demanding bonuses equal to five months’ basic salaries.

A group of workers yesterday (29) protested outside BIA urging the Airport and Aviation Services Sri Lanka (Private) Ltd to increase their bonuses. They claimed that the Chairman of Airport and Aviation Services Sri Lanka (Private) Ltd., Air Vice Marshal (Retd) Harsha Abeywickrama, had assured them that they would be paid bonuses worth five times their basic salaries.

The SriLankan Nidahas Sewaka Sangamaya (SLNSS) of the airport, the Podujana Sewaka Sangamaya, the Pragathishili Sewaka Sangamaya, the Jathika Sevaka Sangamaya, and the SLNSS of SriLankan Airlines joined the protest.

News

People warned of rising water levels at Kotmale reservoir

Published

1 hour ago

2025/12/30

Sahan Weerasooriya

The Sri Lanka Mahaweli Authority has issued an urgent safety warning to residents living along the banks of the Kotmale Oya and the Mahaweli River, as water levels in the Kotmale Reservoir are reaching maximum capacity.

According to a special weather advisory issued by the Department of Meteorology on December 26, 2025, heavy rainfall is expected in the catchment areas over the coming days.

In response, the Mahaweli Authority released a statement on December 27, warning that spill gates may have to be opened to manage the water flow.

Eng. A.M.A.K. Seneviratne, Resident Engineer and Deputy Director of the Kotmale Reservoir, stated that the opening of spill gates would lead to a significant rise in the water levels of both the Kotmale Oya and the Mahaweli River.

Areas on Alert

Residents in the following Divisional Secretariat divisions are urged to remain extra vigilant:

• Nuwara Eliya District: Kotmale West and Kotmale East.

• Kandy District: Udapalatha, Udunuwara, Doluwa, Pasbage Korale, and Ganga Ihala Korale.

Authorities have advised the public in these low-lying and river-adjacent areas to monitor the situation closely and take necessary precautions to ensure their safety and the protection of their property.

By S.K. Samaranayake