News

New IMF funds for Sri Lanka may be delayed as review sees revenue shortfall

Published

3 years ago

2023/09/29

The International Monetary Fund did not reach a staff-level agreement with Sri Lanka in its first review under a $2.9bn bailout package, due to a potential shortfall in government revenue generation, Al Jazeera has reported, quoting the lender.

Speaking after a two-week visit to the country, IMF delegation head Peter Breuer on Wednesday said a second tranche of about $330m under a lending programme would only be released after the IMF reaches a staff-level agreement, and there was no fixed timeline on when that would take place, Al Jazeera has said.

“Sri Lanka has made commendable progress in implementing difficult but much-needed reforms. These efforts are bearing fruit as the economy is showing tentative signs of stabilisation,” the IMF said in a statement.

“The team will continue its discussions in the context of the First Review with the goal of reaching a staff-level agreement in the near term.”

The IMF delegation said despite early signs of stabilisation, full economic recovery is not yet assured and growth momentum remains subdued.

In the last six months, Sri Lanka has seen its runaway inflation drop to 1.3 percent in September, its currency appreciate by about 12 percent and foreign exchange reserves improve.

But the island has struggled to improve its revenue with additional measures likely to be taken in the upcoming budget in mid-November.

Despite revenue mobilisation having improved relative to last year, the IMF said revenue was expected to fall short of initial projections by nearly 15 percent by year end.

“While partially due to economic factors, the onus of fiscal adjustment would fall on public expenditure if there were no efforts to recoup this shortfall. This could weaken the government’s ability to provide essential public services and undermine the path to debt sustainability,” said the statement.

Sri Lanka’s international bonds were unmoved by the news, trading slightly higher on Wednesday. The bonds are still in deeply distressed territory, trading between 46-48 cents to the dollar, Tradeweb data showed.

The global lender said Sri Lanka would need to strengthen tax administration, remove tax exemptions, and actively eliminate tax evasion to increase revenues and signal better governance.

Sri Lanka accepted offers to exchange about $10bn worth of defaulted local debt for new bonds, taking it a step towards meeting debt restructuring requirements ahead of the IMF review.

Sri Lanka has also held multiple rounds of talks with bondholders and bilateral creditors including Japan, China, and India to reach an agreement to rework its foreign debt after suspending repayments in May last year.

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Heat Index at Caution Level in the Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time

Published

6 hours ago

2026/04/26

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 25 April 2026, valid for 26 April 2026.

The Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-744649

News

Sagarika derailment disrupts coastal rail line; services to resume in two days

Published

7 hours ago

2026/04/26

Thilina Walpola

Railway General Manager Ravindra Pathmapriya said on Friday that re-railing operations of the derailed ‘Sagarika’ train have already commenced and that services on the Coastal Line are expected to be restored within two days.

Addressing the media, he said the Minister had instructed officials to take all necessary measures to minimise inconvenience to passengers.

Commenting on the incident, he said: “The damaged train is a significant loss for us, especially as our fleet is already limited. We have incurred this loss and hope to rectify the situation promptly. However, we will need to deploy an alternative train in its place, and discussions are currently underway.”

The ‘Sagarika’ train, operating from Beliatta to Maradana, derailed near the Wadduwa Railway Station on Friday morning (24), causing severe damage to one track of the dual-line section.

The Railway Department has since restricted services on the affected Coastal Line up to Panadura Railway Station.

Arrangements have been made to transport passengers from Panadura to South Kalutara by Sri Lanka Transport Board (SLTB) buses, from where train services will resume towards Matara and Beliatta.

Meanwhile, the Department said efforts are underway to clear the obstruction and restore at least one track by the end of the day.

News

PHIs launch Vesak ‘Dansal’ safety registration drive

Published

7 hours ago

2026/04/26

Thilina Walpola

Public Health Inspectors (PHIs) have announced that registration of ‘Dansal’ organised islandwide in view of the upcoming Vesak Poya has already commenced.

President of the Sri Lanka Public Health Inspectors Union (PHIU), K.P. Boralessa, said that organisers intending to conduct ‘Dansal’ are required to inform and register with the PHI attached to the relevant area.

He said organisers must also provide details of the location and the type of ‘Dansal’ being conducted.

Following registration, PHIs will conduct awareness programmes for organisers on maintaining required health and safety standards during the conduct of such events, he added.

Boralessa warned that legal action would be taken against those who organise ‘Dansal’ without proper registration or in an unsafe manner.

He further said PHIs will inspect venues on the eve of each ‘Dansala’ to assess suitability, including waste disposal arrangements, availability of drinking water, quality of water used for cooking, and condition of equipment at the site.

In addition, those involved in food preparation and serving will also be inspected to ensure hygiene standards are maintained, he said.

“These measures are taken to ensure that food provided at ‘Dansal’ is safe and hygienic for the public. Special attention must be paid to the ingredients used, and only healthy ingredients should be utilised,” Boralessa added.