News
NPP’s Strategy: Securing better deal with IMF, but no exit – AKD
By Rathindra Kuruwita
The National People’s Power (NPP) intended to secure a better deal with the International Monetary Fund (IMF) regarding the debt sustainability analyses (DSAs). However, if the renegotiation process dragged on or proved costly, the party would adhere to the existing DSA, NPP presidential candidate Anura Kumara Dissanayake said on Monday (16) during an Ada Derana political programme.
Dissanayake highlighted three salient points the NPP was planning to address. The first concern was increasing spending on social welfare. The IMF had set several parameters for Sri Lanka to achieve such as raising tax revenue to 15 percent of GDP, maintaining a primary surplus of 2.3 percent of GDP from 2025, and reducing the public debt-to-GDP ratio to below 95 percent by 2032.
“We are not opposed to economic targets,” Dissanayake said. “But while striving to meet these objectives, our small and medium enterprises collapsed, and living standards declined. We must consider the social impact of pursuing economic goals. We need to engage the IMF about social spending.”
He emphasised that only the NPP had openly declared that participation in rallies or canvassing for the party did not qualify one for government jobs or state subsidies. “We can say this because those working with us are motivated by social objectives rather than personal gain. When I mentioned tax cuts, many asked, ‘Can we afford this?’
People are no longer seeking subsidies; they want meaningful change,” he added.
The second issue the NPP seeks to discuss with the IMF, according to Dissanayake, is the proposed mechanisms to combat bribery and corruption. “We want to explain that laws and mechanisms alone are insufficient. Practical measures are needed to enforce these regulations, and we will require IMF assistance for that,” Dissanayake noted.
The NPP intended to negotiate with the IMF debt optimisation, questioning whether reducing the public debt-to-GDP ratio to below 95 percent by 2032 is an ideal target. “In Greece, this figure was adjusted after discussions with the IMF, and it’s crucial as debt restructuring negotiations rely on it. These are the three areas we are planning to discuss with the IMF,” he said.
Dissanayake also remarked that the DSA was formulated with inputs from Sri Lanka and questioned the accuracy of those contributions. He mentioned that Sri Lanka had already conducted negotiations with bilateral and commercial creditors based on the current DSA, setting the projected debt-to-GDP ratio at 95 percent by 2032. Agreements have been made with the Paris Club and Exim Bank.
“Some people wonder whether we would have to start from scratch if an alternative DSA is negotiated. We have an agreement on the policy framework with bilateral creditors, though not a final one. We believe there’s still room for quick negotiation, as there’s no final deal with ISB holders either,” Dissanayake explained.
He stressed that the IMF was concerned not only with Sri Lanka meeting set targets but also with achieving overall debt sustainability. “We are not coming into power to destabilise the country, but to develop it. If renegotiations with the IMF take too long and agreements fall through, we may have to stick to the current programme. Our approach is to work with the IMF to secure a better deal, not to withdraw from it,” he clarified.
The NPP will have to govern a country that had entered into an agreement with the IMF, Dissanayake said, adding that there are no alternative routes for debt restructuring. “We have put all our eggs in the IMF basket, and discarding it would be irresponsible. We must try, and I believe we can renegotiate. However, if the costs and time required are too high, we will stick with the current programme,” he stated.
Protesting Development Officers continued their hunger strike near the Presidential Secretariat, Colombo yesterday (01), for the seventh consecutive day.The protesters, who are members of the Lanka School Development Officers’ Association, are demanding that they be absorbed into the teacher service as they have served as teachers in state-run schools for nearly seven years.
Secretary of the Association, Viraj Manaranga, said the protesters were seeking an urgent meeting with the President. He added that a presidential aide had visited the protest site and offered to arrange for a meeting with the President on 03 Feb., but the union insisted on an earlier date. Manaranga warned that failure to grant a meeting could trigger a massive protest in Colombo today (02).
Four officers participating in the hunger strike have been hospitalised due to deteriorating health, while two more joined the fast on Saturday (31).
In a bid to raise awareness of their grievances, on 30 January a delegation of the All Island Development Officers’ Association visited Most Venerable
Warakagoda Sri Gnanarathana Thera, Mahanayake of the Asgiriya Chapter, and subsequently with the Chapter’s Registrar, Ven. Dr. Medagama Dhammananda Thera. The prelates said promises that had been made to them should be fulfilled.
The protest began on 26 January as a satyagraha, after authorities failed to respond to repeated requests to integrate the officers into the teaching service. The escalation into a fast-unto-death underscores the protesters’ frustration over the prolonged delay
by Pradeep Prasanna Samarakoon
The long-vacant post of Auditor General would be filled on 03 Feb., after months of controversy and delays, Minister of Transport, Highways and Urban Development Bimal Rathnayake said on Friday (31) in Kandy.
The Constitutional Council met at the Parliamentary complex on Friday to discuss the appointment but failed to reach a decision on a suitable candidate. The President had previously proposed four names on four separate occasions, all of which were rejected. The Council is now set to consider the fifth nominee.
The post has remained vacant since April 2025, following the retirement of Chulanta Wickramaratne, who served as the 41st Auditor General. More than 10 months have passed without a permanent appointment.
Sources said a female officer in the Auditor General’s Department has been nominated again, though her previous recommendation was rejected due to some allegations against her.
Meanwhile, senior audit officer Dharmapala Gammanpila, with 31 years of service and the department’s most senior official, has received backing from the Mahanayake Theras of the three Nikayas, the Maha Sangha, and several civil society groups for appointment as the 42nd Auditor General.
Sources noted that the three civil society representatives on the Constitutional Council will play a crucial role in the final decision.
by Chaminda Silva and SK Samaranayake
Two 18-year-old youth were arrested by the Southern Division of the Western Province Crime Division on 31 January for allegedly aiding and abetting two murders carried out in Dehiwala and Kohuwala. ICE (crystal meth) was found in their possession at the time of arrest.
The suspects are residents of Mount Lavinia and Boralesgamuwa, according to the police. They are accused of having helped carry out a murder at a hotel in the Dehiwala Police Division on 9 January, 2026, and an attack on a person travelling in a three-wheeler at Bodhiyawatta, Kohuwala, on 12 December, 2025.
Police said the charges included sending photographs of the victims to a criminal living overseas.
Investigations revealed that the youth had acted under the direction of a criminal known as Sando.
Under the guidance of Janaka Kumara, Director of the Southern Division of the Western Province Crime Division, investigations are being led by Police Inspector Hemanta Kumara, assisted by Sub-Inspectors Prasanna Gunathilaka and Prasanna (40248), and Constables Chaminda (72987), Anil (79598), Kumar (88762), and Senanayake (19363), who are continuing the probe.
by Norman Palihawadane and Chaminda Silva
China executes four more Myanmar mafia members
No decision yet on ICC meeting to discuss Pakistan boycott
Shoulder injury casts doubt over Eshan Malinga’s T20 World Cup
Showers expected in the Northern, North-central, Eastern, Western, Uva, Sabaragamuwa, Southern and Central provinces
Development Officers threaten to intensify their protest
Auditor General to be appointed tomorrow
‘Dates have the highest sugar content to fight Coronavirus’
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